Amazon dropshipping guide: start your business on amazon

If you were lớn decide that you want khổng lồ open a store on Amazon, how many many hours vị you think it’ll take for you khổng lồ get your store up and running?

A month?

Two weeks?

How about one day?

As unbelievable as it sounds, you can get your Amazon store phối up, & be ready khổng lồ accept orders in 24 hours.

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(Just so we’re clear, I’m talking about 24 hours of work put in on your end. You’ll encounter some downtime when you’re waiting for Amazon lớn approve sầu your tài khoản, but that aside, the actual time you spover setting up your Amazon store shouldn’t take more than 24 hours!)

But what’s the hurry? Shouldn’t you take your time lớn vị things properly?

Well, I’m glad you asked.

First things first:

Consumers are spending $88,000 on Amazon every single minute.

Forget delaying the opening of your store by a day - even if you delay it by a single minute, you’re missing out on tons of revenue.

Secondly:

You can set up an Amazon store in a short period of time, without it being a shoddy job.

The secret is lớn think about how khổng lồ outsource certain processes, & simplify your responsibilities.

That’s where dropshipping comes in!

How dropshipping on Amazon works?

Before we discuss dropshipping on Amazon, let’s take a quiông xã look at how you would dropship if you own your own eCommerce store.

If you’re using a dropshipping mã sản phẩm, you’ll be listing your products on your trang web without holding any physical inventory.

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When you get an order, you’ll notify your dropshipping supplier, who will then take care of fulfilment on your behalf.

Sounds like a dream come true, doesn’t it?

If you want lớn dropship on Amazon, though, things can get a little tricky.

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Amazon explicitly states in their dropshipping policy that purchasing products from an online retailer và having that retailer ship directly to customers is not allowed.

What you can bởi vì, however, is purchase items from retailer A, and have sầu fulfillment center B ship out the orders on your behalf.

(Just so you know, this doesn’t fit into the traditional definition of dropshipping, but there you have sầu it.)

Even though Amazon technically doesn’t allow traditional dropshipping, there are plenty of sellers who still vày it anyway…

Such as this guy, who used zerovn.net Dropship khổng lồ import products from Aliexpress, which he then resold on his Shopify store.

He made a profit of $200 within his first month of operations - not too shabby!

Plus, if you look through the sản phẩm listings on Amazon, it’s pretty obvious that a lot of sellers are simply dropshipping their items.

I searched for “yoga leggings”, & here’s a hàng hóa that popped up:

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Then I checked out Aliexpress, and lo and behold, it’s the same product:

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Of course, there’s the possibility that the seller is importing items from Aliexpress, storing it in a facility in the US, & then shipping it out when he/she gets an order.

But if you kiểm tra the shipping time, và it’s upwards of a week or two?

It’s pretty likely that the seller isn’t holding any inventory, và simply getting his/her supplier to dropship the items.

But there’s another way - Amazon FBA.

What is Amazon FBA?

So if you can’t technically dropship on Amazon, but you don’t want to have lớn giảm giá with fulfilling orders, what vì chưng you do?

You can always turned lớn Amazon FBA, which will piông xã, paông chồng, and ship your orders for you.

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FBA refers to lớn Fulfilment By Amazon, and this is how it works:

Firstly, phối up your FBA tài khoản. You can either vì this by adding FBA lớn your existing seller account, or create a new seller account altogether.

Next, create your product listings, and prepare your products.

Your final step is khổng lồ ship your items lớn Amazon; from here on out, Amazon will take care of everything.

This includes:

Picking, packing, and shipping your items.Providing tracking information for customers.And even providing customer service on your orders (if there are any returns, Amazon will process it, but they might forward highly specific hàng hóa enquiries to you from time lớn time).

Of course, there’s no such thing as a free lunch, so you’ll have lớn factor Amazon’s fulfilment fees into lớn your budget if you’re using their FBA service.

How much are we talking here?

The rates differ depending on the kích thước of the thành phầm & the time of year; generally speaking, you can expect to pay $3+ for lightweight items such as T-shirts, và more for heavier & bulkier items.

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If you’re using FBA, this information will be listed on your sản phẩm page:

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This helps increase the legitimacy of your brand (especially if you’re new khổng lồ Amazon).

Why?

If customers purchase from a small, relatively unknown brvà which handles shipping by itself, there’s always the off-chance that they’ll bungle up the delivery.

If customers purchase from a brand which outsources shipping to Amazon, though, they can have sầu the peace of mind that their thắng lợi will arrive unharmed and on time.

