How To Do Dropshipping on Amazon in The UK 2024

To do dropshipping on Amazon you must follow Amazon’s strict dropshipping guidelines. A good alternative for sellers on Amazon is FBA - Amazon’s native dropshipping service. In this article, we will show you how to do dropshipping on Amazon in the UK with both traditional suppliers and Amazon FBA.

We will also take a look at Amazon’s dropshipping policies and best practices to help you kickstart your Amazon dropshipping business.

Before you start, read: Is dropshipping worth it?

Can You Do Dropshipping On Amazon?

Yes, it is possible to do dropshipping in the UK on Amazon as long as you follow the Amazon dropshipping guidelines. Dropshipping on Amazon involves partnering with a third-party supplier who can manage inventory and shipping on your behalf. Amazon dropshippers create storefronts to showcase their products and integrate the store with their supplier so that orders can be automatically fulfilled when a customer makes a purchase.

Amazon is the biggest e-commerce platform so it is a good place to consider setting up your own dropshipping business. However, Amazon’s strict dropshipping guidelines can be limiting for business owners. The best alternative is to use the Amazon FBA service, which we discuss further down in this article.

Nevertheless, dropshipping on Amazon is a lucrative side hustle to start in 2024. Here is an overview of Amazon’s dropshipping policies.

Also read: Dropshipping vs Amazon FBA

Amazon dropshipping policies

  • Amazon dropshippers must identify themselves as the seller of the product on invoices, packaging, and packing slips.

  • Dropshippers must not mention wholesalers, suppliers, or manufacturers in packaging or product descriptions.

  • Sellers are responsible for accepting returns and issuing refunds.

  • Dropshippers must also agree to the Amazon Seller agreement.

If you choose to do dropshipping with a third-party supplier on Amazon, you must take sole responsibility for the products that you sell. This is done to reduce confusion when consumers receive products.

How To Start Dropshipping on Amazon

Now that you understand Amazon dropshipping policies, here is a step-by-step guide about how to do dropshipping on Amazon in the UK in 2024. The process of starting an Amazon dropshipping business can take up to 2 hours, so it is a good idea to find a chunk of free time when you can sit with your laptop and concentrate.

Step 1: Set up an Amazon seller account

To start Amazon dropshipping in the UK, you will need to set up an Amazon seller account. To do this, head to Seller Central and click ‘sign up’.

You will then be prompted to fill in some personal information, including information about your dropshipping business.

If you haven’t started the process of choosing a supplier or product yet, you can still create a seller account and leave some details blank until you know what types of niche and products you will be selling.

After filling in your personal info, you will be asked to choose between an individual or a professional Amazon seller account. Dropshippers should choose a professional account as this will allow you to sell more than 40 units per month. The professional Amazon Seller account costs $39.99 per month (around £30).

To create an Amazon seller account, you will need a business email address, a valid form of ID and a valid bank account.

Step 2: Choose a niche, product and supplier

The next step to Amazon dropshipping is to choose your niche, product and supplier.

We recommend choosing a niche that has a large potential audience and strong demand. Popular dropshipping niches include fitness, health and beauty, and fashion.

The best dropshipping products have high demand and low competition. You can use tools such as Google Trends and Dropship.io to find competitive products to sell.

The hardest part of this process is finding a supplier who is happy to agree to Amazon’s dropshipping policies. When looking for a dropshipping supplier, research fees, policies, shipping times, and product variety. Changing your dropshipping supplier when our business is up and running can be difficult so, it is important to choose the best supply the first time around.

Take some time to research different drop shipping suppliers in the UK. Here are a few options to consider:

Step 3: Do Amazon Keyword Research

You can now start planning your Amazon dropshipping business. A good place to start is to conduct keyword research on the Amazon platform. Simply head to the search bar to find trending products and queries.

To be successful with dropshipping on Amazon, you should use as many keywords as possible in your product descriptions and sell products that people are actually searching for.

