The Ultimate Guide to Drop Shipping on Amazon

The Ultimate Guide to Drop Shipping on Amazon

Table of Contents:

  1. Introduction
  2. Opening an Amazon Account
  3. Seasoning Your Amazon Account
  4. Choosing the Right Software 4.1 Stock and Inventory Tool 4.2 Repricing Tool
  5. Finding the Correct Suppliers
  6. Conducting Product Research
  7. Drop Shipping on Amazon
  8. Calculating Profit Margins
  9. Scaling Your Business
  10. Conclusion

Drop Shipping on Amazon: A Step-by-Step Guide for Beginners


Drop shipping on Amazon has become an increasingly popular way for beginners to start their own online business. In this comprehensive guide, we will walk you through the exact blueprint you need to follow in order to succeed as a beginner in drop shipping on Amazon in 2020. From opening an Amazon account to finding the right suppliers and conducting product research, we will cover each step in detail to ensure you have all the necessary tools and knowledge to thrive in this competitive marketplace.

  1. Opening an Amazon Account

The first step in your journey to becoming a successful Amazon drop shipper is to open an Amazon account. Although it may seem simple, there are some important factors to consider. To start, you'll need to sign up for a professional account, which costs $39.99 per month. While this may seem like an additional expense, it is necessary for accessing the Buy Box and maximizing your sales potential. We will guide you on how to sign up for an account and provide tips on setting up a professional profile.

  1. Seasoning Your Amazon Account

Seasoning your Amazon account involves establishing credibility and trust with the platform by engaging in activities such as Amazon FBA (Fulfillment by Amazon). While this step is optional, it can significantly boost your chances of success as a beginner. We will explain what seasoning entails and provide tips on how to effectively utilize Amazon FBA to build a solid foundation for your business.

  1. Choosing the Right Software

Your success in drop shipping on Amazon heavily relies on the software you choose to manage your inventory and pricing. We will discuss two essential tools: a stock and inventory tool, and a repricing tool. You will learn about popular options such as Web Scraper App and SKU Grid, the differences between them, and how to integrate them into your business operations.

  1. Finding the Correct Suppliers

The key to profitable drop shipping on Amazon lies in finding the right suppliers. While many beginners opt for well-known retailers like Walmart and Home Depot, we will emphasize the benefits of sourcing from more obscure suppliers. By exploring private label brands and focusing on suppliers with tax exemption options, fast shipping times, and excellent return policies, you can gain a competitive advantage and secure higher profit margins.

  1. Conducting Product Research

In order to identify profitable items to drop ship on Amazon, thorough product research is essential. We will guide you through the process of discovering private label brands of your chosen suppliers and teach you how to assess their sales potential. With the help of tools like Jungle Scout and estimated sales calculations, you can make informed decisions and select items that offer a reasonable profit margin.

  1. Drop Shipping on Amazon

Once you have your Amazon account, software, and suppliers in place, you are ready to start drop shipping on Amazon. We will provide a step-by-step walkthrough of the listing process, including tips on optimizing your listings for visibility and sales. Additionally, we will cover best practices for handling customer inquiries, managing returns, and fulfilling orders to ensure a smooth and seamless drop shipping experience.

  1. Calculating Profit Margins

Understanding and maximizing your profit margins is crucial for long-term success in drop shipping on Amazon. We will explain the importance of factoring in Amazon's fees and guide you on how to accurately calculate your profit on each sale. By carefully analyzing your profit margins, you can make informed pricing decisions and ensure sustainability and growth for your business.

  1. Scaling Your Business

Once you have established a strong foundation, it's time to scale your Amazon drop shipping business. We will discuss strategies for expanding your product range, increasing your sales volume, and optimizing your operations. By continuously evaluating and refining your approach, you can achieve a sustainable and profitable business model that allows for consistent growth.


Drop shipping on Amazon can be a lucrative and fulfilling business venture when approached with the right knowledge and strategies. In this guide, we have covered all the essential steps required to succeed as a beginner in the competitive Amazon marketplace. By following the step-by-step blueprint and leveraging the tools and software available, you can build a profitable and sustainable drop shipping business on Amazon. Start your journey today and unlock the potential of this lucrative business model.


  • Step-by-step guide for beginners in drop shipping on Amazon
  • Tips on opening and seasoning your Amazon account
  • Choosing the right software for inventory and repricing
  • Finding profitable suppliers and conducting effective product research
  • Calculating and maximizing profit margins
  • Strategies for scaling your drop shipping business on Amazon


Q: Can I start drop shipping on Amazon without a professional account? A: While it is possible to start with an individual account, a professional account is recommended for access to the Buy Box and increased sales potential.

Q: Is Amazon drop shipping the same as Amazon FBA? A: No, Amazon drop shipping involves listing and selling products without keeping inventory, while Amazon FBA involves sending your own products to Amazon's fulfillment centers for storage and shipping.

Q: How many suppliers should I have for a successful drop shipping business on Amazon? A: It is recommended to have at least 100 to 200 reputable suppliers to ensure a diverse and profitable product range.

Q: Can I drop ship prime items on Amazon? A: Drop shipping prime items is challenging as Amazon prioritizes prime sellers in the Buy Box. It is advisable to focus on non-prime items for better profit margins.

Q: How can I scale my drop shipping business on Amazon? A: Scaling your business involves expanding product range, increasing sales volume, and optimizing operations. Continuously evaluating and refining your strategies will help achieve sustainable growth.