Selling on Amazon via dropshipping can be incredibly lucrative, but only if done within Amazon’s strict guidelines. Failure to comply can result in account suspension or permanent bans. Here’s what you need to know to stay compliant.

---

What Is Dropshipping on Amazon?

Dropshipping on Amazon means you sell products on Amazon without holding any inventory. Instead, when a customer places an order, you purchase the item from a third-party supplier who ships it directly to the customer. You earn the difference between the sale price and your supplier’s cost.

---

Amazon’s Official Dropshipping Policy

Amazon allows dropshipping only if you are the seller of record and take full responsibility for the customer experience. According to Amazon:

“Dropshipping is permitted only if you:

• Are the seller of record of your products;
• Identify yourself as the seller on all packing slips, invoices, and external packaging;
• Remove any information identifying the third-party supplier;
• Are responsible for accepting and processing customer returns.”

---

What’s Allowed

To remain in compliance:

• Use white-label suppliers or print-on-demand services that allow custom branding.
• Ensure your name/company appears on all shipping labels and invoices.
• Control your return process so customers never have to interact with the supplier.
• Ship orders promptly and keep your Amazon performance metrics high (e.g., order defect rate, late shipment rate).

---

What Gets You Banned

Violating the rules can lead to immediate suspension. Avoid these mistakes:

• Using retail sites like Walmart, Home Depot, or AliExpress for fulfillment
• Shipping orders with supplier logos or packaging (e.g., Amazon receiving a package with a Walmart box)
• Allowing invoices, packing slips, or contact info from the supplier to reach the customer
• Failing to handle returns or customer service directly
• Consistently late shipping or high order cancellation rates

---

Tips for Staying Compliant

1. Choose the right suppliers who offer dropshipping programs tailored for Amazon.
2. Use a third-party fulfillment partner that complies with Amazon branding requirements.
3. Audit packaging before committing to a supplier.
4. Automate performance monitoring to maintain a high seller rating.
5. Stay updated on Amazon’s dropshipping policy as rules can change.

---

Conclusion

Dropshipping on Amazon is not inherently risky—but non-compliant dropshipping is. If you want to build a long-term business, make sure you’re the true seller of record, maintain a seamless customer experience, and never reveal your supplier’s identity. Use compliant automation tools and trusted fulfillment partners to protect your account while scaling efficiently.