If you are an Amazon seller who wants to avoid the hassle of managing inventory and start your business with low overhead, dropshipping is the way to go.
Dropshipping may be a profitable venture. However, finding high-margin dropshipping products to sell on Amazon may be challenging and time-consuming. To simplify this process, you can use effective Amazon seller software.
Our comprehensive guide will take you through each critical step of dropshipping on Amazon and help you find the right dropshipping products with the help of the best Amazon seller product research tools.
What Is Dropshipping on Amazon?
Dropshipping on Amazon is a popular and profitable business model. With it you, as a seller, can offer a wide range of products to customers without worrying about inventory management or fulfillment. Simply put, you act as the middleman between the customer and the supplier.
Dropshipping offers a low-risk way to start an e-commerce business, as it eliminates the need for upfront inventory investment. With careful product selection, reliable suppliers, and a focus on customer satisfaction, you can establish a profitable and scalable dropshipping operation.
Is Dropshipping Legal on Amazon?
Dropshipping is allowed on Amazon with certain restrictions in place. To engage in dropshipping, it is crucial that you are the official seller of the product, and all relevant documentation, such as packing slips, invoices, and other information, clearly identify you as the seller of that specific item.
Recently, Amazon has reinforced its dropshipping policy and has taken strict measures against sellers who do not adhere to these guidelines. Non-compliant dropshipping accounts have faced severe consequences, including significant bans.
Therefore, it must be explicitly clear that you are the seller of record and ensure that all third-party labels and logos are removed from the order packaging.
What Are Amazon's Dropshipping Requirements?
To comply with Amazon's dropshipping requirements, there are key guidelines for dropshippers. By adhering to these guidelines, dropshippers can maintain a compliant presence on Amazon and provide a seamless shopping experience for customers.
Seller of record
Dropshippers must be the authorized sellers of the products they list on Amazon. Establishing a direct relationship with suppliers or manufacturers is essential to ensure you are the legitimate seller.
Clear seller identification
Dropshippers must clearly indicate themselves as the sellers on all packaging slips, invoices, and other product-related information. That ensures transparency for the customers and maintains compliance with Amazon's policy.
Removal of third-party data
Before fulfilling an order, dropshippers are responsible for removing any data or branding related to the third-party supplier. This step ensures that customers receive the product without confusion or reference to the supplier.
Dropshippers must handle customer returns promptly and professionally. Managing the return process ensures customer satisfaction and maintains the integrity of your dropshipping business on Amazon.
How to Dropship on Amazon Step by Step?
With dropshipping, the seller lists a product on the platform and coordinates with a supplier to ship the product directly to the customer upon receiving an order from a buyer.
Below is a step-by-step breakdown of how the dropshipping process typically works and how Amazon dropshipping software can help you simplify this process.
Step 1. Product selection
To begin with, you must find a profitable product with a high demand on Amazon. To do so, you must do product research.
Generally, this step is complicated and time-consuming due to the high competition on Amazon. The best solution to this is using Amazon dropshipping tools.
Seller Assistant App is one of the best such tools. Below we will show you how to source a profitable dropshipping product with Seller Assistant App.
Seller Assistant App appears on the Amazon product and search results pages and shows all necessary product metrics and helps understand whether the item is worth buying.
Estimate product parameters
Seller Assistant App shows the product's sales performance through its Best Sellers Rank (BSR); Buy Box seller's offer and the number of FBA and FBM sellers to estimate your competition; estimated potential sales; IP alerts, restrictions, and your eligibility to sell the product and its potential problems if any.
Check product profitability
Seller Assistant App’s convenient FBA&FBM calculator helps quickly calculate all numbers you need to see if a product brings enough profit. You can account for all Amazon fees, Profit, ROI (Return on Investment), margin, and other numbers.
Save the results to Google Sheets
Seller Assistant App lets you export the product data to Google Sheets in one click and process information when you need it.
Step 2. Supplier partnership
Once you've identified the products you want to sell, you must find suppliers who can fulfill customer orders on your behalf. These suppliers will handle inventory storage, packaging, and shipping.
Your product suppliers must offer competitive prices, quality products, and efficient shipping methods.
You can simplify supplier search with the seller tools. Seller Assistant App can be helpful in this process as well. Below we will show you how to find dropshipping product supplier with Seller Assistant App.
Find your product
Navigate to the listing of the product you look for. Within the Seller Assistant App menu, locate and click the search button in the upper left corner.
Select a supplier
From a drop-down list, you can select one of the options: Google, Google Shopping, eBay, Walmart, Target, Webstaurant, Katom, The Home Depot, and Alibaba.
By selecting any of the options from the list, you are promptly redirected to the search results page for that specific product on the chosen platform.
Step 3. Listing creation
Creating compelling product listings on Amazon includes optimizing them with relevant keywords, attractive images, and detailed descriptions. You aim to make your listings stand out from the competition and entice potential buyers.
A well-crafted listing accurately showcases the product's features, benefits, and specifications, effectively answering any questions or concerns a buyer may have.
A visually appealing presentation with high-quality images helps to capture attention and instill confidence in the product's quality.
Additionally, incorporating relevant keywords and search terms helps improve the listing's search rankings, making it more likely to be discovered by interested buyers.
Step 4. Order processing
When a customer places an order on your Amazon store, you must forward that order to your chosen supplier.
Share all the necessary order details with them, including the customer's shipping address and any specific instructions.
Step 5. Supplier fulfillment
When you’ve asked the supplier to process and ship theorder, they will package the ordered products and ship them directly to the customers. They will handle inventory storage, order processing, packaging, and shipping logistics on your behalf.
Maintaining open communication with your supplier is essential to ensure smooth order fulfillment and timely delivery.
Tip. If you find a product on any other platform or online store, like Target, eBay, etc., to ensure compliance with Amazon’s policies, you can use prep center services to remove all signs of the third-party sellers and ship the order to the customer.
Step 6. Customer service
While the supplier handles shipping, you are responsible for providing excellent customer service. Address any customer inquiries, concerns, or issues promptly and professionally.
Remember to maintain a high level of communication and resolve any customer-related matters to ensure a positive shopping experience.
In conclusion, dropshipping on Amazon offers a promising opportunity to establish a profitable online business with minimal upfront investment and reduced operational complexities.
Seller Assistant App offers invaluable support to dropshippers by streamlining deal sourcing. With Seller Assistant App, you can easily access critical information such as product profitability, margin, and Return on Investment. It also lets you quickly identify any sales restrictions or past issues related to account health. By integrating an FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker into a single tool, the Seller Assistant App simplifies the product research process, empowering sellers to make well-informed decisions and optimize their selling strategies.