How to Dropship on Amazon: 2025 Secrets to Success

Dropshipping lets you sell products without holding inventory. When someone places an order, your supplier ships it directly to the customer. For small businesses, it’s a low-risk way to start selling online, and learning how to dropship on Amazon can open the door to a massive customer base without the hassle of warehousing or fulfillment. That said, Amazon only allows dropshipping under strict conditions, and breaking the rules can put your account at risk.

In this guide, I walk you through how to start dropshipping on Amazon in 2025 the right way — from understanding platform policies to setting up your account, picking products, and finding reliable suppliers.

Step 1: Understand Amazon’s dropshipping rules

Before you start reaching out to suppliers or even choosing which products to sell, it’s important to understand how Amazon handles dropshipping. While Amazon does allow it, the company enforces a strict policy that you’ll need to follow closely. Violating these policies could result in losing access to your account or the ability to use the Fulfilled by Merchant (FBM) network.

At the core of Amazon’s dropshipping policy is this: you must be clearly identified as the seller throughout the entire customer experience.

What Amazon allows

If you want to dropship on Amazon the right way, you need to ensure:

• You are the seller of record on all invoices, packing slips, shipping labels, and any paperwork included in the package.
• All third-party branding is removed from shipments. That means no supplier logos, names, or contact info can appear anywhere in or on the package.
• You handle customer service and returns directly. Amazon wants the buyer to know who to contact, and that responsibility falls on you, not your supplier.

As long as the customer sees your business as the one fulfilling the order, you’re within Amazon’s guidelines.

What Amazon prohibits

In a nutshell, Amazon strictly forbids practices that introduce confusion about who is fulfilling an order. These are some common mistakes that violate policy:

• Buying from another retailer to fulfill Amazon orders. For example, if a customer buys from you on Amazon and you place the order on Walmart.com using their shipping details, that’s a clear policy violation, even if the product arrives on time.
• Allowing third-party names to appear on packing materials. Anything that mentions a different business, like a packing slip with another store’s logo, is not allowed.

These rules exist to ensure customers always feel like they’re buying directly from an Amazon seller, not getting rerouted through another marketplace.

Understanding and applying these rules correctly sets the tone for how you’ll build your dropshipping business. Now that you know what’s expected, your next step is setting up your Amazon Seller account so you can get your business officially up and running.

Step 2: Set up your Amazon seller account

Go to Seller Central and register for an account. Amazon has two types of seller accounts, Individual and Professional. To dropship, I recommend being under the Professional plan, which is $39.99/month. While technically you can start selling under an Individual plan, dropshipping automation tools require a seller to be under a Professional plan.

You’ll need:

• A government-issued ID (passport or driver’s license)
• Bank account info for payouts
• Tax info (like your EIN or SSN)
• Business info (if you’re registering as a company)

Sign-up took more or less 10 minutes for me. Ensure you have all the required information with you so it goes by faster. You can see the initial wizard below.

Build your seller profile. Add a logo, your business story, a customer support email, and your return policy — it builds trust.

Step 3: Choose a niche and find a winning product

Once your Amazon Seller account is ready, it’s time to decide what you’re actually going to sell. This is the foundation of your business — and probably the most important decision you’ll make. The goal here is to find a product that strikes the perfect balance between high demand, low competition, and good profit potential.

Start with a niche you understand

If you’re not sure where to begin, think about areas you already know something about or have an interest in. Whether it’s fitness gear, kitchen gadgets, home storage, or beauty tools, starting with a niche you relate to makes it easier to understand customer needs, evaluate products, and write compelling listings.

Historically, though, product categories like Home & Garden, Sports & Outdoors, Personal Care, and Office Accessories are great entry points. These tend to be lower maintenance and don’t come with a lot of regulatory red tape.

