How To Start Dropshipping On Amazon FOR FREE (Start With $0)
Table of Contents
Introduction
This tutorial will guide you through the process of starting a dropshipping business on Amazon with minimal upfront costs. You'll learn how to set up your Amazon Seller Central account, select products to sell, and navigate the unique aspects of Amazon's marketplace, including the crucial buy box. Whether you're looking to test the waters or scale your business, this step-by-step guide will provide you with actionable insights.
Chapter 1: Understanding How Selling Works on Amazon
- Selling Options: You have the option to sell your own products or dropship from suppliers.
- Dropshipping Basics:
- You receive an order and place it with your supplier.
- The supplier ships the product directly to your customer.
- You keep the profit after deducting costs.
- Amazon's Reputation: Leverage Amazon's trust to attract buyers.
- Buy Box Importance: Over 80% of sales come from the buy box—aim to win it by offering competitive pricing.
Chapter 2: Registering at Amazon Seller Central
- Create Your Account:
- Visit the Amazon Seller Central website.
- Sign up using your existing Amazon account or create a new one.
- Application Requirements:
- Valid government ID
- Recent bank or credit card statement
- Valid credit or debit card
- Mobile phone for verification
- Approval Process: You may need to complete an interview or provide additional information.
Chapter 3: Selecting a Selling Plan
- Individual Plan: Recommended for beginners.
- No monthly fees but a $1 fee per sale.
- Professional Plan: Upgrade when you consistently sell over 40 items a month.
- Offers more features and flexibility in shipping rates.
Chapter 4: Conducting Product Research
- Finding Products to Sell:
- Use Amazon's "new releases" section to discover generic items.
- Avoid branded products and those marked as Amazon Prime.
- Pricing Strategy:
- Aim to price products 2 to 2.5 times your sourcing cost.
- Target products priced between $25 to $30 for better margins.
- Check Eligibility:
- Use the ASIN number to confirm if you can sell a product before sourcing.
Chapter 5: Winning the Buy Box
- Identify Competitive Products:
- Research similar items and their pricing.
- Ensure you can source products at a lower price than competitors.
- Listing Your Product:
- Fill in product details on Seller Central, including price and quantity.
- Remember, you cannot modify titles or descriptions without a professional account.
Chapter 6: Automating Your Business
- Using Automation Tools:
- Consider tools like AutoDS for managing inventory and orders.
- Connect your Amazon account to automation software after upgrading to a professional account.
- Price and Stock Monitoring:
- Set alerts for price changes and stock availability.
Chapter 7: Providing Exceptional Customer Service
- Communication:
- Be transparent about shipping times and policies.
- Respond promptly to customer inquiries to avoid delays.
- Supplier Reliability:
- Choose suppliers with good communication and reviews to ensure smooth operations.
Conclusion
Starting a dropshipping business on Amazon is accessible and can be done with minimal investment. Focus on winning the buy box, conducting thorough product research, and maintaining excellent customer service. As you grow, consider investing in automation tools to streamline your operations. Remember, consistent effort and strategic planning are key to your success in this lucrative marketplace.
For further resources, consider joining communities or courses related to dropshipping to enhance your knowledge and network. Good luck with your Amazon dropshipping journey!