Case Studies: Successful Amazon Dropshippers Who Started with Zero Budget

Are you among those who wondered how to dropship on Amazon without money? Can you really take on a business with no large expenses involved, is it feasible?

Well, to tell you, most of the time, all you need is an innovative business mindset with perseverance, courage, imagination, and readiness to learn different things. In this article, we will prove to you that, yes, it is possible to start a dropshipping business with little to zero budget.

Now, keep reading.

Amazon Dropshippers with Little to Zero Budget

Tim Kock

Background

A lot of people these days have found Tim Kock to be a useful resource when it comes to the dropshipping business. Hearing the story of Kock would definitely give you more push to start your own business.

Kock believes his profits have been in line with what happens to most newcomers in the first place, his story can be an inspiration for other businesses. One of his notable experiences was building and opening his store in eight weeks, earning $6,666.73 income within those days.

He had to work on his online store after work or on the weekends because he was managing this business in addition to his 9 to 5 job, which has nothing to do with e-commerce.

Dropshipping Journey

Coming up with product ideas to sell

The notable entrepreneur began by getting rid of the products that were unworkable based on his personal taste and capabilities. He avoided food, as the quality cannot be regulated. Electronic goods did not make it on his list as well, as they are too difficult to market. Kock also eliminated goods that weighed too much because shipping them would be too costly.

He first generated nine good product concepts. Even though he already had some basic ideas about what to sell, he still wanted to look at the best-selling lists from online retailers like Amazon, LightInTheBox, and Etsy because he was in desperate need of confirmation. Kock decided on three product ideas after looking through these marketplaces; pineapple bracelets, steel strap watches, and pineapple hats.

Product validation through the use of Google Trends

Kock claims that although there are more searches for watches, there are also excellent and consistently rising search trends for the two pineapple products.

Though the market for pineapple products was small, Kock thought there might be a chance to develop a website that sold a range of pineapple products because the products were more specialized and there was less competition.

Identifying particular goods to sell

Tim Kock typed "pineapple" into Amazon to start his search. After all, your chances of discovering the perfect dropshipping products for your company increase with the amount of product research you conduct.

After studying these products for about an hour, he had a few more good ideas for his inventory. He discovered a variety of pineapple-related goods, including dresses, hats, bikinis, and pants, leading to the creation of 17 pineapple-related products.

Creating a logo and choosing a name for the store

For many business owners, deciding on a company name and logo takes a long time. Not for him, though. He wants a straightforward, reliable company name and logo. Since he already knew that young women would make up the majority of his target audience, he looked up girl names on Google. Among the first names he heard was "Olani." Kock agrees because he found the concept and meaning appealing.

You can also check out PageFly's shop name ideas, a smart tool for finding inspiration with fresh and interesting online store name ideas that fit your brand's mission and core product.

Meanwhile, he was considering hiring a graphic designer to assist him as he has no experience making a logo for the company. However, he chose to look for free alternatives because he wanted to keep this business's upfront costs as low as possible. He chose to look for a pineapple icon on a website that provides free vector art. Kock discovered a charming assortment of fruits there, along with a simple pineapple symbol.

Building the store

Kock made the decision to use Shopify to create his website, add pages that are necessary, upload products, bundle Google Analytics, bundle payment methods, bundle domains that he has already purchased, and so on.

Kock created a thorough plan for product pricing, and the final price was fair with a 15% discount, a refund rate of about 8%, a cost of about $7 per order for a Facebook ad, and a monthly Shopify shop fee.

Receiving input

Kock always asks his friends and partners for their honest opinions on my work before he opens a new store. The entrepreneur prefers to question two distinct types of people, including those with prior experience in entrepreneurship and those with no prior experience in business at all.

The majority of the time, taking the middle ground on both sides is where this feedback technique offers the most guidance. While entrepreneurs might obsess over minutiae, non-business people often force themselves to find something they don't personally enjoy.

Endless marketing and promotion starts

It's not easy to find products, build a store, and start social media accounts, but marketing is the most crucial step.