Find a winning product

Not every product will work for dropshipping. Focus on finding items with these characteristics:

• Strong demand: Look for items that sell at least 100 to 300 units per month.
• Low competition: Use filters in tools like Jungle Scout’s Opportunity Finder or AMZ Scout to focus on products with “very low” to “low” competition.
• Ideal pricing window: Aim for products priced between $20 to $70. This gives you room to absorb Amazon’s fees and still turn a profit.
• Evergreen: Choose products that sell year-round. Seasonal items can work, but they require careful timing and planning.
• Lightweight and easy to ship: Smaller products mean lower shipping costs and fewer complications during fulfillment.
• Problem-solving appeal: Items that address everyday pain points tend to convert well and attract strong reviews.

Do product research

You don’t need to guess. You can validate your ideas by taking a structured approach to product research. However, before you get too deep, I recommend going with a product that doesn’t require approval from Amazon. Some items — like collectibles, beauty tools, or anything with electronics — fall under restricted categories and can be a pain to get approved for.

If you’re not sure whether a product is restricted, log into Seller Central and try to add it to your inventory. Amazon will let you know if approval is required.

1. Use product research tools: Platforms like Jungle Scout, AMZ Scout, and Amazon’s Product Opportunity Explorer help you see actual sales trends and demand data.
2. Explore Amazon Best Sellers: Browse category and subcategory rankings to see what’s currently performing well.
3. Check competition levels: Count the number of sellers offering similar products, read through their reviews, and identify gaps or weaknesses you can improve on.
4. Do a margin check: Get pricing info from supplier catalogs or product databases, then compare that to current Amazon prices. Remember to factor in referral fees and fulfillment costs.
5. Inspect product quality: Always order samples, especially if you’re using a new or unknown supplier. Poor quality will come back to bite you in reviews.

If you need concrete ideas, I actually did all the steps I outlined here, so I can come up with a list of my recommended best products to sell on Amazon. Strange products actually sell, too — we also have a list of those in our article about the strangest things on Amazon that shoppers love.

Once you’ve narrowed it down to one or two solid product ideas, you’re ready to move forward with finding a reliable supplier. That’s where we’ll go next.

Step 4: Source a reliable supplier

After you’ve identified the product you want to sell, the next move is to find a supplier who can deliver it (literally). In dropshipping, your supplier is your silent business partner. They manage inventory, pack orders, and ship directly to your customers. If they drop the ball, your customers won’t blame them — they’ll blame you. That’s why reliability should be a priority characteristic of a supplier — they are the backbone of your operation.

Here’s a checklist of must-have qualities to look for when it comes to finding someone reliable:

• Fast, dependable fulfillment: Preferably US-based or able to offer fast shipping within the US. Although most dropshippers have historically sourced from China — particularly Alibaba and AliExpress —, the recent tariff war has made this setup uncertain and risky.
• No third-party branding: They must agree to ship orders without including their name, logo, or documentation. Only your brand should appear.
• Clear communication: You should be able to get timely responses and order updates.
• Consistent product quality: What customers see in your listing should match what shows up at their door.
• Transparent pricing: No hidden fees that eat into your margins.

You can find suppliers through two main channels: online platforms and offline networks. Online directories like DSers and AutoDS are commonly used by dropshippers for convenience and automation. DSers integrates with Shopify and AliExpress, making it ideal for streamlined product imports and fulfillment. AutoDS focuses on hands-off operations, offering automated pricing, inventory syncing, and order tracking.

Offline, you can explore trade shows and industry expos to meet suppliers face-to-face, see their products in person, and negotiate directly. Visiting wholesale markets is another hands-on way to assess inventory quality and speak with vendors. Finally, don’t overlook local business associations or peer referrals; some of the most dependable suppliers come from trusted word-of-mouth connections.

Before committing to any supplier, take time to verify their legitimacy and reliability. Start by requesting references, preferably from other Amazon sellers, to get a sense of their track record. Confirm that the supplier is properly registered and licensed to operate, especially if you’re entering into a formal agreement. While you don’t need to complete all of these steps, skipping supplier vetting entirely leaves your business exposed to quality issues and delivery delays.

Once you’ve identified a trustworthy partner, negotiate terms that protect your margins and your customer experience. Clarify pricing, including any volume-based discounts, and make sure they can meet Amazon’s standards for fulfillment speed and labeling. Establish a clear understanding of how returns and refunds will be handled, and confirm that the supplier is willing to ship using neutral packaging or your branded materials if needed.

