How to start dropshipping on Amazon 2022 , Are you looking for a way to start selling online specifically on Amazon, but don’t want to spend a lot of time or money doing it? You can start dropshipping amazon
If you ask an experienced e-commerce seller a good way to get started without going broke or spending a lot of time, they will likely tell you that dropshipping is the way to go.
How to start dropshipping on Amazon 2022
How does Amazon dropshipping work?
How to start dropshipping on Amazon 2022 Dropshipping is an e-commerce method where a seller takes orders on behalf of a manufacturer, distributor, or supplier. Then, when the customer buys the product, the seller uses his suppliers to make those sales, and the supplier ships the product to the customer.
All too often, shoppers reposition the merchandise sold as their own and the end consumer is never informed that the merchandise came directly from the manufacturer. This practice is common on e-commerce sites such as Amazon, Ebay, and Shopify.
And while this might sound a little complicated, we’ve analyzed it to help you get a better handle on how it works and how you can start dropshipping in 2021.
How does amazon dropshipping work?
How to start dropshipping on Amazon 2022
First, an Amazon customer (on the left side of the graph) buys the product you listed on Amazon.
Second, once the transaction is completed and the money is received, you purchase the product directly from the supplier (on the right side of the diagram) and give them customer information.
Finally, with the buyer’s information on hand, the supplier then sends the product to the customer.
How does dropshipping compare to other selling methods on Amazon?
Dropshipping is just one of the many ways to start a business on Amazon. Other popular – and perhaps most lucrative – ways to sell products on Amazon include wholesale and private label.
Wholesaling is when you buy merchandise at wholesale price from a supplier to resell to another retailer or distribute them as a retailer yourself, and private labeling is a way of making your own products to sell on Amazon.
However, there are a number of advantages that Amazon dropshipping has over wholesale and private label.
What are the disadvantages of Amazon dropshipping?
Of course, just as dropshipping sounds good in terms of its advantages, it has some drawbacks to consider.
Since the barriers to entry are so low with dropshipping, the competition can be high. Additionally, while there is some potential for differentiation with the products you sell, there is nothing to stop other Amazon sellers from selling identical products.
As such, price is one of the few levers you have to pull to set yourself apart, which can lead to a ‘race to the bottom’.
slow delivery times
Oftentimes, merchandise shipped through Amazon is shipped from suppliers and manufacturers. These suppliers are often overseas.
For this reason, shipping times from external suppliers can take up to a few weeks (or sometimes months!) to reach the end user.
No quality control
Since the items are shipped directly from the manufacturer to the buyer, there is no way for you to control the quality of the product.
When you consider that products may travel 10,000 miles or more to reach their final destination, it’s easy to see how damaged they can be in the process.
How to start dropshipping amazon
Now that you understand more about dropshipping on Amazon and how it works, here’s how to set you up as a business.
1. Set up an Amazon seller account
First you need an Amazon account. You can get one by going to sellercentral.amazon.com. There, Amazon will give you two options for the type of account you can start with: Single and Professional.
2. Find a high-demand/low-competition product
Next, you’ll need to find a product to sell on Amazon.
You can do this using a tool like Jungle Scout’s Opportunity Finder to find high demand/low competition product opportunities.
Also, when getting started, I recommend keeping things simple. Household, Sports & Outdoors, Patio, Home, and Garden are great categories for beginners because they tend to be low-maintenance.
3. You must check the Aliexpress website in order to know if the product is available in it
The biggest contact for dropshipping products is Aliexpress. It is a business-to-business website that connects e-commerce entrepreneurs with suppliers looking to sell their goods online.
Simply type in the search terms for the product you want to sell, and a variety of products will appear just like on Amazon.
4. Create a product listing on Amazon
After you have an idea for a product and a supplier to meet that product, you’ll need to create your Amazon product listing.
From your Seller Central account, go to Inventory > Add Product. When the Add Product screen appears, click Create New Product List.
First, you must choose the category for your product. Then, once you do that, you will have to fill in the information for the list itself.
When setting a price for your Dropshipping product, don’t forget to calculate Amazon fees. If you are a professional seller, you will pay a referral fee of 8 to 15% depending on the category. Individual sellers pay an additional $1.00 per sale as well.
Finally, once you’re ready, you can publish your listing and start making sales.