Thinking about launching your own dropshipping business on Amazon’s platform, but don’t know where to start? Here’s a guide that explains in detail what to do one step at a time. Read this article to find out how to start dropshipping on Amazon.
Dropshipping on Amazon – table of contents:
Why dropshipping on Amazon?
Why should you choose Amazon in particular? Their list of benefits is considerable. The ratio between the size of the platform and the level of competition proves encouraging as well. Even though the American site is a global giant, there is space for freshers and small-timers. Besides, Amazon’s upper hand concerns the higher average price per product, which customers interpret as greater purchasing power.
As a rule, specialists in the field recommend dropshipping on Amazon to smaller businesses. In a situation where you sell 10 units of a product per month, you would have to store the goods somewhere at all times. You would also have to order it from a supplier beforehand freezing the capital in items waiting to go.
Dropshipping on Amazon also pays off when selling bulky products. After all, storing large-sized goods gets cumbersome and costly.
Dropshipping on Amazon is the transfer of all order fulfillment responsibilities to the supplier. If you establish a partnership with a professional, it guarantees fast as well as hassle-free delivery to your customers. That way you gain time to focus on developing your business in other areas during this time. Win-win.
Start selling: a step-by-step guide
Dropshipping on Amazon is a great solution for all, especially beginners. Setting up the operation is a piece of cake. How? Just follow our 5-step guide:
Naturally, first register on Amazon’s website. The process resembles a standard procedure in the industry. At this stage, you also choose a plan. There are currently two available:
- standard – this is a free option, recommended for those starting in this sector. The store owner sells a limited number of products, sets a rate per item (0.75 euros) as well as establishes fees that vary depending on item category and its destination. Amazon suggests this option for people who do not plan to sell more than 35-40 goods per month.
- Pro – costs €39 + VAT per month, but includes Amazon Logistics service that enables you to bring into play the company’s distribution channels together with its customer service. It imposes no restrictions on the number of products sold. An additional advantage is the ability to generate data reports, which are valuable inventory management tools. However, this plan too is subject to commissions and certain variables on each sale.
This is probably the key issue of the whole process. The best way to profit involves putting in as much effort as possible to find a good dropshipping supplier. How? First of all, seek a supplier who offers a competitive price, yet it should still appear attractive after adding a margin. Even if the product is really valuable, the customer will not buy it if its price is much higher than what the buyer is willing to pay.
Besides, your dropshipping partner needs to have a fast and efficient delivery system. Customers greatly appreciate prompt delivery. Ideally, the product should arrive at the buyer’s doorstep after just 2-3 days. That holds true for reasonably priced items as well – an indefinitely extended delivery time effectively discourages customers leading to a drop in sales.
The next step concerns uploading all the items you want to sell to your online store. If it is a new product, you will need to create a reference from scratch. With Seller Pro, you can upload in bulk at any time to Amazon platforms in the UK, Spain, France, Italy or Germany. If you opt for that option, you should also indicate whether you pick Amazon Logistics.
Keep in mind that a neat product description is crucial. Keep it genuine, original, and not duplicated, showing all the functions and parameters of the items. Also, point to the advantages one gets by using them. Finally, don’t forget about the quality and content of the photos. They must depict every detail of the product to encourage the purchase and at the same time be eye-catching, and pleasant to look at.
Amazon gathers millions of users visiting the platform, so you certainly won’t have to wait long for your first purchase. Once the process is complete, you’ll get a notification. As you are the dropshipper of the product, the supplier will send it directly to the customer with a white trademark. Make sure that your brand name is on the package, not your supplier partners.
When the customer receives the product, Amazon deducts the amounts set against each product accordingly, then pays the amount to the account you provided during registration.
That’s all you need to know about dropshipping on Amazon!