Drop shipping has been a hot topic on the Seller Forums, and for good reason. It can be a useful way to start an Amazon business, but it's easy to do it incorrectly - which can lead to serious consequences.
First, what is drop shipping? Drop shipping on Amazon refers to using a third-party to fulfill orders to customers on your behalf. The key thing for sellers to know is that drop shipping is only allowed if you are clearly identified as the seller of record.
The Do List for Drop Shipping on Amazon:
- 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 supplier before shipping the order.
- Remain responsible for customer returns and always comply with the Business Solutions Agreement (BSA) and applicable Amazon policies.
The Don't List for Drop Shipping on Amazon:
- Purchase products from a third party (including Amazon or another seller) and have them ship directly to customers, unless you are identified as the seller of record.
- Ship orders with any packing slips, invoices, or packaging that indicates a seller name or contact other than your own.
Be sure to check out the drop shipping video in Seller University for more details on how to properly drop ship on Amazon, as well as the consequences of not following the rules. Sound off in the comments below if you have additional thoughts or questions!
