If you’ve been searching for how to start an Amazon store drop shipping business, you’re in the right place. Drop shipping on Amazon is one of the easiest ways to start an online business with minimal investment, no need for warehouse space, and the potential to reach millions of customers. In this guide, we’ll walk you through step-by-step so you can launch your Amazon drop shipping business successfully.
What is Amazon Drop Shipping?
Amazon drop shipping is a business model where you list products for sale on Amazon without keeping any inventory. When a customer places an order, you purchase the product from a third-party supplier (like Alibaba, AliExpress, or a wholesaler), and they ship it directly to the customer. You act as the middleman, earning the profit from the difference between your selling price and the supplier’s price.
Why Start an Amazon Drop Shipping Business?
- Low Startup Costs – No need to buy stock upfront.
- No Inventory Management – Your supplier handles storage and shipping.
- High Earning Potential – Amazon’s huge customer base means high sales opportunities.
- Work from Anywhere – All you need is a laptop and internet connection.
Step-by-Step Guide: How to Start an Amazon Store Drop Shipping Business
1. Understand Amazon’s Drop Shipping Policy
Before starting, it’s important to know Amazon allows drop shipping only if you are the seller of record. This means:
- You must identify yourself as the seller on invoices and packing slips.
- You cannot buy from another retailer and ship directly to customers without changing documentation.
Failing to follow Amazon’s rules can get your account suspended.
2. Create Your Amazon Seller Account
Go to the Amazon Seller Central and sign up.
- Individual Plan – $0.99 per item sold (good for beginners).
- Professional Plan – $39.99 per month (better for higher volume sellers).
Provide your business name, bank account details, and tax information.
3. Choose a Profitable Niche
Pick a niche that:
- Has consistent demand.
- Offers good profit margins (30% or more is ideal).
- Isn’t too competitive.
Use tools like Jungle Scout, Helium 10, or AMZScout to research trending products.
4. Find Reliable Drop Shipping Suppliers
Your supplier will determine your business success. Look for:
- Fast Shipping Times – Customers love quick delivery.
- Quality Products – To avoid returns and bad reviews.
- Competitive Pricing – So you can keep healthy profit margins.
Popular supplier options include: - Alibaba
- AliExpress
- SaleHoo
- Wholesale Central
5. List Products on Amazon
When adding a product:
- Use high-quality images.
- Write SEO-optimized titles and descriptions.
- Include relevant keywords (without keyword stuffing).
- Set competitive prices.
6. Manage Orders and Customer Service
When an order is placed:
- Purchase the product from your supplier immediately.
- Provide tracking numbers to customers quickly.
- Respond to messages and handle returns politely.
7. Optimize Your Store for More Sales
- Use Amazon Sponsored Ads to boost visibility.
- Offer promotions like “Buy One, Get One” or discounts.
- Request customer reviews after a successful delivery.
Common Mistakes to Avoid
- Choosing unreliable suppliers.
- Selling without checking Amazon’s drop shipping rules.
- Overpricing products.
- Ignoring customer service.
Final Thoughts
Learning how to start an Amazon store drop shipping business can open the door to a profitable, flexible, and scalable income stream. Success comes from choosing the right products, working with trustworthy suppliers, and following Amazon’s rules. If you stay consistent, you can build a long-term eCommerce business without ever touching a single product yourself.