In today’s video we’re going to cover how you can build a 6 figure dropshipping business on Amazon.
There’s a lot of places you can dropship and build a sizable business on, but one reason I love amazon so much is because it’s practically 100% automated once you get a product into your inventory.
There’s software that will scan the internet and do product research for you so you know which products are profitable and which ones to list.
There’s software that will tell you how much a product is selling on amazon already…so you know if it’s worth your time listing it or not.
There’s software that will automatically reprice your inventory for you. So once you have a product setup, it’ll continue to monitor your competitors and adjust your price accordingly. That way you can make the most money possible b/c your prices will always be super competitive.
There’s software that will help cut your order processing time significantly (if you’re doing it on your own)…which might not sound like a big deal, but if you’re doing dozens of orders a day….this can cut hours off your work each day.
There’s software that will automatically input your tracking numbers for you. So, once you process an order, you don’t even need to manually input the tracking number. It’ll do that for you.
And there’s even software that will automatically fulfill your orders for you….so you literally don’t have to do ANYTHING.
I use all of the software I mention in this article in my own business...a business I’m still doing right now and I still strongly believe in.
So, the first thing you need to do in order to build a profitable dropshipping business on amazon is find good, profitable products.
There are many ways to find products, but perhaps the best way is to use a software that compares Amazon’s catalog of millions of products against similar products all over the internet on hundreds of other websites.
The software I highly recommend for this is called sourcemogul. It’s a gamechanger of a software and has been instrumental in scaling my amazon dropshipping business.
You can search through hundreds of websites to find products that are selling for a lot less than they are on amazon.
And you can even sort through the software to save yourself even more time by only going after products that are already selling well on amazon AND as profitable as you want.
Once the software spits you out products, you’ll want to make sure that…
You’re able to sell it (this will depend on the age and sales history of your seller account as well as if you’re gated for that product, brand, or category).
It is indeed profitable. You can do that by running the price on amazon against the price on your suppliers website to see that it’s actually going to make you money after the amazon fees are deducted. An easy way to do this is by using amazon’s profit calculator. They provide one for free to you in amazon seller central.
It is actually getting enough sales on amazon to justify listing it in your inventory. I highly recommend the jungle scout chrome extension for this. I’ve used and recommended this software since I started in eCommerce years ago. It’s helped me build my business from the ground up and I couldn’t recommend it more for amazon sellers.
Then assuming all this checks out, you’ll want to add that product to your inventory on amazon and set it up in your repricer.
Your repricer is a software that automatically monitors your price against other sellers on the listing and adjusts your price so it remains competitive and you have a shot to win the buybox.
The buy box is it's basically just that yellow “add to cart” button that you see on an Amazon listing.
Depending on the listing, there's usually a lot of sellers all competing for it...and upwards of 95% of sales on Amazon come from that add to cart button. Rarely does an Amazon customer click the "other sellers" option and buy that way.
I never recommend repricing to lower prices than your competitors because that's how you end up with race to the bottom pricing battles and then nobody wins. Instead, I typically recommend that you either match the buy box price or you match the lowest price if there is no buy box (or if you're selling a used product that's not new).
There are many repricers out there and they they can get expensive so instead of recommending an expensive one that isn't really necessary for drop shippers, I just recommend you use the free one that already comes in seller central. It has everything you need already built in and it actually works pretty well.
You'll also want to make sure that you have a software that monitors your inventory that way you don't actually sell an item that's out of stock.
I recommend Skugrid for this. It does a really great job. it'll basically check all your products every hour to make sure that they're still in stock on your suppliers website and if they aren't anymore it'll actually go into your Amazon inventory automatically and change your stock to zero.
This will give you peace of mind that any sales you make actually are still in stock and you don't ever have to cancel orders.
Another software I highly recommend recommend using is called spot and paste. This software copies addresses from your Amazon orders and makes it super easy to paste them into your supplier's website when you're fulfilling orders.
It can be programmed to do this on literally every single website and it'll save you loads of time so that you can process orders a
lot faster.
Yet another software that will save you time is tracker bot. This software will scan emails for your tracking numbers.
Then it will match that order in your seller central...and AUTOMATICALLY input the tracking number into that corresponding order. Pretty cool!
That means that you don't have to waste time opening emails copying tracking number manually anymore (which takes a lot longer than you might think if you have lots of orders).
All software mentioned...
If you'd like to watch the complete video explanation of this, check it out below.