Imagine running a thriving business without ever handling inventory yourself. That’s the beauty of Amazon dropshipping!
This innovative business model has third-party providers manage order fulfillment, so you get to sell products without the burden of monitoring store inventory or paying steep upfront costs.
In fact, over 61% of paid units on Amazon are sold by third-party sellers, including those using dropshipping and print-on-demand (POD) services. These numbers highlight the incredible potential for success with Amazon dropshipping.
In this article, we’ll guide you through starting your Amazon dropshipping business, share expert tips for growth, and show how POD services can amplify your profit potential.
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Key takeaways
- Amazon dropshipping is a business model where sellers list and sell products without purchasing inventory. Instead, they rely on third-party suppliers to fulfill orders.
- To start dropshipping on Amazon, you need a seller account, reliable suppliers, and high-demand, low-competition products.
- Print on Demand (POD) offers a creative way to sell custom products while avoiding upfront costs and holding inventory.
- Dropshipping involves selling generic products, while, with POD, sellers customize items to appeal to more niche customer bases.
- Staying compliant with Amazon’s dropshipping policies ensures smooth operations and avoids penalties.
- Promoting your Amazon listings with SEO, advertising, and social media platforms is key to attracting customers and increasing sales.
Amazon dropshipping: All you need to know before selling
Dropshipping is a streamlined way to sell products, offering entrepreneurs a scalable entry into eCommerce. Here’s what you need to know to start your Amazon dropshipping journey.
What is dropshipping on Amazon?
In the dropshipping model, sellers list products for sale without keeping them in stock. When customers purchase products, the seller forwards the order to a third-party supplier, who ships them directly to the buyers.
This takes inventory management off the seller’s plate but requires careful coordination with suppliers to meet customer expectations.
How does this work?
- You find suppliers who offer products you’d like to sell.
- You list these products in your online store.
- Once a customer orders, you forward the information to your supplier.
- The supplier packages and ships the item to your customer.
- You pay your supplier the wholesale item price and keep what’s left from the retail price as your profit.
Can you dropship on Amazon?
Absolutely! Dropshipping is legal and allowed and an excellent way to sell on Amazon without inventory. In fact, Amazon has some dropshipping policies about external packaging, processing customer returns, packing slips, and so on to ensure your dropshipping store stays compliant and is primed for success.
Pros and cons of Amazon dropshipping
Dropshipping on Amazon offers unique advantages and challenges. To help you weigh your options, let’s compare the benefits and drawbacks of this business model.
Pros:
- Access to a massive marketplace of customers increases profit margin.
- Low startup costs make it accessible for new entrepreneurs.
- No warehousing is required, which eliminates the hassle of managing inventory.
- Ability to scale quickly with a reliable supplier network.
Cons:
- Sellers don’t have full control over product quality or shipping times.
- Maintaining customer satisfaction can be difficult if the dropshipping supplier fails to deliver.
- Amazon’s fees and competitive environment can reduce profit margins.
- Policy violations related to third-party supplier practices can result in account suspension.
How to start a dropshipping business on Amazon in 5 easy steps
If you’re wondering how to make money on Amazon, it starts with creating an account and following a few essential steps to launch your dropshipping business. We’ll walk you through it.
1. Create an Amazon seller account
The first step is setting up your Amazon seller account and online store.
- Choose between two selling plans: the Individual plan, charging $0.99 per item sold, or the Professional plan, costing $39.99 per month regardless of your sales volume.
- Accept Amazon’s seller agreement, which outlines the rules and responsibilities for sellers, including your role as the seller of record on invoices and packaging.
- Provide essential details like tax information, banking details for payouts, and valid government-issued identification for verification.
Learn how to set up an Amazon US seller account in our help center.
2. Choose a supply model
There are a few models to choose from for your Amazon dropshipping business.
- Traditional dropshipping service lets you list items on Amazon and forward orders to a supplier, who ships products directly to the customer. It’s cost-effective and scalable as long as your supply partners are reliable.
- Print-on-demand platforms like Printify stand out from traditional dropshipping by letting you create custom products. Third-party providers print and ship the items only after customers order, sharing the same inventory-free advantage with the bonus of more unique products.
