How to Become Successful in Amazon Dropshipping Business?
How to Become Successful in Amazon Dropshipping Business?
23% of online sales were conducted through the dropship model in 2017 and amounted to $85.1 billion. Amazon is a preferred dropshipping destination with 34% of total sales coming through dropshipping in 2011- and the number has kept growing all these years!
Anyone can try their luck at dropshipping, but only a few make it to the top of the success ladder. Pro dropshippers have a few tricks up their sleeve which makes them successful in their territory.
Today, we (www.walletmonitor.com) will reveal the secrets to run a successful dropshipping business on Amazon. So let's dive in without delay!
8 Tips to Establish a Successful Dropshipping Business on Amazon
If you’re looking to establish yourself as a seller on Amazon, a few tips will help you stay on time. You don’t have to worry about deliveries getting delayed anymore, and can help you get more sales.
- Don't Go for the Same Items as Everyone
One of the biggest mistakes that beginners commit is trying to sell the popular items listed by other sellers. When many individuals and sellers offer the same item, there is competition and the supply of the merchandise increases. As a result, the prices go down even if the demand remains the same.
Only big retailers can make a profit in such a situation as they are able to get a discount by buying in bulk. That's why many people look for Walmart to Amazon drop shipping to earn a margin without success.
The only way to sustain your success on Amazon is to choose a niche product. You can gain experience and earn expertise in the chosen market to become a seasoned seller.
- Focus on Niche Products
Don't be afraid to experiment with niche products. Go for something you are passionate about to choose the best dropshipping niche and offer unique merchandise to your customers.
Dropshipping allows you to pay for the products after you sell it, so you can try out different products to find out which ones work best for you. Retailers won't be ready to take the risk of buying inventory unless they are confident of selling it.
On the contrary, you can choose to list an automatic fish peeler on Amazon without any worry. If it doesn't sell, all you lose is some time. Dropshipping allows you to sell niche and specialized products which are not available from other big retailers.
- Diversify Your Product Range
Generally, people will first try to identify the top selling products on Amazon with dropshipping tools. Then they go about looking for a supplier to source the product. This is not the ideal way to do things!
You don't want your business to depend only on a handful of best selling products- your aim should be to offer a range of long-tail products for maximum profitability.
It's a mistake to concentrate on individual products and place all your eggs in one basket. You need to look for suppliers with entire catalogs of products which enable you to diversify your offerings.
Instead of concentrating on products, you need to first try to search for suppliers.
- The Right Way to Find Suppliers with High-Margin Products
You will come across plenty of suppliers with low-margin items, but finding a quality supplier with high-margin products is difficult!
The trick to earning high margin on your items is to source the products directly from the manufacturer. You can eliminate all middlemen in this way who only add to the cost of the product.
Identify the manufacturer of the products and iquire if they offer dropshipping programs. If they don't, ask for distributors or wholesale retailers. You should be equipped with all requirements like a tax ID or EIN number so that the wholesalers are ready to sell to you.
Google can also help you to discover suppliers and wholesalers. Just remember to go seven or eight pages past the first page as wholesaler details are not what people are looking for generally. You won't find them in the first page of search results. Google can also help you how to monitor your products. Our programm www.walletmonitor .com do it perfect.
- Try to Sell Bundled Merchandise
A great strategy to increase margin is to bundle similar products and offer them as a packaged deal. If one of your product is high in demand but has a low margin, you can try to bundle products that your customers might need.
The strategy can also help you reduce shipping expenses if you are dropshipping all the products from the same supplier.
If you are planning to sell bundle merchandise, you need to be aware of Amazon’s ASIN Creation Policy. You have to abide by the guidelines to make sure you are offering the proper variations. You also can't bundle products as per your wish and all bundle merchandise must arrive in manufacturer packaging.
- Take Advantage of Seasonal Products
Retailers are always wary of overstocking and don't stock enough inventory when it comes to seasonal goods. You can increase your profit by offering seasonal items as you don't have to worry about having your money tied to leftover Easter items which didn't sell!
Dropshippers don't have to take the risk of carrying inventory which makes seasonal items a lucrative opportunity. It also means that you can sell out on your inventory quickly, as seasonal products are more likely to be in demand.
- Improve Delivery Experience
Shipping delay is a common issue that dropshippers experience. Sometimes it can take up a day just to confirm an order due to time zone differences. On top of that, suppliers may be located far away which increases the shipping time.
Providing a seamless and quick delivery service is essential and you should only source your products from reliable suppliers who can deliver on time. Another option is to use Fulfillment by Amazon (FBA) to stock your inventory. You can still continue to dropship while providing quick delivery time.
FBA is not free and will affect your margins. You can try to negotiate with the suppliers for a better price to make up for the increased cost.
- Use Automated Drop Shipping Software
A dropshipping software can help you to automate your business and reduce your effort. You can use an auto-lister to source items from different e-commerce platforms and dropship Amazon products.
The drop shipping management software even sets the prices automatically based on pre-defined rules and lists products with all their variations. You also don't have to copy the images or texts- everything is synced by the dropship lister.
Using automated solutions enable you to free up your time so that you can find the best products to dropship on Amazon.
Contact us Today!
Dropshipping on Amazon can turn into a profitable business once you discover the right products to sell. You also have to find the right suppliers who can offer you high-margin products. Bundle merchandise or seasonal items are great for additional cash flow while a diversified catalog improves your margin.
Look to ensure a timely delivery to earn positive reviews and high ratings; with www.Walletmonitor.com, you won’t be disappointed.
www.Walletmonitor.com helps you to automate your dropshipping process. Our software helps you in monitoring the dropshipping process for you, no matter whether you use Amazon, eBay, AliExpress or Shopify. Trust us to help you do more with our dropshipping software. Try out our solutions for as low as $1!