In this guide, you’re going to learn exactly how to start and run a profitable Amazon dropshipping business in 2024, step by step.
What is Amazon Dropshipping?
Amazon dropshipping is a business model where sellers list their products on the Amazon Marketplace without holding any physical inventory. When an order is placed the third-party supplier ships it directly to the customers, and the seller pays the wholesale price.
How does Amazon's dropshipping business model work?
- Mostly Amazon’s dropshipping business model works through their Fulfillment by Amazon (FBA) program.
- FBA allows sellers to ship their products to an Amazon fulfillment center where products are stored until they’re sold.
- To start dropshipping on Amazon well first seller wants to set up their FBA account.
- Amazon will offer sellers two choices of accounts. That is, the seller can start with either an individual account or a professional account.
- After creating an account seller find their product niche for what to sell on Amazon marketplace.
- The seller needs to find the dropshipping supplier they want to work with.
- After finding your supplier, Amazon receives your products from your supplier and then stores them in their fulfillment centre.
- And when a customer places an order on Amazon for a seller’s product, Amazon processes the order transaction automatically.
- And seller’s product is picked, packed, and shipped directly to the customer’s address.
- Amazon manages shipping notifications, order tracking, reviews and returns.
- This is how Amazon’s dropshipping business model works. And Amazon FBA can help sellers scale their business and reach more customers.
Apart from Amazon, you can also start dropshipping business with other platforms and in various niches. Find these dropshipping business ideas and how to start them.
Recommended Resources:
How much does it cost to start dropshipping on Amazon?
Amazon dropshipping requires everyone to sign up as a seller on Amazon’s website. Their plan costs $0.99 per unit sold, while the Professional plan will cost you $39.99, regardless of how many items you sell. For Indian sellers, Amazon does not ask for any subscription fee. Learn more about Amazon’s commission fees.
How to start Amazon Dropshipping
Here we share step by step process to start Amazon Dropshipping covering everything from registering your seller account to finding trending products to sell on your Amazon store.
Step 1: Create an Amazon Seller Account
If you have a customer account on Amazon. in or Prime Video, use the same email and password to start creating a seller account. If not, click on ‘Create your Amazon account’, enter your details, and set up a password.
Step 2:Enter GST number
Once you sign in, you have to enter your Goods and Services Tax (GST) number.
Step3: Verifying GST Number
After entering the GST number, click on Continue to Verify. On the next screen, click on Upload GST document.
Step 4: Upload GST Document
Upload the GSTIN certificate (Reg-06 with Annexure A and Annexure B). The documents can be in pdf, jpg, or doc formats and should be less than 10MB in size. After uploading the documents, click on the ‘Submit GST document.
Step 5: GST verification progress
GST verification can take up to 72 hours. You will receive an email to notify you of the outcome of the verification. While the documents are under review, you can continue with the remaining registration steps.
Select 6: Name Your store
Make your Amazon.in store stand out with a unique store name. This is the name that will represent your business to customers on Amazon.in. You can accept the auto-generated store name suggestions as recommended by Amazon or you can enter a store name yourself.
Step 7: Enter Your Pickup Address
- Next step you have to fill pick up address details. Amazon will collect product shipments for customer orders that you receive from this address. The address on your GST is already there as an option for you to choose.
- If you want products to be picked up from a different location, enter the address by clicking on ‘Add new address’ under account settings on Seller Central.
- You have to ensure that the pickup address is in the same state that the GST is registered in.
Step 8: Choose Your shipping method
Next, you have to choose a shipping method. You can choose from the following shipping methods to deliver the product to your customers:
- Easy Ship
- Self Ship
Step 9: Select Shipping Fees
You can choose delivery charges in the product price itself and offer free delivery to customers. Or you can keep delivery charges and product prices separate.
Step 10: Enter Bank Account Details
You have to add details of your active bank account. Provide the details of the bank account that you use for your business. The money you make from online sales on Amazon.in will be transferred to this bank account.
Step 11: Select the Default GST rate from the list
The default GST rate or Product Tax Code (PTC) is the government-notified tax rate for each product category. It applies to product sales when no specific tax code is selected, ensuring the correct tax percentage is applied.