Gaining the audience's trust is one of the main problems that dropshipping businesses encounter. When they discover a new dropshipping store, customers are frequently dubious and want to be certain that the products are of a high caliber before deciding to purchase. This is why good marketing should not be taken for granted.

Suppose, you plan to explore Shopify, Shopify marketing strategy is another set of guidelines to follow if you want to experience consistent sales growth. As long as you expand and display your store in different places, you will be introduced to various techniques that will fit each accordingly.

Adam

Background

Adam, a former corporate executive, had always wanted to start his own Amazon business. However, his previous attempts at dropshipping resulted in the suspension of his Amazon Seller Account due to violations of Amazon policies.

Dropshipping journey

Other challenges encountered

Adam researched companies that could support him in starting his Amazon dropshipping dream, but he encountered difficulties. These groups required substantial up-front payments, between $30,000 and $50,000. Even though Adam could afford these expenses, the investment was risky because there was a lack of transparency regarding prior performance. Moreover, these agencies mainly sold generic goods that were imported from other nations and lacked a well-known brand, a track record of sales, or substantial profit margins.

Solution

To overcome these obstacles, Adam decided to open a personal care dropshipping store that specialized in brand-name products such as Crest, Colgate, and others. He also chose to use the Prime and Amazon sales channels, hoping to leverage organic growth rather than investing in advertising.

The personal care store had a major advantage because there was less competition for name-brand personal care products on Amazon and Prime because they were gated dropshipping products. Adam's distinct positioning allowed him to take advantage of a less crowded market.

Result

Amazingly, in a mere six months, Adam produced remarkable outcomes and over $60,000 in revenue without spending a dime on advertising. This implied that, minus the cost of the goods themselves, Adam kept all of the profit from his sales. Adam optimized his return on investment by leveraging the organic growth potential provided by the Prime and Amazon sales channels, all without having to pay extra for advertising.

The success of Adam's dropshipping personal care business serves as a testament to the enormous potential that can be achieved by carefully choosing a niche market, concentrating on well-known brand names, and utilizing the resources of websites like Amazon and Prime.

What Is Amazon Dropshipping

A dropshipping business model involves offering an online storefront and promoting products. As the owner, you will forward the order to the dropshipper when a customer places an order. You will also be the one who will notify customers that their products are on their way.

Note that, you have no control over the remaining steps of the physical fulfillment process. In certain dropshipping contracts, you might also be in charge of customer support, with the dropshipping service taking care of the actual products and shipment.

Does Dropshipping on Amazon Actually Work

Well, of course, the question is, does dropshipping on Amazon work? It actually depends on you. There will be challenges when starting, and even after the launching, but, it is you who will have to make things work.

Let us break down how Amazon dropshipping works. Dropshipping starts when an Amazon customer purchases the product you have listed on Amazon. Once the transaction is completed and the funds are received, you buy the product directly from the supplier and provide them with the customer's information. The supplier sends the product to the customer after receiving the buyer's information. Simple as that, don't you think?

In the year 2020, the global market value for dropshipping e-commerce was approximately 128.6 billion U.S. dollars. Projections indicate that over the six-year span from 2021 to 2026, the market size is anticipated to experience significant growth, reaching an estimated value of 476.1 billion U.S. dollars.With that, we enumerate the pros and cons of dropshipping business on Amazon for your reference;

Advantages of Dropshipping

A sizable user base. One of the most significant advantages is Amazon's large user base. You will have no shortage of potential customers with over 310 million active users. With the right marketing strategy, you can expect to get views for your products and find the right audience.

Low risk. Your business risk is lesser since you are not managing shipping logistics or stocking inventory. This implies that you will need very little money to launch your business.

Low price. There are no overhead expenses such as rent, utilities, and employee wages, and you won't be responsible for paying for storage or shipping logistics. Plus, you can operate your company from any location in the globe. This makes it a lot easier for new businesses to get off the ground with little financial outlay.

