We all know that Amazon is one of the world’s most-known brands.
But when it comes to dropshipping, is it legit?
Have you considered Amazon dropshipping?
That is what I’ll talk about in this Amazon dropshipping guide review. Let’s get started!
Amazon Dropshipping is pretty much your standard dropshipping course.
If you’ve followed my blog for long, you know that I don’t like dropshipping as a business model for a few different reasons.
That being said, it IS possible to make money with it, so I want to give you an honest review of this particular program.
But first, let me clear the air on one important thing:
Dropshipping has never been – and will never be – a passive, recurring business. No matter what the guru might tell you, it requires constant work.
I’m telling you this from my own personal experience running several dropshipping stores on both Shopify AND Clickfunnels.
If you’re looking for a business that you’ll need to be super active in, dropshipping might be for you.
If you want to make money while you sleep and travel the world, dropshipping just isn’t it.
The main reason?
To have real success with dropshipping, you need a bulletproof system for finding the hottest new products before anyone else.
In the very best case scenario, you have a relationship with your supplier, where they give you a heads up on products that are about to pop. These relationships don’t typically come around until you’ve done 6-figures in business with the supplier.
In the worst-case scenario, you’re testing a bunch of products with ads, losing money until you find that one winner.
I’m not saying dropshipping is a bad idea based on that alone… most businesses require you to lose money before you actually make money, so it’s somewhat normal.
But let’s assume you DO in fact have the next fidget-spinner craze product, months before anyone else knows about it…
That’s great! But now you’re gonna need to get people to buy it.
- Tens of thousands of dollars in ads
- Tons of time spent split testing to find the best landing page variations, best product descriptions, best ad copy, best ad videos, etc.
Again, some people thrive on that and love it. So if you’re looking for that level of constant testing and gambling, it might be a good fit.
It’s also worth calling out that Facebook has a track record of banning you FOR LIFE from advertising on their platform for dropshipping.
Think about it: it ruins a user’s experience with Facebook when a product shows up 45 days after they’ve ordered it, and is nothing like the product they thought they were buying.
So Facebook would rather ban you from their platform than risk a bad user experience.
Suffice it to say, it’s a lot of stress for not a lot of payback.
As someone that actually ran a dropshipping business, I can tell you from personal experience that your time can be better spent with other business models.
If you’d prefer a business model that generates recurring, semi-passive income, you may be interested in becoming a Digital Landlord.
- No sketchy suppliers
- No razor-thin margins
- No banned ad accounts
- No super angry customers
- No spending $10K testing an ad campaign
It’s something that you could make anywhere from $2,000 – $10,000 with consistently, month after month.
A stream of income that you can build as high (or low) as you feel like building it.
If that sounds interesting, you might want to think about becoming a Digital Landlord.
For the Amazon Dropshipping review, let’s keep reading.
What Is Dropshipping?
Dropshipping is a business model where your own e-commerce store sells products to customers without keeping a physical inventory of those products. Instead, a third-party supplier receives the order from the dropshipper as soon as a transaction is complete. That supplier then ships the product directly to the customer.
As a dropshipper, you benefit from the difference between the wholesale price paid for your wholesale suppliers and the retail price you charge.
Product research and marketing are essential for dropshipping.
Because you are effectively acting as a middleman, public perception of dropshipping suppliers spans from legitimate enterprises to complete snake oil merchants.
Private Labeling VS. Retail Arbitrage VS. Dropshipping
Let’s take a look at two more popular online business concepts before I get into the meat and potatoes of dropshipping. These are retail arbitrage and private labeling.
Retail arbitrage (Amazon arbitrage if you sell on Amazon) is purchasing things at a low cost from a store and reselling them for a profit. Under this strategy, you own inventory at some time, which you often accumulate during huge clearance sales or heavy-discount seasonal campaigns from major retailers.
Private labeling is purchasing off-the-shelf items from suppliers (often from China) and reselling them under your brand.
What Is Amazon?
The largest e-commerce site in the world is Amazon. It became more popular because it gave shops a place to sell their products.
Manufacturers and businesses can use Amazon as an additional sales channel in addition to their physical stores.
You can begin selling on Amazon once you’ve been approved for an Amazon seller agreement. However, keep in mind that not all products and brands are acceptable.
What Is Amazon Dropshipping?
