Complete Guide to Dropshipping on Amazon for Beginners

[00:01] dropshipping business on Amazon. I'm going to explain everything step by step and in have to do is follow the instructions. So, without further ado, let's get started. Although few people know it, it's

[00:16] entirely possible to do dropshipping on Amazon. But before I explain how it's all done, I'll quickly explain what dropshipping is. It's a distribution method that allows us to

[00:28] sell products without having them in stock. It's very interesting because it allows us to sell products bought them first. So, we can start a business without making a large investment knows what Amazon is. Amazon is the largest e-commerce platform in the

[00:43] world. Last year, they generated no less than $570 billion in revenue, and what's especially interesting is that 60% of this revenue was generated by independent sellers—people like you or me who are selling

[00:57] a practical example now so you can fully understand how this works. We're going to put a product up for sale. On Amazon, when someone buys this product from us, we buy it from our

[01:10] supplier at a lower price. The supplier then ships the product to the customer who made the purchase on Amazon, and we make money thanks to this price difference. This is definitely interesting because you can

[01:23] invest in stock or create a website, since your website is Amazon itself. Look, I'll give you a real example so you understand. This product is an Amazon product; it's

[01:36] a kind of lamp. When someone buys this product, they're 're selling this product, but we did n't create it. Amazon, and we started selling it. I don't know if you knew this, but for

[01:51] each Amazon product, there can be several sellers selling the exact same thing. In this case, if you look here, it shows Buying Smart Store, which is the store we created to prepare this

[02:03] video. But if we scroll down and click here, we can see that there are two other sellers. Selling the exact same product, one for 8 and another for 25, and we're selling it for 19. This is called

[02:16] the bybox, and the fact that your product appears here and is being sold is known as winning the bybox. The person who wins the bybox is the one who will get 99% of the sales, since everyone

[02:30] to look for the strategy we're going to follow in this video. It's not about totally innovative. What we're going to do is find interesting products and start selling these same products, but with

[02:43] the goal of winning the bybox and having our product appear here. How are we going to win the bybox? Well, basically, there are several things that Amazon takes into account to determine which seller will appear at the top, but we're

[02:56] going to focus on two. Number one is price: we're always going to offer a lower price than our competitors. And number two is more attractive shipping time than our competitors. In this case, this product

[03:09] has a 5-day shipping time, while our competitors have... A higher price and, secondly, a longer shipping time. Once you understand all of that, let's see how to get started. The first thing we need to do is

[03:21] The first thing we need to do is come to sell.amazon.com, which to create a seller account on Amazon so we can sell on Amazon. I'm going to pricing section so you can see how it works. We also have to pay

[03:35] Amazon to do this. First of all, we have two types of subscriptions: the individual subscription, which will charge us 99 cents for each item which costs 9.99 per month. In our case, we're going to

[03:49] basically, to implement this strategy, we need what's called the API. The API, to explain it simply, will allow us to connect Amazon with automatically connected. And every time someone places an order on Amazon, it

[04:04] receives it and can then ship it directly to the customer forced to use the professional subscription. And then, if we come down here... They also charge commissions. These are the commissions that

[04:18] take this percentage of each of our sales, depending on the product category. The commission will vary. For example, if we sell industrial and scientific supplies, they'll take 12%. If

[04:31] we sell glasses and accessories, they'll take 15%. Here are all the percentages. Once we understand this, we click here on "Register," and If I'm not mistaken, we can use the email we have for our regular Amazon account,

[04:45] register again. Something important to emphasize is that we're world's largest e-commerce platform; we 're not creating an account on just quite a bit of information. They'll ask for personal information, and they'll ask for

[05:00] to know where to send the money. Once we're generating income, they'll also ask for bank statements to provided is ours. And once we 've filled everything out, we'll have to

[05:14] wait 48 hours. It will take hours for your account to be accepted once you've created and received it. You'll arrive here. This is an account we created beforehand so we can explain everything properly. Basically,

[05:26] see a lot of available marketplaces, but you'll only Amazon works by marketplaces. No, amazon.com isn't the same as amazon.es or amazon.it. There are several marketplaces,

