Thursday, November 24, 2022

How To Dropship Products From Amazon

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Find The Right Dropshipping Suppliers For Your Amazon Store

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Finding a reliable dropshipping supplier can be a little more complicated than doing a Google search for dropshipping suppliers.

The thing with suppliers is, to provide you products at low cost, they dont spend a lot of money on marketing and so its unlikely for them to appear in the top SERPs, as they dont invest heavily in SEO.

Another common problem is running into scams when looking for a legitimate dropshipping supplier. Even if you find authentic suppliers, theres always a chance you can

  • get overcharged
  • purchase poorly designed products and incur customer wrath
  • get sued if your supplier doesnt ship what the customer was promised

I know, these problems make dropshipping look very risky but there is a way to avoid all these troubles and still find yourself a supplier thats going to help you rake in the profits.

Is Dropshipping On Amazon Worth It

Well, to be frank, traditional dropshipping is not really practical with Amazon, simply because of the obligations:

  • You can’t send your buyer packages that have stickers, invoices, or other elements that indicate contact information that is different from your own Amazon store’s personal details.
  • You are not allowed to purchase from online suppliers and ask them to ship the order directly to your store’s customer.

Although people still go under the radar and do dropship against the rules. But it is not certain how long they can last before getting busted by the system. And it is not a good idea to do this and hope it works every time.

Another common problem is facing the chance of scams when looking for a legitimate dropshipping supplier. And even when you find authentic suppliers, problems still can arise like:

  • Purchase poorly designed products and receive bad reviews from customers
  • Get overcharged
  • Get sued, complaint, or reported if your supplier doesn’t ship what the customer was promised.

However, there is another way, and it is claimed by Amazon as well. That is dropshipping through Amazon’s service Fulfillment by Amazon .

With this service, you can store your physical products in the Amazon centre, and have Amazon do the packaging, assembling, and shipping the items to desired addresses. This is not exactly traditional dropshipping, but it works in its own way.

We will take a closer look at FBA in the next section.

Dropshipping On Amazon Vs Regular Dropshipping

So, whats the big difference between dropshipping on Amazon and regular dropshipping business?

From the first look, these two business models are pretty much the same.

As a regular dropshipper, you sell your products on your own store and never need to handle the inventory or shipping yourself.

With Amazon dropshipping, you also dont need to take care of the inventory or shipping. The process is pretty much the same. The only difference is that instead of selling products on your own online store, you list them on Amazon.

This is a big difference, though.

By dropshipping on Amazon, you get access to over 300 million active users who are ready to buy, something that is impossible to achieve on your own online store, no matter how many advertising courses you watch. However, as one wise man once said, With great power comes great responsibility.

Lets take a look at the possibilities and limits that come with dropshipping on Amazon.

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The Question Thats Been On Your Mind The Whole Time: Is Amazon Dropshipping Profitable

As much as Id love to say yeah youll make bucketloads from dropshipping on Amazon, its not that simple of an answer.

Yes, there are cases of people earning enough to quit their day jobs with dropshipping but it always involves commitment and perseverance on your part. Weve outlined the following factors that will help you make your Amazon dropshipping business profitable.

Can You Dropship From Shopify To Amazon

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So, if you cannot dropship from Amazon to Shopify, how about the opposite dropshipping from Shopify to Amazon? To be more specific, is it possible to use a dropshipping app such as Oberlo to import dropship products to your Shopify store, then push those listings into your Amazon store through the Amazon Sales Channel function of Shopify?

The answer is yes. That is possible. Shopify does allow you to use Amazon as a sales channel, and you can push your Shopify product listings to Amazon. If you sell on Amazon, you will have to pay Amazons seller fees, which will eat into your profits.

Although dropshipping from Shopify to Amazon is possible, you might not be competitive in doing so. You need to keep in mind that most Amazon sellers are selling on the platform via the FBA program. That means they dont have to deal with order fulfillment, but they own their inventory, which allows them to usually lower product costs than dropshippers. Plus, as they own their inventory, their products are qualified for Prime shipping, which makes their offers far more attractive to Amazon buyers.

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Amazon Offers Private Label Products That You Can Dropship

Private labeling is a subset of direct-sourcing. Its a great way for you to find products that you can dropship on Amazon under your brand. Private label suppliers make goods and then package, label, or tag them under your brand.

Private label products can be found in almost any product category. These include personal care products and cosmetics, kitchen tools, pet supplies and gourmet foods.

Finding private label products for Amazon is similar to searching wholesale or direct-source suppliers. Many manufacturers offer private label options on their stock products.

Private label sourcing is very similar to purchasing from direct-source or wholesale suppliers. You must purchase in small quantities and then stock and ship the products to your customers. This can be done either through your Amazon fulfillment platform, FBA, or both.

