{"id":8394,"date":"2022-07-13T18:09:32","date_gmt":"2022-07-13T18:09:32","guid":{"rendered":"https:\/\/www.amzonestep.com\/blog\/?p=8394"},"modified":"2025-03-31T20:25:37","modified_gmt":"2025-03-31T20:25:37","slug":"amazon-dropshipping-product-research","status":"publish","type":"post","link":"https:\/\/www.amzonestep.com\/blog\/amazon-dropshipping-product-research\/","title":{"rendered":"Amazon Dropshipping: Product Research"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Amazon Dropshipping is an $85 billion industry. eCommerce giants like Amazon have numerous sellers taking advantage of this. So if you want a piece of the pie, you&#8217;ll need to know about Amazon dropshipping product research.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/www.amzonestep.com\/blog\/amazon-keywords-research-tool-wordspy\/\">WordSpy | Right Amazon Keywords Research Tool For Product Listings Optimization<\/a><\/strong><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Below, we will tell you <a href=\"https:\/\/www.amzonestep.com\/blog\/everything-you-need-to-know-about-amazon-ppc\/\"><strong>everything you need to know<\/strong><\/a> to start.<\/span><\/p>\n<h2><b>Amazon Dropshipping<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Amazon dropshipping is a fulfillment method where you outsource most duties. This outsourcing includes the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Receiving products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Storing<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shipping<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Dropshipping is a fantastic fulfillment method because it enables anyone to sell. It is one way that <a href=\"https:\/\/www.amzonestep.com\/blog\/best-solution-providers-for-amazon-sellers\/\"><strong>Amazon sellers<\/strong><\/a> might automate 80% of their business.<\/span><\/p>\n<h3><b>How Does Amazon Dropshipping Work?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Typically, dropshipping starts after you find a helpful dropshipping supplier. A supplier will handle the entire customer fulfillment process (see above).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you agree with the supplier, they handle the inventory while creating the <a href=\"https:\/\/www.amzonestep.com\/blog\/5-things-you-need-to-do-for-a-killer-amazon-product-listing\/\"><strong>product listing<\/strong><\/a>. Once you make from the product listing, details are sent directly to the supplier.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The supplier <a href=\"https:\/\/www.amzonestep.com\/blog\/best-practices-to-source-and-ship-products-from-china-to-us\/\"><strong>ships the product<\/strong><\/a> while you handle the payment. A portion of those proceeds goes to you while the other half goes to the supplier.<\/span><\/p>\n<h3><b>What is Amazon&#8217;s Policy on Dropshipping?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To become a dropshipper on Amazon, you need to meet three different policy requirements:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make it clear that you are the seller of these products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You need to remove all packaging and information from where you receive the third-party drop<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You <\/span><b>need<\/b><span style=\"font-weight: 400;\"> to be responsible and responsive when addressing customer returns<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Amazon also requires you to comply with the<\/span><a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/1791?language=en_US&amp;ref=su_1791_cont_G201808410\" target=\"_blank\" rel=\"nofollow noopener\"> <span style=\"font-weight: 400;\">seller agreement<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>What are the Legal Aspects of Dropshipping?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When you are a drop shipper, the legal aspects can be tricky for newbies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">First, drop shippers have no right to utilize any trademarks or logos. You can solve this by seeking out reputable suppliers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A drop shipping agreement contract will enable the supplier to take more ownership. You are still legally liable for using any trademarks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You also run the same issue of reselling items with intellectual property. For example, selling an Ikea end table can be an issue if the end table&#8217;s design is under IP protection.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When dropshipping, be sure your product is considered sellable. You can do this by checking the company&#8217;s source website or (assuming you trust the supplier).<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/www.amzonestep.com\/blog\/best-practices-to-source-and-ship-products-from-china-to-us\/\">Best Practices To Source And Ship Products From China To US<\/a><\/strong><\/em><\/p>\n<h2><b>Dropshipping Product Research Criteria<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When deciding on what <a href=\"https:\/\/www.amzonestep.com\/blog\/selling-products-on-amazon-successfully\/\"><strong>products to sell<\/strong><\/a>, you should focus on four areas:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Profit<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Size<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Demand<\/span><\/li>\n<\/ul>\n<h3><b>Profit Margin<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The most common profit margin you get from dropshipping is 20%. If you are in this range, you <a href=\"https:\/\/www.amzonestep.com\/blog\/how-to-find-a-profitable-product-to-sell-on-amazon\/\"><strong>sell profitable products<\/strong><\/a> in dropshipping.