Before we list the best dropshipping suppliers for Amazon, we should understand what dropshipping is and how it works. This article is a must to read for all new Amazon dropshippers before actually start their journey.
What is dropshipping?
Dropshipping is a very beautiful business model. There are too many big companies out there. Wayfair is very good example of a dropshipping company, with 500 million worth of revenue, started 20 years ago.
We don’t have a stock in your hand. Create account on Amazon, list your product, get an order, buy it from a verified supplier and tell supplier to send to the customer directly.
Once customer place the order , they go to the manufacturer , designed the furniture, then they ship it and it comes to your house at the end. So it is going to grow in the coming years for sure in the USA , UK etc. USA is rich country , very big country.
Dropshipping is very profitable in the USA in compare to UK. For the new seller USA marketplace is the best one in compare to UK. In European market the language might be a barrier, but USA is the best one.
Will dropshipping still be viable in 2022 or next 5 years.
First of all it is going to anywhere. The dropshipping industry is a 500 Billion Dollar worth industry. We can take the furniture industry for example. They normally say the shipping time 3 to 5 weeks to the customer. They donot have the stock or warehouses. Few might have it but most of them donot have it.
How much money is needed to start dropshipping?
One can start even with a minimum investment of 2k to 3k dollar. However the profit margin on Amazon is not more than 20% from other suppliers. If it is Amazon to Amazon dropshipping then the profit will be 10 – 15%. If you are starting with a bare minimum like $ 3k , the profit will be $ 200 – $ 300 per month, it can be a good side income for few people.
To make it profitable you should invest atleast $ 10K. That is a fair number. You have to be serious enough as it is business at the end of the day . You will sell real products to the real people. You treat it very professionally, give good service to them.
Which on the best model - Amazon FBA of dropshipping?
Amazon FBA is a completely different model. Thats when you have the item in your hand and your send them to Amazon warehouse to fulfill the orders on your behalf. It is a very safe model as well.
You find product then contact manufacturer to buy the stock in bulk. Though the profit margin will be the same. It is a cycling continuous process. While you are getting orders now but after 3 months you might not get the same volume of orders. Then you need find another product from different suppliers. Thus your inventory keeps increasing.
In Amazon FBA model the competition are bit high and we need to beat other sellers as well. The Dropshipping on the other hand we already discussed what it is and how does it works. There are top 5 dropshipping suppliers listed below . But these are direct competitors of Amazon so make sure you collect invoices, tracking numbers and in some cases brand authorisation letter as well.
Top 5 Popular Dropshipping Suppliers :
- Walmart
- Home Depot
- Costco
- Sam’s Club
- Costway ( they give a certificate of drop shipping)
One advice I want to give you all here. Though these are the most popular dropshipping suppliers for Amazon, there are certain risks involved as well. They are the direct and main competitors of Amazon. I experienced all these handling of many dropshipping account of my clients.
- First, before making any purchase ask them if they provide you the invoices, brand authorisation letters and valid tracking IDs or not. If not then it is better not to purchase from them.
- Second, donot list your products without any purchases. Now a days Amazon is very active to catch the new dropshippers massively and asking invoices from them.
- Third, Amazon is rarely accepting invoices from Walmart and Sam’s Club. So if possible try to avoid these two retail arbitrage platforms.
20 Verified Dropshipping Suppliers for Amazon
- Sunrise Wholesale
- BryBelly
- National Dropshippers
- ASI Partner
- TeleDynamics
- ParkFlyers
- Buy 2 Bee
- Wholesale Fashion Square
- FootwearUS
- Fashion Stories
- Alpha Imports
- FragranceNet
- Beauty Joint
- I&I Sports
- Whitney Brothers
- Arett
- Pet Stores USA
- VIG Furniture
- Mod Made
- Aspire Home Accents
No matter what is your niche is all about, you will get the perfect product at a very competitive price here. These are some of the legit or verified dropshipping suppliers for Amazon.
You will get products related to home improvement, kitchen, cleaning, gardening, electronics, kids, toys, clothes and so on.
Reminder again, donot forget to collect invoices, brand authorisation letter and valid tracking readdy. Keep all these ready because Amazon can ask you at any time.
Silver
- 20 Leads
- Verified Leads
- Quality Leads
- Using Google Ads
- Call Only Ads / Lead Forms
Silver
- 20 Leads
- Verified Leads
- Quality Leads
- Using Google Ads
- Call Only Ads / Lead Forms