More possibilities for discovery. Amazon also has over 30 categories from which to choose. You can sell in as many different dropshipping niches as you want, which can help you reach super-targeted markets if you use the right dropshipping suppliers and products.

Disadvantages of Dropshipping

Intense competition. The competitive pressure is one of the main drawbacks. Due to the popularity of Amazon, numerous dropshippers are competing for the interest of prospective clients.

Lack of trademark defense. The fact that Amazon does not provide trademark protection is another drawback. This signifies that other vendors may offer comparable goods and challenge your pricing.

Delivery times can be lengthy. Dropshipped goods on Amazon are frequently shipped from suppliers and manufacturers — and those suppliers are frequently located overseas. As a result, shipping times from overseas suppliers can take several weeks to reach the end client. To eliminate this, some look for local suppliers who provide dropshipping for faster delivery.

No supply chain control. Since you are not the one handling the delivery process, there will be no recourse available to you in case of shipping delays. Buyers aren't interested in what's going on at the supplier or manufacturer's end; you're their only point of contact, so you'll have to reassure them, even if your supplier or manufacturer is experiencing problems.

How to Dropship on Amazon Without Money

Decide on products to sell

Choosing a niche through product research is an important step before opening your Amazon dropshipping store. A niche is a product or category for which you want your shop to be known. As a result, a niche assists in targeting a specific audience and building a strong customer base. You can locate products that meet your needs once you have an idea of how factors like cost and fulfillment will affect what you sell.

Even if you plan on taking on dropshipping business, or you want to start a luxury clothing brand, research is significant. Similar to any other business, you must be aware of the competitive environment in your market.

To add important things to your notes, here are some questions you need to analyze when it comes to assessing possible Amazon products in general:

Product cost: What is the average cost of manufacturing or purchasing a large quantity?

Challenges with shipping: Can these products be shipped easily, or will you need specialist fulfillment? Are you abiding by Amazon's policies regarding dropshipping?

Rivals: Who are the other participants in this market? Can you match their offerings in terms of both cost and quality?

Price: What is the average selling price of comparable products on Amazon? Do your expenses, the transaction fees charged by Amazon, and the sale price leave you with a healthy profit margin?

Clients: If you were to sell a product, who would be your ideal client? Should you spend money on other internet marketing strategies?

Other platforms can also be used to determine interest in particular products. For example, Google Trends can help you determine how popular a particular search query is and whether interest in it is increasing or decreasing.

Investigate other online stores such as eBay, Etsy, Alibaba, and Aliexpress after that. You may gain a better understanding of the market by observing what's popular and how much it's selling on these platforms, which your customers may also be using.

Find a supplier

The benefit of dropshipping is that you do not have to pay your suppliers until you have been paid by your customers. Nonetheless, you must choose a dependable supplier who provides high-quality products at reasonable prices and timely delivery.

Some of the qualities to look for in a supplier to ensure their dependability are practical shipping, return, and payment policies, accessible warehouses worldwide, diverse product offerings, high-quality goods, as well as positive feedback from customers.

Sometimes, it is best to work with multiple suppliers so that you can offer a variety of products at the best prices. Furthermore, you can have a backup plan in case one of your suppliers runs out of stock.

One of the most well-liked sites for product sourcing is AliExpress. You can launch a low-risk business without having to make a sizable upfront investment by dropshipping from AliExpress.

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The majority of items are manufactured in China, so, delivery times may be lengthy. Note that, long shipping times will be a deterrent because Amazon customers are accustomed to receiving their orders in one to two days.

Let us help you understand how important it is to have reliable dropshipping suppliers for your business operations.

Time and Cost Saving

Making time-saving partnerships with dropshipping suppliers is highly recommended. Without having to go out and find the products and handle the logistics of shipping them yourself, it enables you to take your business from an idea to an online store.

Working with dropshipping suppliers also frees you from having to worry about finding your product, packing it for shipping, or navigating complex third-party logistics firms so you can concentrate on growing your clientele, marketing, providing excellent customer service, and refining your business plan. Dropshipping allows you to concentrate on the expansion of your company while leaving the day-to-day management of operations to automated systems.