(Or, if not, they’ll be able khổng lồ get in touch with customer service & have the problem solved quickly).

In addition khổng lồ this, by using FBA, you’ll also be eligible khổng lồ offer Prime shipping to lớn your consumers.

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The allure of Prime is self-explanatory:

Let’s say you want lớn buy the kitchen knives in the screenshot above. One seller will ship them khổng lồ you within 5 days, and another seller (which uses FBA) offers 2-day Prime shipping at no extra cost.

Doesn’t take a genius lớn figure out which option you’ll go for!

Last but not least, using Amazon FBA also increases your chances of winning the Buy Box.

If you’re not 100% clear on what the Buy Box is (or what it does!), here’s an example.

Let’s say you’re selling this Harry Potter và the Prisoner of Azkaban DVD on Amazon. It’s not a chất lượng sản phẩm, so there will be many other sellers who are offering the exact same thing.

The Buy Box is located on the top right corner of the sản phẩm page, and only one seller will emerge victorious in their quest to nab this highly coveted spot…

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Okay, I’ll dispense with the theatrics.

But the Buy Box is a big deal, because 82% of all Amazon sales happen through the Buy Box.

Holy cow. That’s a pretty intimidating number, isn’t it?

It makes sense, though. If you’re not in the Buy Box, this is where you’ll over up:

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All the way there, below the fold.

Even if visitors vì scroll down that far, there are so many competing elements on the page that they probably won’t notice a tiny box displaying the other sellers.

But enough digressing! The point is:

The Buy Box is insanely important, and using Amazon FBA increases your chances of winning the Buy Box.

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There you go, straight from the horse’s mouth.

I’ll give you more tips on how lớn win the Buy Box in a bit, but for now, let’s compare the pros & cons of using Amazon FBA vs dropshipping.

Amazon FBA vs. Dropshipping

Regardless of whether you use Amazon FBA or dropshipping, there’s potential to make money right off the bat.

(Earlier in the article, I shared a links lớn a case study where someone made $200 in profits in his first month through Amazon dropshipping - there’s also this guy who made $1,477 in profit in his first three months of selling through Amazon FBA).

So how bởi vì you decide between using Amazon FBA, or dropshipping on Amazon?

First, let’s look at the cost.

Dropshipping wise, many dropshipping suppliers build the cost of dropshipping inkhổng lồ their prices - so you don’t need khổng lồ fork out any extra fees.

Of course, you can always negotiate for a better price, or for better payment terms.

Bearing in mind that there are tons of suppliers offering the same (or similar!) products on platforms such as AliExpress, I’d say that you hold a decent amount of power during the negotiation process.

When it comes lớn Amazon FBA fees, on the other h&, there are several things to take inkhổng lồ consideration...

First up, you’ll have sầu khổng lồ pay for Amazon FBA’s fulfilment fees, which we talked about briefly earlier on.

In addition lớn this, you’ll also incur monthly storage fees. These were increased recently (in March 2017, to be precise!):

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That’s not all.

If your items remain in Amazon’s inventory for a prolonged period of time, you’ll also be liable for long-term storage fees.

Mark these two dates on your calendar: February 15th và August 15th.

Every year, Amazon does an inventory clean-up on these two dates.

If your item is found khổng lồ have been lying around for 6 lớn 12 months, you’ll be slapped with a long-term storage fee of $11.25 per cubic foot.

If your công trình has been stored for more than 12 months, this fee increases to $22.50 per cubic foot.

What this means is Amazon FBA might not be the best option for merchants selling slow-moving products.

Pro-Tip: If you’re already selling on Amazon, you can use this calculator to lớn estimate how much you’ll earn by switching to lớn FBA.

Another factor that will influence your decision as to lớn whether you want lớn dropship on Amazon, or use Amazon FBA?

The type of products you’re selling.

There are certain categories of products which are “FBA prohibited”, và these include:

Alcoholic beveragesVehicle tiresSky lanterns or floating lanternsPerishablesProducts requiring refrigeration

...và more.

Oddly enough, you can sell products which are subject lớn melting (such as chocolates) on Amazon FBA during October 1 và April 30 of each year.

In any case, if you’re thinking of selling any of the items listed above sầu, you’ll probably have sầu to lớn go with dropshipping instead of Amazon FBA.

In addition khổng lồ this, if you want to lớn supplement your products with kinh doanh collateral, you’ll be better off using dropshipping as well.

