How To Start Amazon Dropshipping Business In 2023?


If you're looking for a business opportunity and want to build something that can be scalable and profitable, dropshipping is a great option. It's also one of the most popular online businesses because it allows you to sell products without having to deal with inventory or shipping. This can save you money in the long run if done right! 

In this article, we'll go over everything you need to know about starting an Amazon dropshipping business in 2023.

What Is Dropshipping?

Dropshipping is a business model where you purchase inventory and ship it directly to your customers. The difference between dropshipping and traditional e-commerce or wholesale businesses is that you do not keep the inventory in your possession. 

You are essentially acting as a middleman between the manufacturer and consumer, so there are no fees for storing or managing inventory. This allows you to focus on marketing and selling your products rather than worrying about sourcing suppliers and maintaining a physical store location.

Why Choose Dropshipping On Amazon?

Amazon is the largest e-commerce platform in the world. It has over 400 million users and over 100 million products available for sale on its platform. Moreover, you can also find a large number of sellers on Amazon who are looking to sell their products online and make some extra money. The marketplace has a highly competitive environment with millions of other sellers offering similar products at different prices.

On top of this, there are millions of buyers who are actively shopping on Amazon every day looking to buy these products from different sellers and get them delivered to their doorstep through FBA or fulfilled by seller service provided by Amazon itself. This makes it one of the best platforms for selling your dropshipped goods at affordable price points while maintaining very low inventory stock levels as well as fast order fulfillment times.

Dropshipping Step-By-Step Process:

Step 1: Create An Amazon Seller Account

First, you will create a seller account. This is the platform you will use to manage all aspects of your business, such as inventory and shipping.

You need a “business name” which is essentially a name that identifies your brand. It can be anything that isn’t offensive or misleading and should be easy to remember so customers can find it when they search for products in their category on Amazon.

You also need to fill out tax information for where your business is based because Amazon charges sales tax on items sold in certain states. If this sounds confusing and overwhelming (it does), don’t worry! Some companies offer services that make it easy for sellers to manage their taxes online; all they have to do is enter some basic information into their dashboard before each sale and let the company handle everything else from there!

Finally: make sure your credit score is good! The higher, the better. Because having a low score could get in the way of getting approved by banks when applying for loans later down the road when scaling up operations would require capital investment beyond what's available through profits generated through dropshipping alone (which brings us back around again).

Step 2: Get Your Business Set Up And Registered

A business license is a legal document that allows you to operate your business and sell products or services. In some states, it's called a state sales tax ID. This is the number you'll need to open a bank account and make purchases from Amazon.

To get a business license, all you have to do is find out where your local government office is located and go there with some proof of residence (like a driver's license) and some information about your company (like its name). You don't even have to pay anything. In fact, it will probably be free!

Step 3: Find Products To Sell

You can use different strategies to find products to sell on Amazon.

Look at the list of best-selling products in your category. The top 20% of all products are selling more than 80% of the total sales for that product category, so you should focus on them when searching for new items to sell.

Find out what has been trending recently and look for those trends to continue over time. For example, if an item sold well last month, it's likely to continue selling well this month as well (but make sure it didn't just spike due to a sale). This doesn't mean that you should always choose an old product instead of something fresh. Just know when a trend might not be going anywhere any time soon (or at least soon enough).

Pay attention to what people are saying about certain items on Facebook groups or forums where people talk about similar things as yours (eBay/Amazon/etc.). If there's consistent chatter around one specific item, then it could be worth considering adding it to your store before everyone else does!

Step 4: Find Suppliers For Your Products

Once you’ve decided on a product, it’s time to find suppliers for that product.

There are many ways to do this. You can browse AliExpress or Alibaba and find suppliers there, but the best way is to use an Amazon selling tool like Oberlo that allows you to connect with Chinese suppliers and automatically import their products from AliExpress into your Amazon retailer account without having to manually add any listings yourself.

Suppliers in China often have different minimum order quantities (MOQ) than what they advertise online. Therefore, it’s important to negotiate with them before agreeing on a price and order quantity.

Step 5: Create Your Listing

Next, it's time to create your product listing. This is the page on Amazon where buyers can find all the information they need about your product, such as its name, description, price, and reviews.

To create a listing for any item on Amazon:

  • Click Inventory in the top left of Seller Central.
  • Select Add a Product from this drop-down menu.
  • Select Products from this second dropdown menu once again (or if you're in a Business or Individual account) and then click Continue.
  •  Enter all relevant info about your new product into each field provided by Amazon, including size details (if applicable), and color options for clothing items or other hard goods that come in different colors/styles.


Dropshipping is a great way to start your own business. You don’t have to worry about having inventory or managing it. You can just focus on finding products and customers for them. The best part about dropshipping is that you don’t have to invest large amounts of money upfront because there are no upfront costs involved!

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