You also need to be able to track your inventory, product costs, and forecast your future reorders. You can use the same inventory tracking tools for direct-source and wholesale purchasing to organize private label product sales on Amazon.

If you are interested in private labeling, give InventoryLab.com, Sellics.com and Shopkeeper.com another try.

The pros and cons of private label sourcing

Private label products are a preferred source for small-scale sellers and startups looking to establish a brand.

Con: No Access To Customer Data

If youre new to eCommerce you may not know that having customer data is crucial to growing your business.

With data and emails you can build a meaningful relationship with your audience, which youll use to sell new products. Its called theLifetime Value of a customer.

With Amazon dropshipping, you arent privy to the customer data leaving you with no way to scale your business.

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Amazon Has A Wide Range Of Wholesale Products That You Can Sell

Wholesale sourcing is simply reselling products made by other companies. This is a common way to find low-cost products to , particularly for startups who want to explore the profit potential in different product categories.

You can easily source products online from wholesale suppliers via wholesale marketplaces such as Thomasnet and Alibaba. To find wholesale vendors, you can visit buyers markets and trade shows in your industry.

A simple internet search can be a great way to get started with wholesale sourcing and set up an efficient ecommerce store. Search for the item name you want to sell, then add wholesale.

Wholesale suppliers allow you to purchase bulk goods, sometimes in case packs, store your inventory and ship the products as soon as they are ordered. Either you can do product storage, packing and shipping yourself, or FBA to handle these fulfillment tasks.

You need an inventory management and purchasing system to keep track of your inventory levels and ensure that you have enough products to fulfill orders. Many inventory management software integrates with Amazon seller accounts and FBA accounts.

InventoryLab.com and JungleScout.com and AMZScout.net are highly-rated and economical options. Many also offer sales estimators and product-scouting tools that will help you make informed wholesale buying decisions.

The pros and cons of dropshipping wholesale items on Amazon

Pros Of Walmart Dropshipping

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Without having to mention the biggest pro of dropshipping with Walmart, you probably already know that selling a product under Walmarts name increases customer trust and loyalty.

Even if you were to buy, you would feel more comfortable buying a product from Walmart than buying a product from an unfamiliar brand.

When you dropship with Walmart, you dont have to worry about product marketing. The Walmart team takes care of all content listing and makes sure that it gets the highest organic search that it can. These products get an automatic boost when they are listed on Walmart.

This makes it easier for your product to gain great exposure since you have all of Walmarts support behind you. Lets not forget that Walmart has over 35 categories that you can sell in and find your target audience.

Looking for a product niche? Try Dropshipping Toys.

The only thing you want to keep an eye on is to make sure it isnt on the Prohibited List.

Another great benefit of Walmart dropshipping is that they also pay for the shipping. Imagine you are selling a product that has high shipping costs, only because Walmart pays for the shipping, it makes it easier for you to earn higher revenue and increases your chance of winning the Buy Box on the Walmart Marketplace.

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Seasonal Goods Are Your Jam

Season sales can be a significant cash cow for online retailers who do dropship on Amazon because traditional stores usually stock just enough for the season in fear of overstocking.

So there is a huge opportunity for you to dropship because you don’t carry inventory at all. You can just leave products at FBA and start selling throughout the whole season.

Amazon often has seasonal promotions as well for sellers to join, which is when stores offer deals for flash sales and related items to be promoted right on the front page.

Is Dropshipping On Amazon Profitable

Dropshipping on Amazon can be profitable. By watching your margins, you can ensure that your business is making enough profits. You can make a 30% to 50% markup on your merchandise to earn a decent profit. You can also increase your sales by offering products in less competitive niches. By avoiding price wars and competition, you can focus on selling more products.

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The Costs Of Dropshipping On Amazon

Dropshipping is a great way to start off your Amazon store without busting the bank. The first key fee would be your Amazon seller plan:

  • The individual plan is free to set up. Then, Amazon will collect $0.99 for every item that you sell.
  • The Pro plan does not charge unit fees. Youll only pay a $39.99 monthly fee for all your selling privileges.

Now, Amazon dropshipping fees range between 10%-15% depending on item categories. As for profitability, the percentage margins fall between 10%-30%.

Also, note that Amazon will collect 15% off of the top-line revenue. So, if your margins are at 30%, the marketplace takes a 15% chunk out of each sale. The remaining profit goes to your account.

Considering Amazons huge audience, the final dropshipping revenue is not bad at all.

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Amazon Allows You To Dropship Custom Printed

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Dropship products that can be printed on-demand , are custom-made items that customers order. All of the details are taken care of by POD suppliers, including sourcing and storing available products as well as printing and shipping the items once theyre received.

This is a more recent way to find quality products for Amazon. It also offers an opportunity to create your own Amazon brand, even if you have a small budget. POD sellers create unique designs, funny sayings, and beautiful artwork, then market them through Amazon-approved POS vendors.

