Did you ever think about selling products on Amazon? Considering it is a leading brand that is recognized worldwide, you know that you will be able to target a much larger audience and communicate with them effectively and efficiently.
But does the whole process of storing the inventory and setting up an enormous warehouse seems daunting? The questions like where will include supplier ship the final products and where will you store considerably large products that will earn you hefty products?
But with Amazon’s drop shipping, you no longer have to worry about any of this. This model of eCommerce business frees you from the liability of carrying the goods and shipping them. You will get to display the product and fascinate the customers, but the supplier will source you once you make a sale. And the supplier will ship it directly to the customer once he gets notified from the seller (you).
Why should you choose drop-shipping on Amazon (benefits of dropshipping)?
If you find yourself questioning the benefits of amazon drop-shipping, then we must tell you that we can find you a myriad of reasons convincing enough that you must pursue this business option.
- Zero Warehouse Costs
Not having to pay warehouse costs is an excellent advantage of drop-shipping on Amazon. Many Amazon sellers choose to manufacture their products Fulfilled by Amazon. Via FBA, sellers send their products to Amazon, and then they are shipped to the customers.
- Massive Audience
Currently, Amazon has 300 million users. You can easily reach new customers and create effective channels for your business. You can sell the products with a competitive price advantage and lure in a surge of customers. You can even discover a whole new segment on Amazon to serve.
- Amazon Suppliers
Amazon itself purchases products in bulk from suppliers worldwide, and they store and manage them in their warehouses. They even invest in customer service and handling of returns. By affiliating with amazon, even small-scale suppliers can grow to generate long-term profits.
- Low Start-up Costs
To help you understand this advantage better, here are a few examples that illustrate it:
- You only purchase the product from the supplier when an order is placed
- You do not have to invest in a warehouse for inventory storage
- You don’t have to hire employees for the management of shipping and products
- Your expenses would mainly include the cost of goods, marketing, advertising, and website
How can you start dropshipping on Amazon?
Follow the following guide so you can start drop-shipping on Amazon.
- Step 1: Set-up an Amazon Sellers Account (if you don’t know how or have already been denied or banned — not a problem, you can buy an account from us).
If you decide to sell on Amazon, you first have to set-up a seller’s account on Amazon. Just follow this link so you can set-up an account: sellercentral.amazon.com
Here Amazon will grant you two options from which you can choose one: individual and professional. This option will help you to adjust the nature of the account and define its purpose and function. These two accounts are greatly different in serving their purpose.
- Step 2: Find the right product
Next, the search for finding which product you will sell begins. Here you have to search for a product that has low competition but is high in demand. This way, you will filter out products that may not earn you profit and products that no one wants.
Housewares and home and garden accessories are very safe options for a beginner. If you choose to drop-ship on Amazon, you should start simple. Try selling more valuable products if you know the supplier or are educated in this field. Otherwise, it can be hazardous.
- Step 3: Check the availability of the product
Make sure you browse sites like Alibaba and AliExpress, Home Depot, Sam’s Club, Walmart, Wayfair and etc. to make sure that the product is available. This will help you find the right supplier and connect with them. These online platforms are dense and are packed with the prospect and potential suppliers.
Just choose the product you are interested in and carefully scrutinize the details. The product costs and shipping costs will be written, and you will learn about the specifications and the features.
- Step 4: Create Amazon Listing
Now that you have decided which product you will sell and found a supplier, it’s time to get in the game. Now you have to create an official product listing.
Go to your seller’s account and then go to inventory. There click on the option that reads “Add Product” and then click on “create new product listing“. First, you would be required to choose the product category for the convenience of the customer. Then you have to fill out the information about the product.
While you are setting the price, make sure you know that you would have to pay 8-15% of the referral fee based on the category as a professional seller. As an individual seller, you would have to pay an additional $1.00 for every sale you make.
Now you would be ready to publish your listing. After that, it will be time to make some sales!
How can you avoid account suspensions (knowing that Amazon doesn’t like dropshippers)?
Sometimes your account may get suspended because of a violation of the drop-shipping policy. It would be best if you were aware of the policies so you can avoid this hassle. Read the official Amazon Drop-shipping policy here.
And all in all, Amazon doesn’t particularly like dropshippers, especially those who source from big-name retailers like Home Depot, Walmart, eBay and etc.
But… not saying you can’t do that or be successful by re-selling from other big brand stores.
Ultimately, you might get suspended/banned — but since you have no inventory – it’s not a big deal. Also, you can always buy a new account or several accounts and continue drop-shipping.
To avoid account suspension, you must adhere to the policies. Steer clear of these violations:
- Make sure you identify yourself as the official seller, and you must mention it on the packaging, slips, and invoices.
- Remove any trace of a third person who can be identified as the supplier or drop-shipper before shipping the order to the respective buyer.
- Comply with all Amazon terms and the clauses of the seller agreement.
- You will be held accountable for processing all customer returns.
- Be the seller of record of your products.
Hopefully, this post must have gotten you excited and exhilarated about the venture you are going to embark on. All the people who started the drop-shipping business on Amazon have been greatly satisfied with work and this e-commerce model. So, there is no reason for you to wait out on it anymore!
And if you need any kind of helo setting up your account — don’t hesitate to contact us.