seller
- What changed
- Amazon's drop shipping policy and how to comply
- When
- Updated October 2026
- Who it affects
- Merchant fulfilled sellers using suppliers to ship orders
- What to do
- Get a written supplier agreement naming you as the only seller of record
Key takeaways
- Dropshipping is allowed only when you are the seller of record on every order.
- Buying from another retailer to ship directly to your customer is prohibited.
- You own the metrics and returns, so choose suppliers that ship on time with tracking.
| Allowed | Banned | |
|---|---|---|
| Blind supplier shipping under your name | ||
| Your packing slip and invoice | ||
| You handle returns | ||
| Buying from another retailer to ship | ||
| Supplier branding in the box | ||
| Another seller on the invoice |
You must be the only seller of record on every order
Is dropshipping allowed on Amazon?
Yes, with conditions. Amazon allows drop shipping, meaning a third party fulfills orders on your behalf, only when it is clear to the buyer that you are the seller of record. Amazon staff summarized the rules in the Seller Forums as a short list of do's and don'ts, and the policy has not been relaxed.
Breaking the policy can restrict your ability to sell through merchant fulfillment, and repeated problems can put the whole account at risk. Our guide to Amazon account health explains how Amazon measures sellers.
What Amazon's drop shipping policy requires
The policy rests on three requirements. Each one needs to be written into your agreement with the supplier, not just agreed verbally.
- Have an agreement with your supplier where you are the only seller of record
- Identify yourself as the seller on all packing slips, invoices, external packaging and other information included with the order
- Remove any packing slips, invoices, packaging or information identifying a different seller before the order ships
- Remain responsible for accepting and processing customer returns
- Comply with all other terms of your seller agreement and Amazon policies
What is not allowed
The most common violation is retail arbitrage dropshipping: listing a product, then buying it from another online retailer and having that retailer ship directly to your customer. The box arrives with the other store's branding, receipt or packing slip, which tells the buyer you are not the real seller. Amazon prohibits this, whether the source is another marketplace, a big box retailer or Amazon itself.
- Buying from another retailer or marketplace to ship directly to your customer
- Orders arriving with another seller's name, receipt or packaging
- Supplier contact details in the box
- Refusing or redirecting returns to the supplier without handling them
How to dropship on Amazon, step by step
A compliant dropshipping business looks like a normal merchant fulfilled business with outsourced warehousing. Set it up that way from day one.
- Find manufacturers or wholesalers that offer blind drop shipping
- Sign a written agreement naming you as the only seller of record
- Supply your own packing slip and invoice template to the supplier
- Confirm stock and shipping times data feeds so you never sell what they cannot ship
- Open a Professional seller account and check category and brand approvals
- List products, using your own content where you own the brand or adding offers to existing pages
- Set handling times you can reliably meet and upload valid tracking for every order
- Process returns to your own address or a returns partner you control
- 1Find a supplier
Blind drop shipping offered
- 2Sign agreement
You are the only seller of record
- 3Brand the paperwork
Your slip and invoice only
- 4Sync stock
Never sell what they cannot ship
- 5Track and return
Valid tracking, your returns
Performance metrics you must hit
Dropshipped orders are merchant fulfilled, so you are measured on the same targets as any seller who ships their own orders. Suppliers that ship late or skip tracking numbers put your account at risk, not theirs. Amazon tracks order defect rate, late shipment rate, pre fulfillment cancel rate and valid tracking rate, and publishes a target for each in the Account Health dashboard in Seller Central.
Check these metrics weekly. If a supplier starts missing ship dates or tracking uploads, pause their products before your numbers drift toward Amazon's thresholds, and only restart once the supplier has fixed the cause.
- Order defect rate: negative feedback, A to z claims and chargebacks
- Late shipment rate: orders confirmed after the expected ship date
- Pre fulfillment cancel rate: orders you cancel before shipping
- Valid tracking rate: shipments with a valid tracking number
Can you dropship with FBA?
FBA is not dropshipping, because you send inventory to Amazon's warehouses in advance and Amazon ships it. But suppliers can ship directly to Amazon on your behalf, which removes the need for your own warehouse. Many sellers start with dropshipping to test demand and move proven products to FBA for Prime eligibility. Our comparison of Amazon FBA vs dropshipping covers the trade offs.
Is dropshipping on Amazon profitable?
Margins are usually thin. You pay the supplier's wholesale price plus their fulfillment charge, then Amazon's referral fee, mostly 8% to 15% of the price, and a $39.99 monthly Professional plan. Without Prime eligibility, conversion is often lower than FBA offers, and you compete with sellers who buy in bulk at lower cost.
Dropshipping works best for bulky or slow moving items that are expensive to store, custom or made to order products, and brands testing a new line before committing inventory. For most other products, a stocked model is easier to scale. If you are still deciding, read is selling on Amazon worth it and how to start an Amazon business.
Getting help with merchant fulfilled operations
PPC Spider's Amazon account management service sets up compliant fulfillment, monitors account health metrics and builds advertising around your margins. SpiderOS watches stock, search terms and spend daily. Start with a free Amazon audit to check your current setup against the policy.
Sources
- Amazon Seller Forums: The drop shipping rulebook, mastering Amazon's policies (sellercentral-europe.amazon.com/seller-forums/discussions/t/6e9ba5be-0a2e-49fc-a06f-5b68b5bcbaf3)
- Amazon: Selling plans and fees (sell.amazon.com/pricing)
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