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Writer's pictureFahad H

Amazon Dropshipping Guide


Until recently, Shopify got added to the Amazon sales channel, which allows Shopify store owners to sell on Amazon. It is a welcome development and a great opportunity worth exploiting. In this article, you’re going to learn everything about this fantastic Amazon dropshipping, its benefits, tools, strategies, and how to make it work for you.

What Is Dropshipping?

Dropshipping is one of the easy ways to make money through the eCommerce industry. It entails selling a product of your choice without the responsibility of having a warehouse, inventory or worry about shipping the goods. Your manufacturer is solely responsible for all the whole process, which includes manufacturing the product, maintaining the stock, and delivery of the orders to the customer.

Benefit Of Dropshipping

Dropshipping comes with tons of perks. For anyone who is intrigued by eCommerce but doesn’t have much finance to own any inventory, he can delve into dropshipping. Once the online store is set up and products listed, the only work becomes the promotion and marketing of these products. To many, that is not too much, compared to the benefits. Here are some immense benefits associated with dropshipping.

Holds No Inventory

One of the problems people face in eCommerce business is failing to sell their products. It is a significant risk that often plugs them into bankruptcy. However, the dropshipping business has nothing to do with inventory, thereby making this business model less risky. In other words, you don’t need to buy any product or own warehouse.

Few Skills Needed

Unlike numerous online businesses, you don’t need exceptional skills to make it dropshipping business. The necessary skills you need is just excellent marketing and administrative skills. With that, you can achieve impeccable success without hassle. As a dropshipper, you don’t have to worry about restocking or delivery. Since your manufacturer handles those, it gives you time to focus on marketing and satisfying your customers. For dropshipping, use the best online form builder.

Test Products Easily

Another great benefit of dropshipping is the ability to test products without having to buy them. You can tell which products perform better and those that don’t. For low performing products, you can easily remove them from the store with few clicks. As for high performing products, they can be a great motivation to purchase an inventory.

The Start-up Cost is Low

Starting this business won’t cost you a hand and a leg. You only purchase a product when there is an order placed by a customer. Furthermore, there is no warehouse for inventory, nor do you have to worry about the shipping of products. Your only cost will arise through advertising, price of products, and website.

Everything You Need To Know About Amazon Dropshipping

With Amazon, the dropshipping business becomes more mouth-watering. In this guide, you’re going to learn everything related to amazon dropshipping, its benefits, and how to start dropshipping.

Pros Of Amazon Dropshipping

No warehouse cost

With Amazon, you don’t need to own a warehouse. You can choose to make your products FBA (Fulfilled by Amazon). With this unique program, all you have to do is send your products to Amazon. They store it and are also in charge of shipping it out.

Amazon suppliers

Amazon source suppliers from around the world, including Europe, where they buy in a buck. When gotten, they store in their warehouse and ever ready to ship to customers whenever there is an order. They handle returns, customer services, all in different countries and languages. With this, even small businesses can transition from a small business to a giant company. Additionally, suppliers receive helpful resources and strategic guides from Amazon.

Large Market To Sell To

Amazon has over 300 million active users. Imagine what that means to your business. When you sell your products at the right price, you will be able to make lots of new customers and sales. Exposure to such a large market only means higher conversion and customer base.

Less advert

With Amazon, you don’t need to spend tons of money on adverts. Although they are necessary, the organic traffic in Amazon makes adverts less appealing. When you optimized your page for the right keywords, you increase the chances of gaining more organic traffic. Aside from that, you can also run ads on Amazon. The amount you spend daily on Amazon ads is in your control. There are no minimum requirements.

Cons of Amazon Dropshipping

The disadvantages are not overwhelming. When you understand the drill, you can quickly scale through. Amazon has a restriction, which prohibits dropshippers from selling on their platform. The only way to go around this is to dropship using Amazon’s FBA program. Dropshipping on amazon through another online retailer is not allowed either.

Frequently Asked Questions

Below are three common questions often asked about Amazon dropshipping. Knowledge of this can be what you need to kick-start your dropshipping journey and make money.

Question: Is Amazon Dropshipping Legal?

Amazon is very much legal. You can dropship on Amazon with only two restrictions. You can’t buy a product from another online retailer and have them ship it to the customer. Also, all merchants must make sure that their business information is on all their products shipped to customers. Once you adhere to these two rules, amazon dropshipping is legal

Question: Are You Allowed To Dropship On Amazon?

Anyone can dropship on Amazon. You can even do this without the knowledge of your customers. However, there are some rules which you need to adhere to for a smooth experience with Amazon. Merchant must not use a third party packaging. Also, customer complaints, returns are dealt with by you and not by your dropshipper.

