Amazon for dropshippers is a very profitable marketplace to find success and make high figures in product sales. In my Amazon guide, you will learn how to begin dropshipping and the benefits of Amazon, enjoy!
How Does Amazon Work Exactly?
Amazon is undeniably one of the biggest eCommerce platforms. They weren’t always on top, but Amazon surpassed its competitor eBay. Amazon’s retailers and manufacturers sell high quality brands and products to keep buyers satisfied. Not all brands and products get approval, this makes items listed on Amazon more exclusive or highly trusted.
How Effective And Profitable Is It To Dropship Products Through Amazon?
Amazon for dropshippers has fulfillment program which allows sellers to ship products to Amazon to store and inventory the product. Soon as the product is sold, they ship the item directly to the customer. This program is extremely effective for dropshipping businesses because now the customer will receive the product faster.
Amazon for Dropshippers Policy
For the most part it is okay for dropshipping which acts as a third party to fulfill orders. Amazon sellers that wish to fulfill orders using dropshippers, here are the guidelines:
- Be the seller of record for your products
- Sellers must identify themselves on all packing slips for each product. As well with any other information provided or included in connection to the customers purchase.
- Sellers must be responsible for all transactions made on Amazon, you are the only point of contact.
- Follow all other Amazon seller agreement terms and relevant policies.
Not complying with Amazons dropshipping guidelines and using other preferred methods, can result in suspension or a banned seller account
The Benefits Of Using Amazon For Dropshippers:
Amazon has a very large and broad audience range to promote! They have reported about 310 million active members buying and/or selling. With the right experience to sell and dropship products efficiently; you can develop a solid customer base. If you have an online store you can lure customers through Amazon giving you an opportunity to develop a better relationship with those already existing customers making them more loyal to your business’s brand.
Less Marketing Costs
Dropshipping using Amazon gives you a big break from spending a lot of money on ads. Amazon has the option to run ads, but the organic traffic is already highly effective. However, Amazon offers a paid ads feature with no minimum requirements. This allows you sellers to work within their budget costs from any range.
Strategy Tips Using Amazon For Dropshipping:
Amazon is very protective with approving products sold on their platform. They want to uphold a standard for what they consider good quality goods. This is why Amazon has created numerous requirements and restrictions which sellers are required to comply for approval.
Choosing The Right Products To Sell On Amazon
For the products you want to sell check out Amazon’s eligible store list first. The categories listed are already trusted and don’t need approval. To check for eligibility, Amazon provides a list of restricted products. Generally the restricted items listed are harmful or dangerous, like hover boards or weapons.
The Importance of Amazon’s Buy Box
82% of Amazons sales are converted through the Buy Box on each product’s listing page and for mobile purchases. The Buy Boxes for Amazon sellers are not automatically provided; essentially it has to be earned. So for sellers, this is why winning a Buy Box will help maximize your potential sales. The requirements are straightforward; here is six steps to help sellers gain the Buy Box feature:
1. Professional seller account
Only sellers who have purchased a Professional Seller account (in Europe called a Pro-Merchant account) are eligible. An individual seller (in Europe: Basic account) is not.
2. New items
Your item must be new. Used items aren’t eligible for the regular Buy Box, though they can be sold on a separate Buy Used Box.
There needs to be inventory of your listed item. Without stock, the Buy Box will simply rotate to another seller.
4. Using Fulfillment By Amazon (FBA)
Sellers can never beat FBA sellers; it’s just harder, requiring extremely high scores across all variables and a very low price.
5. Landed Price
The landed price refers to the total price an Amazon product goes for, including shipping.
6. Shipping Time
Amazon uses a simple metric to look at the timeframe sellers estimated delivery time. If the estimated time is accurate with the actual delivery time, the seller may be qualified for the Buy Box.
Amazon’s Tools for Dropshipping
Listed below are several helpful tools and services that can assist your dropshipping business throughAmazon:
Merchant Words – A handy tool that lets you view the search volumes and keyword analytics.
FeedCheck – For sellers with a large amount of products listed on Amazon, FeedCheck lets you preview all of your product’s reviews at once. This makes easier to monitor feedback and can help see where improvement is needed to better customer service. The service costs $19/month, however for beginner dropshippers this tools will be more useful latter on.
Seller Engine – This is a re-pricing strategy tool and also it helps you become eligible for the buy box.
Feedback Express – This is a tool to help you gain more reviews for your Amazon store. It can also get rid of the negative reviews, giving you a higher Amazon seller rating. This will definitely help you win a Buy Box and improve your sales. The cost for this service is $20/month.
Amazon Volume Listing Tools – Amazon offers a variety of organizational tools to help simplify your selling experience. They provide downloadable information and spreadsheets that can be useful to document your order transactions.
What Is The Key Success To Amazon For Dropshippers?
Ultimately, you must be willing to learn how to develop new skills and then maintain them. Here is an overview of what the job entails:
1. Integration Between Suppliers And Your Amazon Store
Having an advanced plugin platform like WooCommerce or Oberlo that automatically lists and adjusts the products you wish to sell. Going through a dropshipper directly, you will have to manually keep track of the products inventory. Supplier integration is much simpler to manage. The order information is generated automatically and is processed and shipped.
2. Catalog Management
The Idea of catalog management is to retain all the product data available. Utilize the information and create a standardized listing description. Product listing information varies throughout each marketplace platform. For the product’s listing, it is required to provide very detailed and lengthy information. And there are other marketplaces that prefer a more simplistic description.
3. Inventory Management
Amazon and eBay can suspend your account if they see you’re overselling items too much. This is primarily should concern those who are manually doing business with a supplier. Inventory management will be a routine you should be keeping up to date. You should have a spreadsheet with a timeline for each product to input the inventory count yourself periodically. For those using integrated dropshipping services, the product’s inventory count is automatically updated.
4. Price Adjustments
If you’re working directly with suppliers individually, they should suggest the best price point. They already have more experience and did all the research for the product’s competitive pricing. To create a better profit margin you can always re-adjust the pricing.
5. Order Processing
Every time an order is made you will have send the order information to your dropshipper. Although, there are automated dropshipping services which automatically sends the information.
6. Tracking Confirmation
Marketplaces like Amazon do their best to make sure sellers ship their goods ASAP. They are very responsive to update the status of the order. With dropshipping, you have to make sure your supplier receives the order information as quickly as possible. This allows both parties to complete the order on each end of the transaction.