- Fulfillment by Amazon (FBA) is an alternative to dropshipping that gives you more control over your brand’s customer experience. By sending your products to Amazon’s fulfillment centers, they handle storage, shipping, returns, and customer service on your behalf.
FBA offers the flexibility of dropshipping paired with Amazon’s speed and reliability. Combine FBA with Printify to deliver faster order fulfillment to your customers.
3. Pick products to sell
Still deciding what to sell on Amazon? Start by researching current trends within your niche. Popular products and categories often attract more buyers, so focus on these to help your business grow.
Here are some top-selling categories on Amazon:
- Electronics and accessories
- Fashion and apparel
- Home and DIY
- Health and beauty
- Books and educational materials
Printify’s Catalog features over 1,000 customizable, high-quality products in many categories. It’s an excellent way to tap into high-demand niches by adding a personalized touch.
4. List your products
Take your time when creating Amazon listings. The more details you include, the higher your chances of customers finding your products.
Here are the general steps for creating a listing:
- Log in to your account and create your listing using the Add a Product tool.
- Write a compelling, descriptive title highlighting the product’s key features.
- Provide thorough descriptions, including product specifications and benefits, to attract buyers.
- Upload high-quality images that show your product from multiple angles and different sceneries.
- Optimize your listings by including relevant keywords in your titles, descriptions, and bullet points to improve visibility in Amazon’s search results.
- Set a competitive selling price that reflects market trends while still your operational costs and leaving you with a nice profit.
Read our beginner’s guide to Amazon for more info on listing optimization.
5. Promote your Amazon listings
Promote your listings effectively to drive traffic and snag more sales in this competitive marketplace. Take advantage of Amazon’s built-in advertising tools and the power of SEO and social media to get your products in front of the right audience.
- Use Amazon Advertising tools like Sponsored Products and Sponsored Brands to increase visibility. These ads appear in search results and product pages, helping you target customers actively searching for an Amazon store like yours.
- Search engine optimization (SEO) includes adding relevant keywords to your product listings to improve their visibility in Amazon search results.
Quick insight: Use Semrush to find trending products, analyze keywords, and optimize your Amazon listings for better visibility and sales.
- Social media platforms like Instagram and Facebook are powerful tools to promote your listings. Share engaging content featuring your products, collaborate with influencers, and link directly to your Amazon store to attract more customers.
Make it happen today!
Tips and tools to successfully run an Amazon dropshipping business
Running a successful dropshipping on Amazon requires strategic planning and the right tools to streamline operations, optimize listings, and boost profits by analyzing sales data.
1. Use Amazon dropshipping tools
There are many tools to make your Amazon dropshipping experience smoother.
- Jungle Scout helps identify profitable products by analyzing market trends and demand. It’s ideal for researching potential niches and gauging customer interest.
- SellerApp tracks your product listings, optimizes keywords, monitors inventory, and offers tips for improving your advertising strategies.
- Spocket simplifies product sourcing by connecting you with high-quality dropshipping suppliers, most based in the US and Europe. It ensures faster shipping times and reliable customer service, making it ideal for building trust with your audience.
2. Keep your product listings in shape
To stay competitive on Amazon, focus on more than just basic optimizations by maintaining the overall health of your listings. This ensures they remain in great shape, helping to attract customers and grow your dropshipping with Amazon business.
- Update stock availability, details, and images to keep listings accurate and professional.
- Analyze other sellers’ listings to spot opportunities to improve your own, such as writing better descriptions or setting more competitive pricing.
- Keep up with your supplier’s inventory to update your listings for out-of-stock products and avoid canceled orders.
3. Choose your products wisely
Finding the right products is crucial for a successful Amazon store. High-demand, low-competition products increase your chances of sales while minimizing direct competition.
Here are a few things that’ll help you make informed decisions about your products:
- Research market trends using tools like Google Trends or Amazon’s Best-Sellers list to identify high-demand products.
- Focus on specific market niches with fewer competitors, as these often have loyal customer bases willing to pay premium prices.
- Check customer reviews of similar products to identify unmet needs or quality concerns that your product can address.
