Today, there are many dropshipping models such as Amazon, eBay, Alibaba, and the likes. Amazon is the biggest shopping solution in the United States. It boasts the number 1 spot in terms of revenue, number of products, and popularity. In this Amazon dropshipping guide, we'll discuss the benefits of Amazon dropshipping, differences between Amazon FBA and dropshipping, powerful Amazon dropshipping tools, and effective strategies that will guarantee your success in dropshipping on Amazon.

Amazon Dropshipping Pros and Cons

Pros

1. Dropshipping on Amazon allows sellers to start up a business at low cost, minimal effort, and with no inventory.

2. Unlike other dropshipping models, Amazon FBA takes care of packaging and shipment for most of its sellers.

3. Thanks to Amazon's undisputable popularity, you don't need to spend much on advertising. Their huge audience makes it easier for a beginner to thrive in competitive niches and markets.

4. Amazon boasts a wide range of products listed in categories and sub-categories. This makes it perfect for sellers who want to offer a broader selection of products without paying for inventory. 

Cons

1. Amazon dropshipping gets about 10-15% sell fee on every item. This can be heartbreaking for beginners with a low-profit margin. 

2. Dropshippers who use Amazon have limited or no control over how an item is marketed and advertised as Amazon takes responsibility for everything including how they advertise a product.

3. Amazon's return policy is difficult for a retailer who doesn't have a warehouse space. Unlike traditional dropshipping models where the manufacturer is fully responsible for product delivery, in Amazon dropshipping, the retailer takes partial responsibility in handling returned orders.

4. Since Amazon handles virtually everything, a retailer is restricted to building customer relationships. Amazon limits branding efforts and customization from the seller for specific packaging.

Amazon FBA vs Amazon Dropshipping

To expand its brand and improve on their services, Amazon created a program called "Amazon FBA" to fulfill orders for its sellers. Also known as Fulfillment by Amazon, Amazon FBA is a fulfillment company that provides picking, packing, and shipping services for their clients' products. What's amazing is that a seller can either run an FBA account into his existing seller account or create a new one entirely.

Amazon FBA is quite different from dropshipping on Amazon in that it provides faster shipping times and also increases the legitimacy of a brand. While the manufacturer manages delivery and inventories in conventional dropshipping, Amazon FBA helps sellers to store, package, and ship their delivery. You as the seller, transfer all customer service for Amazon to take care of the rest.

NB: According to Amazon's Dropshipping Policy that states, "Purchasing products from another online retailer and having that retailer ship directly to customers" is not permitted. Amazon has created restrictions that can prevent dropshippers from selling on the platform. While they allow dropshippers to sell on the platform, they can only dropship via Amazon's FBA program.

Practical Amazon Dropshipping Tools 

These practical Amazon dropshipping tools will come in handy for beginners who want to start dropshipping on Amazon.

1. Amazon Filler

It is a unique dropshipping tool that helps sellers to see a list of products (including add-on items) that qualify for free shipping.

2. Merchant Words

Merchant Words can be used to view the search volume, keywords, and keyword data.

3. Webscraperapp

This unique tool makes it easy for sellers to organize their online catalog and manage sales.

4. Trackerbot

Trackerbot helps you to automate some of the time-consuming tasks, in turn, speeding up your dropshipping business.

5. Keepa

Keepa is an awesome dropshipping tool that adds price history and alert options on price drops to all Amazon websites.

5. Shopify

Shopify can be used to track your inventory and also alert you if you have pending sales to fulfill. It also adds Amazon as a sales channel in your store.

6. OAGenius

OAGenius is a multi-solution dropshipping software that will help sellers source and list products, monitor prices, manage inventory, fulfill orders, evaluate employees, and analyze your results.

7. Amazon Deals Finder

Amazon Deals Finder is a discount tool to discover amazing deals that are hidden in the vast array of Amazon products.

8. Easync

Easync provides ample dropshipping options for sellers such as 24-hour live-chat support, cashback supports, Fulfillment by Easyn (FBE), and US phone support available for select sellers. 

The above Amazon dropshipping tools can effectively solve all your problems concerning how to start dropshipping on Amazon.

Strategies on Selling and Dropshipping on Amazon

Amazon dropshipping success doesn't just come overnight, in this part of the Amazon dropshipping guide, you'll learn three distinct strategies for succeeding on Amazon.

1. Customer Reviews

Avoid negative feedback! Customer reviews are a great way to show other people how well you've handled previous buyers. The best sellers on Amazon have over 95% rating and statistics have shown that buyers tend to trust sellers in this category than those below. If you want to get good reviews from your customers, you have to treat them like Kings and Queens, respond to their inquiries swiftly, and deliver quality products in a fast manner.

2. Don't Joke with SEO

Search Engine Optimization is vital to every line of business on the internet. When listing products on Amazon, you need to optimize your content so that it can appear on the first page of Google. A good way to achieve this is by using "keywords." Keywords are search phrases that users input on search engines when they are looking for a product. As such, you need to get the following right: your product title, product description, product size, color, size, material, and quantity.

Your product title, for instance, should contain the keywords which people use to search your product search engines. Instead of simply listing your item as "Black Caribbean Tie", you should include as many elements as possible: "Nike Black Caribbean Navy Blue Tie For Men (About 1m Long)". When people search for the following: "Black Caribbean Tie", "Nike Black Tie", "Black Tie For Men", they'll find your store page.

3. Win the Buy Box

Winning the buy box by Amazon will help you maximize your sales. Though there's so much to do to win the buy box because most of Amazon's sales come from the buy box, you too can benefit from this. First, you need to ship products quickly, ideally within 14 days – using Amazon FBA can increase your chances of winning the Buy Box. Second, you'll need to maintain a 95% rating and above. Other pro-tips include: responding to customers' requests, ensure that your landed price is [shipping and product cost total] is cheaper than that of your competitor's. 

How Does SaleYee Help with Amazon Dropshipping?

Online sellers can easily find top-selling products on Amazon through the SaleYee Dropshipping Platform by checking them out in "Platform Top Sellers." Amazon sellers can also benefit from SaleYee's big data-based product research, promotional events, and clearance to gain large profit margins while enjoying the free membership and huge discounts.  

The better side is that working with SaleYee.com is a much better choice than paying an excessive amount for Amazon FBA, because SaleYee.com has over 630,000 square meters of local US/UK/EU warehouses and provides fast and free delivery. Additionally, you don't have to handle multiple dropshipping suppliers. In addition, you can get help at any time with our professional 24/7 customer service.

In short, with SaleYee, you can sell easily and earn globally!

Conclusion

Dropshipping is a sales technique where a seller partners with a manufacturer or a dropshipping wholesaler to sell some of his products. When a sale is recorded, the seller then places the order with the manufacturer. The manufacturer or dropshipping supplier does the packaging and shipment of the customer's order while the seller keeps the difference in cost from your price to the wholesale price. Dropshipping is among the easiest ways to make money online.

If you want to start dropshipping on Amazon, consider your research done with this guide. Creating an Amazon dropshipping store may take only 24 hours but it takes years of learning, trials, and errors to succeed in this business.