Question: How does Amazon Dropshipping work?

In other to dropship on Amazon, you need to go through their unique program, Fulfilled by Amazon program. In that case, you ship your products to Amazon. They will receive the inventory and deliver it directly to your customers. One great benefit is that amazon’s shipping is pretty fast.

Amazon Dropshipping Strategies


Every business comes with its strategies. These are what helps you to sell more products and amass more customers. In this section of the guide, you will learn a few amazon dropshipping strategies that will help you succeed.

Win the buy box

In case you don’t know, most of Amazon’s sales come from the buy box. If you must maximize your sales, you need to learn how to leverage this. The first step is to have a high seller rating. Having a 95% rating has worked for many dropshippers. Secondly, your delivery time has to be fast. At least 14 days. Thirdly, your shipping and product cost has to be lower compared to other offers presented. Additionally, having a quick customer response rate, refund rate, and high feedback score also help you win the buy box.

Don’t Depend Solely on Amazon

This error is one that you must not make. Don’t rely exclusively on Amazon for sales. You need to have other streams. The more funnels you have, the better your odds of making more sales. By having your store, aside from Amazon, you will be able to build a better brand.

Aim for a 95% Seller Rating

The importance of having a high seller rating is enormous. With a higher seller rating, you have a great chance of appearing in organic searches. Not just that, potential customers can trust you. Overall, it gives you an advantage over other sellers with a lower rating.

Conduct a Keyword RZ

Before setting your prices, ensure you do your cost and benefit math properly. It will ensure you don’t run at a loss or set your price at a ridiculously high price. When doing that, consider the cost of Amazon fees. Ensure that your margin is high enough that you can pay.

Offer Better Discounts

One of the ways you can stay ahead of your competitors is by creating an Amazon coupon. That way, you encourage customers to buy from you. When you promote your voucher on coupon sites, driving insane sales becomes possible. However, never forget to price your coupon in a way that you still make your profit.

Requirements To Dropship With Amazon

When it comes to dropshipping with Amazon, there are lots of dos and don’ts you need to follow. Failure to comply will make it almost impossible to dropship with the platform.

You must always:

Be the seller of records of your products

You must identify as the seller of your products in your packing slips or any other information provided in connection with them.

Be considerate in responding to customer returns of your products and;

Apply to every term of your agreement with Amazon policies.

Things that are not permitted:

Buying products from another retailer and having that retailer sell to customers;

Your product information, slips, invoices or any other kind of information must have your name as the seller and no other;

You can read more of these dos and do not’s on the Amazon website.

Amazon Dropshipping Tools

Dropshipping with Amazon is comfortable with excellent tools. Without these tools, it’s like farming without a hoe, spade, or other farming equipment. These dropshipping tools will come in handy as you progress in this dropshipping business.

Merchant Words – In keyword research, you can’t do without this tool. It is used to view the search volume of a particular keyword or keywords data. If you want the pro plan, you will need to spend some bucks — $ 30/month.

FeedCheck – If you have a vast selection of products on your Amazon store, this tool will come in handy. By being able to review all your products, you will be able to improve your reviews for better customer service. The price starts at $19/month.

Shopify – As a Shopify store owner, you will be able to add Amazon as one of your sales streams. Not just that, it can be used to track your inventory, even receive an alert when you have a sale on Amazon.

Sellery – With this unique tool, you might be able to win the buy box with its repricing strategies. That is not all; you can also run price experiments, thereby giving you a competitive advantage.

Feedback Express – If you care about your reviews, then this tool is a must-have. It helps you to get more reviews on your products; also, backlist customers are known to leave negative reviews often.

Amazon volume listing tools – With this tool, you can easily simplify your seller experience. One-click, you can download the spreadsheet version of your inventory. You can also modify price and product quantity.

Everything You Need To Know About Selling On Amazon

Choose an eCommerce platform

If you’re a Shopify store owner, you can easily list Amazon as a sales funnel. That way, you will be able to manage the two platforms effortlessly without hurdles.

Create a seller account

Before you can proceed to sell on Amazon, you need to sign up on a seller account. If you believe you have the potential to sell large volumes of products, then sign up for the professional account. With the individual or basic plan, you pay almost a dollar per product sold. A professional account, on the other hand, pays a monthly subscription.

Wrapping up

After you have successfully set up a seller account, get approved on your product category, and get ready to make some sales. With Amazon as a sales channel, managing both your Shopify and Amazon store becomes very easy and straightforward. When there is a sale on Amazon, your Shopify store gets to notify you, making sure you don’t miss a thing. With Amazon, dropshipping has gotten easier. With this detailed guide, excelling won’t be a hard nut to crack.

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