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Remember that dropshipping has a higher cost than most other selling strategies. Much of this comes from your revenue going towards suppliers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You might also see your competitor&#8217;s margin choice to see what normal expectations are behind target items. Some dropshippers can expect 3x profit margins under the right conditions.<\/span><\/p>\n<h3><b>Price Range<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The potential price range comes from your profit margin. For example, if your costs are $200, you will need to sell a product for $240 to earn a profit.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ideal price range for most things will be $20 to $200. Most products sell around the $20 to $50 price range, so start there if this is your first time dropshipping. Avoid products below $20.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, drop shipping must be sold solely on the merit of your chosen item. This means you should price it based on what&#8217;s out there and see if your product is sold at that price using third-party analytical tools.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/www.amzonestep.com\/blog\/amazon-ppc-campaign-for-newly-launched-product\/\">Setting up a PPC Campaign for a Newly Launched Product on Amazon<\/a><\/strong><\/em><\/p>\n<h3><b>Item Sizes<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">What you&#8217;ll find consistently across all online selling guides are shipping costs. The lower you can keep your shipping cost, the more money you can make.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The size of your item is a big part of this. Ideally, you should stick with small, lightweight, sturdy products for shipping. This ensures the products will be cheap, but not so cheap that they break in the box. Stick with products that are <\/span><b>under five pounds<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Demand<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When it comes to selling products, going with popularity is always good. However, it&#8217;s essential to differentiate between consistent market demand and seasonal trends.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Much of this will come from utilizing third-party tools to determine historical data. Search terms with consistent results and sales are critical.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So if you plan on being a long-term dropshipper of an item, use historical search volume and sales numbers. Otherwise, you can choose to stick with monthly trends.<\/span><\/p>\n<h2><b>Step-By-Step Product Research Process<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Here are some steps to take home to target any product niche:<\/span><\/p>\n<h3><b>Step One: Explore Product Ideas on Other Marketplaces or Supplier Websites<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Your first step is to find out what is in demand. There are a <\/span><a href=\"https:\/\/amzscout.net\/blog\/trending-amazon-products\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">bunch of ideas available<\/span><\/a><span style=\"font-weight: 400;\"> across marketplaces and supplier websites.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Walmart is prevalent, but you can also use sites like Alibaba.\u00a0<\/span><\/p>\n<h3><b>Step Two: Estimate Probable Profits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">When estimating potential profits, you&#8217;ll want to use this formula:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Probable profits = revenue &#8211; COGS<\/span><\/li>\n<\/ul>\n<p><b>COGS<\/b><span style=\"font-weight: 400;\">, or Cost of Goods Sold, includes fixed and variable costs. Fixed costs do not change when you change aspects of selling a product. For example, subscription fees when paying for Professional Seller membership.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, variable costs change when you change the supplier or some aspect of the product. In dropshipping, your costs are variable when comparing different suppliers. However, variable costs are usually limited to shipping and advertising after keeping a consistent strategy.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/www.amzonestep.com\/blog\/amazon-product-listing-optimization-2022\/\">Amazon Product Listing Optimization (2022)<\/a><\/strong><\/em><\/p>\n<h3><b>Step Three: Check Number of Sellers<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The number of sellers should be between<\/span> <span style=\"font-weight: 400;\">three and six<\/span><span style=\"font-weight: 400;\">. This number of sellers tells you that few issues with selling a product. However, limited sellers mean potential problems.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You&#8217;ll also want to see if your <a href=\"https:\/\/www.amzonestep.com\/blog\/effective-strategies-for-amazon-product-ranking\/\"><strong>product has a high sales rank<\/strong><\/a>. If it does, it is too competitive to be viable for dropshipping.<\/span><\/p>\n<h3><b>Step Four: Find Out If It Is Private Label<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Private label selling is the process of applying your branding to a product that you resell from manufacturers. The difference is that someone owns the branding rights. This means dropshippers <\/span><b>cannot<\/b><span style=\"font-weight: 400;\"> sell it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To find out if you can sell the product, look up the UPC information or use <\/span><a href=\"https:\/\/chrome.google.com\/webstore\/detail\/amazon-dropshipping-arbit\/edkgpjhfpfpgkohafpaliolcfnijnibh\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">this tool<\/span><\/a><span style=\"font-weight: 400;\"> for Amazon dropshippers. To do this, open the <a href=\"https:\/\/www.amzonestep.com\/blog\/how-to-rank-your-product-on-page-1-of-amazon\/\"><strong>product page on Amazon<\/strong><\/a> and the app shows you all details.