A recent study shows that North America dominated the dropshipping market with a share of 35.6% in 2019. This is the sign of the evolving, rapid increase of dropshipping in the eCommerce industry.
Considering the rise in dropshipping as a business process, many eCommerce giants are facilitating their platforms. Talking about eCommerce giants, Amazon is a company that has successfully been able to rank itself as an all-in-one online platform.
Amongst the multitude of things that Amazon has made available in business, dropshipping is an additional feature that comes with Amazon. This article will help you understand how to dropship with Amazon and why you should be dropshipping with Amazon.
By the end of this article, you will have insights into:
- What is dropshipping?
- What is Amazon?
- What is Amazon dropshipping?
- How to dropship with Amazon?
- Amazon dropshipping tools
- How much does it cost to drop ship at Amazon?
- Benefits of dropshipping with Amazon
- Tips for extra benefits with dropshipping with Amazon
So, let’s get started.
What is Dropshipping?
Dropshipping is an order fulfillment method where a business does not require to hold any inventory/products that they sell. They instead get the products supplied/delivered directly from a supplier.
The businesses rely on the supplier to store the products and fulfill the order to the customers. Once the customer places an order with you, you contact your supplier and place an order for the required products with them.
With dropshipping, you no longer have to incur the inventory costs or invest your time and energy in managing your warehouse as well as staff if you want to learn all about dropshipping, head over to our article, Dropshipping: A Complete Guide.
Now that you know what dropshipping is let us look at what Amazon is before we crack how to dropship with Amazon and why to dropship with Amazon.
What is Amazon?
Amazon is the world’s largest online retailer. The company first took off by just selling books but later expanded to a diversity of consumer goods, including all kinds of electronic gadgets.
This comprehensive option of goods available at Amazon has made it everyone’s first choice when it comes to online shopping today. As for the already existing businesses who have their stores, shops, Amazon gave these businesses to establish themselves online too.
From local brands to brands like Nike, Adidas, Zara, and so on, everyone’s going for Amazon to sell their products as an additional sales channel. Getting started on Amazon is a simple process; you just need an approved Amazon seller account.
Now that you have understood what Amazon is and dropshipping, let us find out what Amazon dropshipping is.
What is Amazon Dropshipping?
Amazon dropshipping is a simple process; you ship your products to Amazon, and Amazon carries the inventory for you and ships it to your customers directly. Considering Amazon has the reputation of delivering goods at a Godspeed, so your products will be processed and delivered to your customers at an incredible speed.
Here are a few rules that you must follow if you want to dropship with Amazon:
- All your products must have your information as the seller on the packing slips (Amazon will not be documented as the seller since it dropships the products for you)
- As a seller, you have to be responsible for the refund and return of the products.
- You must also comply with all the policies and terms of Amazon as a seller.
There are two restrictions by Amazon you must take note of:
- You cannot purchase products from another online seller and get them shipped directly to the customers.
- You are not allowed to put the name of any incorrect seller on the packing slip.
We hope you have understood what drop shipping is with Amazon. Now, let us find out how to dropship with Amazon.
How to Dropship with Amazon?
Dropshipping with Amazon is not a complicated process; it’s instead an easy one that you can quickly do just by following a few simple steps.
Pick an eCommerce Platform
Picking an eCommerce platform will simplify your dropshipping process with Amazon. You can opt for a platform like Shopify, which allows you to add Amazon as a sales medium. As a result, buying and selling online for both Shopify and Amazon will be a cakewalk.
Sell the Right Products on Amazon
When you are selling goods on Amazon, there are a few limitations and prerequisites that come with it. There is an eligible list of products that you can sell on Amazon, and then there are products that come under the restricted list of products.
- Counterfeit merchandise: Products displayed on our website must be authentic. Any product that has been illegally replicated, reproduced, or manufactured is prohibited.
- Unauthorized and unlicensed merchandise: All items displayed on our Site must be commercially produced and authorized or licensed for sale as a retail product.
- Recopied media: Media products (books, movies, CDs, television programs, software titles, videogames, and so on) that have been recopied, dubbed, duplicated, or transferred without permission of the rights holder are illegal to sell and are prohibited. This includes:
- Books - Unauthorised copies of books are prohibited.
- Music - Bootlegs, unauthorized live concerts, unauthorized soundboard recordings, unauthorized merchandise, etc., are prohibited.
