It’s a great concept. After all, Amazon is one of the most well-known companies on the planet.
With 150.6 million mobile users, the Amazon app ranks first among the most popular shopping applications in the United States.
Are you ready to advance and manage your stock? Handshake, a wholesale marketplace created by Shopify, can buy wholesale items.
Furthermore, Amazon customers have a high level of trust and staunch consumer loyalty. You can utilize that trust for your brand by dropshipping on Amazon.
With the arrival of the Amazon sales channel, it’s easier than ever to sell on Amazon if you have a Shopify business.
It may appear intimidating initially, but dropshipping with Amazon can be a breeze if you understand the regulations and the fundamental process. In this Amazon dropshipping article, we’ll show you how to accomplish precisely that. Let’s get started without further ado.
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What is Dropshipping?
Let’s take a brief look at how dropshipping works in general before we get into Amazon dropshipping.
Dropshipping is the technique of selling a product without worrying about stocking or shipping it.
Manufacturing the product, keeping an inventory, and distributing the items to the consumer are all responsibilities of the product maker.
As a dropshipper, you must run an online business where you manage everything linked to customers, including receiving orders, making orders with suppliers, and providing customer care.
What Is Amazon?
Amazon is one of the world’s most popular eCommerce sites. Because it lets businesses sell their items on its platform, it has grown in popularity.
Manufacturers and companies may sell on Amazon to supplement their existing sales channels.
You’ll be able to start selling on Amazon as soon as you’ve been accepted for an Amazon seller account. It’s important to remember that not all brands and products are approved.
What Is Amazon Dropshipping?
So, how do you get started with Amazon dropshipping? Amazon’s Fulfilled by Amazon service allows you to dropship.
You ship your items to Amazon, and they store the inventory and delivery straight to your consumers as part of this arrangement.
The advantage of this program is that Amazon has some of the shortest delivery periods on the market, which means your consumers will receive their orders even faster. Customers like quick delivery times, if there’s one thing we’ve learned from the twenty-first century.
Can You Dropship on Amazon Legally?
Yes, Amazon supports dropshipping on their site as long as you follow a few simple guidelines.
You must always:
Be the one who keeps track of your items’ sales.
On all packing slips and other material contained or given in connection with your items, identify yourself as the vendor.
You’ll be in charge of accepting and processing product returns from customers.
All other requirements of your seller agreement and applicable Amazon policies must be followed.
Examples of dropshipping that are not permitted:
Buying things from another online shop and having them shipped to customers directly.
Ship orders with packing slips, invoices, or other documents that list a different seller’s name or contact information than yours.
You may learn more about drop ship with them on Amazon’s website.
How Much Does It Cost to Start Dropshipping on Amazon?
You must first register as a seller on Amazon’s website to use Amazon dropshipping. The Individual plan costs $0.99 per unit sold, whereas the Professional plan costs $39.99 regardless of the number sold.
Dropshipping fees on Amazon vary by product category but are generally between 10% and 15%. For those with minimal profit margins, this might not be possible.
Is Amazon Dropshipping Profitable?
It’s possible. The average drop shipper makes a 10% to 30% profit margin on their items. If they dropship through Amazon, the platform will deduct about 15% of their total income.
If you sell a product at a 30% profit margin, your net profit after selling it on Amazon will be 15%. This is a good deal, especially considering the large audience you’ll be able to reach.
What Are The Benefits Enjoyed By Amazon Dropshippers?
You’ll learn about some of the advantages of running an Amazon dropship business in this section of our tutorial.
No warehouse cost
One of the advantages of an Amazon dropshipping business is that you don’t have to pay for a warehouse. FBA (Fulfillment by Amazon) is an option for some Amazon sellers (Fulfilled by Amazon). FBA allows vendors to ship their items to Amazon and send them out on their behalf.
Amazon buys in bulk from several European vendors. The material is then held in Amazon’s warehouses, ready to be sent to customers. For all Amazon vendors, the business also handles returns and customer care in various languages.
