What Is Amazon Dropshipping? How To Dropship on Amazon in 2024

What is Amazon dropshipping?

Amazon dropshipping is a operating schedule where sellers list products on Amazon without holding inventory. When a sale is made, the seller purchases the item from a third-event supplier who ships it directly to the customer.

Does Amazon allow dropshipping?

Amazon allows dropshipping on its marketplace as long as you pursue these rules:

• You must be the sole seller of record for products.
• Your business must appear as the seller on packing slips, invoices, and other information in connection with products.
• All information identifying the third-event seller must be removed before shipping the order to customers, to avoid confusion.
• You must be responsible for accepting and processing returns.
• You must pursue all terms of your seller agreement and Amazon’s dropshipping policy.

How much does it expense to dropship on Amazon?

Amazon seller fees vary by product type but are usually between 8% and 15%. If you’re working with tiny margins when dropshipping Amazon products, this could eat into your profits.

Product categories with the lowest seller fees include appliances, buyer electronics, tools, and automotive products.

However, because Amazon charges fees as a percentage of the total worth, the actual fee amount will vary depending on an item’s overall expense. For all types of products, Amazon takes a minimum fee of 30¢.

To sell on Amazon, you’ll also require to purchase a selling schedule. Amazon’s person schedule costs 99¢ per unit sold, while the Professional schedule costs $39.99 per month, no matter how many products you sell.

Is Amazon dropshipping profitable?

There are many pros to Amazon dropshipping, and it can be profitable. The average dropshipping spread is between 10% and 30% (but recall, Amazon will receive referral fees on sales).

Margins can be higher if you triumph the Amazon Buy Box, but that’s a highly competitive procedure and not something you should depend on.

Pros and cons of Amazon dropshipping

Pros of Amazon dropshipping

The advantages of selling on Amazon are similar to the benefits of other large online marketplaces. Here are four benefits of dropshipping with Amazon:

1. Vetted Amazon dropshipping suppliers

Amazon buys products in bulk, mostly from European suppliers, and holds these products in its warehouses until they’re ready to ship. Thanks to these basic standard commitments, recent sellers can promote decent products at scale to an international spectators.

2. More discoverability

Amazon gives you immediate access to a large potential spectators and has more than 30 product categories to choose from. You can sell in as many dropshipping niches as you desire, which means you can reach highly targeted markets.

3. No require for external marketing or SEO

While you may desire to promote your items on Amazon, you don’t require to worry about driving traffic to your product line with expensive external marketing or search engine optimization (SEO) campaigns.

Cons of Amazon and dropshipping

Like any dropshipping model, the pros of convenience and low recent business costs require to be weighed against disadvantages, such as reduced control over products and potential customer service difficulties. Here are four disadvantages of Amazon dropshipping:

1. Exposure of sales data

A state of using Amazon’s platform is that the business can view all of your sales data, from bestselling items to overall sales figures. Historically, Amazon has been accused of using this data to optimize sales opportunities and strengthen its own involvement in the niche, ultimately pushing out other merchants selling through its marketplace.

2. Fewer connections with customers

You may battle to develop long-term relationships with your customers when dropshipping through Amazon. By design, Amazon is geared toward helping providers sell products over building brand loyalty. Be prepared for limitations when it comes to branding your business, displaying products, and communicating with customers.

3. No customization

Amazon is restrictive when it comes to customization. Everything you do in terms of branding, user interface, and marketing is under Amazon’s control.

How to commence dropshipping on Amazon in 6 steps

1. Sign up for an Amazon seller account

To sell on Amazon, you’ll require to make an Amazon seller account. Head to sellercentral.amazon.com to sign up. You’ll be asked for the following details about your business:

• Business email address
• Internationally chargeable financing card
• Government ID
• responsibility information
• Phone number
• financial institution account for receiving sales

2. Get approved in your product category (if essential)

Amazon requires sellers to get approval for sure product types. Collectibles, music, and watches are popular categories that require approval before setting up your Amazon store. Check the overview of product categories to view if you require approval.

Note that sure products may require approval, even when their category doesn’t. To view if an person product needs approval, search this list and click display Limitations.

3. Log into your Shopify store

If you don’t have a Shopify store, commence a free trial. Dropshipping through a Shopify store will make it straightforward to connect your Amazon listings with your product suppliers.