Step 5: Create and optimize your product listing

With a reliable supplier secured, it’s time to bring your product to life on Amazon. Your product listing is the digital storefront that customers see first, and often, it’s the only shot you have to win the sale. A strong listing doesn’t just describe your product; it sells it.

To get started, log in to Amazon Seller Central and go to Inventory > Add a Product. From there, you’ll either match an existing listing (if the product is already sold on Amazon) or create a new one from scratch. For a new product, Amazon will ask you to choose a category and input all the key details.

When building your listing, focus on these essentials:

• Title: Make it clear, keyword-rich, and informative. Instead of “Rechargeable Hand Warmer,” write something like “USB Rechargeable Hand Warmer for Outdoor Camping & Hiking.”
• Images: Use high-resolution images (at least 1000px) that show the product from multiple angles, in use, and with clean backgrounds.
• Bullet points: Highlight benefits, not just specs. For example, “Heats up in 3 seconds,” says more than “3.7V battery.”
• Description: Expand on features, use cases, and anything else a customer might ask. Keep it easy to scan.
• Pricing: Base your price on competitor listings, your margin, and perceived value. Don’t just race to the bottom.

When sourcing products, your supplier will have their own product description in their listing. Do not just copy and paste the information provided by the supplier — I have personally seen this a lot in Amazon products. Create quality product listings because a well-optimized listing builds trust, drives clicks, and converts browsers into buyers. It’s also essential groundwork for the next step: driving traffic.

Step 6: Market and promote your listings

Once your product listing is live, don’t expect Amazon to do all the work. Yes, Amazon has a massive audience, but it also has massive competition. To stand out, you need to actively market your products and drive targeted traffic to your listings. Here are some ways to promote your listings:

• Run Sponsored Product ads: These pay-per-click (PPC) ads appear in Amazon search results and help your listings gain visibility fast. You choose keywords, set your budget, and only pay when someone clicks — ideal for boosting exposure on new products.
• Optimize for Amazon SEO: Improve your organic rankings by using relevant keywords in your product title, bullet points, and backend fields. Focus on clarity and relevance — Amazon rewards listings that perform well, not ones that are keyword-stuffed. Learn more about Amazon SEO strategy.
• Use A+ Content (for brand-registered sellers): A+ Content lets you upgrade your product page with enhanced visuals, lifestyle images, comparison charts, and formatted text. This can improve customer engagement and conversion rates by making your listing more informative and appealing.

Beyond Amazon, consider external marketing strategies:

• Promote your product on social media to build buzz.
• Collaborate with influencers in your niche who can review or feature your product.
• Build an email list by linking your Shopify store (if you use one), allowing you to drive repeat traffic and sales over time.

How much does it cost to dropship on Amazon?

One of the biggest advantages of dropshipping with Amazon is that you don’t need to buy inventory upfront. Instead, you only pay your supplier after a customer places an order and pays you. That said, there are still a few key startup and operational costs to factor in.

• Amazon seller account fees: Amazon offers two main account options. The Individual plan charges $0.99 per sale, while the Professional plan costs $39.99 per month and is more cost-effective if you sell more than 40 products per month. The Professional plan also includes additional features for scaling your business.
• Amazon referral fees: The Amazon referral fee is a commission Amazon charges sellers for each item sold through their platform. This fee is based on the total sale price, including the item price, shipping, and any gift-wrapping charges. The referral fee varies depending on the product category but typically ranges between 8% and 15%. For most categories, the fee is 15%. Each product category has a minimum referral fee per item, which is usually around $0.30. Read our comprehensive guide on Amazon seller fees to learn more.
• Product and shipping costs: You will need to pay your supplier for each product sold, which includes the price of the product and any shipping fees from the supplier to the customer. These costs are deducted from the product selling price on Amazon and paid when the product is sold. The rest is your revenue.
• Other potential costs: Additional expenses might include product sourcing tools, which are essential for finding profitable products. You may also need to budget for prep center fees (optional) and other business-related expenses, depending on your specific needs.

