Dropshipping is a popular business model that allows entrepreneurs to sell products without having to keep inventory or handle shipping. With the rise of e-commerce, dropshipping has become an attractive option for those looking to start their own online business. And one of the most popular platforms for dropshipping is Amazon. If you’re looking for how to dropshipping on Amazon, here are the steps you need to take to set up your business and start making sales.
Table of Contents
- Set up an Amazon seller account
- Do product research
- Find a dropshipping supplier
- Do keyword research
- List products
- Monitor your sales by using either Seller Central or the Amazon Seller app
Set up an Amazon seller account
The first step of how to get started dropshipping on Amazon is to set up a seller account. This will allow you to list and sell products on Amazon’s marketplace. There are two types of seller accounts on Amazon – Individual and Professional. You can choose between an individual or professional account, depending on the volume of products you plan to sell.
- Individual Seller Account: An individual seller account is suitable for those who plan to sell less than 40 items per month. It is free to sign up for an individual seller account, but you will be charged $0.99 per item sold, in addition to other selling fees.
- Professional Seller Account: A professional seller account is best for those who plan to sell more than 40 items per month. It costs $39.99 per month, but there are no additional fees per item sold. With a professional seller account, you also have access to more advanced selling tools and reports.
Once your account is set up, you’ll have access to the Amazon Seller Central dashboard, where you can manage your inventory, orders, and customer communication.
>> Read more: Amazon dropshipping policy
Do product research
To succeed in the process of how to drop shipping on Amazon, it’s important to do thorough product research to identify profitable niches and products with high demand.
Use Amazon’s Best Sellers and Movers & Shakers
One way to find popular products on Amazon is by using the “Best Sellers” and “Movers & Shakers” categories. These categories show you the top-selling products in each department and the products that have seen the biggest increase in sales over the past 24 hours.
You can use this information to get an idea of what products are currently trending on Amazon and what customers are buying.
Use Amazon’s Product Research Tools
Amazon also offers various product research tools that can help you find profitable products to sell. Some of these tools include:
- Amazon’s Best Seller Rank (BSR): This is a ranking system that shows how well a product is selling compared to other products in its category. The lower the BSR number, the better the product is selling.
- Amazon’s Keyword Tool: This tool allows you to search for keywords related to your product and see how many searches they get per month.
- Jungle Scout: This is a paid tool that provides data on product sales, competition, and trends on Amazon.
Using these tools can give you valuable insights into which products are worth selling on Amazon. Continuously track market trends, monitor competitors, and adapt your product selection strategy based on customer feedback and data analysis.
Find a dropshipping supplier
Once you’ve identified the products you want to sell, the next step is to find a reliable dropshipping supplier. A dropshipping supplier is a company that will handle the inventory and shipping of products for you. They will also provide you with wholesale prices so you can make a profit when selling the products on Amazon. Finding a reputable dropshipping supplier is essential for a smooth and successful business operation of how to dropshipping on Amazon. You can use platforms like Alibaba, AliExpress, or Oberlo to find dropshipping suppliers that meet your criteria.
Alibaba is one of the largest online marketplaces connecting businesses with manufacturers, wholesalers, and suppliers. It offers a wide range of products across various industries, making it suitable for finding suppliers for almost any niche. You can search for suppliers based on location, product category, minimum order quantity, and other criteria. Communicate directly with suppliers through Alibaba’s messaging system to discuss product details, pricing, and shipping options. Verify the supplier’s legitimacy by checking their company profile, ratings, reviews, and certifications.
AliExpress, a subsidiary of Alibaba, focuses more on retail-oriented dropshipping. It offers a vast selection of products at competitive prices, making it a popular choice for dropshippers. You can easily find suppliers on AliExpress by searching for products within your niche. Each product listing provides information about the supplier, including ratings, reviews, and shipping options. AliExpress also offers ePacket shipping, which provides faster and more affordable shipping options for certain regions.
Oberlo is a dropshipping app that integrates with the Shopify platform, making it convenient for Shopify store owners. It allows you to import products from various suppliers, primarily from AliExpress, directly into your Shopify store. Oberlo provides a streamlined process for managing product inventory, pricing, and order fulfillment. You can browse and select products from Oberlo’s extensive catalog, which includes millions of products across different categories. The app also offers features like automatic order fulfillment and real-time inventory updates.
Do keyword research
Keyword research is crucial for optimizing your product listings and making them discoverable to potential customers on Amazon. Use tools like Google Keyword Planner, MerchantWords, or Helium 10 to identify relevant keywords that customers are using to search for products similar to yours.
Google Keyword Planner
Google Keyword Planner is a free tool that helps you discover keywords and provides insights into their search volume and competition. Sign in to your Google Ads account (or create one) and access the Keyword Planner tool. Enter your initial list of keywords or your product’s landing page URL to generate keyword ideas. Review the search volume data and competition level for each keyword. Prioritize keywords that offer a favorable combination of search volume and manageable competition.
MerchantWords is a keyword research tool specifically designed for Amazon sellers. It provides estimated search volume data for keywords on Amazon and other marketplaces. Enter your main keyword or product category into MerchantWords to generate a list of related keywords. Analyze the search volume and prioritize keywords that are relevant and have a decent search volume.
Helium 10 is an all-in-one suite of tools for Amazon sellers, including a powerful keyword research tool called Cerebro. Cerebro helps you discover relevant keywords, estimate search volume, and analyze the competition. Enter a competitor’s ASIN or your main keyword into Cerebro to generate a list of related keywords. Analyze the search volume, competition level, and other metrics to identify high-potential keywords for your product listings.
Incorporate these keywords into your product titles, bullet points, and descriptions to improve your product’s visibility on Amazon.
Once you have your supplier and have done your keyword research, it’s time to list your products on Amazon. Create compelling product listings with high-quality images, detailed descriptions, and competitive pricing to attract potential buyers. Make sure to optimize your listings with the keywords you’ve identified to improve your chances of ranking higher in Amazon’s search results.
Monitor your sales by using either Seller Central or the Amazon Seller app
After your products are live on Amazon, it’s important to monitor your sales and performance to make data-driven decisions for your business. Use the reporting tools in Amazon Seller Central or the Amazon Seller app to track your sales, customer feedback, and inventory levels. This will help you identify which products are selling well and which ones may need adjustments to improve their performance. From that, you can promote your operation on how to dropshipping on Amazon by utilizing various marketing strategies.
Dropshipping on Amazon can be a profitable business venture if done correctly. By following the steps for how to dropshipping on Amazon, you can set up your business on Amazon and start selling products to customers all over the world. Get ready to embark on your dropshipping journey and turn your entrepreneurial dreams into reality.