Amazon allows dropshipping only when it is clear to the customer that you are the seller of record. Your name must be the only seller name on packing slips, invoices and packaging, and you stay responsible for returns. Buying from a retailer and having it ship its own branded package to your customer is the pattern that gets accounts in trouble.
What does “seller of record” mean?
The seller of record is the business the customer sees as the seller: the one that takes the order, handles customer service and answers for returns. In a drop shipping setup, a supplier holds the stock and ships after you sell, but from the buyer’s side the sale is still yours.
An Amazon moderator’s post in the Seller Forums puts the rule this way: drop shipping is not an acceptable practice unless it is clear to the customer that you are the seller of record. The SellerSprite guide, reviewed on September 2, 2026 for the US marketplace, says the customer should see only your business, not another retailer, marketplace seller or supplier.
What must you do to stay inside the policy?
From the Amazon post, the “do” list is short:
- Have an agreement with your supplier under which you are the only seller of record and the only entity identified as the seller on packing slips, invoices and packaging.
- Remove any packing slips, invoices, packaging or other material that identifies a different seller or supplier before the order ships.
- Accept and process customer returns yourself.
- Follow the Business Solutions Agreement and Amazon’s other policies.
What is prohibited?
The same post lists two things as not allowed:
- Buying products from a third party, including Amazon or another seller, and having that party ship directly to your customer when you are not the identified seller of record, or when anyone else appears on the paperwork or packaging.
- Shipping orders with packing slips, invoices, packaging or other information showing a seller name or contact information other than yours.
SellerSprite adds a concrete example: buying from another retailer after an Amazon order and letting that retailer ship its branded parcel to the buyer. It also says Amazon states that violations may limit your use of Merchant Fulfilled Network, the program where you ship orders yourself.
Does the policy change who handles returns and support?
No. Both sources agree that the responsibility stays with you. SellerSprite stresses that supplier failures do not shift your duties on returns, customer service and compliance with Amazon policies and the law. If a supplier ships the wrong item or loses a parcel, the customer still blames your store.
How do you start safely, step by step?
This sequence follows the compliance-first workflow in the SellerSprite guide, with our comments on each step:
- Pick your operating model. Dropshipping, Fulfillment by Amazon (Amazon stores and ships your stock), merchant fulfilled or a mix. Dropshipping gives you the least direct control.
- Choose products a supplier can ship without special handling. SellerSprite suggests avoiding items that need temperature control, dangerous goods handling or complex installation.
- Check product rights and category eligibility before you list.
- Contract the supplier in writing. Cover identity on paperwork, service levels, how they warn you about problems and how changes get approved.
- Run test orders from end to end and repeat them after any supplier change.
- Build the listing and a margin model. SellerSprite says there is no separate dropshipping fee, so normal selling plan and referral fees still apply. For those numbers, see our guide to Amazon seller fees.
- Launch small, with written rules for when you pause listings.
What does it cost?
The sources do not give a dropshipping fee because none exists. Your costs are the Amazon selling plan, referral fees, the supplier’s price, shipping and surcharges, advertising, returns, refunds, support time and any software. Model a base case, a downside case and a break-even case before you scale, as the guide advises.
A quick example with made-up numbers to show the logic: if an item sells for $30 and the supplier charges $18 including shipping, you have $12 left before Amazon fees, ads and returns. If fees and a return allowance eat $8, only $4 remains per sale, and one refunded order wipes out the profit from three good ones. That is why supplier reliability matters more than the listing itself.
What commonly goes wrong?
SellerSprite lists these failure patterns: retail-branded parcels, unapproved product substitutions, stale inventory feeds, unclear return ownership and supplier changes nobody validated. Add tracking to your routine so you notice a late or wrong parcel before the customer complains.
Who should not use this model?
Avoid it if your supplier is a store that will not remove its branding, if you cannot control stock accuracy, or if you need strong quality control, since you never touch the product. If you want more control, compare it with other options in our look at how to sell on Amazon with the right fees in mind or at Walmart Marketplace requirements.
Frequently asked questions
Is dropshipping legal on Amazon?
Yes, under conditions. You must be the seller of record, with no other seller named on the paperwork or packaging.
Can I buy from another retailer and ship to my customer?
Not if that retailer is identified on the package or paperwork. Amazon’s moderator post calls this prohibited without exception when you are not the identified seller of record.
What happens if I break the policy?
The sources point to damage to account health and limits on Merchant Fulfilled Network. Check the current policy in Seller Central for details, because the forum post does not describe exact penalties.
Do I pay a special fee for dropshipping?
According to SellerSprite, no separate dropshipping fee exists. Normal plan and referral fees apply.
