How to Dropship on Amazon?

Everyone is looking for a way to add passive income to their wallets, and the internet has a lot to offer on this front – especially Amazon.

With millions of dollars being spent every day on their website, the gigantic retailer offers insane traffic that can be leveraged by those who know what they’re doing.

One of the most popular ways people use Amazon to earn passive income is through dropshipping. Dropshipping involves selling products through a third party that handles the hard part. You won’t need to worry about shipping or holding inventory; you part is just getting people to click buy.

Does sitting back and earning hundreds to thousands of dollars a month for a few hours of work sound good to you? Of course, it does. To learn more about dropshipping, keep reading.

Why You Should Use Dropshipping?

Imagine a business where you didn’t have to prepare or store products for customers. Once they ordered something, the product would simply appear right there in their hands, and you would receive the profits (the retail price minus the wholesale cost) right in your bank account.

No storage, no taking inventory, and no hassle. This is what dropshipping makes possible and is why it can be so lucrative – when done right. Here are some pros of dropshipping on Amazon to help convince you even further:

Use Dropshipping

Anyone Can Do It

If you’ve got an Amazon seller account, you can dropship. All you have to do is arrange for supply when an order is placed. No expertise (outside of this guide.) required.

No Startup Cost

An Amazon seller account is free and since you aren’t handling your own inventory, there’s no initial stocking cost. You don’t even need a website to start your store.

No Handling Inventory

All orders are passed directly to the supplier, so you don’t have to hold or manage a warehouse for inventory. This saves you tons of warehouse rent and removes the need for inventory management on your end.

No Managing Shipping

Shipping is time consuming for those who aren’t setup to handle it. Working with a supplier takes the shipping hassle off of you – just put your name on the packing slip.

Totally Hands-Off Business

Passive income means hands-off. Once you set up your store and list your products, your orders can be directly filtered to your supplier. You won’t have to do anything but monitor the process to make sure things are working correctly (and collect your money.).

Minimal Advertising Costs (Amazon Traffic)

Amazon gets millions of visits a day – far more than any website you’d create for your store. By leveraging the immense traffic Amazon experiences, you pretty much remove any need for marketing on your behalf. Simply manage the search engine optimization of your listings for better visibility yourself, or work with a SEO specialist.

Minimal Advertising Costs

The Process

Now that you know just how effective dropshipping can be, it’s time to review the steps you’ll need to take to start your store today. Remember that it can take some time to make significant money – but thankfully there are very few (if any) operating costs.

Ensure You Follow Amazon Guidelines

Before you even consider trying to dropship on Amazon, be sure to read their policy on dropshipping. You need to be the seller on record, handle returns yourself, and comply with the Amazon Seller terms of service. If you don’t, you risk your account being closed, your funds being lost, and a possible ban from future business.

Create an Amazon Business Account

Once you’re sure everything is by the books, you’ll need to get your Amazon Business account to start selling. Registration is fairly simple and entirely free but will take a few days for Amazon to approve your information. Fortunately, while you wait you can prepare the rest of your business.

Contact Local Suppliers

One of the primary reasons that people shop on Amazon is fast and easy shipping. If you’re working with suppliers from China and are selling to the US, people are going to immediately move on once they see 7-14 days for shipping. If you want the best chance to make a sale, work with local suppliers and choose your store’s products based on their catalog.

Identify High-Margin Products to Sell

Now that you’ve found a supplier, browse the catalog for any items that seem like a good deal, checking Amazon for the same products to see the potential resale profit you could make. Once you find something that sells reasonably well and has enough of a margin to cover any expenses, list it on your store.

List Products at Markup (but lower than others)

If you want to be a featured deal, you’ll want to be competitive with your pricing. Generally, if you can be the cheapest option for a specific product, you run a higher chance of getting the sale. However, be sure that you’re not going too much cheaper – dropshipping works on thin margins, so 5% less per sale can add up.

Optimize Your Listings for SEO

If you want to sell your product, it has to be discoverable. When someone searches for a keyword related to your product, you want to show up as high as possible in the search results. You can help this happen by optimizing your listings to have the keywords you’re aiming for throughout the title, description, and more.

Get Sales and Collect Your Money

Once the products are all set up and your store is live, you can simply sit back and wait for sales to come through. With millions of shoppers visiting Amazon per day, you’ve got a lot of potential customers that are just a few clicks away. If you are advertising your store elsewhere, you can now begin to link to your products and store on your website, blog, or media page.


Amazon dropshipping is something that not everyone is familiar with, but for those who are looking to earn passive income, it rivals Amazon Affiliates in terms of the return on your time.

Once you set up an account, establish supply lines with a supplier, and list the products, you can simply sit back and wait for any sales to come in. It requires very little additional input, runs 24/7, and can add up to some serious extra money if your listings perform well. Best of all, it costs nothing to start and ongoing costs are optional (outside of deals with your supplier), so you can just let it run.

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