Everything You Need to Know About Amazon Dropshipping 2021


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If you want to sell things on Amazon but do not want to spend a lot of money, you can opt for Amazon dropshipping. Amazon is one of the most visible brands around the world. About 15.06 million mobile users access the Amazon app daily through their mobile devices.

Dropshipping is a way to ensure quick, easy, and cost-effective shipping of products to buyers anywhere in the world. In this article, you will get to know everything about dropshipping on Amazon.

What is dropshipping?

Before going into the details of Amazon dropshipping, let’s quickly discuss what dropshipping is.

Dropshipping is the selling of products without the responsibility of carrying the inventory.

Your job is to maintain an online store where you can handle customer needs like taking orders, fulfilling them, and managing queries/complaints.

Why choose Amazon for dropshipping purposes?

Amazon is one of the biggest e-commerce websites in the entire world. It has become popular because it allows retailers to sell their products on its website.

You can sell on Amazon after you get the approval of having an Amazon seller account.

What is Amazon dropshipping?

You can start dropshipping on Amazon by fulfilling the Amazon program. In this program, you will ship your products to Amazon, where they will carry the inventory and ship directly to your customers.

The benefit you can get from this program is that Amazon has the fastest shipping time in the market, which means that your customers can get their products on time. According to research, about 61 percent of people want their packages delivered faster than the usual delivery time.

How does Amazon dropshipping work?

Dropshipping is an e-commerce method where sellers take orders on behalf of distributors, manufacturers, or suppliers. Therefore, when a customer buys a product, the seller uses their supplier to fulfill sales.

Amazon dropshipping involves three simple steps.
  • A customer purchases an item listed by the supplier on Amazon.
  • When the customer completes the transaction, the seller purchases that product directly from the supplier and passes the customer’s information to the supplier.
  • When the supplier receives the buyer’s information, they ship the product to the customer.

Therefore, dropshippers act like they are selling goods on their own. And, the customer will never get to know that products are actually coming from the manufacturers.

Benefits enjoyed by Amazon dropshippers

In this part, you will get to know some benefits of doing dropshipping on Amazon.

i. Fewer startup costs

One of the best benefits of having Amazon dropshipping is that it eliminates the need for a warehouse. This is because contrary to other eCommerce methods, dropshipping does not require you to own your inventory.

ii. Fast and easy to set up

In Amazon dropshipping, all you need is an online store from where you manage your sales. It is easy to set up because there are fewer logistical barriers than a traditional eCommerce business.

iii. More audience to sell products

Amazon has about 300 million active users. It means you can get access to a vast audience that you can sell your products to. You can make new customers that you would probably not be able to reach on your own.

Disadvantages of dropshipping

i. High competition

The competition in dropshipping is very high because of fewer barriers to entry. In dropshipping on Amazon, you compete with the entire world because nothing can stop other Amazon sellers to sell the same product as yours.

ii. Slow delivery

Sometimes the products that are dropshipped from Amazon are exported from suppliers or manufacturers. And often, those suppliers are based overseas. For that reason, shipping might take a bit longer.

iii. Lack of quality control:

Because items are shipped directly from the manufacturer to buyers, you have no quality control over them. This is why there is a greater chance of them being received in a damaged/faulty state by the customer.

How to start Amazon dropshipping?

Now that you have some knowledge about dropshipping on Amazon and how it works, let us discuss how you can set yourself up as a dropshipper.

Step 1 – Set up an Amazon seller’s account

If you want to sell on Amazon, you need an Amazon seller account. You can get access to the seller account by going to sellercentral.amazon.com. Here, Amazon offers you two choices for the type of account you want to start with i.e. an individual or a professional account.

Step 2 – Find the right products

There are several requirements for store owners who want to sell on Amazon. According to Amazon, you can open a store without approval if you have a niche, like books, computers, electronics, or video games. But you need to find a product on amazon that has a high search volume or less competition. You can do this by using some tools. One of the most sought-after tools for this purpose is Jungle Scout.

Step 3 – Find a supplier

Once you have completed all the above steps, it is time to find the dropshipping supplier who will fulfill orders on your behalf. You can read or visit any eCommerce site to find a low-cost supplier for you. 

Step 4 – List your products on Amazon

After you have the product idea and supplier to fulfill the orders, you need to create an Amazon product listing. To do so, go to the inventory tab, scroll down to “add products” and click on it to create a new product listing. After that, fill out the required information. If you are setting a price for your products, do not forget to add an Amazon fee. When you are done with all these requirements, click on “publish” and that’s it.

Tips to boost your dropshipping business on Amazon

Tip 1. Promote your listing:

If you want to maximize your sales on Amazon, you need traffic on your listing. You can do this by trying Amazon pay per click (PPC). With PPC, you can create advertisements for your products that make your products appear higher in Amazon search results. Also, you can drive traffic through blogging, social media, and email marketing.

Tip 2. Focusing on customers:

While you are doing dropshipping, you don’t need to manufacture that product or ship it. Instead, you need to spend your time managing customer service. The better you handle customers, the easier it will be for you to get positive reviews on Amazon, which may bolster your sales further.

Conclusion

The biggest perk of Amazon dropshipping is that there’s no need for you to handle any inventory or manage a warehouse. After setting up a seller account and getting approval from the product category, you are ready to generate sales. We recommend you to weigh your options and goals to find the right online selling strategy that may help grow your Amazon dropshipping business.

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He is an expert and having 5 years of experience in helping businesses to build a meaningful online presence. He is a former online marketing specialist with wide-ranging expertise - including market research, design, messaging, and project management.

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