If you're an Amazon seller looking for a low-cost way to start your business without the hassle of managing inventory, dropshipping is the perfect solution. While dropshipping can be a profitable venture, it can also be a challenge to find high-margin products to sell on Amazon.
Fortunately, there are effective Amazon seller software tools that can make this process easier and less time-consuming. Our comprehensive guide will show you how to find the best dropshipping products using the top Amazon seller product research tool — Seller Assistant App.
What Is Dropshipping?
Amazon dropshipping is a business model of selling products without physically holding inventory yourself. The dropshipper lists a product on Amazon, receives an order from the buyer, and then requests the supplier to ship it directly to the consumer.
Dropshipping is a straightforward selling method. The profit is generated by the gap between the supplier's lower price and the dropshipper's higher price.
However, when you dropship on Amazon, it’s crucial to follow their dropshipping policy and identify yourself as the designated seller of your products. Failing to do so may lead to a ban on the seller's account.
Related: Dropshipping on Amazon in 2024
Online Arbitrage vs Dropshipping: Which Business Model Is Best For You?
How Does Dropshipping Work?
With dropshipping, a seller doesn't keep the products it sells in stock. Instead, a seller chooses a profitable Amazon product and finds a supplier that agrees to ship it to the customer (or to the prep center assigned by the dropshipper).
After that, the sellers list a product on Amazon. When a customer buys it, the seller notifies the supplier to send the order to the customer. That way, the seller never sees or handles the product. They simply act as a middleman between the supplier and the customer.
Amazon dropshipping policy
Amazon dropshipping policy
Amazon allows dropshipping with some limitations. Therefore, it’s essential to follow Amazon’s dropshipping policies.
Clear seller identification
As a dropshipper on Amazon, it is important to identify yourself as the seller of the products you list. All packaging slips, invoices, and other product-related information must clearly indicate that the order is sold by you, and not by a third-party retailer.
Removal of third-party data
To ensure that customers receive the product without any confusion or reference to the supplier, dropshippers must remove any data or branding related to the third-party wholesaler or supplier from the packaging and other product-related documents before fulfilling an order.
Customer returns
Sellers are responsible for the prompt and professional handling of customer returns according to Amazon's standards.
Challenges and tips to Amazon dropshipping
Amazon dropshipping, while tempting due to its ease of entry, presents several challenges you should be aware of and be prepared to take care of them.
Compliance
As said, Amazon requires dropshippers to identify themselves as sellers of record. That involves issuing all product-related documents in your name and removing all third-party supplier signs from the product and packaging. That may be a challenge for a dropshipper that doesn’t have the capacity to deal with the inventory.
Tip. To solve the issue, you can ask the supplier to send your orders to a prep center to remove all signs of the third-party retailer and repackage them in your name. That method also identifies you as a seller since all products are fulfilled from one address. In this method, you must carefully calculate logistics expenses by using Seller Assistant App’s FBA&FBM calculator, because paying for a prep center reduces your profit.
Seller Assistant App’s FBA&FBM calculator,
Product research
Many sellers compete on Amazon, making it difficult to find profitable deals. Product research can be a time-consuming and routine process, especially when you must look up hundreds of products daily.
Tip. The efficient solution to this problem is using Amazon seller tools. The popular and cost-effective option is Seller Assistant App. This tool shows you all essential product data on Amazon products and search pages and helps find profitable products at a glance.
Related: Seller Assistant App Extension Review
Seller Assistant App — the Ultimate Tool for Amazon Online Arbitrage
Seller Assistant App
IP complaints
It's common for dropshippers to resell products from other brands. However, some of these brands may have policies against reselling their products. As a result, they may file intellectual property complaints to Amazon. If that happens to you, Amazon may deactivate your listing unless you can provide proof of purchase in the form of an invoice. Failing to do so could result in financial losses, so it's crucial to identify and avoid such brands.
Tip. You can protect yourself from IP complaints by using Seller Assistant App’s IP Alert. It shows the red triangle icon on the Amazon product and search pages to alert you about problematic products.
Seller Assistant App’s IP Alert
Generic products
Dropshippers often resell generic (unbranded) products because of their low price. However, according to Amazon’s generic product policy, if there is an existing listing for your product with the brand name "generic", you can’t make product detail page changes or add offers to that listing.
