The Drop Shipping Rulebook: Mastering Amazon's Policies to Succeed as a Seller
Drop shipping has been a hot topic on the Seller Forums, and for good reason. It can be a useful way to start an Amazon business, but it's easy to do it incorrectly - which can lead to serious consequences.
First, what is drop shipping? Drop shipping on Amazon refers to using a third-party to fulfill orders to customers on your behalf. The key thing for sellers to know is that drop shipping is only allowed if you are clearly identified as the seller of record.
The Do List for Drop Shipping on Amazon:
- Have an agreement with your supplier where you are the only seller of record and the only entity identified as the seller of your products on all packing slips, invoices, external packaging, or any other information included or provided in connection with the products.
- Remove any packing slips, invoices, external packaging, or other information identifying a different seller or supplier before shipping the order.
- Remain responsible for customer returns and always comply with the Business Solutions Agreement (BSA) and applicable Amazon policies.
The Don't List for Drop Shipping on Amazon:
- Purchase products from a third party (including Amazon or another seller) and have them ship directly to customers, unless you are identified as the seller of record.
- Ship orders with any packing slips, invoices, or packaging that indicates a seller name or contact other than your own.
Be sure to check out the drop shipping video in Seller University for more details on how to properly drop ship on Amazon, as well as the consequences of not following the rules. Sound off in the comments below if you have additional thoughts or questions!
The Drop Shipping Rulebook: Mastering Amazon's Policies to Succeed as a Seller
Drop shipping has been a hot topic on the Seller Forums, and for good reason. It can be a useful way to start an Amazon business, but it's easy to do it incorrectly - which can lead to serious consequences.
First, what is drop shipping? Drop shipping on Amazon refers to using a third-party to fulfill orders to customers on your behalf. The key thing for sellers to know is that drop shipping is only allowed if you are clearly identified as the seller of record.
The Do List for Drop Shipping on Amazon:
- Have an agreement with your supplier where you are the only seller of record and the only entity identified as the seller of your products on all packing slips, invoices, external packaging, or any other information included or provided in connection with the products.
- Remove any packing slips, invoices, external packaging, or other information identifying a different seller or supplier before shipping the order.
- Remain responsible for customer returns and always comply with the Business Solutions Agreement (BSA) and applicable Amazon policies.
The Don't List for Drop Shipping on Amazon:
- Purchase products from a third party (including Amazon or another seller) and have them ship directly to customers, unless you are identified as the seller of record.
- Ship orders with any packing slips, invoices, or packaging that indicates a seller name or contact other than your own.
Be sure to check out the drop shipping video in Seller University for more details on how to properly drop ship on Amazon, as well as the consequences of not following the rules. Sound off in the comments below if you have additional thoughts or questions!
18 respuestas
Seller_kIukTwdhvntAp
"The Drop Shipping Rulebook: Mastering Amazon's Policies to Succeed as a Seller"
There are so many suspensions for sellers that dropship even IF they try to follow the rules WHY does Amazon even allow it and PRETEND that it can be done successfully?
You know that even one legitimate mistake on the part of the company that does the dropshipping can/will cause a suspension of the seller account.
ALSO, you all FAIL to address the fact that the SELLER will still need an LOA from every brand that is being dropshipped or risk a suspension for IP or counterfeit items when the BRAND complains.
You also FAIL to warn sellers that there are hundreds/thousands of dropshippers that are NOT authorized wholesale distributors and are selling gray market goods that should not be sold on Amazon.
I understand that Amazon ONLY allows it for the millions of dollars in fees that these guys generate every month but the process should seriously be BANNED from the site.
Maybe drinking some coffee might help wake up some of the manglement making these decisions.
Seller_9PcsTCN0ancqb
Totally agree with your post and we can confirm the fees are quite crazy. There's a dashboard for 1P Vendor Central for just tracking fees and some are unavoidable as it would cost more to correct the situation than to pay the fee.
Fees are big business for Amazon! We get that there needs to be SOP and guidelines, but some fees for Amazon as a whole are just strange.
Seller_E5ZoM4Qb6xvFt
Dropshipping is literally just outsourcing fulfillment. Its not some scammy process. Technically by definition amazon FBA is a dropshipping services. Amazon themselves also has a dropship relationship with many of their 1p vendors. Amazon 'pretends' it can be done successfully because thousands of sellers and amazon themselves do it successfully everyday both on and off amazon.
Seller_kIukTwdhvntAp
"Dropshipping is literally just outsourcing fulfillment. "
That is all fine and good IF you are doing it on your own website.
On AMAZON it is a minefield filled with hidden destruction.
They did NOT say a word about the seller who is dropshipping needing an LOA from EVERY BRAND that those mysterious dropshippers have available -- mostly gray market UNLESS the seller is lucky enough to find a brand that will dropship for them OR find a wholesaler that actually is an AUTHORIZED Distributor.
