 Welcome to the journey today. We're going to discuss how dropshipping on Amazon Now if you ask an experienced E-commerce seller for a good way to get started selling products online Without breaking the bank or spending a ton of time chances are they're going to tell you that drop shipping is the way to go And if you're asking yourself how does drop shipping on Amazon work and how can you turn it into a profitable venture for your E-commerce business, don't worry. We're going to tell you that and give you some tips along the way So let's start off with how does drop shipping on Amazon actually work? So Amazon technically doesn't allow traditional drop shipping So the only way to drop ship on Amazon is through their fulfilled by Amazon program FBA allows sellers to ship their products to an Amazon fulfillment center where items are stored until they're sold Amazon FBAs can help sellers scale their business and reach more customers So let's start off with hey how to start drop shipping on Amazon Well first you want to set up your FBA account and you can do this by either adding FBA to your existing seller account Or you can create a new seller account all together your choice But if you're creating a new account Amazon will offer you two choices for the type of account that you can start with It's either individual or professional and we could do an entire video on this all about this But ultimately the plan that you choose to use boils down to the reasons Why why you're planning to sell on Amazon in the first place? And if you're looking to start small and see you know what you can handle then select the individual seller plan That'd be my recommendation However, if you want to build a business and make a regular income selling on Amazon Then we would suggest signing up for the Amazon professional seller plan It's a smarter option and selling products on Amazon means you're creating a real business and no doubt There are boxes to check and rules to follow Particularly when it comes to intellectual property or IP Amazon cracks down on counterfeit products and trademark infringement So make sure you find products that you have the right to produce and sell And additionally there are several other requirements restrictions for store owners who want to sell their products on Amazon And beyond that for every product you're evaluating think can I source and ship this to Amazon for substantially less than it's selling for? Generally, you can consider the rule of threes to estimate this each product sale is broken up to one-third for fees One-third in landing costs and one-third for you. So if the product sells for 15 You should expect for profit to be $5 Next you should do some research and figure out which drop shipping supplier you want to work with now There are hundreds of thousands of manufacturers around the world that can create any product that you can honestly imagine But you'll want to narrow your list to a potential suppliers of those who can produce the highest quality product for you at The best price now once you've narrowed down the list of suppliers to the ones who can offer you what you want Based on your initial research, then it's time to order samples And this is an important step to ensure that you're making the right investment and purchasing a quality product Then once you've selected your supplier and you're satisfied with the product Determine the details of your order and get your products to Amazon warehouses to start earning sales And of course there's no such thing as a free lunch So you have to factor in Amazon's fulfillment fees into your budget if you're using their FBA services Their rates differ depending on the size of the item and the time of the year Generally speaking you can expect to pay three dollars for lightweight items such as t-shirts and more for heavier and bulkier items All right, so let's get into what Amazon does Amazon receives your products from you or your supplier and then it stores them in one or more of their Million-acre fulfillment centers, which are massive warehouses run by robots and Amazon employees And then your products are inventoryed and sorted and when a customer places an order on Amazon for your product Amazon processes the transaction automatically sounds pretty seamless, right? And your product is then picked from its place on Amazon's warehouse shelves packed into an Amazon box and then it's shipped to the customer and Amazon manages communications with the customer including shipping notifications and tracking reviews and even returns Now we know drop shipping is not for everyone It requires a certain kind of personality and temperament to be successful at drop shipping on Amazon But we know sellers like the business model and see it as an easy way to make some extra cash Some sellers successfully use drop shipping as a method of market research to test out new products This video only scratches the surface. So if you want us to go deeper leave us a comment below All right, that's a wrap, but the journey doesn't need to end here We have over 200 videos for you to check out be sure to like comment and subscribe Thanks for watching