Amazon is a globally-trusted online shopping platform that attracts millions of customers every day. It supports dropshipping and makes it fairly easy for sellers that qualify to sign up and get started.
These factors make it a prime dropshipping platform. Still, most entrepreneurs shy away from it due to a misperception that dropshipping on Amazon requires lots of capital.
In this guide, we discuss how to start dropshipping on Amazon without money and share tips on how to excel at it.
Let’s dive in, shall we?
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Can You Dropship on Amazon Without Money?
Amazon offers 2 types of seller accounts:
- Individual seller account
- Professional seller account
The charges for the individual seller account are $0.99 for every item you sell while the professional seller account has a subscription fee of $39.99.
The individual seller account, therefore, allows you to dropship without money because the fees are deducted per sale. Other costs such as Amazon referral fees, and other deductibles, are also manageable because they too are determined based on the products you sell.
How to Start Dropshipping on Amazon
Setting up a successful dropshipping business on Amazon is not difficult but it is a process. So, set aside enough time to execute the steps before expecting returns.
Here is a brief step-by-step guide on how to get your Amazon dropship venture up and running.
1. Identify a Niche
Amazon accommodates a very wide variety of goods. However, it is advisable to research and find a niche of products that:
- Is not saturated – aim for a niche that has a low number of sellers or has a large variety of products. This may save you the hardship of competing with lots of sellers all offering the same products.
- Offers opportunities to diversify – successful niches eventually attract lots of sellers. It is thus better to choose one where you can source innovative products and distinguish yourself from your competitors. Cosmetic products and gadgets, for example, are innovated quite often.
- Has a good profit margin – consider the wholesale costs of products versus the retail cost on Amazon to determine if their margins are worthwhile.
- Interests you – it will be much easier for you to source and market products that you understand and are interested in as opposed to products that you know little to nothing about.
2. Find a Dropship Supplier
You can find dropship suppliers by:
- Searching on online marketplaces like AliExpress, Taobao, or 1688.
- Attending trade fairs and exhibitions.
- Hiring a product sourcing agent.
- Looking up suppliers on the internet and reaching out to them directly.
- Browsing through dropshipping forums.
Amazon is quite strict about timely order fulfillment. It is thus crucial to choose a supplier that will deliver orders within the timelines promised to buyers. A good dropship supplier should also be able to:
- Offer you fair wholesale prices
- Provide a consistent and adequate supply of products
- Package your customers’ orders without any branded materials or invoices
- Provide tracking numbers for orders
- Offer innovative reliable dropshipping services
3. Register an Amazon Seller Account
As we have highlighted above, it may be ideal to sign up for an individual seller account if:
- You are not able to pay the $39.99 monthly subscription fee at the onset.
- You still need to figure out how Amazon works or would like to test the market before you decide what to sell.
However, if you can, consider choosing the professional seller account. It offers access to more Amazon features that could help elevate your business.
More importantly, ensure that you choose the ‘Fulfillment by Merchant’ option as you add fulfillment preferences to your Amazon seller account. This will put you in charge of shipping all the orders that come through your store and allow you to dropship.
4. Create Amazon Listings
Amazon listings are the product presentations that customers see when they visit your page or if your products come up as part of their search results. Subsequently, endeavor to make your listings so appealing that customers find them irresistible.
Each product listing should contain:
- An appealing image showcasing the product
- A product description
- Price and shipping details
Amazon allows sellers to create one listing at a time or create listings in bulk. The latter may be an easier approach if your dropship supplier can provide you with an inventory file to upload.
5. Market Your Amazon Store
Amazon is like an ocean of product listings and suppliers all competing for the same customer base. Marketing your products and your store is thus the only way to make yourself stand out in this ocean and get customers to buy from you.
Amazon advertising options include:
- Sponsored ads for individual products or brands
- Sponsored display I.e your ads are displayed on and off Amazon
- Amazon Posts (in limited regions)
All the options are pay-per-click advertising plans. This means you are only charged if a customer clicks on one of your ads. Additionally, you have full discretion over how much you would like to spend on the ads.
It is equally advisable to capitalize on the large audiences on Facebook, Instagram, TikTok, Youtube, and Twitter. Creating posts and product reviews about the products you offer, or even highlighting discount offers can draw lots of traffic to your Amazon listings.
