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Amazon drop shipping policies: The dos and don’ts you need to know

by Bryce_Amazon

Drop shipping has been a hotly debated topic here on the Seller Forums. And there’s good reason. It’s a popular concept and can be a good way to jump start your business, but it’s easy to do it incorrectly—which can lead to serious consequences.

Today let’s explore drop shipping business models and policies via some dos and don’ts.

But first--what is drop shipping, exactly?

Drop shipping on Amazon refers to the process of allowing a third-party to fulfill orders to customers on your behalf. The main point for sellers to know is that drop shipping is not an acceptable practice unless it’s clear to the customer that you’re the seller of record.

With that in mind, let’s review the key dos and don’ts every seller must keep in mind in order to comply with Amazon’s Drop Shipping policy.

Drop shipping: the DO list

If you intend to fulfill orders using another company’s fulfillment service, a third-party logistics company, or a drop shipper, you must always:

  • 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 third-party supplier prior to shipping the order.

Drop shipping: the DON’T list

Examples of Amazon Drop Shipping Policy violations include:

  • Purchasing products from a third party, including Amazon or another seller in Amazon’s stores, and having that third party ship directly to customers, if the shipment does not identify you as the seller of record or if anyone other than you (including the third party) appears on packing slips, invoices, or external packaging, it is strictly prohibited without exception.
  • Shipping orders with packing slips, invoices, external packaging, or other information indicating a seller name or contact information other than your own is also strictly prohibited.

Be sure to check out the drop shipping video in Seller University for more information on how to appropriately drop ship on Amazon—as well as the repercussions if you don’t.

Tags: Dropship
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Seller_CW0P5hgbsiqWX
In reply to: Bryce_Amazon's post

Stated very clearly and organized.

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Seller_LyYw7fQRKc5G7
In reply to: Bryce_Amazon's post

Well done, @Bryce_Amazon

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Seller_hB7z6KRp3zrRU
In reply to: Bryce_Amazon's post

Now we just need Amazon to enforce it's own policy. But they won't because they need the double commissions. There are MANY instances of Amazon giving the Buy Box to a dropshipper who in turn buys the item from a legitimate seller at a much lower price than the Buy Box.

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Seller_Qbd0RsfZFEZBY
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Bryce_Amazon
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Drop shipping on Amazon refers to the process of allowing a third-party to fulfill orders

This is where the confusion is and what gets so many in trouble.

Done correctly you can fullfil orders by drop shipping from your source.

You cannot use source by drop shipping from other retailers. That is arbitrage

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Seller_jFXJndTnuei2a
In reply to: Bryce_Amazon's post

Ok , I am understand .

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Seller_PhyXVPY6rMl4L
In reply to: Bryce_Amazon's post

Thanks. Very clear to understand.

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Seller_PhyXVPY6rMl4L
In reply to: Bryce_Amazon's post

So I have a question, if I ship all my orders via FBA, and then there will be zero potential drop shipping violention happened, is that correct?

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Seller_aUbEyzlSSnsDJ
In reply to: Bryce_Amazon's post

so, if I drop a box, I can still ship it. LOL could not help myself. All good advise.

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Seller_pPJq5hFWVCV7P
In reply to: Bryce_Amazon's post

Are shipping in boxes that come from.USPS, UPS or FedEx while it has there name on the box would this be acceptable?

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Seller_83SPFXu5ReTeS
In reply to: Bryce_Amazon's post

For me it is simple. I just send everything into Amazon FBA and let them ship it all for me. I have never sold anything that I did not own, but shipping daily got really old so I just sent everything into Amazon and let them ship it all for me. Never even thought about using a third party for my stuff.

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