If you try to add a product offer to another seller’s generic product listing, you will receive a listing error. Amazon will require you to create a new product listing. If you don’t want to put in time and effort, avoid such products.
Tip. You can avoid generic products by using Seller Assistant App. It shows the «GB» icon in the Amazon product and search pages to highlight generics.
Seller Assistant App highlights generic products with the «GB» icon in the Amazon product and search pages
Related: New Dropshipping Strategy That Complies With Amazon’s Policy
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Why Use Seller Assistant App for Dropshipping?
Seller Assistant App is a tool designed to assist Amazon sellers with product sourcing tasks. This ultimate browser extension simplifies the entire process, helping you uncover winning products that sell. It aims to simplify the process of selecting dropshipping products by providing their key data and features directly on Amazon search, product, and inventory pages.
Seller Assistant App is a comprehensive tool for dropshippers. In addition to standard product sourcing features, it provides a unique IP Alert database to detect risky products, a Bulk Restrictions Checker to check restrictions in bulk, a useful Quick View feature for quick product analysis, an FBA&FBM Calculator to calculate product profitability, and more.
Special solutions for dropshippers
Bulk Restriction Checker
Validate selling eligibility for up to 5,000 ASINs simultaneously with Bulk Restriction Checker’s downloadable reports.
IP Alert
Identify potential intellectual property violations with a daily updated IP Alert database to avoid risky products.
Seller Assistant App’s advanced IP Alert
Buy Box insights
Gain insights into the percentage of Buy Box offers for informed competition assessment and identifying if there is a dominating seller in The Buy Box with whom it’s hard to compete.
Quick View
Analyze key product details on the fly within the Amazon search page. Quick View shows the product’s ASIN, BSR in its main category, the FBA and FBM product offer count, product restrictions, and IP Alerts, if Amazon sells the product.
Seller Assistant App's Quick View on the Amazon search pages
Google Sheets Export
Export to Google Sheets your research data with over 100 product characteristics for further analysis.
Seller Assistant App lets sellers export product research data to Google Sheets
Quick Links
Discover product suppliers and explore potential deals on other platforms.
Quick Links
Related: How to Check Product Restrictions on Amazon?
Amazon Restricted Products – Complete Guide for Sellers
What is Amazon IP Complaint? How to Avoid IP Complaints
Amazon IP Complaint: What Amazon Sellers Need to Know About
How to Do Quick Amazon Product Research?
Seller Assistant App: How to Save Amazon Product Data to Google Sheets
How to Find Dropshipping Products with Seller Assistant App?
If you're looking to sell profitable dropshipping products on Amazon, your key task is to conduct thorough product research using Amazon seller tools. The best option for dropshippers is Seller Assistant App.
This tool helps you identify products that are likely to generate revenue and avoid any potential issues when selling them. In addition, it assists in choosing a supplier that offers competitive pricing to ensure that you can make a reasonable profit.
13 Steps to find dropshipping products with Seller Assistant App
Step 1. Remove referral links
Ensure accurate data by removing the "ref=" portion from product links.
To get correct product data, you must remove the referral from the link
Step 2. Check for private label brands
Avoid potential IP complaints by identifying private labels (trademarked products). Look for the products where the seller count is more than 1 FBA and there are no IP complaints.
Private label product example
Seller Assistant App’s IP Alert shows a red triangle icon if a product has IP complaints. It also shows the FBA seller count.
Seller Assistant App’s advanced IP Alert feature shows the red triangle icon if a product has IP complaints and explains why
Step 3. Analyze FBA seller count
Ideal range of seller count is 3-15 for balanced competition.
Seller Assistant App displays the seller count. The figure on a blue background is the count of all FBA or FBM sellers. The figure on the white background next to it is the count of FBA or FBM sellers offering the Buy Box price +5%.
Seller Assistant App shows the number of FBA and FBM offers
Step 4. Avoid competing with Amazon
Skip products where Amazon dominates the Buy Box.
Seller Assistant App alerts you with the red Amazon icon on the product pages and the orange Amazon icon on the search pages if Amazon is a seller.
