Looking for something that is pocket-friendly & also want to start your selling journey with Amazon? Then you should try dropshipping on Amazon as soon as possible.
Do you want to start selling goods on Amazon but don’t want to make a big financial commitment? Give dropshipping on Amazon a try!
Dropshipping products on Amazon is a novel business idea that doesn’t require a big initial investment, in contrast to private label or wholesale. Dropshipping on Amazon boasts low overhead and upfront costs, but to do it right, you have to make sure you’re following the rules.
Do you have any inquiries concerning Amazon sales? Check out our in-depth tutorial right now.
What does dropshipping entail?
Through the use of dropshipping, online retailers can outsource order fulfillment without having to make an initial inventory purchase. The product will be shipped to your customer by your manufacturer, distributor, or supplier once a customer places an order.
How Amazon dropshipping operates
Even though it may seem a little complicated, we’ve explained everything to you so you may better understand how it operates and begin Amazon dropshipping in 2025.
First, the product you’ve posted on Amazon is bought by an Amazon client (seen on the diagram’s left).
Secondly, you buy the product straight from the supplier (located on the right side of the diagram) and provide them with the customer’s details as soon as the transaction is complete and you have the money.
Finally, the supplier mails the product to the client after receiving the buyer’s details.
Amazon’s dropshipping guidelines: 2025 revisions
To avoid getting in trouble with Amazon, please make sure you completely understand their dropshipping policy rules before you start dropshipping on the platform.
You risk having your account suspended or losing the ability to sell through Fulfilled by Merchant (FBM) if you break the policy in any way.
Because Amazon’s dropshipping policy is so stringent, please make sure to take note of the details provided below.
Is dropshipping from Amazon legal?
Indeed! Dropshipping products from Amazon is permitted on the site as long as it is done legally, and it is entirely legal. When dropshipping on Amazon, you have a few guidelines to follow:
All invoices, packing slips, exterior packaging, and any other documentation that comes with the product must name you as the seller. Your manufacturer or supplier should be left out.
Before sending the order, you must remove any packing slips, invoices, external packaging, or other evidence that identifies a third-party drop shipper. It is your responsibility to receive and handle returns.
It is your responsibility to abide by all of Amazon’s Terms of Service as stipulated in the seller agreement.
It is forbidden, with no exceptions, to order things from internet retailers like Walmart, Amazon, or other third-party sellers on Amazon and have the retailer deliver the goods straight to clients.
I’ll say it again: do not order goods from another internet seller and have them shipped to a consumer. You will be suspended by Amazon for doing this, which is a major no-no.
Here’s an example of what Amazon does not permit:
- A coffee machine is listed on Amazon for sale.
- The merchandise is bought by a consumer.
- You buy the identical item from Walmart.com and then input the shipping information for the Amazon buyer.
- The package that the Amazon consumer receives has Walmart identifiers on it.
Since they placed their order on Amazon, customers will be extremely confused and irritated if they receive a shipment from Walmart.
As long as Walmart is not mentioned on a packing slip or the packaging, you can instead engage in a technique known as retail arbitrage, which involves buying an item from another store, like Walmart, and reselling it on Amazon.
What is the difference between dropshipping and other Amazon selling strategies?
There are numerous ways to launch an Amazon business, dropshipping being just one of them. Other well-liked and maybe more profitable ways to sell goods on Amazon are bookselling, private label, retail arbitrage, online arbitrage, wholesale, and handmade.
Buying products in bulk from a supplier to resell them to another store or using them yourself as a retailer is known as wholesaling.
Buying products at a discount from other retail establishments and reselling them on Amazon is known as arbitrage.
One way to manufacture your products to sell on Amazon is through private labeling.
But dropshipping on Amazon has a lot of benefits over private labels and wholesaling.
Dropshipping V/S Amazon FBA
Fulfillment by Amazon, or Amazon FBA, is a fulfillment option managed by Amazon that takes care of customer service in addition to storing, packing, and fulfilling orders on behalf of merchants.
The primary distinction between dropshipping and FBA is that the former requires you to buy goods and transport them to Amazon’s fulfillment centers. You don’t have to buy any inventory upfront while dropshipping.
Additionally, FBA adds the Prime emblem to merchants’ listings, adding even more customer convenience and trust. Indeed, 43% of consumers believe that the Amazon Prime emblem plays a significant role in their decision to buy a product, and 61% of consumers have access to an Amazon Prime membership.
Publish as needed, dropshipping
Print-on-demand (particularly Amazon Merch on Demand) is a common method of drop shipping.