Also read: How to find products to sell on Amazon

Step 4: List your products

To start selling products on Amazon, you need to create good product listings. Use high-quality images, keyword heavy descriptions and include as much detail about your products as possible.

Most sellers experiment with different listing styles before settling on one that works the best. A good idea is to do some competitor research to find what works for other sellers in your niche.

Step 5: Connect your Amazon account to AutoDS

AutoDS is an automated dropshipping tool that can be used to connect your Amazon seller account with your drop shipping UK supplier. AutoDS is compatible with a variety of UK dropshipping suppliers and automates the entire process of fulfilling orders and updating listings on your behalf.

AutoDS costs jus $6.30 per month and it is possible to use a free trial before making any payment.

Once you have created an AutoDS account, the platform will guide you through connecting your Amazon seller account to a dropshipping supplier.

Every time that a customer makes a purchase from your Amazon store, you will need to fill in their shipping address to AutoDS and then let the software automate the delivery process. AutoDS sends shipping details to your supplier who will then send the product to the customer.

Step 6: Register your business

It is important to register your business as a limited company in the UK so that you can stay compliant with HMRC regulations. You can use 1st Formations to register your Amazon dropshipping business in 4 simple steps.

Step 7: Make money dropshipping on Amazon

You have now completed the Amazon dropshipping setup and can start selling your products online.

To dropship on Amazon successfully, regularly update your listings, promote your small business, and keep on top of returns and exchanges. The key to selling lots of inventory is to get good reviews from customers, which will move your listings higher up the Amazon search results page. You should aim to be on page one of search results, as these products get the majority of clicks.

Amazon FBA - The Best Alternative To Dropshipping On Amazon

Dropshipping on Amazon with a third-party supplier can be a complicated process. This is due to the fact that Amazon has tight dropshipping policies and it can be difficult to automate the process of fulfilling orders with a third-party site.

The best, and much easier, alternative is Amazon FBA. FBA is a service that is offered directly by Amazon. Sellers can use FBA to sell products that are stored in Amazon’s warehouse. As a native service of the e-commerce giant, FBA is the easiest form of dropshipping to do on Amazon in the UK 2024.

What Is Amazon FBA?

Amazon FBA (Fulfillment by Amazon) is a service offered by Amazon that allows sellers to store their products in Amazon's fulfillment centers. With FBA, Amazon takes care of the entire fulfillment process, including inventory storage, order processing, packaging, and shipping. This means that as a seller, you don't have to worry about handling inventory or shipping the products to customers yourself. Amazon FBA can be a great option for dropshippers on Amazon, especially for beginners, as it provides a convenient and reliable way to manage your business.

One of the key advantages of using Amazon FBA is the extensive infrastructure and resources that Amazon has in place. Amazon's fulfillment centers are strategically located across the country, ensuring fast and reliable delivery to customers. The vast network allows for optimal inventory storage, reducing the chances of stockouts and ensuring that products are readily available for purchase.

How To Do Dropshipping on Amazon with FBA

To start dropshipping with Amazon FBA, you will need an Amazon Seller account and an FBA shipment plan. In the following section of this guide, we will explain the process of starting your dropshipping business with Amazon FBA.

By following the right steps, dropshipping with Amazon FBA can become one of the best passive side hustles to start in 2024.

Step 1: Research and Product Selection

Begin by conducting market research to identify profitable product opportunities. Consider factors such as demand, competition, and market trends. Look for products that align with your niche and have the potential for high sales. Once you have identified a product, proceed to the next step.

Step 2: Create an Amazon Seller Account

If you don't have an Amazon seller account, visit the Amazon Seller Central website and sign up for an account. Choose the "Professional" account option, as this allows you to sell more than 40 units per month. Follow the prompts to provide personal and business information, including bank account and tax details.

Step 3: Set Up an Amazon FBA Account

Within your seller account, navigate to the "Inventory" tab and select "Manage FBA Inventory." Set up your FBA account by providing shipping and packaging preferences, selecting the countries you wish to sell in, and agreeing to the FBA terms and conditions.

