Amazon Dropshipping 101

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As the world progresses in a pace faster than ever, netizens have taken to e-commerce platforms to do their bidding. Amongst e-commerce avenues, Amazon has the most traffic. According to Statista, Amazon was responsible for 45% of US e-commerce spending in 2019. Their proven seller success can be attributed to dropshipping, which explains the satisfaction of consumers worldwide.

What is Dropshipping?

Dropshipping essentially involves selling a product without the maintenance of an inventory, as a middleman between the producer and consumer. Third-party suppliers provide the products to dropshipping channels when purchased by customers. The product manufacturer is responsible for maintaining inventory and shipping goods.

Benefits of Dropshipping

  • Steep warehouse storage pricing can be avoided.
  • Inventory and shipping duties lie in the manufacturer’s hands.
  • Extensive access to suppliers.
  • Cost-effective spending on advertisements.
  • Focus on business expansion due to reduced workload

Amazon Dropshipping Guide

How does Amazon dropshipping work?

Apart from company-owned websites, manufacturers also use Amazon to sell their products. With an approved Amazon seller account, you can start selling on Amazon. The ‘Fulfilled by Amazon’ program (FBA) allows manufacturers to ship their products in, for which Amazon carries inventory and begins shipping to clients.

Advantages of Amazon dropshipping

Dropshipping on an e-commerce giant such as Amazon as its own advantages:

  • No Warehouse

With Amazon, you don’t have to keep a warehouse to store your stock. If your product is Fulfilled by Amazon, you can simply ship them to Amazon. Amazon delivers it to your customers when they place an order at your store.

  • Opening a Professional Store

Amazon creates your dropshipping store for you. It means that you don’t need to invest your time or effort into domain registration and web designing. You don’t even have to pay the hosting charges as Amazon hosts everything on its high-end server.

  • Low-Cost Investment

When you start your dropshipping business on Amazon, all you need to pay is $39.99, the monthly charge for Amazon. With a low-cost start-up, you can devote more time and capital to the promotion of your product.

  • Exposure to a Larger Audience

Amazon is a highly reputed e-commerce platform with an extensive customer base. When you start selling on Amazon, all Amazon customers automatically become your potential customers as well.

  • Quick Deliveries

Quick delivery is the fastest way into the hearts of your customers. Amazon is popular among its users for its faster delivery services. With an approved seller account on Amazon, you get to enjoy the same perks.

  • Flexibility of Niche

Amazon covers a wide variety of products on its e-commerce platform. It offers you the flexibility of expanding and experimenting with your dropshipping business. You can sell two or more products at a time, and easily replace your current product with another if you wish to.

Ensuring a profitable business

Proven strategies and their implementation are imperative in achieving profit, given the low-risk nature of dropshipping.

  • Pick the right product, targeting the ideal demographic. Choose reliable manufacturers for your chosen product.
  • Focus on marketing your product extensively. Use Amazon Ads to advertise your product accordingly.
  • Improve your seller rating. High ratings naturally attract a high influx of customers. Obtain the Buy Box feature on Amazon to ensure maximum sales.
  • Remember to maintain optimum shipping time on Amazon, and ensure that the pricing of the product is lower than most offers presented. Increase your feedback score and keep refund policies liberal and favourable to customers.
  • Use SEO tools to optimize your product page to ensure an organic ranking on search engines.
  • Add attractive options like coupons and customization to increase sales, while maintaining the expense-profit balance.
  • Consistently answer queries and treat customers amicably to form a strong client base for your products. Loyal customers are the key to progress.

Amazon dropshipping tools to use:

Several tools exist to make your Amazon dropshipping experience easily operable, including

  1. Shopify – Useful in tracking inventory and alerts on pending sales to be fulfilled.
  2. Merchant Words – Provides features to search volume, keywords, and keyword data.
  3. Feedback Express – Helps add positive reviews and remove negative reviews, with options to blacklist disorderly customers.
  4. Sellery – Allows you to win the Amazon Buy Box and run pricing experiments.

Conclusion

Amazon boasts a humongous audience of 300 million active users. Budding businesses ought to use Amazon to increase their customer base. Dropshipping with the right price and strategies could fetch you massive returns. Amazon is a great platform to start your dropshipping business as its users keep increasing, bringing new customers to your store.

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