22 Apr

The number one question that I hear on dropshipping on Amazon is, ‘hey! Where do you source your products?’ or ‘What software do you use in sourcing your products?’, etc.

Let us today find an answer to the above questions for dropshipping on Amazon. As of now, people think of product sourcing as a magical key in successfully running a business. This statement has got stats from Statista to prove my point.

As per Statista, “In 2018 global consumer survey on the issues they perceive as difficult to be transparent about at a product level. In 2018, 62 percent of respondents stated that social issues such as human rights and resource sourcing were the most difficult for companies to be transparent about on products”.

This states that the companies are still thinking about, “why not keep it a secret?”. This implies that the product sourcing on Amazon is not easy at all.

Introduction to sourcing products for Amazon dropshipping

As we all know Amazon rules are very tight for sellers and it allows serious competition among them. This is due to common product sourcing places.

Product sourcing means outsourcing products to list on Amazon from other marketplaces like Renown Express.

Thus, sourcing is one of the most difficult tasks that can be done in the Amazon dropshipping module. The most common or say famous dropshipping chain route is Walmart to Amazon. You can often find products with the same pictures and same product description, sometimes even the same name. Those are the ones that are being drop shipped. 

Also, the dropshipped products are the ones that have common suppliers, often non-FBA (Fulfillment by Amazon).

Opening Amazon seller account

The first step in this theme is making an Amazon seller account. For this, you have to visit Amazon Seller Central and follow the Instruction for opening the account on Amazon. Following are some guidelines for making an account on Amazon.

  • Click on the Sign Up icon.
  • Register yourself with the Amazon Seller Central.
  • Proceed to choose the type of account i.e. 
    • Professional account: It costs you 39.99 USD.
    • Standard account: It is free of cost.
  • You are all set to sell.

The below is a snippet of how the Amazon Seller Central looks like.


Finding product ideas: How to do the product research

Finding product ideas is just like research done to validate any output. You have to be creative in order to have a product successfully listed on the platform. Here creativity means using all means and resources to find a profitable product with a margin of at least 5%. A healthy profit margin varies from 5 to 25% on the drop shipped product.

Here are some quick tips to unload your anxiety about finding products for dropshipping on Amazon.

  1. Use your common sense while finding the products, sometimes festivals, holidays, etc. affect the net drive sales on Amazon. Use these vacations for your benefit. List products that match the requirements of the season or climate or changes.
  2. Keep a keen look at your surroundings and watch people buy products. This will teach you buyer behavior. Analyze it to get accurate results about people’s likes and dislikes.
  3. When you are selling across countries, it is very important that you understand the culture and periodic cultural seasons in your domain of countries. This will be very beneficial while you sell in the countries. You will know exactly what to sell and when.
  4. Keep a close eye on the local market around you. Doing so will suggest eye-catching products to sells on even elevated margins.
  5. Do market researches for the area you want to sell into, for filling the gap between the past researches done.

In this way, it is easy but a bit tricky to find products for dropshipping on Amazon.

How to source dropshipping products?

 Sourcing products is one most important and integral steps of selling on an eCommerce platform that includes Amazon. So, here is a quick guide on how to start and make your relationship strong with a dropshipping supplier.

Where can I find the directory of dropshipping suppliers?

There is a list of websites from where you can source your products or make relations with the wholesale dealers. Let us discuss a few of them.

  • Wholesale Central: It shows the suppliers as per the product category, so you can easily find your dropshipping niche and finally a supplier as well.
  • wholesale-central
  • Salehoo: It has a supplier list of over 8000 companies and 754 product categories. A payment of $67 is required to access the list of wholesale dealers.
  • salehoo
  • Worldwide Brands: It is a famous brand with worldwide popularity and has over 8000+ supplier reach. It has a lifetime membership plan of $299.


How do I find my match in the supplier crowd?

Once you have found your niche on one of these websites, you now have to find a permanent or patent supplier that suits your needs. Let us discuss some shortcuts in bullets for the search of suppliers.

  • Request some samples from the supplier and check their quality. Research about the supplier and read reviews to ensure that you’re buying from a reliable supplier.
  • Keep in mind the number and diversity of products the supplier offers. The more is diversity the more important is the supplier.
  • Keep in focus the return policy of the supplier. As for an online business, the return is an inevitable phenomenon.
  • Communication gaps between you and your supplier are unhealthy and should be avoided at all costs. If there is one then change the supplier.

How to find a profitable product?

Finding a profitable product for Amazon dropshipping is a skill that decorates the qualities of a seller. It is a difficult task to perform. There can be various steps in performing the task. Let us discuss a few of them.

  • Product’s bestseller list: Browse the category bestseller list and find trending products that have the least competition. There are products that are on the top of the sales list but go unnoticed by most sellers. Navigate to categories and subcategories, and you can find products on the bestseller list.
  • Amazon-best-sellers
  • Research each bestselling product: Perform proper and apt research to find out more info about the bestselling product.

As per Practical eCommerce, “Look for the following details, which, when found together, indicate a strong opportunity for selling on Amazon.

    • Amazon itself is not selling on the listing.
    • A low number of sellers. Under 5 is best. Under 10 is good.
    • A low number of Fulfillment by Amazon sellers. Zero is best. Under 5 is good.
    • A smaller manufacturer. Stay away from the largest manufacturers, unless you have a connection to buying from them. For example, in the Toys & Games category, Hasbro, Mattel, and Fisher-Price would likely be harder to sell”.
  • Research the supplier: After the above process research the supplier. Use google and other search engine and use your brain most importantly in this segment.
  • Contact the supplier: The supplier once found can be contacted via e-mail or Amazon messaging.
  • Start selling on Amazon: Once you find the supplier to source products for dropshipping on Amazon, you can start dropshipping on Amazon.

Amazon product sourcing software you should know about

Apart from these physical and hardworking procedures, there is a market for an automation software that performs these tasks without much effort. One such software is Renown Genius. Click here to know more about the product.

Conclusion: Final thoughts

Sourcing products for dropshipping on Amazon is not an easy task to perform. However, certain softwares are present in the market to make it look like an easy one. After reading this blog what you would say? Do comment in the box below.

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