Step 11: Complete Registration
Next, click “Add products and start selling” to list your products and begin selling.
2. Find Profitable Dropshipping Product
- Research and carefully select the dropshipping products you wish to dropship. Select products with high demand and profitability to ensure success.
- You can find your hero products on Product-finding hubs like AutoDs, product-finding blog articles, And Amazon best sellers.
- Also, There are paid product research tools available to help you find high-demand products, such as Jungle Scout and Seller Board.
👉We recommend our “Most Demanding Products in India” guide to assist you in finding high-demand products for your Amazon dropshipping business.
Here are some products to avoid Amazon dropshipping:
- Alcohol products,
- Hazardous materials,
- Medicine products,
- Tobacco products, and more.
3. Select a dropshipping supplier
Finding reliable suppliers is crucial for Amazon’s dropshipping success. Find suppliers with a wide range of products, competitive pricing, and customer service. Platforms like Alibaba, AliExpress, and Oberlo are popular choices. Prioritize suppliers with proven track records and positive reviews.
When it comes to selecting a dropshipping supplier, there are many methods available to explore.
- Search suppliers Through Social media platforms like Instagram, Facebook, and LinkedIn
- Utilise Online supplier directories like Inventory Source.
- Find Wholesale Suppliers through Online Dropshipping platforms like Salehoo, and Doba.
- Find suppliers in marketplaces like Amazon, which offers a wide selection of suppliers from around the world.
- Find an Amazon dropshipping supplier through Google Search.
4. List your products
After selecting your dropshipping niche products and suppliers, set up your Amazon store. Optimize product listings with compelling titles, detailed descriptions, and high-quality images. Create a professional storefront that reflects your brand.
5. Selling Products on Amazon
There are two types of methods on Amazon for selling products:
You can dropship on Amazon through their Fulfilled by Amazon (FBA) program or Fulfilled by Merchant (FBM) program. So let’s see how both the programs help you to sell along with their terms and conditions.
Fulfillment by Amazon (FBA)
It means seller are sending their products to Amazon’s Warehouse and Amazon takes care of everything from shipping logistics to handling customer queries.
All you need to do is ship your products to the Amazon warehouse and let Amazon pick, pack, and ship your orders and also manage your customer queries.
Here’s the process of enrolling for Amazon FBA
- Enrol in FBA: Sign up for FBA through your Seller Central account.
- Prepare your products: Package your products according to Amazon’s guidelines, including labelling and barcodes.
- Create a shipping plan: Use Seller Central to create a shipping plan, specifying the fulfilment centre and quantity of each product you’re sending.
- Ship your inventory: Print the provided shipping labels and send your products to the designated fulfilment centre.
- Order fulfilment: Once a customer orders your FBA product, Amazon picks, packs, and ships it to the customer.
Why FBA?
- Free shipping
- Free Returns
- Saves Time
- Reach more customers
- Your products are eligible for Amazon Prime FREE Two-Day Shipping, FREE Shipping, and more.
- Customer Support
How Amazon FBA Works:
Once you submit your FBA request, Amazon will come and get products from you. When you ship your products to Amazon it stores them in their fulfillment centers. When customers place an order on Amazon for a seller’s product, Amazon processes the transaction automatically and ships directly to the customers.
Fulfilled by Merchant (FBM)
With FBM, sellers manage inventory, process orders, and handle packaging and shipping directly to customers, along with all aspects of fulfilment and customer service. Fulfilled by Merchant (FBM) offers tools and automation to save time and money when fulfilling orders yourself.
These are the steps to start dropshipping in India. Let’s automate your dropshipping business on Amazon. It makes it so much better because it’s easier to scale and all you have to do is track all the details and create Ad campaigns for products.
Here we share how to fulfill Amazon orders using Qikink. You can select the mode of shipping when you opt for Merchant Fulfilment.
1. Amazon Easy Ship
- In Amazon fulfillment, the order is printed and packed by us (the manufacturer) and shipped by Amazon.
- Amazon Easy Ship is a delivery service for Amazon sellers.