4. Connect your Amazon account to Shopify

Once you’ve created an Amazon account and requested any essential approvals, connect your Amazon store to Shopify using an Amazon integration app from the Shopify App Store.

Amazon integration apps bridge Amazon and Shopify. Using an app, you can automate order fulfillment, provide your customers up-to-date tracking information, and sync product inventory.

Here are some apps you might use:

• Shopify Marketplace Connect
• Amazon by CedCommerce
• Amazon Importer Spreadr
• Amazon MCF by ByteStand
• Amazon Integration Plus by ordinary-Services

Once you’ve selected and installed your app, you’ll be able to make listings for your products and manage sales across both platforms.

5. make an Amazon product listing

Your dropshipping products don’t automatically list on Amazon after you add an integration app. To manage your Amazon dropshipping listings with Shopify, you have three options:

1. Link your listings on Shopify to your Amazon listings using your integration app.
2. Link an existing Amazon listing to your Shopify store.
3. make a recent listing for a recent product on Amazon.

If you’re recent to Amazon and dropshipping, you may not be able to list a large number of products correct away. Amazon limits the number of recent Amazon ID numbers, or ASINs, you can make each week until you become an established seller.

6. Promote your products on Amazon

While options for marketing on the marketplace are restricted, there are several ways to promote products on Amazon.

Run Sponsored Product ads

If you have a marketing budget, consider spending on Sponsored Product ads. Amazon’s ad program operates on a expense-per-click (CPC) model that will position your products more favorably in search results.

Optimize your listings

With all Amazon product pages sharing the same layout, features like product titles, images, and “About This Item” bullet points require careful thought and planning. recall that your customers will skim your pages and contrast items with similar products.

Use social media

There are no restrictions to promoting Amazon links on most social media platforms. That means you can make Instagram Reels to display off your product, or make a Facebook ad campaign.

How to choose a dropshipping supplier

Your main competitive edge over other Amazon dropshippers will be worth, and—beyond cutting your returns margins where feasible—the best way to outcompete sellers in your niche is to associate with the correct dropshipping supplier. Here’s what to look for in a supplier:

• The supplier offers reliable shipping to your customers’ locations.
• They distribute a range of products in your niche of comparable or superior standard to competitors.
• There are no customer service red flags or regular impoverished reviews.
• They have low per-order fees that won’t eat into your returns spread.
• Other successful dropshippers use the supplier.
• The supplier can compete with average shipping times in your niche.
• They propose live customer back for your business.

Thanks to the popularity of dropshipping in recent years, there’s been an boost in fake or malicious dropshipping supplier services. pursue the latest dropshipping guidelines to avoid wholesalers that expense unnecessary fees.

Top Amazon dropshipping software

The tools in this list are designed to assist you get started with Amazon dropshipping:

MerchantWords

This software checks search volume and data for product keywords.

worth: Paid plans commence at $35 per month.

Sellery

This real-period Amazon repricing software suggests repricing strategies to triumph the Buy Box and boost sales.

worth: You can use the trial version for free. Paid plans are 1% of your gross monthly sales with a minimum fee of $50 per month.

FeedCheck

FeedCheck monitors customer reviews to assist you respond promptly across Amazon and other sales channels. Plus, it lets you monitor competitors’ product reviews and questions so you can analyze and enhance your own product descriptions.

worth: Starts at $129 per month.

Seller Tools

Seller Tools helps automate your Amazon dropshipping store. It includes a keyword manager, PPC management tool, and product research tools.

worth: Starts at $37 per month for the Chrome extension.

How to run an Amazon dropshipping business without money

Most dropshippers spend money to construct their businesses, investing in assets like an online store, content creation, advertising, and marketing or management software. But it is feasible to commence dropshipping on Amazon without spending a dollar. Here’s how:

Choose the person Seller schedule

Unlike Amazon’s professional seller schedule, which is a paid subscription, the person schedule is charged per item sold—so you won’t be billed before you’ve made a sale.

Pick suppliers with zero upfront costs

Most reputable dropshipping suppliers will not expense an upfront fee to do business with you. That means you shouldn’t require to pay your supplier until you’ve made a sale and have been paid by the customer.

