How Does Drop Shipping With Amazon Work?
Basically, you have to find a supplier who will ship your products. Secondly, you register and set up an Amazon seller account which will receive customer orders. Your supplier then ships the products to the buyers packaged with your information as the seller.
Similarly, you can drop shipping with Amazon by using FBA (Fulfilled by Amazon). Once the customer buys, your supplier ships the items to Amazon who will then deliver to your customer. However, Amazon doesn't allow you to buy from other retailers and sell them on their platform.
Why Drop Shipping with Amazon?
- Without holding inventory, there are no warehouse costs.
- Very low starting costs.
- You require very few skills and few documents
- Access to Amazon Suppliers who operate globally helps you reach a larger audience. Likewise, they ship fast.
- You gain access to a customer base of over 300 million.
- Access to Amazon ads generates organic traffic
- Good support to sellers from Amazon
What is the Process of Drop Shipping with Amazon?
How to Find Your Amazon Drop Shipping Suppliers?
This is the basic step. You can find suppliers from sites that provide wholesaler directories. Likewise, a site like SaleHoo has those lists.
How to Set Up an Amazon Seller Account?
To do this, visit the Amazon seller central, enter all the details required and you will be all set.
You can either get an individual account or a professional one. An individual account gets charged per order whereas your professional account will be charged monthly.
How to Get Your Products Categories Approved?
Amazon recommends some specific niches which you don’t have to wait for approval. They include;
- Office products
- Computer and video games
On the other hand,some items from categories such as accessories, fashion, and Jewelry require Amazon’s approval which you will have to wait for.
How to List Your Items on Amazon?
Amazon has a large catalog of items sold on their platform. With this in mind, you can search for the item you want to sell, make sure it matches your specifics then click the “Sell yours here button”.Notably, you can add additional information like description and shipping costs.
If your product doesn't exist in the catalog you can use "Add a product" feature.
How to Market on Amazon?
Amazon allows you to market on their platform. However, you have to use in-site methods such as Amazon’s Sponsored Product Ads. They offer different product placement styles on mobile and desktops.
You can also increase your Amazon sales using the buy box which influences over 80% of sales.It is placed at top right corner of a product page. For all that, you must fulfill the following conditions to win the buy box feature;
- Faster shipping
- High seller rating (Over 95%)
- Good feedback scores
- Low refund rates
- Good customer response
Besides the above, you can increase Amazon sales by using coupons on marketing websites
How to increase SEO for your Amazon Store?
SEO helps your product to appear on top of Amazon search results.Detailed product titles plus product descriptions that include keywords are paramount. Equally important, the descriptions should be long and detailed to help you rank higher.
Having gone through this guide that explains how drop shipping on Amazon works, you can comfortably venture into it. In a nut shell, you need to identify a supplier, set up an Amazon seller account, list items, market them and start selling.