- Movies - Unauthorised copies of movies in any format are prohibited. Unreleased/pre-released movies, screeners, trailers, unpublished and unauthorized film scripts (no ISBN number), electronic press kits, and unauthorized props are also prohibited.
- Photos - Unauthorised copies of photos are prohibited.
- Radio programs & Concerts - Unauthorised recordings or copies of recordings of radio programs are prohibited.
- Software - Recopied or duplicated software in any format is prohibited. Academic, OEM, back-up, fulfillment, promotional, beta (prerelease), unauthorized freeware/shareware, and "soft-lifted" versions of the software are prohibited.
- Television programs - Unauthorised copies of television programs (including pay-per-view events), Programs never broadcast, unauthorized scripts, unauthorized props, and screeners are prohibited.
- Video games - Video games displayed on our website must be full retail versions. Recopied and transferred video games are prohibited.
- Transferred media: Media transferred from one format to another is prohibited. This includes but is not limited to: films converted from NTSC to Pal and Pal to NTSC, laserdisc to video, television to video, CD-ROM to cassette tape, from the Internet to any digital format, etc.
- Promotional media: Promotional versions of media products, including books (advance reading copies and uncorrected proofs), music, and videos (screeners) are prohibited.
- Rights of Publicity: Celebrity images and the use of celebrity names cannot be used for commercial purposes without the permission of a celebrity or their management. This includes product endorsements and the use of a celebrity's likeness on merchandise such as posters, mousepads, clocks, image collections in digital format, and so on.
The following media items must not be listed for sale through Amazon.in Marketplace program:
- Promotional media: promotional versions of all media--including books (advance reading copies and uncorrected proofs), music, software, PC & video games, DVDs, and videos (screeners)--are prohibited.
- Unauthorized and unlicensed merchandise: all media--including books, CDs, VHS tapes, DVDs, software, and PC & video games sold through Amazon.in Marketplace program--must be fully licensed and authorized versions.
- Software: software that has been copied or duplicated in any format is prohibited. Additionally, academic, OEM, back-up, fulfillment, promotional, beta (prerelease), unauthorized freeware/shareware, and "softlifted" software versions are prohibited.
- Video games: Video games sold through Amazon must be full retail versions. Recopied and transferred video games are prohibited. Modchips, silver disks, video game emulators, Sega bootdisks, game enhancers, unauthorized video game compilations, and accessories are also prohibited.
- Region 1 DVDs: new region 1 DVDs are [restricted products] and may not be sold through Amazon unless you have received pre-approval for such sales generally from Amazon.
- Recopied media: copies, dubs, duplicates, or transfers of books, music, videos, television programs, radio programs, concerts, DVDs, software, etc., are prohibited. Recopied media infringe upon copyrights and trademarks and are illegal to sell.
- Cigarette substitutes: Electronic cigarettes and other nicotine-based products that are not approved as aids to smoking cessation by the relevant authority or agency.
- Electronic Surveillance Equipment: Any electronic surveillance equipment is prohibited from sale.
- Batteries: Mercuric oxide button batteries (button-shaped batteries used in vintage camera equipment), alkaline-manganese batteries containing mercury, and zinc-carbon batteries containing mercury are prohibited from sale.
- Modchips: Modchips or similar devices used to facilitate the use of copied or imported games are prohibited.
- Lock breaking devices: All devices used for lock picking, jamming, code reading, etc., are prohibited from sale. Lock picking guns, cards bypass keys, and tryout keys are prohibited.
Make an Amazon Seller Account on Amazon
When you plan to sell goods in high quantity, it's ideal to have an expert record. In the individual selling plan, you're charged 0.99 pennies per product sold, which can disturb your margin.
Remember that you'll likewise have to offer cutthroat valuing and an intermittent rebate while guaranteeing you make a huge enough benefit to reinvest in the business. So watch your edges. With an expert seller account, you pay a membership every month, just as a couple of extra expenses.
You'll need to enroll with your email on Amazon Seller Central. Then, at that point, you'll need to round out your name, email, and secret word. You'll then, at that point, need to give more insights regarding your business, for example, address and duty data.
Get Approval in Your Product Category
Considering a list of products that you first need approval on before you sell them online, there is a list of requirements that you can refer to for every product.
Let Deskera Track Inventory
When you are drop shipping goods with Amazon, it is important to keep track of your inventory. From what you are selling to the leftover goods, you can use the Deskera accounting system to keep track of your list to keep an account of all the goods going out and coming in.