Suppliers (even small enterprises) may develop swiftly and operate internationally with Amazon. In addition, account managers assist Amazon suppliers in strategically guiding their businesses to maximize long-term revenues.
Large audience to sell to
There are 300 million active Amazon users. As a result, leveraging Amazon as a sales channel for your company might result in significant profits. You can attract new clients if you sell the correct goods at the appropriate pricing.
Another advantage is the chance to effortlessly contact new clients who might not have found your shop otherwise. This will assist you in broadening your target market. Who knows, maybe you’ll find a whole new audience you didn’t even know existed!
Amazon dropshipping benefits
Multiple categories to target
You may choose from over 30 different categories on Amazon.
As a result, you have the option of selling in two, three, five, or as many niches as you like.
There’s no limit to how many categories and niches you can serve with the proper items and reliable providers.
You may, for example, sell in both the Electronics and Tools & Home Improvement categories at the same time because there is no restriction on reaching different audiences.
How to Dropship on Amazon: 8-Step Checklist
1. Choose an eCommerce platform
Because Shopify just joined Amazon, it would be excellent to use their eCommerce platform. Users may integrate Amazon as a sales channel on Shopify to make managing orders on both platforms easier.
2. Sell the right products
There are various qualifications and constraints for business owners who wish to sell their products on Amazon.
According to Amazon’s list of qualified stores, you may create an Amazon store without permission if you’re in a specialty like books, computer and video games, electronics, office supplies, and so on.
Make sure you’re not in any of these categories by looking at Amazon’s list of restricted products. Hoverboards and risky products are examples of these objects.
3. Create an Amazon seller account
It’s preferable to have a professional account if you plan on selling a lot of things. You’ll be charged 0.99 cents for each item sold if you use the individual selling plan, which can eat into your profit margins.
Remember that you’ll need to provide competitive pricing and the odd discount while still making enough money to reinvest in the company. So keep an eye on your margins. You pay a monthly membership and a few extra costs with a professional seller account.
You’ll want to sign up for Amazon Seller Central using your email address. After that, you’ll need to provide your name, email address, and password. Next, you’ll be asked to give further information about your company, such as its address and tax information.
4. Get approved in your product category
As I previously stated, Amazon clearance is required for specific genres and product kinds. Fashion, cosmetics, and jewelry are just a few of the prominent areas that need permission before you can start selling on Amazon. Each category’s unique approval criteria may be found here.
5. Set up your Amazon account on Shopify
Connect your Amazon account to your Shopify store once you’ve been accepted and your account has been formed. Scroll down to ‘Sales Channels’ on the left panel of your Shopify account and click the Add button beside it.
A pop-up window will appear. The first item on the list should be Amazon. Select ‘Add Channel’ from the drop-down menu.
Shopify amazon sales channel
Then, continue with ‘Connect to Amazon.’
6. Start dropshipping from Amazon to Shopify
See the left panel of Shopify for the Amazon sales channel connection. Select ‘Create Listing’ from the drop-down menu.
Then, select a product by clicking ‘Select Product.’ There are two possibilities available to you. If your company manufactures the item, you’ll need to obtain UPCs. As a dropshipper, though, you’ll select the second option: ‘This product is manufactured by a different brand.’
Then, to become a seller for that SKU, you’ll need to look for it. Click ‘Select’ once you’ve located the product you want. Finally, you must click ‘Publish’ to complete the procedure.
If you’re new to dropshipping, be sure to find low-competition, high-profit items to list on Oberlo (a Shopify app that sources Oberlo products). Shopify allows you to import Oberlo items straight into your store, which you can then sell on Amazon.
7. Have Shopify track inventory
Ascertain that Shopify keeps track of inventory levels. This guarantees that when a consumer places an order on Amazon, the item is still available.
Make sure clients can’t order things in stock; this can lead to bad feedback and extra customer support time you didn’t budget for.
8. Start promoting your Amazon store
Isn’t it true that you won’t make any sales if no one knows about your shop? The following step is to direct traffic to it.
Make sure to advertise your shop on all of your social media accounts. You may also build Amazon advertising to help attract new customers and increase sales.