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also request to sample the product and use the product code you find on the packaging. If the packaging shows you a code for a branded item, be suspicious.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can google the item further to see if it is under an unfamiliar brand. If the brand allows resales (which you will find on their site), you&#8217;ll be fine.<\/span><\/p>\n<h3><b><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-8395 size-medium\" src=\"https:\/\/www.amzonestep.com\/blog\/wp-content\/uploads\/Yana-blog-176x300.png\" alt=\"Find Out If It Is Private Label\" width=\"176\" height=\"300\" srcset=\"https:\/\/www.amzonestep.com\/blog\/wp-content\/uploads\/Yana-blog-176x300.png 176w, https:\/\/www.amzonestep.com\/blog\/wp-content\/uploads\/Yana-blog.png 280w\" sizes=\"(max-width: 176px) 100vw, 176px\" \/><\/b><\/h3>\n<h3><b>Step Five: Run A Competitive Comparison<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Once you determine you can sell it, you&#8217;ll need to answer the following questions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Do the price range and profit margin add up?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much will it cost to ship?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How much demand does this product have?<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If your costs and profit margin adds up so you can make (at least) 20%, it&#8217;s a worthwhile pursuit. However, if historical data tells you otherwise, you might find another product.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your target demand should ideally be selling about 30 items per month. Ideally, you&#8217;ll not exceed targetting a product that sells more than 70.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using helpful tools like <\/span><b>AMZScout Dropshipping and OA (Online Arbitrage)<\/b><span style=\"font-weight: 400;\"> software can help answer those questions quickly.<\/span><\/p>\n<p style=\"text-align: center;\"><em><strong>Read More:-\u00a0<a href=\"https:\/\/www.amzonestep.com\/blog\/effective-strategies-for-amazon-product-ranking\/\">10+ Easy &amp;#038; Effective Strategies for Amazon Product Ranking<\/a><\/strong><\/em><\/p>\n<h2><b>Top Five Dropshipping Product Niches<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Below are five dropshipping product niches you can try out:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Wooden Utensils<\/b><span style=\"font-weight: 400;\"> &#8211; Kitchen products are a popular dropshipping product because they are relatively inexpensive and light. Wooden utensils are also pretty niche, as they are of higher quality than plastic.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Makeup Brushes <\/b><span style=\"font-weight: 400;\">&#8211; The beauty niche is always in demand, with makeup brushes being a lower entry point. There are many brands with super-loyal followers in those narrow brush categories.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Star Projector Night Light <\/b><span style=\"font-weight: 400;\">&#8211; a star projector night light is lightweight and easy to ship. It is a simple product that appeals to a broad kid-based niche.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Quick Snatch Waist Wrap <\/b><span style=\"font-weight: 400;\">&#8211; The workout niche grows in popularity from the Amazon Trend Report. Waist wraps are a simple and lightweight category to target there.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pet Seat Protectors<\/b><span style=\"font-weight: 400;\"> &#8211; Pet seat protectors, are simple and lightweight. They also appeal to anyone who likes to keep dog hair out of their seat.<\/span><\/li>\n<\/ul>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">When it comes to dropshipping, the number one reason people fail is expectations. You might hear it is a get-rich-quick scheme, but dropshipping requires work and perseverance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Targetting the right online stores, researching, and knowing your targets are crucial. Using this guide on the subject, you are off on the right track.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon Dropshipping is an $85 billion industry. eCommerce giants like Amazon have numerous sellers taking advantage of this. So if [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":8396,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[684],"tags":[888,891,889,890,894,893,892],"class_list":["post-8394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon-business","tag-amazon-dropshipping","tag-amazon-dropshipping-business","tag-amazon-dropshipping-guide","tag-amazon-dropshipping-steps","tag-drop-shipping-policy","tag-dropshipping","tag-dropshipping-fulfillment"],"_links":{"self":[{"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/posts\/8394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/comments?post=8394"}],"version-history":[{"count":3,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/posts\/8394\/revisions"}],"predecessor-version":[{"id":10288,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/posts\/8394\/revisions\/10288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/media\/8396"}],"wp:attachment":[{"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/media?parent=8394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/categories?post=8394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.amzonestep.com\/blog\/wp-json\/wp\/v2\/tags?post=8394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}