Dropshipping on Amazon and finding profitable dropshippers

Would you like to start dropshipping on Amazon, but don’t know how to do so profitably? In this article I’m going to reveal the step-by-step instructions that you need to open up your own Amazon store.

My process involves 4 major steps. I outline these steps in greater detail in my free ebook, which reveals how anyone can start their own $10,127.25 per month Amazon dropshipping business. These are they 4 steps:

  1. Step 1: Set up an Amazon seller account (important details you need to know, keep reading).
  2. Step 2: Find the best dropshipping companies that have items for low prices.
  3. Step 3: Go through the catalogs of these businesses and identify the lowest-cost items that have good buyer demand.
  4. Step 4: And finally, you need to actually list these items on Amazon in a particular way that will get people clicking on your listing and buying your items.

While I suggest you read my free ebook as I explain in greater detail these steps for dropshipping on Amazon (and also reveal one item you could be dropshipping right now [as of time of writing] and earning 109% profit margins on it) I’m going to go through them briefly in this article now.

Step 1: Setup an Amazon Seller Account

Before you can begin dropshipping on Amazon you’re going to need to create a seller account. You’ve got two options: you can either select “Sell as an Individual” or you can select “Sell as an Professional.”

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If you’re just getting started, I strongly recommend selecting to sell as an individual. When you sell as an individual, you only pay fees on items to sell. But if you select sell as a professional, you have to pay $40 a month, and both accounts can list unlimited items on Amazon.

So why would anyone select to sell as a professional? Simple: if you sell as an individual, each time someone buys an item Amazon charges you $1, whereas a professional account has a flat-fee. So if you sell more than 40 items a month, you’ll definitely want to switch. But because you’re just starting, start out as an individual.

Step 2: Locate low-cost dropshippers

In my ebook, I go into greater detail how I use the really cheap (but very valuable) tool, SaleHoo, to locate low-cost dropshippers. It is a supplier directory list containing over 8,000 low-cost, reliable suppliers. It is the secret source of cheap suppliers and dropshippers that people (like me!) are using when dropshipping on Amazon:

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Basically, the gist of this step is you purchase a subscription to SaleHoo, and then use their internal filters to look for local suppliers that dropship. The reason you want local dropshippers only, is because when a buyer purchases an item on Amazon they expect it usually within 5-7 business days maximum. If you are located in the United States, and have a dropshipper located in China, then it will usually take weeks for your item to arrive at your customers doorstep, and they will be unhappy:

When dropshipping on Amazon, you need to research local suppliers

When dropshipping on Amazon, you need to research local suppliers. Select “more options” to filter suppliers.

You might think that you could just find SaleHoo’s suppliers for free using say, Google, but you can’t, and this article explains why you can’t find cheap dropshippers using Google (basically, the cheapest suppliers don’t have marketing budgets, because they use that money to lower the cost of their items).

Step 3: Go through the catalogs of the suppliers you just found and identify their low-cost items

Back in step 2, you might’ve wondered why we were looking for low-cost dropshippers before we even knew what we wanted to sell. Shouldn’t we figure out the best items to sell before we find suppliers?

Well, if you know what you’d like to sell you should do that, obviously. But if you don’t know what to sell, I recommend finding the suppliers first, and then going through their catalogs and figure out the best items for dropshipping on Amazon.

Which are the best items to sell? Items that are listed well below their going price on Amazon. This means that you can list the same item on Amazon for the same price as your competitors (and use the techniques I discuss in step 4 to steal their sales). For example, in my free ebook I identify this item which one SaleHoo supplier is selling for $59:

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To see what this item is, and it’s supplier, download my free ebook.

But on Amazon, it is selling for $129.99 + shipping costs:

To see what this item is, download my free ebook.

To see what this item is, download my free ebook.

When you work out the profit margins on that, it works out to be over 109% after Amazon takes away it’s fees:

dropshipping on Amazon

When dropshipping on Amazon, look for items like this with high profit margins.

So this mystery item would be perfect for dropshipping on Amazon. In this step, go through all of the catalogs of the suppliers discovered in step 2 and look for more items like this.

Step 4: Write Amazon titles and listing descriptions that convert AND catch the Amazon search engines

Once you’ve gone through steps 2-3 and found the low-cost suppliers and the best items in their catalogs to dropship, it is time to actually list them on Amazon. When listing them on Amazon, there are some tips and tricks you can use to outrank your competitors in the Amazon search engine and write more compelling sales copy to steal their sales.

Again, I go into more detail in my ebook (and give you examples of titles and descriptions) but here are some tips:

  • Long, descriptive titles that are rich in keywords rank well in Amazon. The same goes for item descriptions.
  • Buyers like knowing about refunds as it makes your listing seem more credible (luckily most of SaleHoo’s dropshippers have a refund policy).
  • If you and some friends can purchase the item and then leave an honest review, that will boost it up in the Amazon search engines.

See? Dropshipping on Amazon isn’t hard after all!

It isn’t rocket science. Just follow my 4 simple steps and you’ll be making $10,127.25 by dropshipping on Amazon in no time:

  1. Open an Amazon Seller Account.
  2. Get a SaleHoo subscription and use it to locate low-cost dropshippers.
  3. Go through the catalogs of these suppliers, and look for items that are priced lower than they are listed for on Amazon.
  4. Take these items and use search engine techniques and sales copy techniques to outrank your competitors and to convince people to buy your items over theirs.

And to find out more, be sure to download my free ebook below.

Download This Book To Learn How To Make $10,000/month From Dropshipping

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