The Ultimate Guide To Dropshipping on Amazon [2021]

the ultimate guide to dropshipping on amazon
Here is your one-stop destination to know everything about dropshipping on Amazon

Have you ever wondered how big sellers on amazon that sell multiple different products manage their inventory?

The truth is, that they do not manage their inventory, they are just displaying the products manufactured by different companies in their shop and the manufacturers are the ones who manage their inventory.

But these stores still manage to sell products as fast as any other store and they still have more  profit and less workload than others.
They are able to do so because of dropshipping, and today we will be going over some dropshipping business ideas.
We will also explain to you in great detail how you can make your own dropshipping business plan.

Table of Contents

What is dropshipping?

Dropshipping Ideas
Dropshipping is a type of retail fulfillment method in which you do not store or own any stock of the products that you sell.

In dropshipping, you are the seller, but you do not store the stock, basically, if you receive an order, you tell your supplier or manufacturer to deliver it directly to the retailer or customer

This means that dropshipping does not require a large amount of investment to begin with, since all you need is to form a good dropshipping business plan.

Advantages of dropshipping:

advantages of dropshipping

1. Less input cost required- As compared to wholesaling or retailing, you will have to spend way less money if you have a dropshipping business plan. This is mainly because you do not have to invest money in storage and shipping solutions, which can be very expensive.

2. Fewer worries about shipping and transport- Since you are not managing the shipping and transport of your products, you will not have to worry about it getting delayed and you will have more time to focus on your products and your store. This is one of the best advantages of having a dropshipping business plan. 

3. Flexible location- Since you only have to manage your online store, you do not have to set up a complete office to manage your work. All you will need is a good pc to manage your store if you have a dropshipping business plan.

How to begin with dropshipping?

Shopify - dropshipping on amazon
First off, you need to find a suitable product or niche in which you want to start selling products
This depends on a lot of factors. High demand is the main factor. Items with high demand in the public tend to sell out more and hence drop shipping in this niche will be more profitable as compared to those which are not in high demand.
Some of the best dropshipping business ideas are given below:

1. Beauty products: At present, beauty products have a very high demand. These products are ideal for dropshipping since manufacturers of such perishable products that can expire quickly try to sell out their items as quickly as possible, hence offering low prices to retailers and drop shippers.

 It is also ideal for dropshipping since you will not have to worry about expiry of the products since you do not store any of the products that you sell

2. Clothing: Cloth and textiles are also items that are in high demand, these items are also great for dropshipping since there are many companies and manufacturers that promote their products by dropshipping.

3. Hardware and general appliances–  Hardware items are generally low production cost items and are cheap to buy, and most of the dropshipping businesses on platforms like Amazon and AliExpress usually sell items that are made by the same manufacturer but have different model names and have the same quality, so this is a very easy field to begin drop shipping in.

4. Toys and games for children- Many retail stores in India buy their toys and accessories from drop shippers in bulk since that is cheap for them to buy. The good thing about this is that you can form a very rigid system since most stores stick to only one supplier, so if you make a good connection with a retailer, you can make a lot of profit.

Tips on how to start dropshipping for free:

tips on how to start dropshipping

As we mentioned earlier, dropshipping is a great idea if you are starting out with entrepreneurship, since it requires little to no input cost, to begin with.

Here are some important points to keep in mind when you are planning to start dropshipping for free:

1. We suggest you do not spend any money on courses that teach you dropshipping, it’s not rocket science and will come to you eventually, there are many videos on youtube that can teach you how to get started with dropshipping.

2. Find suppliers that allow dropshipping. You will need to look if the manufacturers of the products that you are planning to sell actually allow dropshipping, moreover, some manufacturers actually take up a lot of the income percentage that you gain from dropshipping, so look into it carefully before making a deal with a manufacturer.

3. Another way to overcome high workload is to find dedicated dropshipping suppliers. They act as a warehouse for drop shippers where all kinds of items are available for dropshipping, so this process is hassle-free.

4. There are many platforms where you can start dropshipping, Amazon is the most famous out of all of them. We will be going over ideas on how to start dropshipping on amazon in a while, keep reading to find out…

5. You can use cms platforms like Shopify to start a dropshipping store. You don’t require a lot of technical knowledge to start and provide a clean dashboard with direct integration of AliExpress like DSers and Oberlo
6. Just like any other business, managing and future planning is very important if you are planning to start a dropshipping business. This will not only save your time but it will also prevent you from spending too much money in the future as you will already know the possible outcomes and so you will plan accordingly.

7. We recommend you form a solid marketing strategy. This strategy will directly impact the success of your dropshipping business plan. And this is the only early step in which we recommend you to spend money and get a professional to form your marketing strategy since it is a very crucial step.

Although you can start off with a dropshipping business for free, you will have to invest money into it in the future if you are planning to make it your main hustle.

How to start dropshipping with amazon:

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Amazon is one of the best platforms to start dropshipping on, there are some things that you need to keep in mind while planning how to start a dropshipping business on Amazon:

1. To begin with, dropshipping on Amazon, you will need to make an amazon seller’s account. You can choose between a professional or an individual account, although we recommend you to make a professional one since it will be better for you in the long run. You will also need to provide your bank information and other credentials as requested by amazon.

2. As we mentioned earlier, to start off with dropshipping on Amazon, you will need to research what items are the most popular on Amazon, such as electronics and kitchen appliances

3. Make your product listing on Amazon, you can do this by going to your Amazon inventory and create your listing, after that you will need to select the “this item is made by another brand”

4. After listing your product, you will be setting a price for the product that you are planning to sell.

5. At this point, you will be able to start dropshipping on Amazon. There is a lot of competition on amazon so you will need to stand out in order to be successful.

Requirements to sell - dropshipping on amazon

The best way to rise up to the top is by advertising your products.

Advertising your products:

advertising dropshipping
When it comes to dropshipping business plans, advertisement is a very important factor. Here are some ways in which you can gain success in dropshipping by advertising:

1. Advertising on social media: to gain popularity, you can start advertising on social media apps like Facebook and Instagram, some of these platforms allow you to advertise with ease. Some of these social media platforms also allow you to sell your products on their apps.

 2. Youtube is also a great platform for you to advertise your products, you can run ads for your own products on youtube which will show up on the feed of the people that are interested in the types of products you are selling.

3. Another way to start dropshipping is to make a blog promoting and reviewing items that you are selling. Pair this with advertisements on social media apps and you will achieve success in no time.

Frequently asked questions related to dropshipping job plans:

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If you are planning to start a dropshipping business, you do not need to worry about paying for shipping, since it is all up to the manufacturer to ship it, so the fees will already be adjusted in the price of the product.
Yes, dropshipping is completely legal and you do not have to worry about running into legality issues, which is contrary to many people’s belief.

Although it is variable, you are looking at an estimated income of about $200-$1000 if you are just starting out with a dropshipping career plan.

Yes! You can turn your dropshipping business into a full time job and earn good money off of it, but you will need to have a steady business plan.

Conclusion:

conclusion
Dropshipping is a good option if you want to start a business that requires less input cost.

Although at the beginning, your income will be low and the growth of your business will be slow, once you pick up the pace, your sales will skyrocket.

We suggest that if you are planning to start selling products online, you should give dropshipping a try. Although it might not be for everyone, a dropshipping business plan is very effective if you make strategies and execute them properly

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We hope you found this article helpful!

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