How to Dropship on Amazon: 2025 Guide

Looking for a cost-effective way to start selling on Amazon? Consider dropshipping on Amazon! This method allows you to sell products without the need for upfront inventory purchases.

What is Dropshipping?

Dropshipping is an ecommerce fulfillment method where sellers outsource order fulfillment without holding inventory. When a customer places an order, the supplier, manufacturer, or distributor ships the product directly to the customer. Dropshippers rebrand the goods as their own, and the end consumer remains unaware that the products come directly from the manufacturer. This practice is popular on platforms like Amazon, eBay, and Shopify.

Is Dropshipping Allowed on Amazon?

Yes, dropshipping is allowed on Amazon, provided you adhere to Amazon's dropshipping policy. This policy outlines the guidelines you must follow to keep your selling account in good standing. You can review Amazon's dropshipping policy here.

How Dropshipping on Amazon Works

1. An Amazon customer purchases the product you’ve listed.
2. Once the transaction is finalized and you receive the funds, you purchase the product from the supplier and provide them with the customer’s information.
3. The supplier then ships the product directly to the customer.

How to Dropship on Amazon in Four Steps

Step 1: Set Up an Amazon Selling Account

Start by creating an Amazon selling account. Your Seller Central account provides access to tools and dashboards essential for starting in ecommerce and growing your brand. You can start creating your Amazon seller account here.

Step 2: Find a High-Demand/Low-Competition Product

Next, identify a product to sell on Amazon. Look for products that have high demand but low competition to increase your chances of success.

Step 3: Find a Dropshipping Supplier

Once you have product ideas, find a reliable dropshipping supplier. Aliexpress is a popular business-to-business website connecting ecommerce entrepreneurs with suppliers willing to dropship goods. Search for your desired product on Aliexpress to find various options. Be aware that while Aliexpress offers many products, most come from China, resulting in longer shipping times. Amazon shoppers typically expect delivery within 1-2 days, so long shipping times can be a deterrent.

Consider searching for local suppliers, such as US-based ones, who offer dropshipping for certain products. Spend time finding these suppliers to improve your shipping times. Ensure that any supplier you choose agrees not to ship orders with their company information, as this is prohibited by Amazon.

Step 4: List Products, Track Orders, and Grow Sales

Create listings for the products you want to sell or match offers to existing listings on Amazon. Use Amazon's selling resources to boost conversions. From your Seller Central account, navigate to Inventory > Add a Product. Click “Create a new product listing,” choose your product category, and fill out the listing information.

When setting a price for your dropshipped product, remember to account for Amazon’s fees. Professional sellers pay a referral fee of 8-15% depending on the category, while individual sellers pay an additional $1.00 per sale. You can learn more about Amazon’s fees by category on their Selling on Amazon fee schedule.

Once you’re ready, publish your listing and start making sales.

Amazon Dropshipping FAQs

Is Amazon Dropshipping Profitable?

Dropshipping can be a profitable business model. Many entrepreneurs earn substantial income from dropshipping on Amazon. However, success in this competitive industry depends on identifying a profitable niche, sourcing quality products, and effectively marketing your business.

Can You Dropship for Free on Amazon?

Selling on Amazon, including dropshipping, requires an Amazon seller account. The Professional selling plan costs $39.99 per month, while the Individual selling plan costs 99¢ per unit sold. Additional costs may include seller fees, closing fees, and high-volume listing fees, depending on your business specifics.

Is Dropshipping with Amazon Risky?

Dropshipping has unique considerations. Review Amazon’s dropshipping policy and understand the potential pros and cons before getting started. This knowledge will help you navigate the risks and maximize your chances of success.

By following these steps and guidelines, you can start dropshipping on Amazon and build a successful ecommerce business in 2025.