How to Dropship on Amazon: 6 Tips You Need to Know

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Purchasing items online has become the new normal. Gone are the days when you would run from store to store looking for the best deal on an item. Now, the power of the internet gives consumers access to online stores in the palm of their hands. Creating any business online and earning money is easier than ever. Large companies such as Amazon, eBay, and Shopify have built efficient platforms for online sales. Many smaller investors and store owners have also found success in online sales by learning how to dropship on Amazon.

Dropshipping allows individuals to set up an online store and sell items to customers. When the item is purchased, the drop shipper accepts the transaction and then orders the item from the manufacturer. The item is sent to the end customer directly from the manufacturer. In essence, the dropshipping method acts as a middle man between the customer and the manufacturer. 

Creating your own dropshipping business on Amazon is a great way to earn income online using the power of the internet. One of the key benefits to any drop shipping business is that there is no stock involved. You purchase exactly what the customer orders without the need to carry any kind of inventory. 

Dropshipping is also a great way to try out different products that you would like to sell yourself in the future to see how they do. Many drop shippers also choose to try out this method with large items that would cost too much to store as inventory. 

Before you get started, learn more about how to dropship on Amazon with these 6 tips you need to know:

1. You Must Play by Amazon’s Rules

While creating a dropshipping store on Amazon is allowed, it doesn’t come without some rules and regulations. Amazon allows merchants to dropship on the platform as long as you stick to the following rules:

  • You agree to comply with all of the seller agreement terms and policies from Amazon
  • You are named as the seller on record for the products sold
  • Packing slips and any information connected to the order identifies you as the seller
  • You are responsible for accepting and processing any customer returns or issues with the product

2. Know the Keywords That Work                                                    

Just as SEO is crucial for websites, keyword research is also essential when it comes to your online store on Amazon. Do the keyword research to learn what people are plugging into Amazon’s search bar. Adding these keywords to your title and product pages can help optimize them and get your store in front of customers before your competitors. 

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3. Make Dropshipping Completely Automated

One of the significant benefits of creating your own dropship store is that there are management companies out there willing to do all of the work for you. These helpful companies, like NextGen, do everything for you, including taking orders, communicating with the manufacturer, and optimizing the store to increase sales. NextGen works with investors who want to grow their capital without having to lift a finger. This ability to be completely automated is a new way to boost investment and win big on the internet by enjoying hands-free, passive income.

4. Keep Your Seller Rating High

One of the key ways to find success dropshipping on Amazon involves your seller rating. Providing excellent customer service to your clients and pricing your products competitively should help boost your overall seller rating. Aim for a 95% positive seller rating to help your store do well on Amazon and give you important chances to win the Buy Box.

5. Win the Buy Box

Ever notice the white box on the right-hand side of the Amazon product page? This is known as the Buy Box, and it is a coveted spot for any drop shipper on Amazon. When a customer buys the item through this section, the seller with the highest ranking (and Amazon’s algorithms) will show up in the Buy Box. To get this coveted spot, make sure that you are an experienced professional seller on Amazon who has competitive prices, ships quickly, and has a high seller rating.

6. Offer Discounts and Coupons to Boost Sales

Everyone loves a discount. Offering an Amazon coupon on your products can help create urgency and one more reason for customers to buy right away. The idea that the coupon can be taken away is just the nudge that a customer may choose to purchase the item today instead of next week. When creating a coupon or discount, make sure to run the numbers to ensure that you are still profitable. Taking a loss on a coupon could help boost your seller rating, but it obviously isn’t a long term solution.

Learning how to dropship on Amazon is a great way to create income and invest in online sales. The dropshipping world can be a competitive market, but having NextGen Strategic Investments working with you can boost your online store while you sit back and reap the benefits.

Schedule your introductory call and discover how you can make your money work for you. We have a team of analysts, marketers, brand creators, sales consultants, and operations and customer service associates to help build and manage your store from start to finish.

  • joker

    Great article. I will be experiencing many of these issues as well.. Lilah Dietrich Dav

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