You may promote personalized goods like t-shirts, mugs, posters, and even books using print-on-demand without having to buy inventory. The supplier then produces the product for you and ships it when you close a deal.
Is dropshipping on Amazon profitable?
It is possible to make money dropshipping on Amazon; in fact, 94% of sellers who do so report making money, based on data from Jungle Scout’s State of the Amazon Seller Report. Everything hinges on where you get your goods from, how much you charge for them, and how much is left over after Amazon fees.
Recall that dropshipping is merely a fulfillment strategy; selling goods on Amazon will function the same as it would if you made bulk purchases. Your main priorities should be conducting product research (which we’ll cover in more detail below) and locating a supplier that can provide the goods you wish to sell at a profit.
How much does dropshipping on Amazon cost?
Dropshipping on Amazon, as we just discussed, is a terrific option to start selling because the initial expenses are usually minimal.
You will avoid having to pay hundreds or thousands of dollars for inventory because you won’t need to purchase any upfront.
The $39.99 monthly subscription price for an Amazon Seller Account and maybe the purchase of product research tools will be the only up-front expenses.
Amazon will charge you a referral fee for every sale once you sell a product. This cost is usually 15%.
Pros of Amazon Dropshipping
Benefits of Amazon dropshipping include cheap startup expenses. Unlike private label and wholesaling, which are two well-liked e-commerce strategies, dropshipping doesn’t require you to have your own inventory.
Rather, you only utilize a portion of the money you were paid by the customer for the transaction to buy the product from the supplier and arrange for shipping to your buyer.
No extra charges for storage. You won’t be responsible for paying storage fees to Amazon FBA or a third-party fulfillment center because your supplier will be shipping out orders on your behalf.
Quick to assemble. It’s quick and simple to set up dropshipping on Amazon since you don’t need to own your inventory. You don’t have to wait for the manufacturing or shipping of your product to reach the fulfillment location, after all. It is prepared for use. A sale will suffice!
Fully computerized enterprise. Many web programs and plugins are available that let you completely automate dropshipping on Amazon. This means that you may run your dropshipping business with (nearly) total hands-off.
Dropshipping is permitted on Amazon. The dropshipping policy on Amazon states that dropshipping “is generally acceptable.” Just be careful to adhere to Amazon’s unique dropshipping policies.
Simple to investigate. Selling manufacturers’ pre-made goods on Amazon might be a part of dropshipping, though you can also dropship items that you tailor with your own source. Because of this, you may see how well other sellers of that specific good are doing on Amazon by using tools like Jungle Scout, an all-in-one platform for selling on Amazon.
Drawbacks of dropshipping from Amazon
As wonderful as dropshipping may seem in terms of benefits, there are some drawbacks to take into account as well as its realities.
Rivalry. Dropshipping has relatively low entry barriers, which means that competition may be fierce. Additionally, even if your products may be able to stand apart from the competition, nothing is preventing other Amazon sellers from offering the same goods.
Price is therefore one of the few tools available to differentiate yourself from the competition, which may result in a “race to the bottom.”
Slow delivery times. Products that are drop-shipped on Amazon are frequently shipped from manufacturers and suppliers, many of whom are located abroad.
Because of this, shipping from foreign suppliers to the final customer may take several weeks. You should therefore search for nearby vendors that provide drop shipping.
Inadequate quality assurance. You have no control over the product’s quality because products are transported straight from the producer to the customer.
It’s understandable how things could sustain damage during transit when you take into account that they may travel thousands of kilometers to get to their destination.
Four steps to drop shipping on Amazon
Now that you have a better idea of how dropshipping works on Amazon, let’s take a look at how to set yourself up for success.
Step 1: Create an account as an Amazon seller.
You will require an Amazon seller account to sell on Amazon. Go to sellercentral.amazon.com to purchase one. You will be presented with two options by Amazon regarding the kind of account you can open there: personal and business.
Step 2: Look for a product with strong demand and little competition.
Finding a product to sell on Amazon is the next step.
To achieve this, look for high-demand/low-competition product possibilities utilizing a tool like Jungle Scout’s Opportunity Finder.
Additionally, even if you might have your metrics for locating these kinds of things, I advise beginning with the following standards:
- Sales of 100–300 units monthly
- Define the competition as “very low” or “low.”
- Set the average monthly cost between $20 and $70.
- Put the niche score at 7 or higher.
- You ought to have a great deal of product options to look at throughout all categories as a result.