[05:40] and we'll have to register in each one where we want to sell. By the way, something important is that if you we'll leave a link in the video description to a document that

[05:54] explains everything step by step with all the details. that might come up along the way, so we've created a document with so we've created a document with

[06:07] resolve them once you're in the marketplace you're interested in. In this case, we can see Spain. So, there you have it. Amazon is set up, and now we're going to move on to the supplier. The supplier will allow us to sell

[06:22] in stock, so that every time someone buys them, the supplier ships them going to use Auto10. I'm sure most of you know Auto10; it's one of the most popular suppliers in the world

[06:37] we have a pretty interesting offer: we can use Auto10 for free for 35 days. Normally, Auto10 has a 14-day free trial for $ [amount missing]. Basically, you pay $ [amount missing] and you have access

[06:51] for 14 days, but by using our link, you get 35 days free without having to pay anything at all. I'll leave a direct link in the description so you can take advantage of this great offer. So,

[07:04] click here on "Get Started." Now we'll have to fill in this: email, our we'll have to fill in this: email, our Now we have to select which channel we're going to use to sell the

[07:19] products. In our case, we're going to use Amazon. The next thing we have to do is select the Auto10 plan in my [device/app/etc.]. In this case, I'm going to select this one called Starter 500. Why, firstly, because it gives us the possibility of

[07:31] publishing 500 products on Amazon, which is interesting, but above all because it has the option of both price and stock monitoring. This means that it connects the supplier's stock with Amazon's stock. And if at

[07:44] unavailable from the supplier, it won't be available on Amazon, or if the supplier profitable, then it will no longer be available on Amazon. This ensures that we do n't have problems selling a product we don't really have or

[07:58] price it will cost us and end up losing money. There are other the ability to automate certain annual plan or the monthly plan. If we choose the annual plan, we get a 25%

[08:13] 30 free days, but we actually have 35. It's just that they haven't updated it yet since it's a special offer for us. So, just so you know, it's 35 days; it will probably show 35 days when you're seeing this.

[08:26] And if it's not showing up yet, you should know that although it's listed as 30, it's actually 35 days completely free. In my case, I'm going to select the 30-day option. Now I'm going to select the 30-day option. Now I'm going to fill in the

[08:45] created, the first thing we need to do is connect Auto 10s with Amazon. This is quite simple: we click on Ad Store, click here, and it in, which is what I'm going to do right now. Once we're logged in, we have to

[08:59] to sell in. In our case, for this example, we'll choose Spain. Select account, and now we have to accept this— basically, confirm that it connects correctly—and click on

[09:12] continue. Once that's done, we're already in Auto 10s. If you look store. I've named it " Adrian," but I can change the name to whatever I want. Only I will see it on

[09:27] account. Now, we have to choose which product. We're going to sell product we're going to sell. We have a lot of strategies; one of the most popular is going directly to Amazon itself. It has a section called "

[09:42] Amazon Trending Products" where all kinds of products appear. Well, they're filtered by category. This is certainly an interesting strategy, but the problem is that if we're going to do dropshipping on Amazon,

[09:55] specific products. To do it in the simplest way possible, we're going to avoid products that require a particular license, and trademarked products. So, to do

[10:08] this in the simplest way possible, we're going to use Auto10 with is basically an area where the Auto10 team analyzes the products which ones are interesting, and they're going to put them here to make our lives a little

[10:23] easier. So, they have a lot of products, for example, "Hey, I'm is." We have a lot of information; we can see the prices, we can see the shipping time to a specific country, and we have a lot of

[10:37] information. So, I'm going to search for a product and I'll tell you which one I'm going to choose see step by step how everything is done, interesting. It's a kind of stand for your mobile phone, and it

[10:51] charge it. I thought it was good, and something I important, is that if we come to the handpicked products section, where it says " ship to," we can choose which country we want it shipped to. For example, if I

[11:03] product page, for example, in this case, it will show me how many days the shipping takes select another country, like, let's say, the United States, and go into this

[11:17] product page, it shows me the shipping time to the United States. If I select Spain, it shows So, we can find out the shipping time to a specific country. Here we have quite a bit of information, and something important is that if we come up here

[11:31] to the right, we can see... Well, we can search for similar products on AliExpress. There are other similar products here, so we can look for the best prices. It might be more interesting to use the supplier's own product.

