Drop shipping suspensions on Amazon.com
Drop shipping, or allowing a 3rd party to fulfill orders to customers on your behalf, is generally acceptable on Amazon.
Amazon drop-shipping suspensions on sellers for dropshipping directly from places like Sam’s Club/Walmart directly to customers. We want to give you a heads up that this might be your time to change your business strategy because it seems like Amazon is continuously going to crack down harder and harder on anyone they feel is violating their dropshipping policy.
In order to avoid Amazon drop-shipping suspensions, you must always:
Be the seller of record of your products.
Identify yourself as the seller of your products on all packing slips, invoices, external packaging.
Remove packing slips, invoices, external packaging, or other info. identifying a 3rd party drop shipper prior to shipping.
Be responsible for accepting and processing customer returns of your products.
Comply with all other terms of your seller agreement and applicable Amazon policies.
Examples of drop shipping not permitted on Amazon:
Purchasing products from another online retailer and having that retailer ship directly to customers.
If the shipment doesn’t identify you as the seller of record or if anyone other than you (including the other online retailer) appears on packing slips, invoices or packaging.
Shipping orders with packing slips, invoices, external packaging, or other information indicating a seller name or contact information other than your own.
Do not have Walmart / Best Buy / another retailer’s packaging sent to consumers.
What sellers need to know about Amazon drop-shipping suspensions in 2021
We’re talking about Amazon drop shipping suspensions because it has been a hot topic. A lot of Amazon sellers are dropshippers and we actually see a lot of clients who are dropshippers. So we’re going to go around the room at Amazon Sellers Lawyer and get everyone’s opinion on it. < WATCH NOW >
If you’re drop shipping on Amazon, make sure you have the ability to obtain invoices that predate when you shipped your goods / predate that consumer’s order of your goods so you can justify your sales to Amazon and keep selling your products. < MORE >
If you’re an Amazon seller and you’re drop shipping, be super careful because Amazon’s rules are so strict when it comes to drop shipping that you can’t farm it out to other people and not keep your hands on it. You certainly don’t want to send anybody $25,000 to create an account that you can create for free. < MORE >
There are various ways of running a legitimate drop-shipping business on Amazon:
We have seen many clients who drop ship and we also have seen various ways of how that is done, but commonly, what sellers do is they will have an extended period of fulfillment in order to actually source the products after receiving an order on Amazon. Thus, the advantages are that you don’t have to hold a large inventory.
A common issue we see is during the busy seasons. If there’s an issue within the supply chain, even if you have an extended fulfillment period, you will encounter problems with sourcing products and fulfilling orders on time. This will contribute to negative feedback, but also to a high order defect rate (ODR) which is enforceable by Amazon.
Another advantage of having a drop-shipping business is that you’ll be able to offer a much larger selection of products to customers.
This is good because you’re able to diversify what you’re selling. However, you may encounter problems, and this is commonly seen in listing management. A lot of times having a large selection of listings means that you’ll have a higher chance of receiving various complaints. Due to the number of listings, a seller might not be able to evaluate all of them often. This contributes to restricted product listings, joining duplicate listings that receive IP complaints, or causing the seller to join listings that’s not formatted property according to Amazon.
There’s many ways to receive complaints, but mainly it’s because of the large number of listings drop-shippers have in their catalog.