Amazon is the biggest online commerce platform in the world. Dropshipping on Amazon is a very good idea for business beginners because you get to start selling without having to keep any products with you.
Before you decide whether to dropship on Amazon or not, it is better to know all the details of being an Amazon dropshipper, the exact process you have to follow, the benefits and issues with Amazon dropshipping, and much more.
An Overview
- What Amazon dropshipping is?
- Step-by-step guide on how to start Amazon dropshipping.
- Pros and cons of dropshipping on Amazon.
- Difference between dropshipping on Amazon India and Amazon International.
- Get answers to your doubts and questions.
What is Amazon Dropshipping?
Amazon dropshipping is a way of doing online business in which you display products on Amazon, but the products are not kept by you. These products are stocked by a supplier, who could be the manufacturer or wholesaler.
You act as a storefront and marketer who brings customers to your Amazon listings and accepts orders. The orders are processed and fulfilled by the supplier, but the customer only has your contact information for any communication regarding the order.
You are also in charge of customer service, which may include taking and forwarding return or exchange requests. Your source of profits in dropshipping on Amazon is the difference between what your customers pay you and what you pay the supplier for the product. Also dedicated from your earnings are the Amazon seller fees.
Amazon Dropshipper Profits = Earnings from Customer Sales – (Expenses Paid to Suppliers + Amazon Fees)
Amazon offers you the choice of dropshipping domestically or internationally. While international dropshipping gives you more options and a bigger customer base, you need to be mindful of export rules. Find out more about how to start Amazon international dropshipping.
How to Dropshipping on Amazon: A Complete 10-Step Guide
If you want to know how to start dropshipping on Amazon, use these steps:
Step 1: Make a Seller Account
First, you make an Amazon seller account. To create an Amazon seller account in India, you need a GST number and PAN along with the other necessary documents. Some other things you’ll need are bank account details, business registration, etc. You also need to optimize your seller account so more people online can reach you on Amazon. Get end-to-end support including legal guidance for Amazon India dropshipping.
Step 2: Pick a Niche
Decide on a profitable market niche for your online business. Your success really depends on what dropshipping business ideas you use, how much demand and competition you’ll find in that niche, how trending it is, whether customers tend to repeatedly purchase products from that category, and much more. You have to understand all these factors before you select your dropshipping niche. Two best-selling niches on Amazon India are accessories and clothing, and beauty and personal care.
Step 3: Choose a Product
Once you have selected a dropshipping idea or niche, it is time to decide which specific product(s) you would like to sell. This requires more detailed research into what your customers want, where you can do better than the competition, how likely customers are to return to your Amazon storefront for the product, and more.
Step 4: Partner Up with a Supplier
Now that you have decided what product you are going to dropshipping on Amazon, you need to find a supplier who offers that product. Your dropshipping supplier also needs to be trustworthy, needs to sell you their product at a reasonable cost which keeps you profitable, and offer good shipping times.
Step 5: Create Product Listings
After you’ve found a supplier, you can display their products on your Amazon storefront. You have to make product listings that make the customer more likely to find and buy your products. For example, your listings need to be optimized on Amazon so that more people can see them.
Step 6: Market and Bring Customers
Everything is ready for sales now, but you still have to make people aware of your Amazon dropshipping business by using marketing techniques. Market your business online and vouch for the quality of your store, products, and customer support. Identify the need or want that you are fulfilling for your customers and use that angle to get them to visit your storefront and place orders.
Step 7: Accept Customer Orders and Forward Them
Once you start receiving orders on your Amazon storefront, you have to forward them to your supplier so that they can ship the product.
Step 8. Ensure Shipping Goes Smoothly
Throughout the process, the customer only has access to your contact information, so make sure that you stay in touch with them as well as the supplier. The shipping process should go as well as possible so that your customers keep returning. The customer should also get proper and timely updates about the status of their order.