Here’s a practical example: The Fullstar Vegetable Chopper sells on Amazon for $29.97, while a nearly identical version can be sourced from AliExpress for around $15, including shipping. After accounting for Amazon’s 15% referral fee (approximately $4.50), you’d net about $10.47 in profit per unit. This illustrates how careful product selection and cost control can make Amazon dropshipping a viable and profitable model.

• Amazon selling price: $29.97
• AliExpress supplier cost: $15.00 (including shipping)
• Amazon referral fee (15%): $4.50
• Estimated profit per sale: $10.47

If you make 50 sales in a month, you’d earn around $523.72 in gross profit, minus your subscription and any tool or ad costs.

Tips for success with dropshipping on Amazon

Creating a dropshipping business on Amazon may be simpler than other fulfillment methods, but succeeding with it takes more than just listing a product. You’re competing in a crowded marketplace, often with identical items and slimmer margins, so your edge must come from execution, service, and branding. Below are actionable tips to help you stay competitive and compliant as you grow your store.

1. Make sure you’re the seller of record

This is non-negotiable: Amazon requires that you be clearly identified as the seller on every packing slip, invoice, and communication that accompanies an order. You must remove any mention of your supplier from the packaging and documentation. Work only with vendors who understand and comply with Amazon’s dropshipping policies, and ask to see shipment histories or references from past Amazon sellers as proof.

2. Select products with care and order samples

Avoid fragile, perishable, or high-risk items like hazmat or temperature-sensitive goods. Since you can’t customize packaging or add inserts with most dropshipping models, choose products that don’t rely on presentation to deliver value. Use tools like Jungle Scout to validate demand and check whether certain products require Amazon approval before listing.

Before you list a product, order it yourself (ideally without identifying yourself as a seller). Evaluate the packaging, delivery speed, and actual item quality. This firsthand insight helps you write better listings and set realistic expectations for your customers.

3. Get proof of authorization

Don’t skip supplier verification. Ask to see invoices, brand authorization letters, or proof of purchase channels, especially if you’re selling branded goods. If the supplier can’t provide them, look elsewhere; unauthorized products can get your listings removed or your account flagged.

4. Promote your listings

Amazon isn’t a “set it and forget it” platform. Use Sponsored Product ads (PPC) to push your listings higher in search results, especially during launch. For external traffic, consider social media, Facebook ads, influencer outreach, or even a simple blog — just note that these take longer to build and may require an upfront investment in branding.

5. Focus on customer experience and set up systems

With dropshipping, you’re free from warehousing and fulfillment, so reinvest that time into customer service. Fast responses, friendly communication, and clear return instructions are all critical for getting positive reviews. Don’t wait until an issue arises. Build a system for handling refunds, returns, and inquiries — either on your own or with your supplier’s support. Make sure the dropshipper can meet Amazon’s expectations for speed, documentation, and transparency.

6. Build a brand, even if the product isn’t unique

You may be selling the same item as ten other sellers, but that doesn’t mean your brand has to feel the same. Emphasize quality, customer support, or lifestyle alignment. Buyers often choose products based on emotional connection and brand trust, even when there are cheaper alternatives available.

7. Cast a wide net, but stay organized

One of the biggest advantages of dropshipping is that you can test multiple products without upfront inventory costs. List a few at a time, track their performance, and drop underperformers quickly. As long as you stay compliant with Amazon’s policies, this lean testing approach is a great way to find what sells.

Frequently asked questions (FAQs)

Click through the questions below to get answers about how to start dropshipping on Amazon.

Is dropshipping allowed on Amazon?

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Bottom line

Dropshipping on Amazon is absolutely possible, but only if you follow the platform’s rules closely. It’s not the simplest business model — margins can be tight, and competition is high — but with the right setup, it can be a profitable way to build or expand your online business. Start small, stay compliant with Amazon’s dropshipping policies, and use performance data to guide your next steps as you grow.

Ready to start dropshipping on Amazon? Set up your Amazon Seller account today and begin building your business the right way.