Step by Step to Start Amazon Dropshipping with No Money.
Dropshipping is one of the best ways to start your eCommerce business without worrying about shipping or inventory. This way, you purchase the item from a supplier and ask the supplier to ship it directly to the customer, which means you don’t have to handle the product directly.
Amazon is one of the most popular platforms for dropshipping you might want to start selling on. With Amazon, you can discover thousands of products you might start selling online that there is no commitment and no credit card required. In this article, you’ll learn how to start your eCommerce business on Amazon, the benefits and strategies of the Amazon dropshipping, and how to sell on Amazon.
Dropshipping is the process of selling a product without the responsibility of carrying inventory or shipping the goods. In this article, you will learn some benefits of dropshipping that help you understand why and how to dropship, especially on Amazon.
Obviously, when you are a dropshipper, you don’t need to carry any inventory, which makes dropshipping less risky. In addition, there is less work involved in the process. Also, there are fewer costs because you don’t need to pay for a warehouse to hold the inventory. As there is no inventory in dropshipping, you can easily be a successful dropshipper.
Few skills needed
You have to not have high skills to have a successful dropshipping business. Simply, As a dropshipper, you need to be great at marketing, and you have to be a good administrator and providing excellent customer service. These three skills help you to be a successful dropshipper. When you are skillful in marketing you can easily attract more customers. Advantageously, you can intensify your marketing efforts as you don’t need to worry about inventory or the cost of labor associated with shipping products. Also, you have to be good at administrative tasks that you need to manage orders, pay for taxes, and expenses. Ultimately, you will be able to provide excellent customer service that helps you maintain positive relationships with the customers.
Test products easily
Another benefit of dropshipping is that you can easily test products. As you don’t have to carry inventory, you can run ads on products to see which products convert best. You can easily add or remove products with no losses or worrying about the costs. There’s no cost, aside from advertising, for a low performing product because there is no inventory.
Low start-up cost
Building your dropshipping business will not cost too much. Your main expenses include just the cost of goods, advertising, and website. In addition, there’s no warehouse required for inventory, and you only purchase products when a customer places an order. Also, you don’t need to hire extra employees to manage the shipping of products.
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In this guide part, you’ll learn some of the basics and benefits of Amazon dropshipping and how to dropship with Amazon, easily.
What is Amazon?
It’s one of the biggest eCommerce websites and one of the most popular platforms for dropshipping. Amazon allows retailers around the world to sell their products on their platforms. brands and Manufacturers can also sell on Amazon as an additional sales channel for their stores. Once you are approved for an Amazon seller account, you are able to sell on this eCommerce platform, knowing that not all brands and products get approved on this platform.
How Does Amazon Dropshipping Work?
Amazon offers you an easy, simple way to dropship without worrying about shipping and inventory. You can dropship on Amazon through their Fulfilled by Amazon program. All you have to do is just adding the products you like to sell from Amazon onto your store and receive orders, and the orders will be shipped directly to your customer through their program. Most advantageous, customers can get their products sooner in Amazon as it has some of the fastest shipping times on the market.
Why Amazon for dropshipping?
No warehouse cost
In Amazon dropshipping, you don’t need to pay for the cost of a warehouse to sell your products. As well, Some sellers of Amazon prefer to make their products FBA (Fulfilled by Amazon). This way, sellers ship their products to Amazon and Amazon sends those products out for them without need to a warehouse to keep the products in
With Amazon, suppliers can grow quickly expand their sales internationally due to the many benefits it offers. It sources suppliers who buy in the bulk form. Then, it makes the supply in their warehouses ready to ship to customers, handling customer service, and returns in different languages for all suppliers of Amazon. Not yet, Amazon suppliers receive help from account managers that effectively guide their business to increase long-term profits.
Large audience to sell to
If you use Amazon as a channel to announce for your business, you will get large results since it has 300 million active users. All that you need is to choose the right product with the right price for selling to attract many new customers. Thus, it helps you to find your required customers who are in need of your products rather than those who you get by using your online store.
Lower ad spend
You have the option to run Amazon ads to gain sales and build a positive reputation on Amazon. You can set the cost of Amazon ads freely. That means you can control how much you want to spend on Amazon ads as there’s no minimum or maximum requirements.
In this part, you’ll learn a few simple techniques to be a successful dropshipper on Amazon.
Win the Buy Box
If you want to maximize your sales on Amazon, you should win the buy box so you can do that. Most of Amazon’s sales come from the buy box. To win the buy box you need to have a high seller rating mostly above 95%, and ship products quickly. Also, your cost should be lower than the others’ in addition to having a fast customer response time, low refund rate, and high feedback score.
Don’t rely on Amazon
Don’t rely only on Amazon’s sale, but also you must have your own store. Use Amazon as one of your main channels since it develops your odds for sales, decreases risk, and gives you a good brand that attracts your customers.