You can sell real products on Amazon using Amazon Dropshipping, a reputable dropshipping business, without having to deal with inventory, shipment, handling, or processing customer returns. Only packing slips!
In short, all of the hard work is done by Amazon and your supplier. Whenever you make a sale on Amazon, you can have your dropshipper send the product directly to the buyer.
During the whole procedure, you won’t have to touch anything. Except for the expense of creating an Amazon account, there are no further upfront costs. You aren’t required to purchase any inventory until the item is sold.
Dropshipping on Amazon is a low-risk business strategy since anybody can do it, and you don’t need to be computer skilled to get started.
How Much Does It Cost To Dropship On Amazon?
You don’t need capital to launch an Amazon dropshipping business. Because you don’t have to pay your supplier until a sale is made, you don’t have to spend any money on inventory upfront.
Amazon also offers free accounts to private merchants. If you dropship to a current Amazon listing, you won’t have to pay Amazon fees until a transaction is made.
Compared to other business models, Amazon dropshipping is the most affordable way to operate an online store.
How To Start Dropshipping On Amazon?
So, what are the steps to getting started with Amazon dropshipping? The following are the four essential stages:
Amazon Seller Account.
The process of opening an Amazon Seller Central account is quite simple. I’ll provide a complete guide that will teach you all you need to know to begin selling on Amazon.
Make sure you have your personal, billing, and tax information available when creating an Amazon Seller account.
It’s important to note that a free Individual Account costs $0.99 for each item sold, while a Professional Account costs $39.99 per month and is the better option if you want to sell more than 40 items.
Conduct Product Research
Next, decide the category you want to sell in or which product you want to dropship.
Here are some fundamental ideas to get you started:
- Find niche items that are in high demand all year.
- Products that are both mysterious and practical, or both simultaneously, are perfect.
- Dropshipping is preferable for high-maintenance items that would otherwise need storage expenditures.
- Visually appealing products and those you can aggressively sell on social media
- Avoid Prime—products supplied via Prime are already offered by an FBA-registered seller, making it almost hard to compete.
Locate A Supplier
Here are some tried-and-true methods for connecting with a dropshipping supplier:
- Google Searching- Running an online search for suppliers is time-consuming, but you can typically contact them via their websites. You seek a genuine dropship provider, not tools or sourcing agents, who link you to one. They often offer forms where you can join up to be a dropshipping shop, and their websites provide contact information. If no contact information is provided, this is a significant red flag.
- Trade Exhibitions- While it’s more difficult than just searching the internet, meeting with your prospective supplier in person is an excellent method to start a dropshipping company. Trade exhibitions are good since they allow you to assess several providers in one location directly.
- Dropshipping directories- A third alternative is identifying and paying for a pre-vetted list of suppliers willing to engage with retailers to ship directly or dropshippers.
Market Your Goods
Setting up an Amazon listing and selling your products are the final steps. Utilize Amazon as a way to sell your product, whether you’re running a stand-alone e-commerce business or a Shopify site.
You should be customer-focused while also having a great listing.
Consider growing your brand along the way. The transition to more sustainable business models, like private labeling, will be simple once you’ve mastered Amazon.
Is Amazon Dropshipping Profitable?
Even though Amazon dropshipping is a simple business model to start with, it takes a lot of practice to get it just right if you want to make a lot of money online.
Your low margins mean that the only way you can make a significant profit is to expand your business.
The basic conclusion is that you must provide a varied assortment of things while also reducing your expenditures and ensuring that your Amazon listings are dynamically priced properly.
Meanwhile, you must ensure that your inventory counts and product descriptions are constantly correct to avoid having your account suspended or terminated.
Consequently, you cannot do any of these tasks by hand and must depend on software to handle operations.
Listed below are the tasks that must be automated even to have a chance of producing a profit.
- Creating purchase orders — When a customer orders anything, you must automatically submit the order to your supplier for fulfillment.
- Pricing- Because Amazon prices move continually, you must make certain that you control the purchase box.
- Inventory Listing Management: When you run out of stock, you must ensure that your listing is deactivated to avoid unfulfillable sales.
- Product Data Syncing- The items that your supplier sends must EXACTLY match the products that are listed on your Amazon store. Any modification to the package or product version must be taken into consideration.
- Order tracking: Your supplier must give you electronic shipment and tracking information, which you must transmit to Amazon as soon as possible after receiving it. This procedure must be automated to manage the high amount of orders you will get.