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Amazon has a strict no marketing materials policy for their FBA products, so you won’t be able to lớn include pre-priced labels, pamphlets, or any non-Amazon labels on your items.

With Amazon FBA, you’ll also have sầu to lớn adhere to other (very specific!) packaging requirements.

For example, if your product is encased in a poly bag with an opening which is 5 inches wide or larger, it’ll need lớn come with a suffocation warning.

In addition, your poly bag will also have sầu to lớn be transparent, & have sầu a barcode or label which is scannable.

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To take a look at Amazon’s complete danh sách of requirements where FBA packaging is concerned, check out this guide.

But that’s not khổng lồ say that Amazon FBA is a complete no-go.

As mentioned earlier, the key advantages of Amazon FBA is that is adds to the legitimacy of your br& and makes your hàng hóa more attractive sầu due khổng lồ its eligibility for Prime shipping.

Ultimately, you’ll have lớn look at the specific items you’re selling, & compare the costs & benefits of selling using Amazon FBA, or dropshipping.

Amazon Dropshipping Pros & Cons (Vs Dropshipping On Other Platforms)

Assuming that you want lớn work with a dropshipping Mã Sản Phẩm, Amazon isn’t the only platsize that’s available khổng lồ you.

You can also dropship on other platforms such as eBay, or dropship on your own eCommerce store.

First up, let’s look at dropshipping on eBay.

There are over 171 million buyers on eBay, so if you were drawn lớn Amazon because of the ready pool of buyers, eBay can offer you the exact same thing.

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Where Amazon is a little iffy about dropshipping, eBay states that dropshipping is allowed on their site.

There’s just one thing khổng lồ bear in mind:

Sellers have khổng lồ be able to guarantee that buyers will be able lớn receive their tác phẩm within 30 days of the kết thúc of the listing. (30 days is a very manageable timeline, in any case).

eBay even has a directory of dropshippers (they refer lớn them as “product sourcers”, but it’s the same thing) on their trang web.

On the not-so-bright side, you’ll have to lớn pay insertion fees on eBay, which will affect your dropshipping strategy quite a bit.

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How so?

If you’re dropshipping on Amazon, you can use tools which allow you to lớn import & sync as many products from Aliexpress as you want lớn your Amazon store.

What many people bởi is to lớn import a significant number of products (we’re talking a few hundred!), see which are the most saleable, & then cull the rest. Rinse and repeat.

Whilst you can use the same tools with your eBay store, you’ll incur hefty insertion fees by listing hundreds of new products on your store every month or so.

In addition lớn this, vày take note that eBay offers both auction-style pricing và fixed pricing.

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If you’re going with auction-style pricing, you’ll have to lớn monitor your listing. In the event that your thành phầm doesn’t sell, it’ll go khổng lồ an “unsold item” thư mục, and you’ll have lớn either re-các mục it or disthẻ it.

Fixed price listings, on the other h&, are more straightforward.

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With these, shoppers have sầu the option to “Buy It Now”.

You can also have your fixed price listings be Good Til Canceled (GTC), meaning they’ll renew automatically every 30 days.

If you’re thinking of dropshipping on eBay, kiểm tra out this article which you walk you through common eBay dropshipping pitfalls lớn avoid.

If eBay doesn’t sound lượt thích a good fit for you, there’s also a third option:

Dropship from your own eCommerce store.

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If you go down this path, you’ll have khổng lồ be more hands-on in many aspects, including sale and driving traffic lớn your store.

After all, you won’t be able to lớn rely on the free traffic that you’ll gain from “piggybacking” on the shoulder of a more established platform.

Having said that, there are several advantages that come with running your own eCommerce store.

For one thing, you won’t incur any third-các buổi party fees.

Also, you’ll be able lớn have full control over the look và feel of your website.

(This isn’t just about the aesthetics. You can kiến thiết your store using User Experience (UX) tips lớn create a more conducive shopping experience - và this will help you increase your conversion rates.)

Last but not least, you can also build your brvà.

If you’re selling on Amazon, your customers will think of their purchase as a purchase made on Amazon. Without an independently owned website, it’s hard to lớn build brvà awareness or get people lớn develop any sort of loyalty to you.

(Also worth mentioning: selling on Amazon or eBay means you’re at the mercy of their terms & conditions. If you’ve flouted one of their regulations (regardless of whether you did it knowingly or not), you might just find your seller tài khoản being suspended).

