How to Make Money Selling Drop-Shipped Products on Amazon

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Purpose

In this lesson we are going to get right into how you can make money drop-shipping on Amazon.

Getting Started

In order to get started with drop-shipping on Amazon, the following will be required:

•    Amazon Seller account – in order to partner with Amazon, you will require an Amazon Seller account. The Amazon Seller (AS) account is different than the Kindle Direct Publishing (KDP) account, so be sure to mark that distinction and create the AS account even if you have the KDP account.

•    Products to sell – it should go without saying but in order to sell drop-shipped products, you have to have products that can be drop-shipped.

•    Amazon Products to sell – not only do you need products that can be drop-shipped, but in order to sell them via Amazon, you need to determine if those products are already on Amazon.

•    List / Add products to Seller Account – if the product is already on Amazon, all you need to do is click “Sell yours” button to add it to your list. If the product is not already on Amazon, you’ll need to add the product to Amazon with a unique UPC or get one at buyabarcode.com (other, cheaper resources are provided in the training course).

Finding Products to Sell

There are four key sources for finding drop-shipped products to sell:

•    Drop-shipping companies – covered in more detail in another lesson, this is a great source. There are companies out there that are either already listed on Amazon or will give you the necessary information to list their product on Amazon.

•    Manufacturers – some manufacturers / wholesalers will only sell to retailers per minimum order requirements, etc. but some will actually drop-ship for you (e.g. health supplement companies).

•    Retail stores – some may work with you to ship out products they carry in inventory.

•    People you know – you may know people who are shipping out products via other channels. These people can be a good resource for drop-shipping products if they are willing to partner with you as yet another shipping channel for their product. This can be actually more advantageous over a drop-shipping company as there is reduced competition, etc. This same advantage holds true with using retail stores as well.

Finding the Products on Amazon

As already stated, drop-shipping products on Amazon requires you to have an AS account. As well, the products themselves need to be available via Amazon in order for you to add them to your seller list within your AS dashboard.

Determining the availability of the product on Amazon is a fairly easy process and can be done in 1 of 2 (or both) ways:

1.    Amazon.com – this option simply requires you to visit the Amazon website and perform a search for the product. This can be done by scrolling through the categories or entering a search parameter in the search field.

2.    Add a product – this option is done within your AS dashboard. Instead of going to Amazon, you can log into your AS dashboard then select option “Add a product” from the “Inventory” tab. A “Find it on Amazon” search field is made available to search for the desired product.

Listing / Adding Products to Seller Account

When you are determining the availability of a product on Amazon, you are simply verifying whether the product already exists in the Amazon catalogue. This means that ‘determined availability’ has two states and, depending on the state, will result in different actions being taken to add the product to your SA product list.

The two states of determined availability are:

•    Found – if the product is already listed on Amazon, you are able to add the product to your AS list by simply clicking the “Sell Yours” button on the item and it will get added to your list.

NOTE: At one time there could be multiple listings of the same product, made possible by people either not looking for an existing product or wanting to list their own. As a result, you would have wanted to select every listing of the product to ensure you were covered. However, Amazon has worked to remove duplicates and so you shouldn’t encounter this problem very often.

•    Not Found – if you don’t find the product on Amazon, you will be required to create a new listing. You do this by clicking the “Create a new product” button. This will then take you to the screen where you can fill in the information related to your product, including product name, unique UPC/bar code, etc.

Amazon Drop-Shipping Process

Now that you have your information all configured, all you need to do is follow the dropshipping process to successfully complete your orders and get paid.

Here is an overview of the steps involved in that process:

1.    Customer goes shopping – in this step, the customer shops for products on Amazon and buys one that you are selling.

2.    Notice of order – once the customer finishes the payment process, Amazon will tell you that you have a new order; e.g. send an email (if configured) to notify you of the purchase.

3.    Tell the drop-shipper – whether by email, shipper website or some other means, you will need to send the order details to the drop-shipper. This information will include:

a.    first/last name of customer

b.    shipping address

c.    phone number (sometimes)

d.    product details (name, quantity, size, etc.)

4.    Product is shipped – once the drop-shipper gets the order details, the order can be fulfilled. The drop-shipper ships the product and (hopefully) sends you the tracking information (e.g. tracking number). As mentioned before, having the tracking number is not a requirement but it does help to have it as it keeps Amazon happy and also enables you to track any issues that may occur while the product is en route to your customer.

5.    Mark and get paid – once the above is completed, you can now go to your AS dashboard, mark the order as completed and wait to get paid. Payment is made every 14 days so you want to make sure that you check the order as shipped in order to qualify that order payment for the next payment release. You can maximize this by verifying the payment (distribution) date as shown under the Payments tab of your AS dashboard then making sure you check all shipped orders the day before that date.

Conclusion

This basically sums up all you need to get started with your drop-shipping partnership with Amazon. As you continue through these lessons, more and more details will be added so as to round out your knowledge of how this all works. As you work through even one product, you’ll see more clearly how it all fits together.

In the next lesson you will learn where to find millions of products to sell on Amazon without ever having to carry inventory or handle fulfillment.

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