Amazon dropshipping is a business model where sellers list products on Amazon without holding any inventory. When a customer places an order, the seller purchases the item from a third-party supplier, who ships it directly to the customer. The seller profits from the difference between the selling price and the supplier’s price.
While the concept sounds simple, Amazon has strict rules regarding dropshipping. You must ensure that you are the seller of record, remove any third-party logos or packaging, and take full responsibility for returns and customer service. Violating these rules can lead to account suspension.
The advantage of Amazon dropshipping is access to millions of active buyers. However, the competition is fierce, and profit margins can be slim. Success requires choosing high-demand, low-competition products, optimizing listings with strong keywords, and maintaining excellent seller performance metrics.