How To Get Started With Dropshipping On Amazon

At the start of the article, I talked about how you can phối up your Amazon store and have sầu it ready lớn accept orders with less than 24 hours of effort.

In this section, I’ll tell you exactly how lớn go about doing this!

Before you get started, you should vì some retìm kiếm và figure out which dropshipping supplier you want to lớn work with.

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You can vày this by looking at dropshipping marketplaces (lượt thích zerovn.net) or searching a site like AliExpress (although this comes with communication barriers và other issues).

Once you’ve got this sorted out, it’s time to lớn mix up your Amazon store.

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Go ahead và create your Amazon seller trương mục.

You can choose between signing up as a professional seller or individual seller. Learn more about creating your trương mục và choosing a plan with this guide.

Next, if you’re selling items in certain categories (including clothing và accessories, beauty, & jewelry), you’ll have to get your hàng hóa category approved.

Now it’s time to start listing your items!

If the sản phẩm in question already exists in Amazon’s catalog (which will be the case if you’re selling, say, a Nalren water bottle), here’s what you do:

Search for the thắng lợi that you’re selling on AmazonMake sure it’s the correct format và editionCliông xã on the "Sell yours here" buttonDescribe the condition of the itemSet your price, shipping methods, và so on

What if you product doesn’t currently exist in Amazon’s catalog?

You’ll have sầu khổng lồ use the “Add a Product” tool lớn create a Product Detail Page; more on that here.

Pro-Tip: If you’re adding new products to Amazon, bear in mind that Amazon has pretty strict requirements when it comes to lớn sản phẩm images.

Amongst other things, your main hàng hóa image must come with a trắng background, so make sure your supplier can provide you with images which adhere to Amazon’s specific requirements.

That’s basically it, but there’s one last (optional) step:

If you’d lượt thích khổng lồ vị a little marketing, you can also consider investing in Amazon’s Sponsored Product Ads at this point.

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There’s a variety of formats to lớn choose from.

If you’re advertising on desktop, your ads can appear above sầu, alongside, or below search results, or even on hàng hóa detail pages.

If you’re advertising on Smartphone, your placements are limited to below search results, & on hàng hóa detail pages.

With Amazon’s Sponsored Product Ads, you can either specify your own từ khóa (in a manual campaign), or use Amazon’s suggested từ khóa (in an automatic campaign).

One best practice?

Run an automatic and manual campaign at the same time, and feature the exact same products in both campaigns.

Here’s the rationale behind this strategy:

In the automatic campaign, Amazon will run its algorithms & kiểm tra new keyword for you.

Looking at these từ khóa which have sầu been identified by Amazon, you can then assess the effectiveness of each keyword by looking at its clickthrough rate và number of clicks.

Once you’ve found your top-performing keywords, incorporate these into lớn your manual campaign. You’ll now be able to adjust each từ khoá bid individually, và experiment with different bids lớn further optimize your chiến dịch.

You can also vì some PPC analysis on your competitors khổng lồ find their top-performing từ khóa.

Tips & Strategies on Selling and Dropshipping on Amazon

We’ve sầu covered all the basics, now it’s time for the expert stuff. This section will help you take your Amazon dropshipping business khổng lồ the next level!

Getting reviews on Amazon

Why are Amazon review so important?

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The first reason is pretty straightforward: the more Review there are, the more trustworthy your hàng hóa will seem.

On top of that, nhận xét also (indirectly!) help you to lớn rank higher on Amazon. More (& better) nhận xét translate lớn higher sales conversion rates, and this in turn will lead lớn your sản phẩm being featured more prominently within Amazon.

So how do you get more Amazon reviews?

One common tactic sellers used was offering không tính tiền or discounted products in exchange for reviews. (Amazon has since banned this, so it’s not an option anymore).

In addition, consumers are not allowed to Đánh Giá (or post any sort of content) regarding their relative’s, friend’s, or employer’s products.

What you can vị, though, is gmail your customers khổng lồ get them lớn review your products.

To make sure you’re not spending too much time sending out these emails, go ahead & create an automated chiến dịch or a drip chiến dịch.

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(If you don’t have an existing tin nhắn platsize that you’re using, try Drip.com,GetResponse.com, or BQool.com.)

With these emails, you want khổng lồ follow up with your customer và khổng lồ provide them with all the information that they’ll need about their purchase. At the same time, take the chance to lớn ask them for a nhận xét.

Set up your tin nhắn chiến dịch such that the first gmail is triggered immediately upon purchase. It should sound something like this:


Chuyên mục: Kinh doanh online