If you can spare a few dollars, you may desire to purchase the product(s) you intend to sell. Being able to physically hold, view, and try out your product will greatly assist when creating marketing content.

make your own content

Write your own product descriptions and reviews, receive your own product photos, and make product demonstration videos using your phone.

There’s no denying that self-made marketing content is period consuming, and depending on your writing and production skills, it may be challenging to replicate the standard of professional copy and images.

However, by paying close attention to your competitors’ content, and deeply researching your target customers, it’s feasible to make effective content that communicates the key details of your products—and explains why your customers will advantage from buying them.

Harness organic marketing channels

Organic marketing channels are the most accessible way to promote your products without spending money on advertising.

Social media platforms like Facebook, Instagram, and TikTok are powerful tools for spreading awareness about your products—if your content can strike a equilibrium between entertainment and promotion. Spend period absorbing the latest trends and put your own twist on popular memes.

SEO marketing strategies involve optimizing your content to rank higher in search engine results. By including relevant keywords in your product descriptions and making your content as useful as feasible, you can appear more often in Amazon and Google searches.

Running a dropshipping business with your online store

The alternative to dropshipping Amazon products through third-event marketplaces is to commence your own online store to list and promote your products.

Using your own store may be a more successful dropshipping operating schedule in the long term, as it gives you more control over your customer service and flexibility over marketing and branding.

Pros of dropshipping with your online store

More control

When you construct your own online store, you get to make a shopping surroundings that’s conducive to selling your products. You can customize the look and layout—and make custom product pages optimized to suit your customers and niche.

straightforward design

With store builders like Shopify, there’s no barrier to designing and running your own store. And once your site is up and running, it’s straightforward to add extra features that boost your conversion rate.

Within a day, it’s feasible to make a store, brand it, add your products, and connect a settlement gateway to make your first sale.

Mobile-ready

Don’t prevent your customers from shopping on their mobile devices. If you choose to construct your online store with an ecommerce platform, your site will be responsive, which means it will adjust to different screen sizes.

No third-event fees

With your own store, you won’t have to pay Amazon’s referral fees, which will significantly enhance your returns margins.

Building a real business

By creating an independent store, you’re building a long-term business with a distinctive feel. That makes it feasible to pursue repeat business and a faithful set of customers who will inform others about your website.

More shipping and supplier options

When you run a dropshipping business on your own site, you can construct relationships with different wholesalers.

Cons of dropshipping with your online store

No free traffic

With your own site, you’ll be responsible for generating traffic through marketing, social media, SEO, and paid advertising.

Other ways to sell on Amazon

If you desire a seller presence on Amazon, but feel that a dropshipping business isn’t correct for you, there are other options. Two popular ways to sell on Amazon besides dropshipping are affiliate marketing and fulfillment by Amazon.

Amazon affiliate marketing

Amazon’s affiliate marketing program, known as Amazon Associates, is a free, popular alternative to dropshipping. Amazon affiliates promote products sold on Amazon via their own websites, ads, or social media posts.

When a website visitor or social media user clicks on an affiliate link, they are taken to Amazon to make their purchase. Affiliates receive a percentage whenever they convince a customer to buy a product through an affiliate link.

percentage rates vary depending on the product category, but most range from 3% to 5%. To become an Amazon affiliate, first check that your website or social media account meets the eligibility criteria.

Amazon FBA (Fulfillment by Amazon)

Amazon also has its own fulfillment centers, known as Fulfillment by Amazon.

With this model, you send your products to Amazon’s FBA centers. Amazon takes worry of storage, packaging, and shipping products to customers. It also handles customer service and order returns.

While this can save a lot of period and attempt, FBA comes with various fees, including storage fees and fulfillment fees (view the link above).

Amazon FBA vs. dropshipping

Amazon FBA and Amazon dropshipping are both fulfillment models that allow you to list and sell products without holding inventory.

The difference between FBA and dropshipping is that, with FBA, Amazon will store, pack, and ship your products. With dropshipping, on the other hand, a third-event supplier handles inventory management and order fulfillment.

develop your dropshipping business today with Shopify

Amazon dropshipping can be a great way to boost sales for your business, whether you’re established or just starting out. If you choose to include this dropshipping way in your Shopify store, there are many tools ready to assist you with dropshipping fulfillment, sourcing, pricing, and marketing—be sure to also check out some top dropshipping tips.