If Amazon is a seller, Seller Assistant App shows the red Amazon icon on the product pages
Step 5. Verify listing age
Ensure enough sales history (6+ months) and price, sales consistency, and seasonality insights.
You can discover the listing age (when the sales began) from a Keepa chart Seller Assistant App shows on the product pages.
Step 6. Analyze BSR trends
Look for consistent sales (low rank) and upward trends.
Seller Assistant App displays the average BSR, its trend, and drops during 30, 90, and 180 days. Additionally, it shows monthly product sales in pieces based on BSR and category.
To estimate hiw well the product sells, look at BSR trend, drops, sales velocity, and sales based on BSR
Step 7. Research Buy Box offers
Ensure stable pricing trends and avoid intense competition. Look at the Buy Box price to see what price you can set.
Seller Assistant App shows the Buy Box trend, average Buy Box, and minimum FBA and FBM prices.
Seller Assistant App shows the Buy Box trend, average Buy Box, and minimum FBM Buy Box price.
The Buy Box percentage per seller in the Offers list helps understand if there is a dominating seller in the Buy Box (it’s challenging to compete with them).
Step 8. Verify variations
Check compliance with Amazon's variation rules. They must be attributes of the same thing (size, color, etc.), and which variation sells the best.
Seller Assistant App’s Variation Viewer reveals all product variation data, rating share, total ratings, and the rating percentage per variation. The one with the biggest rating share sells the best.
Variation viewer
Step 9. Review product ratings
Aim for a 4-5 star average and minimal negative reviews.
Reviews are available on the separate Keepa chart built into Seller Assistant App.
Reviews are available on the separate Keepa chart built into Seller Assistant App
Step 10. Check eligibility and restrictions
Ensure you can sell the product on your account and product restrictions.
You can see it on Seller Assistant App: a green open lock icon means you can sell a product, and a red closed lock means you can’t sell it.
If you see a green open lock icon in Seller Assistant App, you can sell a product
Step 11. Identify product flags
Be aware of potential issues like oversize or hazardous materials.
Seller Assistant App flags
- Closed Red Lock icon — you can’t sell the product on your account, or it belongs to a restricted category;
- Red Box icon — a product is oversized;
- Red Glass — a product is fragile;
- Red Drop — a product is meltable;
- Hazmat icon — a product belongs to the hazardous materials;
- 18+ — a product belongs to Adult goods;
- Red Amazon icon — Amazon is a Buy Box seller;
- GB icon — generic brand.
Product sourcing flags from Seller Assistant App
Step 12. Estimate sales
Understand your sales potential based on current competition.
Seller Assistant App shows in the ‘Est’ line the estimated product sales if you become one more seller on the listing. This allows to determine if you can sell as many units as you wish.
Estimate sales
Step 13. Calculate ROI
Ensure profitability with a target of 10% or higher.
Seller Assistant App’s FBM&FBA profit calculator shows your ROI on the Amazon product pages in the ROI line.
Seller Assistant App’s FBA&FBM calculator shows profit, ROI, and margin
Related: 13 Rules of OA Product Research Tested by Pain and Gain of Amazon Seller
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What is Buy Box? How to Win Buy Box on Amazon
How to Add a Variation to an Existing Amazon Listing — Сomplete Guide
Seller Assistant App: What Products to Avoid Selling on Amazon?
How to Find Product Suppliers with Seller Assistant App?
Once you've thoroughly researched a product and determined it's worth selling, the next step is to find a reliable supplier who can offer it to you at a competitive price, maximizing your profit margins.
Seller Assistant App can be a valuable tool for identifying potential suppliers. To help you get started, here's a step-by-step guide on how to use the app to find an Amazon dropshipping supplier.
Steps to find dropshipping product supplier with Seller Assistant App
Step 1. Start by searching for your desired product on Amazon and opening the product listing.
Step 2. In Seller Assistant App, click the search icon located in the top left corner. This will display a list of popular suppliers.
Step 3. From the dropdown list provided by Seller Assistant App, choose a supplier that suits your needs. You can choose from options such as Google, Google Shopping, eBay, Walmart, Target, Webstaurant, Katom, The Home Depot, or Alibaba.