Step 9. Customer Support
In case of any issues with the order, you are responsible for providing customer support. Make sure that your customer support skills are good because this is one of your primary duties as an Amazon dropshipper.
Step 10. Manage Exchanges and Returns
Similar to regular orders, dropshipping on Amazon means that exchange and return requests are also to be received by you and forwarded to the supplier for processing. Make sure that the customer has a good experience with exchanges and returns. This builds trust towards your business.
Pros and Cons of Amazon Dropshipping
If you truly want to go beyond the surface and make a smart business decision, it is not enough to just know how to start dropshipping on Amazon. You should also know the pros and cons of doing so.
| Pros | Cons |
| 1. Big customer base | 1. Lots of competition |
| 2. Trusted e-commerce platform | 2. No store branding possible |
| 3. Lots of potential for sales | 3. Amazon deducts fees |
| 4. Established Systems for safety | 4. Compliance policies to be followed |
| 5. No inventory needed | |
| 6. Minimal risk |
Pros of Amazon Dropshipping
These are the benefits of choosing to dropshipping on Amazon:
1. Huge Customer Base at Your Fingertips: More than 300 million customers all over the world use Amazon. If you choose to dropship on Amazon, you get access to this existing customer base.
2. Trusted Marketplace for Your Customers: Amazon is a trusted e-commerce platform and marketplace globally. Often customers take time to trust the platform on which they are shopping. With Amazon dropshipping, you skip this trust-building process.
3. High Chances of Getting Sales and Profits: Due to the huge customer base and extremely low startup costs of dropshipping, you can get more sales and profits if you pick Amazon dropshipping.
3. Established Systems for Ease and Safety: Amazon has established systems in place for its sellers, which allows you to get started with your online business easily. Since the rules are already existing and defined, you just have to understand and follow them.
4. Zero Inventory Required: One of the biggest advantages of dropshipping in general, which also applies to Amazon dropshipping, is that you do not need any inventory to become a seller. You can simply interact with your customers and focus on growing your business.
5. Little to No Risk in Business: Dropshipping on Amazon business model has minimum risk because every issue linked to production and storage is avoided. You can easily switch products based on high or low demand, and there is no chance of you buying stock which does not get sold.
Cons of Amazon Dropshipping and How to Overcome Them
1. High Competition: A lot of sellers want to access the impressive customer base of Amazon. Further, people are aware that dropshipping is a profitable business model. When you combine both, you get a lot of competition. But you can overcome this disadvantage by selecting a niche and products which are more likely to sell.
2. Branding is Not Possible: With dropshipping, you already cannot brand the products because they are not made or stored by you. Further, if you use Amazon as your marketplace, you cannot brand your online store much either. However, you can overcome this issue by making your business trustworthy through robust customer support and catchy marketing.
3. Amazon Fees: Another disadvantage of dropshipping on Amazon is that there are certain fees that Amazon deducts from its sellers’ earnings. This is simply the price to pay for accessing Amazon’s great customer base and platform trust. You can avoid any shipping-related charges by choosing to dropship on Amazon, which means that the supplier handles shipping.
4. Rules and Policies: Amazon has established rules and policies which you must follow in order to sell on the platform. It is important to be well aware of these regulations so your account stays active and your profits are not affected. With the right dropshipping support, you get guidance on all policy and compliance matters which helps you stay worry-free.
Amazon Seller Fees for India and International
Before you begin to dropship on Amazon, you should also know the details of fees which Amazon charges to its sellers.
Amazon India Seller Fees
The fees that sellers on Amazon India have to pay are:
- Referral Fee: This fee is a percentage of every sale. The amount depends on the product. For apparel, Amazon charges between 12-24% of every sale. Amazon India charges no referral fee for more than 1.2 crore products, especially those priced under ₹300.
- Closing Fee: This fee is a flat amount that depends on the selling price of the product.
- Weight Handling Fee: This fee is related to shipping. It only applies to Fulfillment by Amazon (FBA), which means that Amazon ships your product.