Step 4: Source Products and Suppliers

Find reliable suppliers for your chosen products. Research reputable wholesalers, manufacturers, or distributors that offer quality products at competitive prices. Ensure that your suppliers are willing to work with Amazon FBA and can meet the fulfillment requirements.

You will need to ship products from your supplier to the Amazon fulfillment centers. It is a good idea to check that this is possible before choosing a supplier.

Step 5: List Your Products

In your Amazon Seller Central account, click on the "Inventory" tab and select "Add a Product" to list your products. Follow the prompts to provide product information, including title, description, images, and pricing. Assign the products to your FBA inventory.

Step 6: Prepare Products for Shipment

Prepare your products for shipment to Amazon's fulfillment centers. Follow Amazon's guidelines for labeling and packaging, ensuring that each item is properly labeled with the correct barcode. Generate and print the shipping labels provided by Amazon.

Read: How to ship products to Amazon FBA

Step 7: Ship Products to Amazon

Using the shipping labels, pack your products securely in boxes or packages and arrange for their shipment to the designated Amazon fulfillment center. You can use Amazon's partnered carriers or choose your own shipping method. Track the shipment to ensure its timely arrival.

Step 8: Manage Inventory and Monitor Sales

Once Amazon receives your inventory, it will be stored in their fulfillment centers. Use your Amazon Seller Central account to monitor inventory levels, track sales, and manage pricing. Optimize your product listings, monitor customer feedback, and respond to inquiries promptly.

Step 9: Promote Your Products

To boost sales, employ marketing strategies such as optimizing your product listings with relevant keywords, utilizing sponsored ads, and participating in Amazon's advertising programs. Leverage social media, content marketing, and other channels to drive traffic to your product listings.

Step 10: Customer Service and Growth

Provide excellent customer service to ensure positive reviews and repeat business. Address customer inquiries, handle returns, and strive for customer satisfaction. Continuously analyze your performance metrics and seek opportunities for growth, such as expanding your product range or targeting new markets.

By following these steps, you can effectively start dropshipping with Amazon FBA and leverage its benefits to streamline your fulfillment process and grow your business.

Conclusion

Dropshipping on Amazon in the UK can be done using both traditional suppliers and Amazon FBA. While traditional dropshipping provides more control and flexibility, Amazon FBA offers convenience, scalability, and access to Amazon's extensive customer base. For beginners, Amazon FBA is often the better choice as it simplifies the process and allows you to focus on building your business. Ultimately, the decision between the two methods depends on your specific needs, preferences, and resources.

Related posts:

  1. How to sell eBooks on Amazon without writing them

  2. How to start a print on demand business in the UK

FAQS

  • Amazon dropshipping can be very profitable if you follow the right process, choose competitive products and find a supplier that charges low fees. To make a profit from dropshipping, the revenue from orders must be higher than the cost of buying products, shipping and using the Amazon platform. We recommend researching all of the fees involved with selling on Amazon before deciding whether or not your business could be profitable.

  • It is not possible to do dropshipping on Amazon for free. This is because there are costs involved with creating an Amazon seller account, purchasing inventory and using suppliers. Nevertheless, the dropshipping business model has a relatively low startup cost which makes it ideal for anyone who is looking to start a small business on a budget.

  • The average salary of an FBA seller in the UK is around £27,000. This does not represent total revenue but instead reflects that amount of profit that sellers pay themselves after paying fees that are involved with dropshipping. However, some sellers earn up to £100,000 per year. The exact amount of money that you could earn depends on your niche and marketing eff

About The Author

Ruby is the founder of The Rich Girl Guide and has been writing content around personal finance, side hustles and wellbeing for over 3 years. You can find some of Ruby’s published articles on The Motley Fool UK, Tradingplatforms.com and Buyshares.co.uk.