[11:43] Or, something interesting about AliExpress is that we can connect AliExpress with Auto10 to automate the whole process and have them handle all the management, We have a lot of similar products here; a

[11:56] literally the same. What we need to focus on are two things, well, three: first, the price; second, the shipping time. If you notice, it's 9 days to Spain; and then something else we need to look for are

[12:11] products with free returns. We'll see why later, but basically, to avoid problems if a customer requests a return and to not lose money with this strategy. So, a 90-

[12:23] day return policy is important. Now, what we're going to do is search for this product on Amazon. To do this, we'll come here to Amazon, and several similar products appear, but if you notice, they aren't exactly the same. So, I'm

[12:36] going to look for it. Well, we can either search for it like this, or a simpler strategy, at least for me, is to translate this into Spanish. Here we are on amazon.com, and we want to To do it in Spanish, then I'm going to use

[12:48] Google Translate and translate it into Spanish. Copy it, go to amazon.es, and we'll look for it. I'll search for it the product here. What we need to focus on is both the price and

[13:04] the shipping. Regarding the price, they sell it for 59, and we can buy it for 9.65, which would be around 9, and shipping is free. Well, it says here: free shipping. Then we have to focus on the shipping time.

[13:19] This will arrive between October 28th and November 8th. Today is November 4th, so we're talking about more than 20 days of shipping, and we're getting 9 days. Therefore, we're beating them.

[13:35] market, cheaper, and with faster shipping. good for the platform and for the customer. So Amazon is going to put us first. Once we've found a product that suits us,

[13:48] actually sell it on Amazon, since, as I mentioned, not all registered it and it has something that requires a license, we won't be can sell it? Well, we have to do the following: we have to come down here, scroll down, scroll down, scroll down,

[14:04] and the ASIN, we copy this code. We go back into Amazon Seller, click here, Catalog, Add click here, Catalog, Add products, and here we're going to add the ASIN.

[14:18] Then I paste it, click submit, and here it shows me "select can sell it. I'm going to give you an example so you can see that it doesn't always happen like this. For example, with this product, which is a product from a certain brand, it's like a

[14:33] table. We're going to look for the ASIN of this product, which is this one, I copy it, I come back here, paste it, submit, and if you notice, it shows " unavailable." If it shows " unavailable," it means it's not available.

[14:45] So, we have to keep searching. Once we have this, I paste it Once we have this, I paste it here, submit, select "new" since we're selling it as new, and click " sell." This product takes us

[14:59] we should do is fill in all the information, but in our case, we're not do it directly with Auto10 to connect it, but something important is that

[15:11] on the Spanish marketplace with a Spanish account, we can't offer shipping in more than 7 days. So what we have to do is look for a product that offers shipping in

[15:23] 7 days or less. This one we have with 9 days doesn't fit our needs, and this one, which is a bit more expensive—we're talking about a few dollars more—does offer shipping in 5 days to Spain. So once we have this, this will be the product we're going

[15:36] to use. We'll go back to Amazon, and before connecting everything, we have to configure both shipping and returns. To do this, we'll come here to this area, scroll down to Shipping Settings, and here we'll

[15:50] see the shipping settings, which we have to adapt to our our product's shipping. We click on Modify, and here we can decide the shipping times depending on where we're shipping to. Shipping to Barcelona won't be the same as shipping

[16:04] Canary Islands, and shipping to the Balearic Islands won't be the same as shipping to the able to change it and modify it. For example, if I don't want to sell to the Balearic Islands, I just click here on "delete" and remove it,

[16:18] and I won't be selling there. So, the product we're going to use is the here and configure it. We come here; the shipping is 5 to select mainland Spain so the video doesn't get too long. But the way to