Additionally, I advise starting small and keeping things straightforward. Because they are often low maintenance, patio, sports & outdoors, housewares, and home & garden are all excellent categories for beginners.
Step 3: Locating drop shippers for Amazon
Once you have a few product concepts, you must locate a source.
Aliexpress is the main source of information about dropshipping products. This business-to-business platform connects suppliers that are eager to dropship their products with e-commerce firm owners.
Enter the product’s search parameters, and similar to Amazon, a range of products will appear for your consideration.
Upon selecting one, you will be presented with several facts, including the pricing of the product and the shipping charges.
Although most things on Aliexpress are shipped from China, delivery periods may be lengthy, even if it can be a decent option. Long shipping periods will be a turnoff because Amazon customers are accustomed to receiving their products in 1-2 days.
Look for local suppliers, such as US-based companies that provide dropshipping for specific products, as was previously indicated. You only need to put in some time to find them; they are out there.
Step 4: Establish a Product listing on Amazon
You must create an Amazon product listing once you have a product idea and a supplier to produce it.
Go to Inventory > Add a product from your Seller Central account. Click Inventory > Add a product when the Add a Product screen appears. “Create a new product listing” should be clicked when the Add a Product screen appears.
You must select your product category first. After completing that, you will need to complete the listing’s details.
Don’t forget to include Amazon fees when determining the price of your drop-shipped item. Depending on the category, professional sellers are required to pay a referral fee ranging from 8 to 15%. Additionally, individual sellers are charged $1.00 for each sale.
The Selling on Amazon fee schedule provides further information on Amazon’s charges, broken down by category.
Ultimately, you can publish your listing and begin receiving sales as soon as you’re ready.
How to get started with dropshipping: Five pointers for Amazon success
Naturally, starting a dropshipping business on Amazon is a little simpler than selling products through other channels, but dropshipping on Amazon requires a little more effort to be successful.
Here are five pointers to make dropshipping successful for you.
1. Advertise your Amazon listing
You will need to increase traffic to your product listing if you want to optimize sales. This can be accomplished in several ways.
Amazon Pay-Per-Click (PPC) is the company’s in-house sponsorship scheme. Using PPC, you may generate ads for your products that rank better in Amazon’s search results for certain keywords you provide.
Next, you can use outside strategies to promote your Amazon product listing, like Facebook advertisements, social media, email marketing, and blogging. This strategy can assist you in setting your product apart from the competition, even if it can be a little more challenging to start if your brand doesn’t already have a following.
2. Pay attention to the client
Dropshipping on Amazon allows you to avoid many of the challenging aspects of running your own business. You don’t need to produce your product or ship it. Your only task is to ensure that the consumer receives it and is satisfied.
Dropshipping allows you to devote your time to customer support instead of managing your firm, as would otherwise be the case.
Furthermore, receiving positive feedback on your products from customers is crucial for obtaining high ratings on Amazon.
3. Pay attention to your brand
The main drawback of dropshipping, as I mentioned previously, is that you will be selling a product over which you have no control over its creation or appearance. The same supplier will also be available to other sellers.
You have very little advantage over the competition as a result. You must concentrate on the brand as a result.
Your product doesn’t need to be the “same” as your rival’s, even if it is similar. For instance, 40 oz stainless steel tumblers from the company YETI cost $40 per. The identical stainless steel tumblers are offered by their rival, RTIC, for less than $20. Nevertheless, YETI continues to rule that product category in some way.
4. Obtain exemplars
Make sure you know what you’re selling before you list it. Take a risk and place an advance order for a unit. Better still, you can accomplish this without the provider realizing that you might be a drop shipper.
Examine the sample as soon as it arrives. When it came, how did it look? What was the duration of the process? Did the things come as promised?
Once you begin dropshipping on Amazon, all of these minor details will help you anticipate how your buyers will get the product.
5. Spread a broad netting
Dropshipping eliminates your need for startup expenses, making it simpler for you to reach a large audience. Put differently, you can list many products simultaneously.
A few will not succeed. Success will come to others. Just focus more on what is effective and eliminate the rest.
This strategy is completely OK as long as you go by Amazon’s guidelines. Just remember to maintain your organization and to keep your attention on Tips #2 and #3.
Are you prepared to launch a dropshipping company on Amazon?
With any luck, this post has inspired you to launch your own Amazon company or grow an already-existing one. However, if you need additional inspiration, our State of the Amazon Seller study is jam-packed with insightful information.
Please share any other queries or thoughts you may have about dropshipping on Amazon in the comments section below.
Cheers to your successful sales!