Aim for a 95% seller rating
Having a high seller rating, above 95%, is very good for you due to several reasons. It gives you a high chance to win the buy box. Also, helps you to appear in organic searches, and increases your customer’s trust in your sales.
Do keyword research
When you want to be a successful dropshipper on Amazon, you should optimize your Amazon product pages as well. There are many tools Merchant Words you can use to determine popular keywords. If you’re running ads, it’ll help you effectively to target customers better.
Price your products accordingly
There are some points to take in consideration when pricing products for Amazon. On one hand, you need to check the cost of Amazon fees that you have to ensure your margins are high enough to pay Amazon’s monthly fees. On the other hand, you need to check your margins are high enough to make a profit.
Offer a better coupon discount than competitors
One of the good ways to motivate your customers to buy your products is by creating an Amazon coupon. If you promote it to coupon sites, you can derive more traffic. but don’t forget to choose a suitable price for the cupon in which you can pay your expenses and profitable.
Dos and Don’ts
You can use Amazon dropshipping with some don’t and dos that have to put in your considerations.
You must always:
- Be responsible for accepting and processing customer returns of your products
- Identify yourself as the seller of your products on all packing slips and other information in connection with them.
- Be the seller of record of your products
- Acquiesce with all other your seller agreement terms and applicable Amazon policies.
You must not:
- Purchase products from another online retailer
- ship directly to customers by the retailer.
- Shipping orders with invoices, packing slips, or contact information other than your own.
You can read more about how to dropship with Amazon on their website here.
Amazon Dropshipping Tools
In this part, you can find a list of tools that you will face when learning how to start dropshipping on Amazon:
Shopify: it can be used to add Amazon as a sales channel in your store. You can also use Shopify to track your inventory and alert you with Amazon sales you need to fulfill.
Merchant Words: this tool enables you to view keywords and keyword data and the search volume. The pro plan costs $30/month only.
Feedback Express: It allows you to receive more reviews on your stores and avoid all the negative ones and blacklist all negative customers. That way, you could keep the rating of your products high. The pricing starts at $20/month
FeedCheck: If you have a large selection of Amazon products on your store, this is a great tool to view the reviews on your product. This way, you can work better on developing your reviews while providing better customer service and monitor competitor’s products. It costs you at least $19/month.
Sellery: This tool helps you win the Amazon buy box with its repricing strategies. It allows you to run pricing experiments to stay competitive while maximizing profits. You can try this tool for free.
Amazon Volume Listing Tools: Those tools are used for simplifying your seller experience. It’s easy in use, such as downloading spreadsheets regarding order and inventory information. Also, it helps you modify quantity and pricing easily.
How to Sell on Amazon
Choosing an eCommerce platform
The eCommerce platform would be great since Shopify started to partner with Amazon. Shopify also Let their users add Amazon as a channel for sales to make orders management easier
Do you sell the right products?
If you want to sell your product on Amazon, there are some products that you can open up an Amazon store without approval such as Computers, video games, and so on. While there are others forbidden products Such as dangerous goods can’t be uploaded or approved.
Create an Amazon seller account
When you start creating a seller account on Amazon, you need to register with your email on Amazon Seller Central. Then, you will fill your personal information and continue to provide more details about your business. If you plan on selling a high volume of products, it’s best to have a professional account that you pay a subscription monthly a few additional fees. Make sure to offer competitive pricing, the occasional discount to make a large enough profit to reinvest in your business.
Get approved in your product category
Many products such as fashion, beauty, and jewelry need Amazon approval before starting up your store there. There is a specific approval requirement you have to use for each category.
Set up your Amazon account on Shopify
Connect your Amazon created account to your Shopify store once you have been approved. Then, scroll down to sales channels, which is in the left panel of your Shopify account, and click on the + button beside it. Then a pop-up appears. You should put Amazon as the first item on the list and then add the channel. Finally, click on connect to Amazon
Create Amazon product listings easily
To create Amazon product listing easily, you have to follow these steps. First, click create a listing. then, click select product which has two options. Make sure of buying the UPX codes if your codes are made by your brand. However, if you are a dropshipper and your product is made from another brand, you have to choose the second option. After that, you will be able to search for the product and be an SKU seller. Finally, you have to publish the process to be completed.
Have Shopify track inventory
When a customer asks for an amazon product, make sure that it is available in stock to avoid your customers’ negative reviews. Thus, don’t allow customers to order products out of stock.
Start promoting your Amazon store
Send traffic to your Amazon stores to encourage sales and create Amazon ads to boost sales
Dropshipping From Amazon to eBay
Dropshipping is a model that is used for several years. It allows sellers to buy the products at a very low price from Amazon and sell it on eBay at a higher price. In this case, anyone who buys products from eBay will receive it in Amazon packaging in which it is not a good experience to them. Although this model is legal, it’s negative to be used since it increases the product’s profits without identifying which company produced it. Thus, it’s advisable not to use such a model.
If you want to dropship your own product, you can use Oberlo in which you can find many men’s and women’s products there. You can add your own products by just clicking on the button on the website.