- When you choose Amazon Easy Ship, your orders are picked up from your manufacturer’s location by an Amazon Logistics delivery associate and delivered to the buyers’ doorstep with minimal effort from you.
- Easy Ship allows your customers to track their orders and delivery dates.
- Buyers also get an option to pay for orders at the time of delivery using the Pay on Delivery (also known as Cash on Delivery) feature through Easy Ship.
- The funds for the orders are deposited directly into your bank account.
2. Self Shipping
- Self-shipping means shipping orders by yourself hence, you receive only prepaid orders.
- In Self Shipping mode, you can either ship orders using Qikink’s shipping services or partner with a courier service to ship your orders.
- You will also need to register your business on Qikink’s address. In that case, you will need GSTIN of Tamil Nadu.
Does Amazon allow dropshipping?
Yes, Amazon does allow dropshipping under specific conditions. Dropshipping, which allows third-party fulfill orders for you, is allowed on Amazon as long as it’s clear to the customer that you are the seller. However, there are strict rules to follow:
- You must be identified as the seller on all shipping documents, including packing slips and invoices.
- You can’t use packing slips, invoices, or packaging that show another seller’s name or contact information.
- If you use a fulfillment service, you need an agreement with your supplier stating that you are the only seller.
- You must remove any packaging or documents that identify a different seller before shipping.
- You are responsible for handling customer returns and must comply with Amazon’s policies. Following these guidelines ensures clarity for customers and avoids policy violations that could restrict your selling privileges on Amazon.
How to sell on Amazon without money?
The individual account is free but some additional fees associated with selling on Amazon.
When you got an order you have to pay referral fees based on every sale. The individual per-item fees are $0.99 per item.
The best way to sell on Amazon without money is using Amazon dropshipping. Amazon dropshipping is an ideal way to start selling without upfront investment. Unlike Amazon FBA, where products are sent to Amazon’s fulfillment centres in bulk, dropshipping requires no inventory purchase.
In dropshipping, you list the supplier’s products on your Amazon store. When an order is placed, the supplier ships the product directly to the customer, and you earn the profit margin. Choose “fulfillment by merchant” (FBM) to manage this process yourself.
Can you sell on Amazon without dropshipping?
Yes, You can sell on Amazon without Dropshipping. You can sell on Amazon FBA or Amazon FBM.
Fufillment by Amazon(FBA)
In FBA you send your products to Amazon’s fulfillment centers. Amazon stores, picks, packs, and ships your products to customers, and handles customer service and returns. This saves sellers time and money while enhancing the customer experience.
Fulfilled by Merchant(FBM)
With FBM, sellers manage inventory, process orders, and handle packaging and shipping directly to customers, along with all aspects of fulfilment and customer service.
How Qikink helps you start dropshipping
Qikink offers a wide range of dropshipping and print on demand products to sell online for free. With Qikink, you can easily sell products without the hassle of managing inventory. Focus on growing your business and serving your customers while Qikink takes care of printing, packing, and shipping.
- No Signup Fees: Qikink does not charge any signup fee or minimum deposit. You can just signup and start placing orders by paying for the orders. With Qikink, there are no upfront costs or subscription fees – you only pay for orders placed, making it an ideal choice for dropshipping startups.
- Seamless Ecommerce Integration: Easily integrate Qikink with popular ecommerce platforms like Shopify and WooCommerce, simplifying store management and order fulfillment.
- Brand Customization: Personalize products with your own branding, enhancing brand recognition and customer loyalty for your dropshipping store. Qikink provides complimentary custom branding on every package, allowing you to showcase your brand identity and leave a lasting impression on your customers.
- Versatile Printing Options: Qikink offers a variety of printing methods, ensuring top-notch quality and customization options for your products such as DTG, DTF, Embroidery, Sublimation, Vinyl, Glow in Dark, Screen, Digital, UV, and Eco Solvent.
- Global Shipping Solutions: Partnered with trusted shipping carriers, Qikink offers worldwide shipping, enabling you to reach customers anywhere in the world.
👉Sign up with Qikink and launch your dropshipping business effortlessly, without inventory worries.
Content Writer, Blog Editor at Qikink
