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One of the best ways to start business on Amazon without money and time is dropshipping. You can start online selling without any inventory and budget.
What is dropshipping?
The dropshipping method involves selling a supplier or manufacturer product online without purchasing the inventory. You list the product on eCommerce sites like Amazon, eBay, or shopify. When you receive the order, you pay the supplier. They will process the order to the customer’s address.
How it works on Amazon?
- List a dropship supplier products on Amazon seller central. Do product promotion and get reach to the audience. Visitors will land on your Amazon listing and buys it.
- The next step is order processing. Communicate to the supplier, pay them and forward customer’s details to send the order to. The supplier will provide you tracking id. Confirm the shipment on Amazon seller central and share the tracking id.
- Your customer will receive the product within the expected delivery time.
So, is not it a best selling idea on Amazon. You paying to supplier for every order you receiving on your store.
Is it legal on Amazon?
Yes, it is legal on Amazon. Follow the Amazon guidelines and run dropship business without any worry. Below is a dropshipping guideline for Amazon 2022.
Benefits of Dropshipping
Little investment to start
Compared to fulfillment by Amazon and Arbitrage business, it is a money saver model. You do not need to hold the inventory spending a big amount. When you receive order, pay the supplier and get orders shipped.
Run dropshipping on Autopilot
Amazon dropship tools helps you run an automated business on Amazon. Integrate third-party applications and they will take care of product listing, order processing, and forwarding the details to the supplier.
Suppliers are loving it
The popularity of this business model has switched the interests of thousands of suppliers. The increasing number of dropshipping sellers giving a broad market to them to sell more inventory.
Fast to setup
You making a listing and selling it. This is as fast as a business can be. The supplier is holding the stock and handling shipment part for you. So, it is saving you time.
While in FBA, You cannot start selling on Amazon without inventory reaches to the warehouse. Where as in FBM, the merchant needs to make a shipment plan before starting the business for steady business flow.
No warehousing fee
The supplier has the stock. You ordering a product when you receiving the order. So, you are saving product warehousing fees. In short, more profit on every order.
Disadvantages of doing dropshipping on Amazon
Slow delivery time
Amazon is known for prime delivery. Your will find FBA and Seller fulfilled prime sellers as a competition to your product category. Dropship suppliers provide delivery within 4-7 working days to national customers. A delivery in 48 hours with a supplier for dropshipping will cost much higher that could affect profit margin.
Competition
A brand new listing and selling on Amazon is competitive. There are hundreds of Amazon sellers who sell the same product lines. So, it is difficult to get sales unless you do PPC.
No control over Product quality
You are dependent on the supplier to fulfill the order. A manual product inspection before sending the parcel is not possible for you. So, chances sometimes a customer will receive a damaged product.Be ready for refund or returns in such cases.
Find products and suppliers to start selling on Amazon
Start with product hunting on Amazon. Find some best selling goods in various niches and prepare a list of those products. Check best selling products on Amazon best sellers page.
You can find that product on Aliexpress, DHgate etc. Check for profit, estimated shipping time and other key things on seller’s listing. Prefer those sellers having warehouse in your region or offering fast shipping with minimal fees.
Extract images and content from the supplier’s listing. Create a new listing on Amazon with that content and images. You can edit that content if required.
Hurray! you have taken the most awaited step. Now wait for the orders. Once you receive the order, order the product on seller’s listing and share your customer’s details. Sit at your home and the supplier will forward the order to the customer.
But, when you deal with Chinese sites, you have to make sure that the sellers of Aliexpress and DHgate should have a warehouse in your Amazon selling country. This way, you can send items fast to your customer. Also, make sure to have a discussion with the seller before listing the product. The seller should agree to attach your company’s name or seller central account invoice slip to the order.
Supplier research For fast product delivery
The above method delays shipping time. It is because your supplier is thousand miles away from you. But, you can find suppliers in your country and low down shipping time. Use google search as a tool and find dropship stores online. You can search them using following queries:
- Product name + dropshipper+ Country name
- Dropship suppliers+ country name
- category + dropshipping suppliers+ country name
Note: Amazon charge its sellers 15% referral fee on very order. So, do calculate referral fees and count margin before listing and selling a product.
Best dropship supplier in the USA that falls under Amazon guideline
Koehler Home Decor
If you want to start the dropshipping business as per the Amazon’s guidelines and moderate delivery time, you should give a try to Koehler Home Decor. The website offers reliable dropshipping facility to Amazon sellers. You will find a variety of products on this site under numerous categories including seasonal, garden, gift, and home decoration accessories.
They have their products catalog listed on Amazon. Search the product on Amazon and start selling it. Once you receive the order, prepare an order on their website, submit them your customer’s order details and they will process your orders. Note, they only deal in the USA region only.