Consumer Contentment

Using a dropshipping supplier can help you save more than just time and money. Additionally, it may benefit client satisfaction. Your customers will love the speedy service they receive, and you'll appreciate how easy ordering is.

Prolonged Advantage

Having a dependable dropshipping supplier ensures efficient communication, prompt product delivery, and informed customer service. Furthermore, dropshipping suppliers enable your company to grow swiftly without requiring you to worry about issues like out-of-stock situations or cumbersome fulfillment procedures.

Establish your online dropshipping business

To sell on Amazon, you must have an Amazon seller account, which you can create at Seller Central. You will also be required to provide information about your company, including your address, tax information, and other identity and credit card details. You can choose between two account types from Amazon: a Professional account or an Individual account. There is a monthly fee and additional Amazon selling fees associated with professional seller accounts.

It's time to make a product listing after deciding which goods to sell, finalizing a dropshipping provider, and coming up with relevant keywords. When customers enter keywords into Amazon search, this is what comes up.

Product sales can be increased with the help of keyword research. The keywords should ideally have little competition, meaning that not too many other brands are vying for the same spot. After that, you can improve product listings to appear higher in search results.

Using the Amazon search bar is one method of conducting keyword research. When you type a keyword, an auto-complete menu containing additional keyword suggestions will appear.

When it comes to pictures, you may use more than one photo and alter the color scheme. Meanwhile, the product description, which provides information about the item for sale is displayed to customers when they click on a product listing.

Promote your products

Utilize Sponsored Products: Consider using advertisements for Sponsored Products if you have funds. You are charged by Amazon each time an ad is clicked. This may make more people aware of your offerings.

Make your listings stand out: All Amazon products have the same appearance. Thus, make use of readable product titles and images. In the "About This Item" section, make brief remarks.

Try using social media: You can post links to Amazon products there. Put together a quick video for Instagram. Alternatively, make TikTok content with your product. These social media platforms will give you another landscape in which you can reach wider customers.

Fulfill customer orders quickly

Maintaining a profitable dropshipping business on Amazon requires both excellent customer service and efficient order fulfillment. To guarantee seamless operations and happy clients, adhere to these best practices.

Order fulfillment with suppliers

When a customer places an order on your website, it is time to fulfill it with your supplier. Navigate to the supplier's website, enter the customer's shipping details, and complete the order. This method allows you to save time and effort by having the product shipped directly from the supplier to the customer. Maintain a record of each completed order in your order form, updating the status as it moves through shipment and delivery.

Customer inquiries and complaints management

Inquiries and complaints from customers are an unavoidable part of running a dropshipping business. Respond to all customer messages promptly and professionally, addressing their concerns and providing shipment updates as needed. Remember that the customer is always right in Amazon's eyes, so prioritize customer satisfaction and strive to resolve any issues as quickly as possible. To ensure accurate record-keeping and efficient customer service, track customer interactions in your order form.

Finding a reliable dropshipping tool is essential if you want to handle dropshipping orders smoothly after starting your business. One such tool is DSers. With DSers, a free dropshipping tool with many special features, you can manage your orders with ease. You can save time and money by reducing the majority of the work associated with inventory management.

DSers can provide your dropshipping company with numerous special services, including automated order synchronization, store management, a mass supply program, supplier optimizer, and round-the-clock support.

Is Dropshipping Business the Right Venture For You

Dropshipping is usually a better option for beginner sellers or small-business owners. Additionally, it's better suited for people looking to expand into new markets or sell a wide range of goods without having to invest a lot of money in inventory.

For retailers who desire total control over their brand—including how their products are presented and how customers perceive them—dropshipping may not be the best option. Dropshipping is also obviously not for you if you manufacture your goods.

Conclusion

Similar goods are being sold by thousands of other retailers as well as you. You must market your company and goods in a way that makes them stand out if you want to succeed. In dropshipping, the same amount of planning and work will need to be done as with any other business. Choose a product that will succeed first, and then figure out how to set your company apart from the competition.