As you know, Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.
Amazon has strict policies in place to ensure that products sold on its platform are authentic and that customers receive a high-quality shopping experience. Dropshipping can often result in delayed or poor-quality shipping and customer service, which can harm Amazon’s reputation.
Dropshipping may not be a suitable business model for meeting Amazon’s high standards, which include a less than 1% order defect rate and on-time delivery at least 97% of the time. It can be difficult to ensure product quality and timely delivery when using dropshipping, which can lead to performance violations and the risk of losing your store. If dropshipping is not feasible for meeting Amazon’s performance metrics, it may be necessary to consider a different business model.
However, Amazon does allow businesses to use its Fulfillment by Amazon (FBA) program, which is similar to drop shipping in some ways. With FBA, businesses can send their products to Amazon’s fulfillment centers, and Amazon handles the storage, shipping, and customer service for those products.
If you decide to take the risk and do dropshipping anyway, here are some tips for avoiding negative consequences for your metrics or Seller Account suspensions:
1.Understand Amazon’s policies regarding dropshipping
· Seller (Dropshipper) must make sure that Amazon give prime importance to customer and built its entire reputation on delivering affordable and high-quality products quickly.
· Amazon’s dropshipping policy allows it but expects sellers to be accountable to customers and maintain Amazon’s customer-obsessed reputation.
· Amazon requires the seller to be the record seller of any product sold, which makes drop shipping difficult as traditionally, the dropshipper is not the seller of record.
2.Carefully select your suppliers
· Dropshipping can be profitable but you must choose your supplier carefully.
· As the seller of record, your store’s profits depend on your shipper meeting Amazon’s requirements.
· If your supplier won’t identify you as the seller of record or fails to meet Amazon’s requirements, it increases your likelihood of suspension.
3.Don’t forget to monitor your performance metrics
· Key Amazon account metrics to pay attention to include OTD, ODR, VTR, and CR.
· Outsourcing fulfillment doesn’t mean outsourcing responsibility for your account’s health.
· Enrolling in an Account Monitoring Service can provide peace of mind and professional expertise in navigating Amazon’s policies and metrics.
4.Immediately stop dropshipping after the first warning
· If you receive a warning from Amazon regarding dropshipping, don’t risk a suspension and immediately stop with the practices.
Here you can view an example of a warning from Amazon once they detected dropshipping violations:
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