Close this search box.

How To Start Dropshipping On Amazon

Amazon FBA

Share This Post

Are you wondering how to start dropshipping on Amazon? Then you’ve come to the right place since we’ll share the best strategies for starting your dropshipping business on Amazon. With our guide, you can start quickly and sell sooner rather than later. 

It’s estimated that 34% of Amazon orders are fulfilled by dropshippers. This is a large portion of the sales, which shows that it’s a viable business model. Therefore, you shouldn’t hesitate to start dropshipping on Amazon, and I’ll show you how with this guide. 

What Is Dropshipping On Amazon

Dropshipping on Amazon is the practice of selling goods first and placing the order with your supplier or manufacturer after the buyer has paid. Therefore, you don’t need to keep stock, so there’s lower risk, and you don’t need a lot of upfront funds. 

Dropshipping is very popular because you can search for countless suppliers online to provide products you can sell on Amazon. However, you cannot use the Amazon FBA service when using the dropshipping model. That’s because with Amazon FBA, you need to send stock to warehouses before you can begin selling. 

Sign Up For An Amazon Seller Central Account

The first step of the process is to sign up for an Amazon seller central account, which allows you to start selling. You’ll need to send proof of residence from an accepted country, payment details, and a photo ID. 

The process can take a few weeks, so you should begin creating an account in preparation for launching your business. Also, there is a choice between a standard and a professional account. The latter is the better option if you are serious about creating a business on Amazon. 

Create a Limited Liability Company

You should form a Limited Liability Company (LLC) to receive many of the perks it provides for Amazon sellers. Here are some of the top advantages that dropshippers on Amazon should consider:

  • Easy, fast, and cheap: creating an LLC is a fast process you can do in just one sitting. Also, it doesn’t cost much money to register your business as an LLC. Therefore, business owners on a low budget can take advantage of the amazing value. 
  • Liability protection: you will receive liability protection when registering an LLC. This means that your business is liable for damages instead of you personally. This means you will protect yourself from massive financial trouble if your products are faulty and customers want to take legal action. 
  • More authority: your business will appear to have more authority when it’s registered as an LLC. Therefore, you may generate more sales when your Amazon business is registered as an LLC.

Are you looking for a good quality service that will allow you to register your Amazon business as an LLC? Then you can trust the service here at Business Anywhere. We provide a fast and reliable service for allowing you to quickly set up an LLC. 

Amazon FBA

Find A Product

Now that you have an Amazon account and registered your business as an LLC, it’s time to find a good quality product to sell. You need to find a product category with low competition and high demand. This can be tricky since many product categories are categorized. However, the trick is to look for less popular categories that have gone under the radar. 

Also, it’s important to pay attention to product profitability. Don’t look for products that sell for lower than $10 since the profit margin may be too low. Instead, try to find a profit margin of around 25% since it ensures you can grow your business. 

Find A Supplier

You can find a supplier for your products of interest, or you can start your business by looking for a supplier and checking out their product lineup. The latter option is a good idea if you manage to find an excellent supplier that you want to do business with. 

You can find suppliers through directories or directly on Google. There are thousands of good quality dropshipping suppliers out there, and here are the factors you must consider when selecting one:

  • Good quality: make sure the supplier you select offers high-quality products you can depend on. Otherwise, your Amazon review score will drop, and the sales will dry up. You can place a few sample orders or look at the experiences of other sellers with a supplier. 
  • Fast shipping: ideally, the dropshipping company you select supports fast shipping. This is important because customers on Amazon expect fast shipping and may choose another seller if that’s not offered. 
  • Low prices: making a profit on Amazon means you must find the lowest prices possible while maintaining good quality. This can be the hardest part of finding viable products to sell on Amazon. 

Create a Product Listing

Once you have a product and a supplier, it’s time to create a product listing. You can log into your Amazon seller central account and create a listing using the dashboard. If you’re not sure how to craft the best listing for your product, then you can research what your top competitors are doing. 

You can take advantage of their top ideas, but don’t copy them directly. Putting a unique spin on how you create a product listing ensures you can get an edge in the marketplace. Furthermore, can get in touch with Amazon customer support if you need help figuring out the tools available to create product listings. 

Dropshipping on Amazon – Is it Worth Starting? 

With the massive opportunity for dropshippers on Amazon, there’s no reason not to get started. After all, Amazon is the biggest e-commerce platform in the world, with thousands of product categories. Therefore, almost any dropshipper out there can find a product category that’s the right match for their products. 

Also, figure out the top strategies for selling specifically on Amazon. This is important for e-commerce sellers who have never sold on Amazon in the past. Understanding the platform ensures you can get more sales and have a flourishing dropshipping business. 

About Author

Picture of Rick Mak

Rick Mak

Rick Mak is a 30-year veteran businessman, having started, bought, and/or sold more than a dozen companies. He has bachelor's degrees in International Business, Finance, and Economics, with masters in both Entrepreneurship and International Law. He has spoken at hundreds of conferences around the world during his career on entrepreneurship, international tax law, asset protection, and company structure. Business Anywhere Editorial Guidelines

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Do You Want To Boost Your Business?