Pity the poor seller that has even a legitimate dropshipper make ONE MISTAKE and they end up suspended without a prayer of getting reinstated as a result.
Can it be done? Yes. Is it as easy and 'convenient' as all the YouTube and TikTockers say? NOT A CHANCE.
Seller_E5ZoM4Qb6xvFt
'Dropshipping' isnt a business as much as it is a service that product manufacturers or companies offer. What you really should be clarifying is that dropshipping should only be done from the manufacturer or with generic products. What mistakes would a 'dropshipper' experience that could get their account banned? A dropshipper isnt going to accidentally list themselves as the seller of record nor are they going to ship things in walmart boxes. It isnt a minefield. There are simple rules that if you follow you will have no problem. The problems arise when people dry to dropship from places that have no idea that is what they are doing. Such as fulfilling amazon orders by ordering off walmart, target, ect. As long as the customer has no idea where the item was shipped from there arent any risks to dropshipping.
Seller_kIukTwdhvntAp
"What mistakes would a 'dropshipper' experience that could get their account banned? A dropshipper isnt going to accidentally list themselves as the seller of record nor are they going to ship things in walmart boxes. It isnt a minefield."
At this point it is PAINFULLY obvious that you are still so new to Amazon, and have spent so little time reading the Forum, that it explains your naivete regarding Amazon and dropshipping sellers getting banned.
1. YES, those mass gray market dropshippers ARE going to use Walmart, Target, Best Buy, Menard's, and Home depot boxes (as well as a myriad of others) for shipping.
2. YES, those same dropshippers will include the WRONG PACKING SLIP, including the ones that came when THEY bought items on Walmart (dot com) and didn't replace them with the correct ones.
3. YES, there are literally HUNDREDS of sellers that have been banned for dropshipping from those TikTok and YouTube recommended sources.
Spend a couple hundred (thousand in my case) hours reading the Forum and seeing the mass casualties caused by this process.
"As long as the customer has no idea where the item was shipped from there arent any risks to dropshipping."
Until the dropshipper doesn't remove a price tag and then all HE@# breaks loose and the seller is asked for INVOICES and an LOA.
Seller_E5ZoM4Qb6xvFt
Well if you read my post i clearly stated dropshipping isnt meant to be done with other peoples products unless being dropshipped straight from the manufacturer which in that case they would have permission from the manufacturer. As stated dropshipping is simply a form of fulfillment where the seller of record and shipper are different parties both Amazon FBA and any 3PL are a form of dropshipping. What you describe in your post is fraudulent operators('Dropshippers') that are profiting by filing illegitimate A-Z claims and returns. If you read through the rest of this thread you will see i specifically talk about the 100s of dropship related suspensions all through the forums.
If there's a price tag that would give the customer the idea that the item wasnt shipped by the seller of record.
I am not suggesting sellers order from walmart and ship directly to the customer nor am i suggesting sellers sell products they don't have authorization from the brand to sell. Im suggesting you dont actually know what 'dropshipping' is and Im suggesting the seller read amazon policy and to dropship within policy that may include using amazon fba or a 3pl or your manufacturer to ship products directly to the customer. All those are by definition dropshipping. Dropshipping drastically reduces waste caused by unnecessary shipping.
Seller_kIukTwdhvntAp
" Im suggesting you dont actually know what 'dropshipping' is"
I do know what it is and I HAVE done it on OTHER sites, including my own websites.
Your statements gloss over the RISKS of doing it on AMAZON.
The Forum is filled with stories of people who "saw a post" about it and didn't actually READ what was being said.
Can it be done? Yes it can.
Can it cost you your account? YES it can EVEN IF you are doing everything 'correctly' and the dropshipper screws up.
If you want to play Russian Roulette with your account, feel free, but it is NOT something that most rookies (MANY of the readers on here) should be encouraged or advised to do.
Seller_tzb0Adb4whsRu
Amazon doesn't enforce the rules on drop shipping (or any other rule). We've tried multiple times to shut down other sellers for drop shipping without success.
Drop shipping shouldn't be allowed period.
There's enough problems on this platform why encourage such a thing when no one follows the rules including Amazon.
There's way too many scammers, bad actors, hi jackers, etc. that Amazon needs to eliminate indefinitely so the honest hard working sellers can keep their business afloat without the stress of "bad" sellers trying to make a quick buck by taking the easy way.
Seller_EI0Ocpr8VMs4x
How can you prove any of this? Amazon sees how many tracking numbers come from different locations and will then suspend an account over it for DS policy violation. Maybe a new seller can expirament with this but for ones established its too risky when its so difficult to communicate with Amazon
Seller_roNdLQpqbVoOH
You're drinking Kool-Aid, Bryce. But I suppose you do want to keep your job.
As others have said, the ONLY thing that drives this topic is Amazon's ever-increasing thirst for money.
Everything else you said is fluff.
Seller_LTNvvFJ2jqJOv
The best rule for drop shipping on Amazon, "DONT"
