We hear this question all the time: Can you dropship on Amazon? Instead of relying on forum opinions or assumptions, we reviewed Amazon’s official educational materials about dropshipping and how it works in the Amazon store. Here is a clear breakdown of what matters.
Yes, Amazon Allows Dropshipping. But With Conditions.
Amazon explicitly states that dropshipping is allowed as long as you are the seller of record.
That phrase is critical.
Being the seller of record means you are not just listing products. You are the business responsible for the transaction. You set the price, collect the revenue through Amazon, handle sales tax obligations, and take responsibility for the entire customer experience.
If you are using a supplier to ship orders, Amazon still holds you accountable.
What Amazon Means by Dropshipping
Amazon defines dropshipping as a fulfillment model where a third-party supplier stores inventory and ships products directly to customers after you forward the order details .
The flow typically looks like this:
- Customer places an order
- You receive the order in Seller Central
- You send order details to your supplier
- Supplier ships the product
- You manage communication and support
The important detail is this: even if the supplier physically ships the item, Amazon sees you as fully responsible.
Where Sellers Get Into Trouble
Dropshipping itself is not the problem. Execution is.
Amazon expects that:
- You are clearly identified as the seller on packing slips and invoices
- No third-party branding confuses the customer
- Returns and refunds are handled properly
- Product listings are accurate
- Shipping performance meets Amazon standards
If a supplier includes their own logo, invoice, or marketing insert, that can create compliance issues. If shipping is late or tracking is unreliable, your account health metrics are affected.
In other words, you cannot outsource accountability.
The Business Reality of Dropshipping on Amazon
Amazon highlights several advantages of dropshipping :
- Lower upfront costs
- No need to buy inventory in bulk
- Easier product testing
- Ability to scale without warehousing
But it also outlines real limitations:
- Slim margins due to competition
- Limited control over product quality
- Dependence on supplier performance
- Higher risk of negative reviews if fulfillment fails
Because Amazon’s marketplace is performance-driven, small operational issues can quickly escalate. Late shipment rate, order defect rate, and customer complaints directly impact your ability to continue selling.
Is It Legal and Profitable?
Amazon confirms that dropshipping is legal when you comply with applicable laws and marketplace policies.
Profitability depends less on the model and more on execution. Independent sellers account for a significant portion of Amazon’s total sales, and many operate successfully using various fulfillment strategies .
However, dropshipping often works best for:
- Product validation
- Testing new niches
- Minimizing capital risk early on
Many sellers eventually move toward Fulfillment by Amazon or hybrid models once they identify winning products.
Should You Use Dropshipping on Amazon?
Dropshipping can work on Amazon if you treat it as a controlled logistics strategy, not a hands-off shortcut.
Before choosing this model, consider:
- How much control you want over quality
- Whether your supplier can consistently meet Amazon’s shipping standards
- Your target margins after fees and advertising
- Your plan for handling returns and customer support
If your supplier is reliable and you monitor performance closely, dropshipping can operate within Amazon’s rules. If you rely on unverified suppliers or thin margins, risk increases quickly.
Final Takeaway
Amazon does not prohibit dropshipping. It permits it under clear conditions: you must be the seller of record and fully responsible for the customer experience .
The model is allowed. The accountability is non-negotiable.
For sellers who understand that distinction, dropshipping can be a valid strategy. For those who treat it as a way to avoid operational responsibility, it often leads to account issues.
