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In this video, Wholesale Ted video editor, Sarah, reveals how you can start making money online and create an Amazon dropship business following this step-by-step formula. She reveals an item that makes $423/sale, and on average $353/month. Here is a more detailed write-up of what she teaches in the video:
Step 1: Find low-cost, local dropshippers
The first step is to locate dropshippers that are low-cost and located locally in the country that you plan to sell in. As a brand new seller, you don’t know what items are good to sell in an Amazon dropship business. It is easier to find the dropshippers first, and then look at their catalog of items to identify the best items to relist.
Which country should your Amazon dropship business focus on? We recommend that, even if you live outside the USA, you sell to USA residents on Amazon.com. Why? Well, making money online is much easier if you have a large audience to sell to and the USA Amazon marketplace is the biggest.
Finding these low-cost, local dropshippers is easy if you use SaleHoo:
1) Sign into your SaleHoo account (you can get one here: http://wholesaleted.com/get/salehoo)
2) Click “Wholesale Directory” in the top menu
3) SaleHoo will load up the front page of the supplier directory list. Now you need to get it to load up all of the suppliers it has in its directory. To do this, click on the blue search button (leaving it set to ‘all categories’ and leaving the search bar blank).
4) Click “more options” and then select “region.” Select the region you plan to sell within (again, we recommend selecting ‘North America’)
5) Click “more options” and then select “supplier type.” You now want to click “dropshippers” to filter out the other types of suppliers (wholesalers, manufacturers and liquidators) that SaleHoo has in its directory.
And that is it: Making money online with your own Amazon store isn’t rocket science :) Now it is time to move onto the next step.
Step 2: Locate the Best Items to Sell in your Amazon Dropship Business
Now that you’ve identified a list of dropshippers it step 1, you need to go through each of their catalogs and identify the best items to relist in your Amazon dropship business. When making money online selling items, the key is to list the right ones. The best items to relist are items that are priced significantly lower in the dropshippers catalog to the going price of it on Amazon. That way, when someone buys the item from your Amazon listing, you make a substantial profit.
1) Pick one of the dropshippers from the list that SaleHoo gave you in step 1 (in this case, I selected Novatach).
2) You’ll then be taken to their SaleHoo supplier page. Click on the website on this supplier page. You now need to ask the dropshipper for their catalog of items. Some dropshippers will have their catalog available online for anyone to see. Others, like Novatech, will require you to create a resellers account to access their items (it is a bit of work, but well worth it!).
3) Compare the prices of each item to the going price on Amazon. Sell the items that are priced substantially cheaper in the dropshippers catalog compared to it's going price on Amazon.
4) Check out how much profit you can make using the the Amazon calculator from ecommerce bytes (http://wholesaleted.com/go/amazoncalculator)
Once you’ve found a profitable item like Sarah identified in the video (that could’ve been making money online by earning you $353.53/month on average if you were selling it right now) you can move onto the next step.
Step 3: List the Profitable Item on Amazon
Now you need to actually LIST them on Amazon to start making money online with you Amazon dropship business. When pricing the item, price-match your competitor/s.
This is really easy, and more video tutorials on this will be available on Wholesale Ted’s YouTube channel in the future. Here are some tips for improving your Amazon listings to increase sales (some of these are mentioned in the video):
* Make your item listing/description more comprehensive than your competitors.
* Fill out your business profile and add a business logo (cheap logos can be bought from Fiverr)
* Test the waters with a bit of price competition if the other seller/s on the item IF don’t look very active.
Here are some more tips for making money online with your own Amazon dropship business:
* Look to sell items with fewer competitors.
* You don’t have to only sell branded items in your Amazon dropship business. One of the best tips for making money online is to sell your own products. If you see a dropshipper has an item that is currently unlisted on Amazon, then make your own listing for it.
