This article will educate you on getting started if you’ve heard of dropshipping and want to learn how to implement it on Amazon without spending money.
The answer to the question of how to start an Amazon dropshipping business without money is a little difficult. In order to launch your Amazon side business, you will need some cash or even a credit card.
What is a Dropshipping Business?
An eCommerce business model known as “dropshipping” entails accepting orders on behalf of the distributor, supplier, or manufacturer.
Your supplier will be in charge of filling the order (shipping the product to the customer) after a customer purchases the item.
You will rebrand the sold goods as your own as a drop shipper. The consumers of the goods won’t be aware that the manufacturers shipped the items to them.
There are numerous other platforms besides Amazon for dropshipping. I hope you got an idea about what a Dropshipping business is.
Also Read About – How To Make a Website To Sell Stuff & Things
How To Start A Dropshipping Business On Amazon
This guide will show you how to dropship on Amazon without spending money.
- Create a free account as an individual seller on Amazon; however, as per the agreement, you will pay about $0.99 for each sale.
- Find the most lucrative and well-liked products by conducting manual research on niches and products.
- List the products and locate a reliable supplier.
- Use free influencer marketing or social media to publicize your Amazon listing.
- When a sale is made, use a credit card to buy the goods on behalf of your customer (Amazon doesn’t release the money right away).
- Pay off your credit card once Amazon releases the funds.
This is a fairly time-consuming option that is doable but will cause your dropshipping business to grow slowly.
How to Start Dropshipping on Amazon
Following are the steps for how to start dropshipping on Amazon as a business model to sell products:
1. Choose your Niche
You must identify lucrative niches if you want to start dropshipping on Amazon. Since choosing the incorrect niche could result in losses, this is probably the most crucial step in your business process.
You can manually search for products by examining their popularity in the search results, their level of demand, and their best-seller ranking.
Finding products that meet the following requirements is the objective:
- Sales per month: 100 to 300 units.
- Competition: Very low or low – determined by lower review numbers.
- Average product price: $20 to $35.
- Niche score: 7+.
If the product has a niche score of 7 or higher, it is usually a good idea to start your dropshipping business with that item because it is in a lucrative market.
2. Find a Dropship Supplier
Once you’ve settled on a particular product category or market, you’ll need to find suppliers for those products in order to source them for dropshipping on Amazon.
The majority of Amazon sellers import their goods from China through AliExpress. It functions like a B2B version of Amazon where suppliers can be contacted by eCommerce business owners.
Although the products will be cheap, keep in mind that Chinese manufacturers’ typical shipping times are very long, which is not always ideal for an e-commerce business.
3. Sign Up for an Amazon Account
After deciding on a niche and a dropship vendor, go to Amazon and register as a seller there using Amazon Seller Central.
As per the above statement, you have a choice to build an individual account or a professional one for dropshipping on Amazon.
4. List Products
You must list your products on Amazon before you can begin dropshipping. Log in after creating your preferred seller account, then select Inventory » Add a product.
As soon as the screen appears with “Add a Product”, choose the “Create a New Product Listing” option. Post that to choose a product category and enter the information required to create a product listing.
Make sure to factor in Amazon’s fees when determining the price for the dropshipped item. Depending on the product category, referral fees from Amazon can range from 8% to 15%.
You will also pay an additional $0.99 per sale if you have an Individual Amazon seller account.
5. Promote Products
You can begin selling the products once you have finished creating your product listings. You must drive traffic to your product listings in order to accomplish that.
Using Amazon PPC or Pay-Per-Click ads is the quickest and easiest way to start attracting attention to your listings. By creating ads for dropshipping products, you can make sure that they rank higher in Amazon search results than regular Amazon listings for the specified keywords.
You can use email marketing, blogging, social media, podcasting, etc. to start promoting without spending any money.
6. Process Sales
The dropship supplier gets the customer’s information in their very last step when they buy or purchase the product/item that is listed on Amazon’s online store, and then, the supplier can ship the item to the customer.
Well, in this era, such processes can be automated with a variety of tools. These tools save your time and energy, but these tools are not free(premium).
To find a reliable supplier that can provide high-quality products is important because you must accept and process returned goods.
How Much Does It Cost To Start Dropshipping On Amazon?
Signing up for an individual seller account which is of no cost, can let you start with less investments, but you’ll be charged $0.99 per sale as it has been already stated.
The products need to be purchased, as customers will buy them after you find a reliable supplier, and free social media promotion will be made for your products. (because Amazon pays in set periods, minus costs).
By using a credit card to pay for the items, you will probably have the money available in time to settle the balance before the interest gets charged.
By using this technique, you can start an Amazon dropshipping business for between $500 and $1000. This amount is definitely less expensive than starting other Amazon sales channels like the private label.
How To Start A Profitable Amazon Dropshipping Business
The following are some of the factors that can help you run a profitable Amazon Dropshipping business:
1. Promote Products:
Drop shippers must promote their products to attract traffic and for rapid sales. Selling products on Amazon will be great if others never see your products.
2. Provide Excellent Customer Service:
Because there is nothing to manufacture and no need to maintain your own inventory, you can easily spend your time providing better customer service.
3. Get Samples
Before adding products to your Amazon online store for dropshipping, make a minimum purchase of one unit of each item you intend to sell.
This will help you know how well or poorly your customers will receive the products.
Is Amazon Dropshipping Profitable?
Each one of you reading this must be thinking, Is Amazon Dropshipping Profitable?
Yes, if you choose your products carefully, Amazon dropshipping can be profitable. To determine how much profit you can make, you must thoroughly research your niche, your products, and Amazon’s fee structure.
Pros & Cons of Dropshipping on Amazon:
- Due to the lack of inventory requirements, it has very low to no start-up costs.
- As a result of not having to wait for the creation of the goods and their delivery to Amazon fulfilment centres, it can be set up quickly and without difficulty.
- There are many research tools available to help you identify highly lucrative niches.
- Obtaining a place in the buy box can be very challenging because other sellers and store owners may sell identical products as well. Hence, Expect high competition because of low entry barriers.
- Delivery times can be very long and order fulfillment can take several weeks to several months to reach the customers because orders are frequently filled from foreign countries.
- You have no control over the quality of the products because the suppliers and manufacturers ship the products directly to customers.
I hope this article on how to Dropship on Amazon without money was helpful. If you’re lacking motivation, stay in touch with us because we have plenty more inspiring ideas to keep you inspired.