Overall, every aspect of your Amazon dropshipping company must communicate with one another. It’s a low-margin volume game with very high risks to be successful at Amazon dropshipping.
You can only make money with this business model if you expand it, and a single mistake might result in the loss of your whole business overnight.
Success In Amazon Dropshipping May Be Achieved By Following These Five Steps:
On Amazon, the process of setting up a dropshipping business is straightforward. Dropshipping on Amazon is possible, although it does need some work.
The following are five tips for a successful dropshipping business:
Promote Your Listing
To maximize sales, you’ll need to drive traffic to your product listing.
It all starts with a kind of internal sponsorship known as Amazon Pay Per Click (APPC) (PPC). Ads for your products that appear higher in Amazon’s search results for keywords that you give may be created using PPC (pay-per-click).
Third-party strategies like Facebook ads, social media, blogging, email marketing, and so on may then be used to drive traffic to your Amazon product listing. Even if you don’t have an established customer base, this tactic may help you stand out from your competitors.
Pay Attention To The Buyer
On Amazon, dropshipping is much like starting your own business, but without all the headaches. You don’t need to make or transport your own purchased products.
Dropshipping enables you to focus on customer purchases instead of running your business.
It’s also important to note that good customer service helps boost product reviews. Positive product reviews, once again, may make or destroy your Amazon company.
Focus On Your Own Ecommerce Store
Dropshipping’s biggest negative is that you will sell products that you have no say in the manufacture or design of. In addition, the same supplier will be available to other businesses.
As a consequence, you have little or no advantage over your competitors, so you need to focus on the brand in order to be successful.
Even though your product is comparable to your competitors, it doesn’t have to be identical to theirs. For $40, you can get a 40-ounce stainless steel tumbler from YETI, for example. Stainless steel tumblers from RTIC, on the other hand, are available for less than $20. The YETI brand, on the other hand, continues to hold sway in that sector.
The answer is simple: buyers want to buy the YETI brand and the image it symbolizes.
Get A Sample.
It’s imperative that you know exactly what you’re selling before putting it on the market. Don’t be afraid to plan ahead of time and arrange a place to stay. A dropshipping strategy is even better if you can do it without the supplier’s notice.
Examine the specimen when it arrives. I’m curious as to how it looked when it first came. How long did it take to complete? Is everything as it seems to be?
Once you start dropshipping on Amazon, you’ll be able to anticipate how your customers will get their orders, thanks to all of these minor details.
Throw A Wide Net.
With dropshipping, you can reach a bigger audience since you don’t have to invest anything upfront. As a result, you may list a large number of items at once.
Some people won’t be able to make it. Enhance what works while reducing ineffective elements.
As long as you go by Amazon’s rules, you may use this strategy without incident.
What Software Do I Need For Amazon Dropshipping?
If you want to run a hands-off company, the best way is to invest in the finest software to automate your procedures. Order generation and tracking, inventory management, and repricing are just a few of the main areas that need automation.
Many of these tools may be found in online stores. Here are some of the most popular Amazon dropshipping software:
Helium 10, a popular all-in-one Amazon software, includes product and keyword research tools, listing improvement, and business analytics.
Plans (discounted if you want to be paid every year):
- Trial Period
- Starter ($37 per month; includes core tools and expert instruction)
- Platinum ($97/month; most popular plan for a single user)
- Diamond ($197/month for a multi-user subscription with increased limitations)
- Elite ($397 per month; top-tier package with live expert instruction)
This tool, which is almost a must-have for Amazon sellers, assists in discovering, launching, and selling items on Amazon. It also includes a valuable set of additional tools, such as the Supplier Database Tool.
Plans (discounted if you want to be paid yearly):
- Basic ($49/month, including full access to the Jungle Scout browser plugin)
- Suite ($69 per month, including review automation and access to advanced selling tools)
- Professional ($129/month; ideal for experienced sellers; includes expedited onboarding and six users)
Oberlo is designed to assist dropshippers in finding items, contacting suppliers, and establishing a niche.
- The explorer (Free)
- Grad ($7.90/month, including coaching, classes, and trend reports)
- Boss ($29.90/month with advanced selling tools)
An automatic repricing program allows you to establish price constraints, including delivery, to increase your chances of winning the Buy Box.
