How to Dropship on Amazon

Amazon is one of the largest online marketplaces in the world, attracting millions of customers across a vast range of categories. For ecommerce sellers in the UK, it represents a powerful platform to reach buyers without the need to build an independent online store from scratch. While many sellers use Amazon to distribute products held in their own warehouses, others are drawn to the possibility of running a leaner operation through drop shipping. But how exactly does drop shipping work on Amazon, and what does it take to run this model successfully?

Drop shipping on Amazon is not as simple as listing third-party products and forwarding orders. The platform has strict policies in place that regulate how drop shipping can be used. Sellers must understand and follow these policies closely to avoid account suspension or removal of listings. This article explores how to drop ship on Amazon, what is permitted under their rules, how to choose suitable suppliers, and the steps required to build a compliant and profitable drop shipping business.

Understanding Amazon’s Drop Shipping Policy

Amazon does allow drop shipping, but only under specific conditions. Sellers must be the official seller of record for the product. This means your name or business must appear on invoices, packaging slips and any other documents included with the order. You are also responsible for all aspects of the transaction, including returns, customer service and compliance with UK consumer laws.

Amazon strictly prohibits drop shipping from other online retailers. Listing a product from another ecommerce site and having that retailer fulfil the order is not allowed. Doing so can result in immediate suspension. The policy is designed to protect the customer experience, ensuring that buyers receive consistent service and packaging aligned with Amazon’s standards.

To comply with Amazon’s drop shipping policy, sellers must ensure that the supplier ships orders under their business name and does not include any third-party branding. You must also be able to process returns according to Amazon’s requirements and respond quickly to customer enquiries. In short, you must operate as the true retailer, not as a reseller of another brand’s customer service or logistics system.

Setting Up Your Amazon Seller Account

To start drop shipping on Amazon, you will need to create a professional seller account. This account type comes with a monthly fee but provides access to essential tools such as inventory management, detailed analytics and eligibility for the Buy Box. Once registered, you will need to provide accurate business information, set up payment methods and confirm your identity.

You must also set up your shipping settings, tax information and return address. If you are using a supplier to fulfil orders, it is essential that they can deliver products within the delivery windows you promise to customers on your listings. You should avoid over-promising, as delayed deliveries can negatively affect your account health.

Your seller performance will be monitored through metrics such as order defect rate, late shipment rate and customer feedback. These indicators influence your visibility in search results and eligibility for promotional placements. Consistently poor performance can lead to listing restrictions or account suspension, so it is important to manage fulfilment with precision.

Finding the Right Suppliers for Amazon Drop Shipping

Not all suppliers are suitable for use on Amazon. Your supplier must agree to ship products with your business name on the packaging and exclude any branded materials or invoices from their own company. This is often referred to as blind shipping or white label fulfilment. You will need a written agreement with the supplier confirming that they can meet Amazon’s requirements.

Working with UK-based or EU-based suppliers is often preferable for Amazon drop shipping, as it reduces delivery times and minimises customs issues. Suppliers who integrate with order management software can streamline the fulfilment process and reduce the risk of delays. You should also test your suppliers thoroughly before scaling your product range. Place a sample order, assess the quality of the product and evaluate how well they meet the delivery promises.

Some sellers build direct relationships with manufacturers or wholesalers who are willing to drop ship and support Amazon sellers. Others use supplier platforms with dedicated integration options, but it is crucial that these suppliers understand Amazon’s drop shipping policies. Always avoid suppliers who also sell on Amazon themselves, as you may be competing directly with your source.

Creating Optimised Product Listings

Product listings on Amazon must meet specific formatting standards and content guidelines. Listings should include a clear and concise title, bullet point features, a detailed product description and at least one high-resolution image. However, to stand out in a competitive marketplace, you must go beyond the basics.

Focus on search terms that your customers are likely to use. This involves keyword research and a deep understanding of your product category. Avoid keyword stuffing, but ensure that relevant terms appear naturally throughout your title and product copy. Images should be clear, well-lit and showcase the product from multiple angles. If your supplier provides generic images, consider creating your own to add a layer of differentiation.

Your product price, delivery time and seller rating will influence whether your listing wins the Buy Box. This is the default option customers see when they click "Add to Basket", and it significantly increases the likelihood of a sale. To be eligible, you must offer competitive pricing, fast fulfilment and excellent customer service.

Processing Orders and Managing Fulfilment

When an order is placed through your Amazon store, it is your responsibility to ensure that it is passed promptly to your supplier and shipped within the promised timeframe. Most sellers use order management tools to automate this process. These systems help track orders, update stock levels and upload tracking information directly to Amazon.

You must ensure that your supplier confirms shipment and provides tracking numbers as soon as possible. Orders that are not marked as shipped within the required timeframe can damage your seller metrics. If a customer contacts you about a delay or issue, you are expected to respond quickly and provide a resolution.

Returns are another key area of responsibility. Amazon’s policies require sellers to offer a return address in the UK or cover the return shipping costs. You must work with your supplier to determine how returns will be handled, whether items will be restocked, and how refunds will be processed. Failing to manage returns correctly can result in account warnings or loss of selling privileges.

Staying Compliant and Building Trust

Amazon has strict seller standards, and maintaining a high level of performance is essential for long-term success. You must respond to all customer enquiries within 24 hours, provide tracking information for all shipments and resolve complaints swiftly. Keeping your account health in good standing requires regular attention and a proactive approach to customer service.

Transparency is key. Product descriptions must be accurate, and any limitations or variations in the product should be clearly stated. Avoid exaggerating product benefits or making unsupported claims. Misrepresentation can result in negative reviews, refund requests and penalties from Amazon.

Your seller rating is public and significantly influences buyer decisions. Encourage satisfied customers to leave reviews, but never offer incentives or manipulate feedback. Building trust on Amazon is a long-term strategy, and ethical practices are rewarded with greater visibility and buyer loyalty.

Scaling Your Amazon Drop Shipping Business

Once your processes are running smoothly, you can begin to scale your drop shipping business. This might include expanding into new product categories, introducing private label products or improving automation. Many sellers use third-party software to manage large inventories, monitor price changes and automate fulfilment workflows.

Some drop shippers eventually move to holding stock or using Amazon’s own fulfilment service, known as Fulfilment by Amazon. This hybrid model can improve delivery times and access Prime customers, while still maintaining the lean benefits of drop shipping in the early stages.

Scaling also means investing in your brand presence, product photography and customer experience. The more you can differentiate your listings and provide genuine value, the more likely your business is to thrive on Amazon’s platform.