This is how simple it is to dropship with Amazon. To facilitate the dropshipping process, there are also a few Amazon dropshipping tools that you must make use of. Let us find out what these tools are.
Amazon Dropshipping Tools for You
Here is a list of tools that will come in handy if you plan on dropshipping with Amazon.
FeedCheck – FeedCheck is another helpful tool that allows you to view all your product reviews just in one place. In case you have a wide selection of Amazon products in your store, you can view the review of all o your products together in one place.
By going through the reviews of the products, you will be able to improve your product. If there are some issues with a specific product, you will be able to fix those problems.
Merchant Words – Merchant Words is a tool that enables you to view the search volume and data of keywords. This will help you build your online business and expand it. Merchant Words is a payable tool.
Sellery – This tool has repricing strategies to help you win the Amazon Buy Box. This way you can run pricing experiments. And for your information, this tool is free to use!
Feedback Express –There are always some notorious customers who update negative feedback on your product just to disturb your reputation in the market. This could also be done by your competitors.
Hence, a tool like Feedback Express helps you get more reviews on your Amazon store and helps remove negative reviews; blacklist customers who are notorious for leaving negative reviews will be your best pick.
Amazon Volume Listing Tools – Amazon offers different devices to improve your experience. You can undoubtedly download bookkeeping pages for request and stock data. You can likewise alter valuing and product amount effortlessly.
These are some of the helpful tools that you can opt for if and when you dropship with Amazon. Now let us talk a little bit about money matters- How much does it cost to drop ship at Amazon.
How much does it cost to Dropship at Amazon?
Amazon dropshipping expects everybody to join as a salesman on Amazon's site. Their personal plan costs $0.99 per product sold, while the professional plan will cost you $39.99, paying little heed to the number of products you sell.
Amazon's drop shipping charges fluctuate from product type however are normally in 10%-15%. This probably won't be practical for those who're working with moderately little overall revenues.
It looks like you are all set for dropshipping with Amazon. Still, something’s missing? Not quite convinced why you should be dropshipping with Amazon? We may have a solution to that. We have enlisted all the benefits that you will enjoy as a dropshipper if you go for Amazon.
Let us delve right into it!
Benefits of Dropshipping with Amazon
Before you opt for anything, you must know what value it holds for you. Hence you will have some concrete reasons to dropship with Amazon with the following list of benefits. Let’s get started.
No Inventory Holding Costs
One of the major inventory holding costs for any company, any seller, is the warehouse cost. You have to pay for the warehouse as in the spot; then you have to pay the staff. You also need to take care of any systems that you have in place.
However, when you drop shipping with Amazon, you don’t have to incur these inventory costs. Amazon takes care of your goods once you send your products to them.
Amazon Suppliers on Your Side
Amazon purchases items in mass from numerous European providers. At that point, Amazon holds this inventory in their warehouses, prepared to transport to customers. The organization additionally handles returns and customer service in various dialects for all Amazon suppliers.
With Amazon, providers can develop rapidly and work all around the world. Besides, Amazon providers get help from account supervisors to deliberately direct their business to build benefits long haul.
A Humongous Audience
To none of our surprise, Amazon has 300 million dynamic customers. This implies Amazon as a business channel for your business can mean enormous returns. You sell the perfect product at the perfect cost, and you can bait in new customers every second of business with Amazon.
Furthermore, the reach of Amazon goes on for miles and miles. A place, a customer, a target audience that you may not be able to reach as a store on its own. By drop shipping with Amazon, you can reach that untouched, unexplored side of your business.
This, as a result, will help you expand your brand beyond borders and help you establish your brand as its own name, even beyond Amazon at some point. You will also be able to find an audience you never thought you would appeal to as a seller, as a brand.
Numerous Product Category to Hit
Consider Amazon your playground to sell products. You can choose to sell as many products as you want. There will be restrictions on the kind of products you may want to sell, but no restrictions on the variety of products you may want to offer to your customer.
Amazon has more than 30 classes that you can target. So you may choose to sell in two, three, five, or however many specialties as you want. With the right products and reliable providers, there's no restriction to the number of classifications and specialties you can take into account.
These are some of the compelling benefits of dropshipping with Amazon. Now that you are convinced why you should dropship with Amazon, for your further guidance, we have some expert tips that will help you in your dropshipping journey with Amazon. Let us take a look!
Tips to Win Added Benefits with Dropshipping with Amazon
There is more than meets the eye. In the case of dropshipping with Amazon, there are few hidden benefits that you might wanna unravel to take your dropshipping business to new heights. Here is a list of tips from our end to unlock some of the added benefits of dropshipping with Amazon.
