Can You Dropship on Amazon?

Amazon does allow dropshipping, but it has specific policies and guidelines that sellers must adhere to when engaging in dropshipping activities on the platform. Here are some key aspects of Amazon’s policy on dropshipping:

1. Prime Eligibility: To maintain a positive customer experience, Amazon requires that products listed for Prime two-day shipping must be physically located in Amazon fulfillment centers. This means that dropshipped products are typically not eligible for Prime shipping.
2. Seller Responsibility: As a seller, you are responsible for the entire customer experience, including order fulfillment, shipping, customer service, and returns. You must provide accurate and timely information to customers regarding the status of their orders.
3. Product Listings: Product listings must accurately represent the items being sold, including product titles, descriptions, and images. Listings should not mislead customers or use stock photos that don’t match the actual product.
4. Delivery Times: Dropshippers must meet Amazon’s delivery time requirements, which generally include shipping orders within two business days. Late or delayed shipments can negatively impact your seller performance metrics.
5. Customer Returns: You are responsible for processing and managing customer returns, including refunds and replacements. Amazon may charge sellers a return processing fee for each return.
6. Stock Availability: It’s crucial to ensure that the items you list on Amazon are in stock and available for immediate shipment. Avoid listing out-of-stock or backordered items.
7. Account Health: Maintaining a healthy seller account is essential. Dropshippers should monitor their account health metrics, including order defect rate, late shipment rate, and cancellation rate, to ensure compliance with Amazon’s performance standards.
8. Invoice and Packaging: Amazon may request invoices or supplier information for the products you sell. Additionally, sellers should ensure that items are packaged appropriately and without any third-party branding.
9. Seller Verification: Amazon may conduct seller verification processes, which can include requesting documentation related to the source of your products and your business operations.
10. Multiple Accounts: Amazon’s policy generally restricts sellers from operating multiple seller accounts. Dropshippers should operate only one seller account.
11. Restricted and Prohibited Items: Be aware of Amazon’s restricted and prohibited items list. Dropshippers should not list items that are prohibited on the platform.

It’s essential for dropshippers to thoroughly read and understand Amazon’s policies on dropshipping and ensure compliance. Failure to adhere to these policies can result in account suspensions or other penalties. Dropshippers should also stay updated on any policy changes or updates made by Amazon.