6. Start Processing Dropship Orders
It may take a while for your listings to attract traffic and start converting into sales. However, if you keep on advertising and sharing your product links, your first sale will come along soon enough.
Share orders with your dropship supplier promptly and monitor the delivery progress. Strive to also ensure that you provide exemplary customer service.
Advantages and Disadvantages of Dropshipping on Amazon
Dropshipping on Amazon comes with some benefits and downsides. So, before you get into it, let’s explore both sides of the coin so that you know what to expect.
- High Traffic
Amazon enjoys over 2 billion customer visits every month. This could be highly beneficial for your business because more visits give you more chances to appeal to buyers and make sales.
- Amazon Seller Features Support Dropshipping
Features such as Fulfillment by Merchant make it easy to dropship on Amazon. The platform is also generally convenient as it offers payment collection tools, advertising solutions, and even brand protection all in one package.
- A Broad Range of Product Categories
Amazon has about 30 main product categories that third-party sellers can sell in. They range from appliances to pet supplies, apparel, and much more. This gives you an abundant selection of niches to choose from for your dropshipping business.
Amazon seller central offers reports on customer behavior, frequently used search terms, and other bits of data that you can use to improve your business performance. Other forms of automation like the ability to upload bulk product listings at once or the SellerApp API also make it easier to run an Amazon dropshipping business.
- Stiff Competition
Amazon has over 1 million active sellers from across the world. This creates a significant number of competitors even though they are all spread across different product niches.
It may thus take great effort to keep your listings visible over those of your competitors and draw customers to your page. You may also have little wiggle room when it comes to pricing because customers may choose your competitors over you if their prices are lower.
- Strict Amazon Rules
Amazon’s reputation is arguably its most prized possession. Consequently, they are very meticulous about ensuring that customers receive their orders on time. The goods that customers receive should also match the quality highlighted by sellers.
Unfortunately, dropshipping makes you dependent on your supplier. You may not be able to always confirm the quality of products they ship out or hasten delayed deliveries.
- Amazon Can Be a Learning Curve
Amazon comes with an incredible range of features and works based on a unique set of dynamics. The platform also keeps evolving with time.
Subsequently, it may be a while before you fully grasp the ins and outs of Amazon and use them to optimize your dropshipping business.
Tips on How to Successfully Dropship on Amazon (Without Money)
1: Understand and Follow Amazon Rules
Make time to read the rules and informative guides provided by Amazon before you sign up for anything. This will help set up and run your business without violating any guidelines.
Understanding the rules may also come in handy as you make decisions about what products to sell. More so because different products attract different fees and some products require approval before you can list or sell them.
2: Offer an Outstanding Customer Experience
Great customer service helps cultivate customer loyalty and builds a good reputation for your business. Both can remarkably elevate the sales of your business and are almost more effective than traditional advertising.
Furthermore, amidst such stiff competition, good service may just be the secret tool you need to set yourself apart from other sellers. The basics of good service include:
- Responding promptly to customer inquiries or complaints.
- Making amends for problematic orders.
- Rewarding loyal customers.
- Delivering orders in attractive packaging.
3: Choose a Reliable Dropship Partner
You will likely rely on your dropship supplier for the products that you sell, order processing, and order fulfillment. All of which can make or break your dropshipping business.
So, set high standards for your dropship supplier and take as long as you need to find one that fits the bill. It may also be wise to place a few test orders and rate the performance of your supplier before you commit.
4: Keep Up with Trends
In today’s world, consumers are keen to discover new trendy products that can improve their home management, fitness, fashion sense, skincare routines, or even ease their workload. Your dropshipping business on Amazon may, therefore, do much better if you regularly update your product listings with trendy products that can fulfill such needs for your customers.
5: Market Your Listings Aggressively but Effectively
Advertise as aggressively as you can on different platforms. However, do not do it blindly or imagine that you need a huge sum of money for your ads to be fruitful. Instead, use targeted ads to ensure you reach the right audience and have a higher chance of conversions.
In the final tally, it is evident that you do not need any colossal sums to start dropshipping on Amazon. Granted, you may incur a few costs, such as the $39.99 for a professional seller account and advertising fees. However, they are minimal and far cheaper than what you may require to get started on other platforms
Moreover, you can count on Bestfulfill to handle all your product sourcing and dropshipping fulfillment needs. Simply contact us with your dropshipping needs and our expert agents will provide all the solutions you need.