4. Follow the rules
Stay compliant with Amazon’s dropshipping policies to avoid penalties, account suspension, or termination. Violating Amazon rules can seriously impact your business.
- Be the seller of record – the legal entity or individual responsible for selling a product or service – and ensure your name appears on all invoices, packing slips, and communications, not your supplier’s.
- Avoid supplier branding. Your products can’t include supplier logos or branding. It confuses customers about who the seller is and can negatively impact their experience.
- Take full responsibility for handling customer returns, even if the supplier fulfills the orders, to provide a positive customer experience.
Review Amazon’s full dropshipping policies in the Seller Central Forum for more details.
5. Keep your customers happy
Providing excellent customer service builds loyalty and helps you stand out while dropshipping through Amazon. As the seller, you are the primary point of contact for buyers, even if your supplier handles fulfillment.
Quick responses, clear communication, and a commitment to resolving issues can turn first-time buyers into repeat shoppers, improving your Amazon dropshipping store’s reputation and long-term success.
- Respond promptly to customer inquiries and complaints to show customers they are valued.
- Offer hassle-free returns and refunds to resolve issues, maintain trust, and increase customer loyalty.
- Use personalized follow-ups or thank-you notes to foster a stronger connection with buyers.
- Monitor and act on customer feedback to improve your listings and service.
Start an Amazon dropshipping business with Printify
You don’t need to own inventory or make upfront investments when using print-on-demand services like Printify, much like traditional dropshipping.
The key difference is that traditional dropshipping focuses on blank, generic products, while POD empowers you to create and sell custom-designed items. This gives you a significant competitive advantage for your eCommerce business.
This model is perfect for artists and creators who want to showcase their work, learn how to dropship on Amazon without money, and earn passive income without managing inventory or order fulfillment.
1. Sign up
Register for a free Printify account.
2. Pick products
Browse our Product Catalog with over 1,000 items and choose products that align with your brand, audience, and niche. We offer t-shirts, other apparel items, home decor, and more.
3. Apply your designs
Use our beginner-friendly Product Creator to upload your designs and customize your chosen products in seconds. View your designs on high-quality mockups to make sure they look just right before listing them in your Amazon store.
Try our easy-to-use Product Creator to upload your artwork or designs to customize your selected products. Preview your designs on professional mockups to see if they’re perfect before adding them to your Facebook shop.
4. Integrate with Amazon
The Printify-Amazon integration simplifies the process of selling custom POD products on Amazon.
Link your Printify with your Amazon seller account to effortlessly sync products, streamlining the entire listing and order fulfillment process.
Learn more about how to dropship on Amazon through this thorough guide.
5. Let Printify do the rest
Once a customer places an order, Printify’s network of Print Providers manages production, packaging, and shipping.
Our Merchant Support Team is available 24/7 to answer any questions or fix any issues.
FAQ
Yes, dropshipping on Amazon is allowed, but you must follow Amazon’s strict dropshipping policies. You must be the Amazon seller of record on all invoices and complex customer service, and your supplier must remain anonymous to buyers.
If done correctly, dropshipping on Amazon can be very profitable. To build a successful business in this competitive marketplace, focus on high-demand, low-competition products and maintain excellent customer service.
While Amazon charges fees, learning how to start dropshipping for free on Amazon is still possible. POD platforms like Printify don’t require upfront costs and provide plenty of resources and blog articles to help you get started.
The average profit margin for dropshipping is typically between 15% and 30%. Total earnings depend on your sales volume, pricing, product quality, supplier reliability, and operational efficiency. The more sales you generate, the higher your potential income.
To summarize
Amazon dropshipping is an easy, inventory-free fulfillment method for those starting an eCommerce business on Amazon. Sellers work with third-party suppliers who handle producing and shipping products, eliminating upfront inventory costs and streamlining operations.
POD platforms like Printify take it a step further by offering tools for custom product creation, helping merchants stand out in a competitive marketplace.
Learning how to start dropshipping on Amazon involves selecting the right products, optimizing listings, promoting effectively, and following Amazon’s policies.
By following the tips in this guide, your Amazon dropshipping store will have a better chance of success.
