Would you like to start dropshipping on Amazon, but don’t know how to do so profitably? In this article I’m going to reveal the step-by-step instructions that you need to open up your own Amazon store.
Normally on our YouTube channel, we don’t recommend dropshipping on Amazon. Why? Well, it’s because most people want to use Chinese dropshippers that they find on Aliexpress. Unfortunately, this is a saturated method and it doesn’t work. But there is one way to dropship on Amazon… and that is with USA-based dropshippers!
- Step 1: Set up an Amazon seller account (important details you need to know, keep reading).
- Step 2: Find the best dropshipping companies that have items for low prices.
- Step 3: Go through the catalogs of these businesses and identify the lowest-cost items that have good buyer demand.
- Step 4: And finally, you need to actually list these items on Amazon in a particular way that will get people clicking on your listing and buying your items.
We’ve even got a video that shows this in action. Click here to watch it now!
Step 1: Setup an Amazon Seller Account
Before you can begin dropshipping on Amazon you’re going to need to create a seller account. We strongly recommend selecting to create a professional account.
Step 2: Locate low-cost dropshippers
We recommend the low-cost (but very valuable) tool, SaleHoo, to locate low-cost USA dropshippers. It is a supplier directory list containing over 8,000 low-cost, reliable suppliers. It is the secret source of cheap suppliers and dropshippers that people (like me!) are using when dropshipping on Amazon:
Basically, the gist of this step is you purchase a subscription to SaleHoo, and then use their internal filters to look for local suppliers that dropship. The reason you want local dropshippers only, is because when a buyer purchases an item on Amazon they expect it usually within 5-7 business days maximum. If you are located in the United States, and have a dropshipper located in China, then it will usually take weeks for your item to arrive at your customers doorstep, and they will be unhappy. You can sell items with longer shipping times in your own store, but not on Amazon:
You might think that you could just find SaleHoo’s suppliers for free using say, Google, but you can’t. Unfortunately, most suppliers have very small marketing budgets and so they won’t show up in the search results since their websites are not designed from a marketing perspective. You either need to use a paid directory like SaleHoo, or find them at trade shows.
Step 3: Go through the catalogs of the suppliers you just found and identify their low-cost items
Back in step 2, you might’ve wondered why we were looking for low-cost dropshippers before we even knew what we wanted to sell. Shouldn’t we figure out the best items to sell before we find suppliers?
Well, if you know what you’d like to sell you should do that, obviously. But if you don’t know what to sell, I recommend finding the suppliers first, and then going through their catalogs and figure out the best items for dropshipping on Amazon.
Which are the best items to sell? Items that are listed well below their going price on Amazon. This means that you can list the same item on Amazon for the same price as other similar listings.
Take this one item. It was selling for $59 from the supplier…
But on Amazon, similar items were selling for $129.99 + shipping costs:
When you work out the profit margins on that, it works out to be over 109% after Amazon takes away it’s fees:
So this item was be perfect for dropshipping on Amazon. The suppliers were selling it for a price much lower than what similar items were selling for on Amazon.
Step 4: Write Amazon titles and listing descriptions that convert AND catch the Amazon search engines
Once you’ve gone through steps 2-3 and found the low-cost suppliers and the best items in their catalogs to dropship, it is time to actually list them on Amazon. When listing them on Amazon, there are some tips and tricks you can use to outrank your competitors in the Amazon search engine and write more compelling sales copy to steal their sales:
- Long, descriptive titles that are rich in keywords rank well in Amazon. The same goes for item descriptions.
- Buyers like knowing about refunds as it makes your listing seem more credible (luckily most of SaleHoo’s dropshippers have a refund policy).
- Sending out emails after each sale, asking people to please leave a review (this can increase the numbers of reviews you get by more than 10x!).
The 4 Steps, Recapped…
- Open an Amazon Seller Account.
- Get a SaleHoo subscription and use it to locate low-cost dropshippers.
- Go through the catalogs of these suppliers, and look for items that are priced lower than they are listed for on Amazon.
- Take these items and use search engine techniques and sales copy techniques to outrank your competitors and to convince people to buy your items over theirs.