[16:32] do it is simply by coming here, selecting this, looking at the shipping time, and if it fits within the range, we offer to fits within the range, we offer to ship to those areas. If not, then I

[16:45] continue deleting here. Then we can activate express shipping or premium shipping. In our case, we're not going to do that. And then we can ship to other areas within Europe. We click on " standard shipping," and then we can access the

[16:58] In this case, we can offer it with a longer shipping time. In my case, to make it we could do it. We come to AliExpress, select the country, and see the

[17:10] all international shipments, once we have everything ready here, I click save and that way we have the time to... Next, we'll go to the

[17:24] returns section for the actual shipping we're offering. We'll configure it for Spain since it's the first thing we have is return authorization. Who will authorize the return of a product? In the case of Spain, the only thing allowed is

[17:38] we'll set that up: return authorization. In this case, means that we, the seller, will handle the return. Or we can set it to "Amazon." In our case, since

[17:52] we have the product and it's not on Amazon's Amazon marketplace, it makes sense for us to manage it. Next, we have a label for external products. We're selling an external product, so we have two options: "prepaid

[18:04] This means that if we set it to "prepaid by seller," we will pay for the return shipping. And if we select " unpaid label," it means the customer will have to pay for the

[18:19] case, we'll set it to "prepaid by seller" since we want to offer the best service. We want to give the seller a better rating so Amazon sees we're good sellers and continues recommending our products. Here's what we're going to do:

[18:32] where it says " Return Instructions," click and paste the following: "Please wait for us to send you the return label before sending the product back." Why are we doing this?

[18:44] wants to return a product, we'll tell them, "Okay, we'll refund you. You won't but please wait for us to send you a AliExpress has a 90- day return policy, and how this works is that

[18:57] when someone requests a refund, they send a that label and send it on Amazon. With this label, they go to a

[19:11] courier service (it will vary depending on the shipment; in Spain, it's usually product and the label to Correos, where they can send the item back without paying a cent. So, we can offer

[19:25] returns at no cost to us whatsoever. No money involved once we have the returns set up. Save the configuration, and now we'll see how all this connects. This is perfect. Now

[19:38] click on "Add Products." We click on " Single Product" since we're only going to upload one product, and we have to enter the Amazon ASIN first. To do this, we go back to the product; we know where it is. I have it here.

[19:52] We copy and paste it. Then we have to enter the supplier, the one we're our case, it's this product, the one we saw with 5-day shipping, which costs € 12.57, and shipping is free. Perfect, I

[20:07] copy it, come back here, and paste it. We click on "Edit Now." It shows that it's been added to Draft. Draft is basically like a draft where we can modify the product before publishing it. We wait until it's

[20:22] configured; it's quite fast. Once it's loaded, we click here, and all the information will appear. In our case, we don't need to touch sell the product on Amazon. We don't need to change the name or

[20:36] on Amazon. The only thing we're going to do is deactivate auto-order. We'll continue with stock monitoring and price monitoring. This is important; if we have this functionality, it will help us a lot, actually. Then

[20:50] we come here to variants, click here on edit, and we're going to calculate what price we're going to set for the product. To do that, the first thing we're currently selling for, so it has to be lower. Then we're going to

[21:05] come here to what we saw at the beginning of the video about commissions, and we're going to calculate what commission Amazon will charge us for this type of product is in, we have to come here where it says electronics, so that means

[21:18] the category is electronics. We come here and we can see that we have electronic products, which would be the 8% category. So we come back to auto 10, in FIS we're going to put 8%, and then here we're going to put the

[21:33] price we want, keeping in mind that they're selling it for 26, we're going to set it for 29.99, and that's it. A discount that's quite interesting. We can see our profit. Uh, in the end, something important is that we don't

[21:47] our listing, but also on competitors. How much are similar products selling for? What are the similar prices? If you look, they're quite similar to these. So I think we have a good price, which is

[22:00] quite good in the market. And at least in this listing, we're the most competitive. So once we have it, we click on save, and then we come to images. We're going to select all the images that are here and

[22:13] all the images that are here and click on save. Uh, import. So once we've done this, if you look, it's done, we already have it imported. Auto 10 products area, we can see how it appears. These are two other products that we made

[22:26] earlier, and all the information appears: the purchase price, the sale price, the profit, which is the supplier where we sell it. Well, we have all the can come here, click here, edit it, delete it, do whatever we

[22:40] minutes it will be available on Amazon. If you look, we have these two products that we have in Auto 10, and I'm going to wait and I'll let you know when it's ready and tell you how here now; it took about 5 or 10 minutes.

