Amazon dropshipping continues to grow in popularity among beginners and expert dropshippers alike. Amazon’s FBA dropshipping program stands for “fulfilled by Amazon”, which provides valuable insight into how the process works. Whether you choose Why Unified as your preferred dropshipping platform or you opt to use Amazon’s tools, the following guide will help you get started on Amazon with ease.
With traditional ecommerce, the seller manages an online store in much the same way as a retail store. The seller stocks and manages all the inventory, and they also fulfill every order they receive. Fulfillment can be defined as the process of picking, packing, and shipping orders to the buyers.
Amazon FBA dropshipping is different. In this case, FBA stands for “fulfilled by Amazon”, which means Amazon handles the entire fulfillment process. The seller builds a website or storefront and uses plugins to link to the products they choose on Amazon. When the buyer places an order, Amazon picks the order from one of its warehouses, packs it, and ships it to the buyer.
Amazon’s Dropshipping Policy
Amazon’s dropshipping policy is very explicit, and it leaves no room for guesswork. Essentially, you cannot purchase a product from an online retailer and then have that retailer ship directly to customers on your behalf. With FBA dropshipping, you must purchase your inventory in advance and send it to Amazon for fulfillment.
To dropship on Amazon, you must:
- Identify yourself as the seller of the product. Even though Amazon handles fulfillment under the FBA dropshipping program, you must identify yourself as the seller – not Amazon. You set the price, you keep track of your sales and earnings, you handle returns, and you pay the required sales taxes.
- Omit any references to wholesalers, suppliers, or manufacturers. Whether it’s the product description or the packing materials being sent to the buyer, it is imperative to remove any references to any third parties. The buyer should never see the wholesalers’, suppliers’, or manufacturers’ names associated with any FBA order.
- Accept and process returns. When returns are requested, it is up to you to accept and process them – not a third party.
- Comply with the Terms of Service set forth by the seller agreement. Be sure to read Amazon’s complete seller agreement thoroughly. Failing to abide by any of the Terms of Service can lead to suspension or termination of your seller account.
Eight Steps to Start Your FBA Dropshipping Business
There are eight major steps involved in creating an FBA dropshipping business. Each step covers a crucial part of your overall experience and ensures you do not violate Amazon’s terms.
Step #1: Sign Up for a Seller Account
First things first, you need to create a seller account before you can use FBA dropshipping. Creating an account requires you to accept the Terms of Service, so be sure to read them thoroughly. Once your account has been created successfully, you can access the marketplace and list your products for sale.
Step #2: Find a Supplier
A supplier is the middleman responsible for warehousing your merchandise and fulfilling customer orders. There are hundreds of suppliers available through dozens of directories, but choose wisely. Consider the products that are available through that supplier, the amount you’ll pay for them, and the supplier’s policy for returning defective merchandise. Why Unified works with domestic suppliers offering name-brand products with some of the industry’s most competitive profit margins.
Step #3: List Your Products
After choosing a supplier, decide which of that suppliers’ products you want to list for sale in your store. You will need to provide a product title, a well-written description, professional imagery, and pricing information. Choose products that have sold well historically as well as products that are currently trending.
Step #4: Choose Shipping Options
When you choose FBA dropshipping, it’s important to make sure that you select this option when configuring your shipping options. All FBA products are eligible for free shipping, and Prime subscribers get free two-day shipping.
Step #5: Optimize Your Product Listings
Amazon is a massive marketplace with a huge audience, and as a result, there are thousands of FBA dropshippers using the platform – many of whom are selling the exact same products. If you want your store to stand out, it’s imperative to optimize your listings. Search engine optimization involves including relevant keywords in descriptions, using quality imagery, and choosing the best possible titles for your products.
Step #6: Market Your Products
Search engine optimization is the first step in getting noticed, but you’ll need to use other forms of marketing, too. Amazon provides you with sponsored products and brands to help increase visibility, but it’s up to you to market across social media platforms to spread the word about your store.
Step #7: Track Your Sales & Progress
As you keep growing your store, make sure that you keep track of every single sale you make for your records. It’s also important to track your progress, which involves analyzing customer feedback, looking for purchasing patterns, and A/B testing your marketing campaigns.
Step #8: Repeat the Process
Managing an FBA dropshipping store requires time and effort, so you’ll want to set aside plenty of time each day to analyze new products, check out new suppliers, modify your listings, interact with your audience on social media, improve your SEO efforts, and more.
While many influencers and websites make FBA dropshipping seem incredibly simple, the truth is that true success requires a lot of time, patience, and marketing know-how. When you subscribe to Why Unified’s Dropship Plus subscription, you will gain access to a fully-managed Amazon FBA dropshipping experience at no additional cost.