Amazon Dropshipping: How It Works and the Rules You Must Follow

Dropshipping on Amazon is allowed, but only under strict conditions. What the policy requires, how it differs from dropshipping on your own store, and the risks to weigh.

Uğur KeskinFounder @Shopiuzman3 min read
Amazon Dropshipping: How It Works and the Rules You Must Follow

Dropshipping means selling products you don't hold in stock: when a customer orders, your supplier ships the item directly to them. Doing this on Amazon is possible, but Amazon has a specific policy for it, and sellers who ignore it risk losing their account.

Marketplace policies change. Always check Amazon's current dropshipping policy in Seller Central before you start.

What Amazon's dropshipping policy requires

In summary, if you use a supplier to fulfil orders, you must:

  • be the seller of record for the products;
  • identify yourself as the seller on packing slips, invoices and external packaging;
  • remove any packing slips, invoices or branding that identify the supplier before shipment;
  • be responsible for accepting and processing customer returns;
  • comply with all other terms of your seller agreement and Amazon's policies.

What is not allowed: buying products from another online retailer and having that retailer ship directly to your customer, or shipping orders with packing slips or information identifying another seller.

How it works in practice

  1. Find a supplier willing to dropship under your name: blind shipping without their branding, with your packing slip.
  2. List products on Amazon, matching existing listings or creating new ones where allowed.
  3. Receive an order, pass it to the supplier with the customer's details.
  4. Supplier ships using your packing information; you upload tracking.
  5. You handle customer service and returns.

The main risks

  • Delivery performance: Amazon measures late shipments, cancellations and tracking. Slow suppliers hurt your account health.
  • Stock accuracy: if the supplier runs out and you cancel, metrics suffer.
  • Thin margins: referral fees, advertising and competition on identical products reduce profit.
  • Category restrictions: some categories and brands need approval.
  • No customer relationship: customers belong to Amazon, which limits repeat marketing.

Amazon dropshipping vs your own store

On AmazonOn your own Shopify store
TrafficBuilt inYou bring it
RulesStrict policy and performance metricsYour own, within consumer law
FeesMarketplace fees on each salePlan and payment fees
Brand and customer dataLimitedYours

For dropshipping on your own store, see our guide to dropshipping with Shopify. To weigh up channels in general, see marketplace or your own store.

Connecting Amazon and Shopify

If you sell on both, managing products and stock from Shopify keeps channels in sync. See our Shopify Amazon integration service.

Frequently asked questions

Is dropshipping allowed on Amazon?

Yes, under Amazon's dropshipping policy. You must be the seller of record, identify yourself as the seller on packing slips and other information, remove third-party seller information before shipping, and handle returns. Buying from another retailer and having them ship directly to your customer is not allowed.

Can I use Amazon as my supplier for a Shopify store?

Buying from Amazon or another retailer and having it shipped to your customers is risky: packaging and invoices show the other retailer, and it can break their terms. Work with suppliers who agree to dropship for you.

Is Amazon dropshipping profitable?

It can be, but margins are squeezed by marketplace fees and competition from other sellers of the same products. Calculate profit per order including all fees before you start.

Uğur Keskin

Author

Uğur KeskinFounder @Shopiuzman

Founder of Shopiuzman. He builds, migrates and grows Shopify stores for brands in Türkiye, Europe and the US, and leads the development of our apps on the Shopify App Store.

About Shopiuzman · Contact us

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