Seller Assistant App provides quick links to search products on different search engines
Step 4. Once you have selected a supplier from the list, you will be redirected to the search results page for that particular product on the chosen platform. From there, you can explore and select the supplier that best fits your needs.
Step 5. Activate Seller Assistant App Side Panel View to compare the product on Amazon and at different suppliers, and calculate your profit, ROI, and margin, on the supplier page. Side Panel View shows you all the necessary information to select a profitable product. Choose the one with the highest ROI and profit margin.
Side Panel View on the supplier website
FAQ
What are the benefits of using the Seller Assistant App?
Seller Assistant App is an all-in-one product sourcing extension that can help you find profitable products with ease. The app comes with a range of powerful features, including the FBM&FBA Profit Calculator, Quick View, ASIN Grabber, IP Alert, Restrictions Checker, and other product research functionalities. By automating product data collection, you can gain valuable insights into product profitability, competition, demand, and other crucial product information. Armed with this information, you can cherry-pick high-margin items for your store with confidence.
How do I not fail dropshipping?
Dropshipping success requires thorough product research and ongoing effort to find profitable deals. Don't expect quick riches, be patient, and adapt as you learn. Use the right product sourcing tools like Seller Assistant App to minimize the risk of failure with your products.
Which is the best seller app?
Unfortunately, there's no single "best" seller app as it depends on your specific needs and goals. If you are looking for the best tool to source dropshipping products, you can use Seller Assistant App popular product sourcing tool.
How to dropship for beginners?
To start dropshipping on Amazon, research and source to find high-demand, low-competition products with reliable dropshippers who meet Amazon's quality standards. Use the right product sourcing tools like Seller Assistant App to do that. Ensure you comply with Amazon's dropshipping policies (being the seller of record).
Is an Amazon FBA worth it?
Whether Amazon FBA is worth it depends on your goals and unit economics. It offers convenience and reach, as Amazon handles fulfillment and customer services. However, if you sell nonstandard products (bulky or heavy items), or want to add unique branding to your packaging, you may prefer to fulfill orders yourself or with 3PL provider.
Final Thoughts
To sum up, succeeding in dropshipping Amazon can be quite a challenge. However, utilizing comprehensive product sourcing tools is essential to achieve success.
One such tool that stands out is Seller Assistant App. This ultimate product sourcing extension is a powerful ally in finding profitable products.
Equipped with features like FBM&FBA Profit Calculator, Quick View, ASIN Grabber, IP Alert, Restrictions Checker, and other product research functionalities, you can automate product data collection. This will give you insights into product profitability, competition, demand, and other crucial product information. By leveraging this information, you can cherry-pick high-margin items for your store.
Originally published at https://www.sellerassistant.app/blog/how-to-dropship-on-amazon
Want to try out your luck in eCommerce along with your other existing businesses?
To begin with, dropshipping can be a good option.
If you are having thoughts like ‘is dropshipping still profitable in 2021’ then let us tell you that when done right, it can help you make good profits.Ecommerce is not only for those who have products or manufacturing products.
You can sell things online without manufacturing or buying things, this is called Dropshipping.
What you think is Dropshipping dead?Why go with dropshipping business idea?You may have a question – is dropshipping profitable in 2021?
As compared to other kind of businesses, for an entrepreneur, dropshipping can be considered as a business plan with less risks involved.
Today, many dropshippers concede to the fact that profit margins are tight in the Dropshipping service business.
If you are the one with the same belief and spent months searching for ways to escalate the profits margins, then don’t worry!
Here are some practical ways.Read More - https://bit.ly/37I7jGj
Amazon recently sent an email to sellers stating that they are implementing strict storage restrictions on all third-party retailers that store goods in warehouses in the United States to meet consumer demand.
For many, this change means a reduction of the overall account level inventory limit.
Sellers should consider alternative or backup fulfillment strategies that will free them to these latest changes.
The intention was to give sellers more flexibility with inventory shipments.
The repeated and one-sided changes to Amazon's storage restrictions have clearly disappointed many sellers.
Every amazon seller wants to know everything about this announcement so, let’s get into the details.Read More-https://www.team4ecom.com/blog/new-storage-limit-policy-of-amazon-and-its-impact-on-sellers/