- Trial Period
- 1% of your total monthly sales, with a minimum charge of $50 and a maximum fee of $2000 every month
Shopify is the place to go for dropshipping. Amazon may be integrated as a sales channel on your Shopify site, allowing you to maintain inventory and keep track of sales that need to be completed.
- Costless (14-day trial)
- Shopify Basic ($29/month for newcomers)
- Shopify ($79/month for developing businesses with at least one retail location)
- Advanced Shopify ($299/month for expanding enterprises with two or more retail locations)
A product finding and sourcing tool driven by machine learning suitable for companies wishing to dropship on US and European marketplaces.
- Starter ($24/month for 25 distinct goods and email support)
- Pro ($49/month, including branded invoicing and chat support)
- Quality ($99/month for 10,000 unique and premium goods).
Is It Possible To Dropship From Amazon To eBay?
It has been common to dropship products from Amazon to eBay. Using this business strategy, merchants purchase discounted products from Amazon and then resell them for a profit on eBay dropshipping.
In most cases, this implies that the end customer who purchased the items on eBay will get them in Amazon’s external packaging – which is not ideal for them.
Dropshipping from Amazon to eBay isn’t against the law, but manufacturers don’t like it. The dropship model is advantageous to the dropshipper since it allows the manufacturer to keep their hands off of their earnings.
Another reason why hundreds of Israeli businesses were barred from employing this approach in 2017 is that eBay doesn’t appreciate dropshipping from Amazon to eBay.
This is a bad idea if you want to develop a credible dropshipping company.
Are There Alternatives To Amazon Dropshipping?
Yes, there are plenty of Dropshipping programs and resources to choose from if you want to pursue this business model. Here are just a few:
Is Amazon Dropshipping A Scam?
So, time for the question you’ve been waiting for: is Amazon Dropshipping a scam?
No, not technically speaking. They aren’t going to take your money and ride off into the sunset without delivering you access to their course.
It’s 100% possible to make money with this program, but it’s not nearly as simple as they want you to think it is.
There is A LOT of upfront work to do, and no guarantee of success.
Don’t get me wrong – I’m all for doing hard work now so that I can collect checks in the future.
But if I’m going to spend 3 months of my life working super hard & spending thousands of dollars, just to break even… it’s just not worth it (in my opinion).
Think about it: what if you worked that same 3 months with just an hour or two per day, and in return you could collect a $500-$2,000 check that continues to come in every month?
Even better, what if you could actually get that first check in as little as a week?
And what if you could double or triple it over the next month or two?
That’s what you get when you rent digital properties as a Digital Landlord.
All you really need is a laptop and some internet.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper van (with a pet pig!)
They focus on living an enjoyable life first, and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is the top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
What Is My Top Recommendation For Making Money In 2023?
I’ve personally tried all of the major online business models:
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve drop-shipped jade rollers via Clickfunnels
- I’ve sold fidget spinners through Amazon FBA
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
That being said, my #1 recommendation for making real money online is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie, or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
1)Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
2) Ownership & Control: With dropshipping, you don’t actually own anything. You can’t control your product quality, or even what the package looks like when it shows up.
Technically you own your Shopify site… but ad platforms could shut you down at a moment’s notice… so you don’t really have much control there.
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
3) Fulfillment: Alright, so you don’t have any inventory… but that worry has been replaced with the pains of overseas fulfillment.
That means your customer is going to have to wait 3-4 weeks to receive their order.
Then add in the current global supply chain woes… and you’re looking at 5-6-7 weeks!
Then the customer slaps you with a refund, and all of that time spent testing and spending money on ads was for nothing.
You don’t have to worry about any of that when you’re renting out digital properties.
4) It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with dropshipping, you would need to sell twice as much inventory, or double your profit margins. And I can guarantee you (from my Shopify dropshipping days) that’s a lot harder than a few clicks & a phone call.
5) Big Margins: With dropshipping, you’re often going to have really slim margins. That means you need to hit a serious scale to make serious money. This usually entails spending A LOT of money on ads and other methods for growing traffic to your product.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
6) You’re Helping REAL People: My biggest gripe with dropshipping is that you’re usually finding some product that’s complete garbage and tricking people into buying it. It provides no real value to them or the world in general.
It’s cool in the short term to make a quick buck, but in the long term, it gets really old, really fast.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with.
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other dropshipping programs like Amazon Dropshipping, which might make you money 12 months from now.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.