Do you want to dropship from Amazon to eBay?
Do you know? In 2019, the company had over £300 million active users and more than £280 billion in sales—using Amazon as a sales channel for your business can mean big returns.
But how does dropshipping on Amazon work?
And how can you turn it into a profitable venture for your eCommerce business?
This guide will walk you through whether uk dropshipping on Amazon can be profitable, how to dropship on Amazon and top dropshipping tools to help you start selling today.
Does Amazon allow dropshipping?
Yes, Amazon lets you dropship on the marketplace as long as you follow a few housekeeping rules:
● Always be the seller of record for products.
● Identify yourself as the seller on packing slips, invoices, and other information in connection with products.
● Remove all information that identifies the third-party seller before shipping the order, including invoices, external packaging, packing slips, etc.
● Stay responsible for accepting and processing returns.
● Follow all terms of your seller agreement and Amazon policies.
Read more about Amazon’s drop shipping policy.
How much does it cost to dropship on Amazon?
Amazon dropshipping fees vary by product type but are usually in the 10% to 15% range. If you’re working with relatively small dropshipping margins, this will take a hefty chunk out of your profits.
You’ll also have to choose a selling plan. The Individual plan costs .99£ per unit sold, and the Professional plan costs 39.99£ per month, no matter how many products you sell.
Read more about Amazon’s commission fees.
Is Amazon dropshipping profitable?
Amazon dropshipping can be profitable. The average dropshipping margin is between 10% to 30% margins. Amazon takes around 15% off your top-line revenue.
So if your margins are around 30%, that means you’ll have a net margin of 15% after selling a product on Amazon. These margins can be higher if you win the Amazon Buy Box, but it’s highly competitive and shouldn’t be something you rely on the long term.
How to start dropshipping on Amazon in 6 steps
1. Choose an eCommerce platform
Thanks to the Getshop Today and Amazon, you can now sell on the world’s largest marketplace conveniently through Getshop Today. You can use the Amazon sales channel to track products and orders, plus:
● Create listings for new products on Amazon
● Create and manage offers for existing products on Amazon
● Link Amazon listings to your Getshop Today admin
If you don’t have a Shopify store yet, sign up for a 14-day free trial and start dropshipping on Amazon today.
2. Get an Amazon seller account
To sell on Amazon, you’ll need to create an Amazon seller account. Head over to seller central.amazon.com to sign up. You’ll be asked for details about your business, such as address and tax information, as well as other identity and credit card information.
3. Get approved in your product category (if necessary)
Amazon requires sellers to get approval for certain products types. Fashion, grocery, music, and jewellery are popular categories that require approval before setting up your Amazon store. Read the overview of product categories you can sell in.
4. Connect your Amazon account to Shopify
Once you create an Amazon account and get approved, connect your Amazon store to Getshop Today. On the left sidebar in your Getshop Today admin,
A pop-up menu will appear. Find Amazon and click the + box.
View details for any section you want more information about. Then continue to click Update sales channel.
5. Create an Amazon product listing
Your dropshipping suppliers uk products don’t automatically list on Amazon after you add the Amazon sales channel. To manage your Amazon listings with Getshop Today, you have three options:
- Link Getshop Today to your current Amazon listings
- Create an offer for a product you already sell on Amazon
- Create a new listing for a new product on Amazon
Note: If you’re new to Amazon, you may not be able to list all your products right away. Amazon limits the number of new ASINs you can create each week until you sell more on the platform.
6. Sync inventory with the Amazon sales channel
Shopify can automatically update the Amazon listing to match your product’s inventory in the Shopify admin. Use the inventory tracking settings you set for each product variant to sync your inventory on Amazon. You can change it on the product detail page in Shopify.
Dropshipping from Amazon to eBay
An older dropshipping model that’s still around is dropshipping cheap products from Amazon FBA to buyers on eBay. While it’s legal, it’s generally frowned upon by platforms and even buyers—and you only walk away with a thin margin of profit.
Think about it from a customer’s perspective: you purchase the latest grooming brush for your dog on eBay for $20. You wait a week, you’re excited. Then when FedEx knocks on the door, your brush shows up in an Amazon box.
Curious, you go on Amazon and find the product for a few bucks cheaper than you bought it for. How would that make you feel about the business you bought from? Don’t expect a repeat purchase in this scenario.
The model increases profits for the dropshipper, but no one else wins here. eBay doesn’t support the Amazon-to-eBay-arbitrage business model either, allegedly banning hundreds of Israeli companies for it in 2017.
In short, if you want to build an honest and transparent dropshipping business, steer clear of dropshipping from Amazon to eBay.
Top Amazon dropshipping software
Explore this list of tools that will help you get started with Amazon dropshipping:
- Amazon channel app. This free Shopify app helps you manage your Amazon inventory and fulfil Amazon orders from your Shopify admin. You can easily create Amazon listings for your Shopify products, track inventory, and monitor sales using your Sales Overview and Analytics pages. This way you never have to leave Shopify to sell in multiple marketplaces.
- Merchant Words. You can use this software to check search volume and data for keywords. Paid plans start at 29.99£ per month.
- Sellery. This real-time Amazon repricing software helps you create repricing strategies to win the Buy Box and increase sales and profits automatically. You can use the trial version for free. Then continue onto a paid plan, which works out to 1% of your gross monthly sales. Minimum starts at 50£ per month.
- FeedCheck. FeedCheck helps you monitor and respond to customer reviews to build connections with customers across all your sales channels. You can quickly access Amazon reviews and provide better customer service for people. Plus, it lets you monitor competitors’ product reviews and questions so you can analyze and improve your own products.
- Seller.Tools. This app helps automate your Amazon dropshipping store. You can access a robust keyword manager, PPC management tool, product research tools, and marketing automation tools built using ManyChat. You can download Messenger marketing workflows for rebate distribution, promotion counters, automated review captures, and more to grow your Amazon business fast.