- Other Fees: You might have to pay some other fees if you use Amazon fulfilment centres (FCs).
Amazon India sellers do not have to pay any monthly subscription fee to start dropshipping on Amazon.
Amazon International Seller Fees
The fees that Amazon international dropshippers and other sellers have to pay are:
- Subscription Fee: Your subscription fee will depend on the plan that you choose.
- Referral Fee: This fee is a percentage of every sale, depending on the category of product being sold.
- Fulfillment Fees: These fees only apply if you choose FBA.
- Other Fees: Other fees can be related to currency conversion and import duties.
Important Rules for Dropshipping on Amazon
To dropship on Amazon, you have to follow some guidelines and rules, such as:
- The supplier’s name or information cannot be visible to the customer anywhere.
- The parcel should not have the dropshipping supplier’s branding or information.
- You have to take care of return requests from customers. The customer should not need to reach out to anyone aside from you throughout.
Conclusion
To put it simply, start dropshipping on Amazon is a very profitable business that you can start in 2026. Before you make up your mind, learn more about dropshipping and how to get started with it.
Still confused? Schedule a call with a dropshipping expert.
Frequently Asked Questions
1. Can you dropship on Amazon?
Yes, you can dropship on Amazon as long as you follow their regulations. For example, to dropship on Amazon India, you need a GST number. You also cannot display your supplier’s contact information on your parcels or in any other place where your customers can see it.
2. Is Amazon dropshipping legal?
Yes, Amazon dropshipping is completely legal. You have to follow the Amazon dropshipping guidelines and other basic seller rules, as well as proper business practices.
3. Is Amazon dropshipping profitable?
Yes, Amazon dropshipping is very profitable due to low startup costs, immense availability of active customers, high trust in the platform, etc.
4. How can I start dropshipping on Amazon?
You can start dropshipping on Amazon by creating a seller account with the proper documentation, choosing products and suppliers, listing the products, and forwarding customer orders to the dropshipping supplier while managing customer support.
5. What is Amazon to Amazon dropshipping?
Amazon to Amazon dropshipping means that you list the products of a different Amazon seller and have them ship the products to your customers. This is allowed but you need to make sure that the other seller’s information or branding does not appear on the packages or invoices. In other words, you have to make sure that you are the seller of record.
6. Does Amazon India allow dropshipping?
Yes, Amazon India allows dropshipping. You have to comply with the rules for making a seller account as well as dropshipping-specific rules. For example, your supplier’s information or branding should not appear on packages or invoices.
7. Can I start dropshipping with 10,000 rupees?
Yes, you can easily start dropshipping with 10,000 rupees or even less. Dropshipping means you do not need to own or store any products. You simply work with a supplier who is in charge of manufacturing and/or stocking the products. You are only the party who displays the products and takes orders from the customer. Payment to the supplier is only required when the customer places an order.
8. Can you make $10,000 a month selling on Amazon?
Yes, it is possible to make $10,000 a month by selling on Amazon. You can choose dropshipping and choose the most sold items on Amazon for high profits and low investment, because it does not require you to make or store any products. You can just grow your business through marketing and customer support while everything else is done by the supplier.
9. Is selling on Amazon free?
No, selling on Amazon is not free because you have to pay certain fees. For Amazon India, there is no monthly subscription but you are charged based on your sales. You pay a referral fee which is a percentage of every sale. The percent amount depends on your products. You also pay a closing fee which is a flat amount and depends on the price of the product. For Amazon International, you pay a subscription fee for selling which changes depending on the selling plan you choose, and a referral fee. To start dropshipping on Amazon for both India and international, you have to pay shipping-related charges only if you choose fulfillment by Amazon (FBA), and other charges if you choose additional services.
10. Is Amazon 100% safe?
Yes, Amazon is 100% safe because of its guidelines. It is a great platform for both buyers and sellers.