Amazon Buy Box
The majority of Amazon's business comes from the Buy Box. This implies your objective as a dropshipper is to win the Buy Box so you can augment your business like the experts.
To start with, you'll need to have a high dealer rating. Many have found having a rating above 95% has functioned admirably for them. Secondly, you need to dispatch items rapidly, in a perfect world within 14 days.
Third, your expense ought to be lower than a large portion of different offers being introduced. A low discount rate, quick customer reaction time, and high criticism score also help you win the Buy Box.
Try not to depend on Amazon
Try not to be subject to sales from Amazon alone. Investigate different stages as well. By having Amazon as one of numerous business channels, you work on your chances for deals while limiting danger.
With Shopify, you can add different sales channels like Instagram, Facebook Messenger, and Facebook Shops to develop your image's crowd. It's likewise significant that if customers perceive your image, they'll be bound to purchase from you on Amazon. Be the place where your customers are.
Topnotch Keyword Research
Similarly, as you'd enhance your store's item pages for web search tools, when you're figuring out how to dropship on Amazon, you ought to advance your Amazon item pages too.
You can take help of tools such as Merchant Words to discover famous keywords or most used ones. On the off chance that you run Amazon promotions, you'll likewise approach an inventory of keywords you can use to enhance your product pages.
Streamline your Products Titles for Customer Goals
Amazon favors postings whose titles are pertinent to the purchaser's hunt terms, as opposed to being loaded down with watchwords. Set forth plainly, titles that emphasize on client plan stand out enough to be noticed by individuals.
Hence, it merits investing some energy considering what buyers desire to discover when directing inquiries identified with your items. Data that is important to buyers incorporates item credits like a model, size, shading, amount, and so on. Doing this well will help you rank high naturally.
Ensure you Price Products Right
When estimating products for Amazon, there are a couple of aspects to consider. Firstly, the expense of Amazon charges. You need to ensure your edges are sufficiently high that you can bear to pay Amazon's month-to-month and other related charges. You additionally need to ensure your edges are sufficiently high to make a benefit.
Offer Discounts and Coupons Better from you Competitors
Online shopping is all about buying at a lower price, offers, sales, and discounts. So, by making an Amazon coupon, you can assist with urging clients to purchase from you. On the off chance that you elevate the coupon to coupon locales, you can assist with driving more traffic from those hoping to score awesome results at the end.
Your Focus: Maximum 95% Rating
Having a 95% or higher rating has further developed the probability that you'll win the Buy Box. It's likewise extraordinary on the grounds that it makes you bound to show up in natural quests. Have a high rating, as this gives a significant lift to acquiring an expected customer’s trust. It gives your Amazon store an upper hand over those with lower appraisals.
We hope these tips unlock the additional benefits to rock your business.
The Bottom Line
Dropshipping is certainly a go-to for many small-scale and large-scale companies. Hence it is necessary to have the right medium to carry out the business. While it is clear that Amazon is making for the best one to start with dropshipping, you would also need a system to manage your inventory. And Deskera makes for a perfect system for any business.
With Deskera inventory management system, you keep track of all the goods that you are dropshipping with Amazon to further sell to your customers. In Deskera, the list automatically gets updated when you make changes to it. So, a Deskera system is a must when you are dropshipping with Amazon. Get a 15-day free trial today!
- Dropshipping is an order fulfillment method where a business does not require to hold any inventory/products that they sell. They instead get the products supplied/delivered directly from a supplier.
- Amazon is the world’s largest online retailer. The company first took off by just selling books but later expanded to a diversity of consumer goods, including all kinds of electronic gadgets.
- Amazon dropshipping is a simple process; you ship your products to Amazon, and Amazon carries the inventory for you and ships it to your customers directly.
- Amazon dropshipping expects everybody to join as a salesman on Amazon's site. Their personal plan costs $0.99 per product sold, while the professional plan will cost you $39.99, paying little heed to the number of products you sell.
- With Amazon drop shipping, you have no inventory holding cost; the Amazon suppliers are on your side. Moreover, there is a huge audience to cater to on Amazon, which means more sales. There is also numerous category of products to pick from so you can sell anything and everything.
- You must not completely depend on Amazon for your sales if you are dropshipping with Amazon.
- Comprehensive keyword research will help you build your brand and expand it online.
- You must price your product right.
- The aim should be to score a 95% rating.
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