Amazon dropshipping business – is it for you?

Man delivering a parcel is a way of depicting an Amazon dropshipping business

In all honesty, Amazon Dropshipping is actually one of the easiest ways of making online, however it all comes down to your ability to choose great products. With Amazon Dropshipping, the days of holding on to stock are long gone, as sellers are afforded an easy and low-risk way to sell goods online.

There’s no better time to start this business than now because although it would have been beneficial to be in to this a few years ago, Amazon continues to grow by the week.

With over 300 million active users, this is a huge opportunity to sell products online, because the beauty of it is, Dropshipping means your customers can be anywhere in the world.

Since Amazon is a global brand, there’s a huge market out there for people who seek to capitalise on Amazon DropShipping. All that is required is for you to pick the right market and product, and you are on your way.

Once you find the winning formula and understand the business mechanics, you can then add to your product portfolio and apply the same rules to your new products.

What is Amazon Dropshipping?

Amazon Dropshipping is the process of selling a product without the responsibility of carrying inventory or shipping the goods. Notably, drop shippers can set their own product prices. The product manufacturer is responsible for manufacturing the product, maintaining inventory and shipping the goods to the customer.

the benefits of an Amazon Dropshipping business is where the supplier delivers straight to the consumer

How much money can I make?

For  Dropshippers, there’s a possibility of making a good income, and there are many people on Amazon doing this today, however this is definitely not a get rich quick scheme.  It does requires hard work and time.

On the flip side, Amazon has made it as easier to make good money as they have advanced their platform over the years to make drop shipping as simple as possible.

Amazon Dropshipping setup

Just like every other e-commerce website, to start, you have to register on the website and create a seller account. If you have a Facebook account, then setting up an Amazon account shouldn’t be difficult.

When creating the account, users have two available options – individual or professional. As you are starting out, it is advisable to start an Individual account because you will only have to pay for the items which you sell, but for a professional account, sellers will pay a fee of $40 per month. Nevertheless, both accounts give sellers the ability to list an unlimited number of products on Amazon.

Finding the right supplier and product

For drop shipping, finding the right products and supplier is very essential. However, the most important thing to consider is whether there is a market for the goods you want to sell.

You have two choices here in my view.  Either pick products that you are passionate about and know the market demand, or pick products which are trending.  Here are some of the best places to find trending products

Once the market has been identified, the next important step is to locate a cheap supplier for that product.

Where to source products

Unlike ten years ago, finding products is no longer a difficult task. Here are some of the best and most popular places to source your products:


Aliexpress is a platform used for wholesale and Dropshipping, and is also an avenue where Dropshippers can interact with suppliers and obtain products.


Another platform where suppliers can source goods from is SaleHoo which covers the United States, Australia and the United Kingdom. SaleHoo also serves as a directory for wholesale suppliers who want to connect with Dropshippers.

Dropship Direct

As the name implies, DropShip Direct is another platform which offers access to thousands of products which can conveniently be shipped from their warehouse, and gives suppliers a wide range of goods to pick from.


Don’t just rely on Amazon

Once you are up and running , don’t be dependent on sales from Amazon alone. Create your own store too. By having Amazon as one of many sales channels, you improve your odds for sales while minimising risk. Also, if a customer recognises your brand they’ll be more likely to buy from you on Amazon.

Aim for a high seller rating

Having a 95% or higher seller rating improves the likelihood that you’ll appear in organic searches. Also, it’s important to have a high seller rating as customers will be more likely to trust you if your rating is high. It gives your Amazon store a competitive advantage over those with lower ratings.

Potential problems with Amazon Dropshipping

As with any business idea, there are potential problems that you should be aware of:

Price changes

Suppliers can change their prices at any time which can have a negative effect on your profit. One way of overcoming this obstacle is by having multiple suppliers to ensure that a change in the price of a product will not affect the consumer.

Delivery timescales

If you supplier doesn’t ship to your customers within an acceptable timescale to you, you will soon notch up some negative feedback. Make sure you source a supplier who has a reputation for shipping goods within good timescales.

Product quality

Sellers are as good as the last product review they received, and because you wont usually have the chance of physically inspecting the products for quality, it is ideal to engage with reliable and reputable suppliers.

With these potential problems recognised, I still believe that running a drop shipping business is one of the best ways to make money online.  As with all of our home based business ideas, it really comes down to what your skills and passions are.

If you think you have an eye for spotting trends and knowing what sells, then an Amazon business really could be for you.

Thank you for reading our Amazon dropshipping review.  Why not read our article on how to make money through Etoro copy trading.

Clive Dickinson

High & Wise




Author: highandwise

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