Two things are required for POD Amazon product source. The first is artwork that can be printed on tee-shirts, mugs and other products available through POD vendors. The second is an Amazon-approved POD vendor account.

Amazon does not approve every POD vendor. Amazon has strict requirements for POD vendors. Gearbubble and Printful are great options for finding products that you can dropship on Amazon.

You can create your own artwork using online tools such as Inkscape, Adobe Creative Suite or any other graphics program if you are creative. You can also hire a freelancer through Fiverr and Upwork to create brand-specific artwork for your market.

Many POD vendors offer online tools to help you create products with your own slogans and clipart-based designs. To create POD products that sell, you dont need to be artistic.

Amazon print-on-demand: pros and cons

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Dropshipping From Amazon To Shopify:

Lets suppose you have been dropshipping on Amazon for some time and want to open your Shopify store. It is easy to add all your Amazon listings to your Shopify store. This will make it much easier than manually moving all the data.

Problem is, importing Amazon products onto a third-party platform is against their terms and conditions. Amazon APIs can provide limited access to product data. You wont be able to access important information such as high-resolution images and updated prices.

It is therefore obvious that you cannot drop ship products from Amazon to your Shopify shop. However, you can use the Amazon Associates shop. This is not a dropshipping program. Its an affiliate program. Your products. Customers who click buy will be directed to Amazon to complete their order.

Can You Dropship From Aliexpress To Amazon

Dropshipping from Aliexpress to Amazon is pretty much like any other dropshipping model. Aliexpress becomes your supplier, you list your items on Amazon, and customers directly receive their orders from the suppliers, most of whom are based in China.

Although Aliexpress gives you the freedom of offering private label products , it is still very risky to source products from Aliexpress, and for one very simple reason:

Fast delivery times have now become a standard expectation for Amazon customers. With Aliexpress, you can expect days, if not weeks for products to get delivered to your customer. These slow times will leave you with unsatisfied customers and negative reviews, which are both bad for business.

In this article, youll find the unwritten rules for communicating with Amazon buyers to reduce the number of negative reviews to zero. Youll also find some of the most efficient methods for getting seller feedback and product reviews on Amazon.

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Is Dropshipping Allowed On Amazon

First of all, lets get this question out of the way.

In short, yes, dropshipping is allowed on Amazon, BUT.

People at Amazon take excellent care of their customers. They even wrote in their mission statement that they want to become Earths most customer-centric company. Thats why there are quite a few rules for allowing a third party to fulfill orders to customers on your behalf.

As a dropshipper, you must always:

  • Be the seller on record for products.
  • Identify yourself as the seller of your products at every touchpoint with your customers: on invoices, packing slips, external packaging, and other information regarding your products.
  • Remove any information that identifies a third-party dropshipper, such as packing slips, invoices, or external packaging before shipping the order.
  • Be responsible for accepting and processing returns.
  • Comply with the terms of your seller agreement and other Amazon policies that apply to you.

Most importantly, you cant dropship products from another online retailer and have it ship those products directly to customers. You can only dropship products from wholesalers, such as Alibaba.

This, ultimately, means that Amazon doesnt allow AliExpress dropshipping on its marketplace. Doing otherwise will result in your account being suspended on the marketplace.

That being said, you can still make a lot of money on Amazon, you just need to find a legitimate wholesaler. We give you more tips on that later in this guide.

Pros For Dropshipping On Amazon

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Easy to set up. You can start dropshipping with very low upfront costs. Just create your Amazon account, search for quality and profitable items, and find a reliable supplier to work with. Then, start selling!

Storage space. Dropshipping frees you up from keeping inventory and permanent warehouses. Youll cut down on overhead costs, such as shortage fees and shipping logistics.

Automated & mobile. Theres no need to stay in a single location to run your dropshipping business. For example, you can manage your Amazon store from the mobile app, and set up supplier notifications for every customer order.

Scalability. Experiment with selling different product types from your supplier. This is a great way to find unique market niches, without increasing logistic costs.

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Should You Choose Amazon Dropshipping

Or put it in another way, is Amazon dropshipping profitable enough for you to put in your effort? In fact, there are many people earning a lot from this business model and quit their day jobs to make this a full-time work, but that can show you need to put in quite a work.

You need the commitment to do this, and unlike the traditional method, while you can spend a few hours per day to run, you will need the dedication to make your business really profitable.

There are two factors that can help make Amazon dropshipping your favourite choice.

Focus On Niche Products

One great thing about dropshipping is the freedom it gives you to experiment with selling assorted merchandise. Since you aren’t buying inventory upfront and only pay for the products after they sell, the risk to try something new is next to zero.

So think of something new, bold, and few dare to offer, like a machine that can peel shrimp or a box that can glow when you hit it. You can offer various products that large retailers cannot try to sell simply because that is too risky.

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