[22:56] Once it appears on Amazon, we need to select "Add missing details to Amazon, we need to select "Add missing details to with all the information will appear. We click on the price—notice I only

[23:10] clicked on the price; I didn't fill anything in because it's already filled in—and select " Save and Finish." And there we have it. This will take some time to be accepted. With some products, it took a few minutes, and with others, it took

[23:22] a few hours. So, it depends on whether the offer is missing. It will continue to take some time here until it's configured. I'll give you an example, since this one has n't appeared on Amazon yet because it takes a little while.

[23:34] I'll give you an example of this product. This is the one I showed you now. But basically, we have the product, this is us, and since we're offering it at a lower price and with a shorter order,

[23:47] we position ourselves first. Inside the bbox, well, we've already seen this before. Let's go back to Auto 10s and I'm going to explain important settings. If we come here to Settings, then Supplier Settings, which is like the

[24:02] supplier configuration, we'll see that we have several things. Let's an option that allows us to activate. can activate it if we want. It's called Dynamic Profit, and if we activate it,

[24:14] so that all the prices of all the products—this makes sense if we have we have 500 products published on Amazon. Well, with just this, we're going to set the FES (Fee-in-Self) and the profit we want to achieve.

[24:28] automatic. If the supplier raises the price, our prices will go up; if the supplier lowers the price, our prices will go down, but always complying with these things. For example, if we put, " I want to earn 20 on all orders," then

[24:41] on all orders I'm going to earn 20. Then we come to Orders, and here where it says Maximum Loss is the maximum amount. Imagine the money we're going to lose on an order. Imagine our supplier raises the price and we're going to

[24:53] lose 2 or 2. In that case, the system would continue to work. Since the maximum loss we can make is 5, what I'm zero so we don't lose money at any point. If at any point I'm

[25:06] losing money, the order is automatically canceled and doesn't affect me. So I click here on " save." And then, the last buyers account," we click on " add account" and we'll have to add

[25:20] our AliExpress account. We'll put all the information here. This is optional. click here on "Connect with AliExpress" and our Express account will be connected to our Auto10 account. This is optional, but what this will

[25:33] orders, Auto10 itself will fill in the information within Express, and that way everything is connected and centralized on the same important regarding payments when we make a sale within...

[25:48] We'll start earning money on Amazon, but Amazon will only pay us 30 days after our first sale. This is in mind when calculating our cash flow once we've

[26:02] received our first payment. Amazon will pay us every two weeks, so the normal payment is every two weeks, except for the first payment, which is in 30 days. To that dropshipping with Amazon is relatively complex. If

[26:17] least I haven't seen any in Spanish—explaining how to dropship on Amazon the way we're explaining it. So, I'm warning you that it's complex. You'll most likely encounter problems and errors, which is why

[26:30] document (linked in the description). In it, we 've analyzed all the problems and errors we've encountered along the way this is useful for

[26:46] see which products sell and which don't. sense to evolve towards building our own brand. Obviously, the most own brand from day one, but I understand that not everyone can

[27:01] invest money in stock and a lot of other things to launch their first brand. That's why this strategy is interesting for beginners to try it out and then be able to evolve. And lastly, I'd like to

[27:13] this, we have to see what taxes we have to pay. We'll have to depending on the country we live in and the country where we me when I say that this video took us a lot, a lot, a lot of

[27:28] work to bring you, but we're committed to bringing you the best content possible. So, if you found it interesting, if it was helpful, don't forget to leave a like. That's all. I'm Adrian Science, and I'll see you in the next

[27:40] Adrian Science, and I'll see you in the next video. Bye!