Amazon's Dropshipping Policy: What You Need to Know to Stay Active

Amazon's dropshipping policy is a frequent source of confusion and frustration for sellers. While the practice is not entirely prohibited, Amazon has very strict rules about how it must be done. A dropshipping violation often leads to an account suspension, and appealing these can be particularly challenging without a complete understanding of Amazon's rules and expectations.

Amazon's policy states that you are the seller of record for all products. This means that you, not your supplier, must be identified as the seller on all packing slips, invoices, and external packaging. You are also responsible for accepting and processing customer returns. A dropshipping suspension typically occurs when a customer receives a product with a third-party seller's invoice or logo on the packaging, or when Amazon detects a breach of their policy through their own internal systems. The core issue for Amazon is maintaining a consistent and reliable customer experience, and an unbranded or third-party package violates that trust.

When you receive a dropshipping suspension notice, your immediate action must be to stop dropshipping and to thoroughly review Amazon's policy to understand your specific violation. The key is to be completely honest about your business model and to prove that you are taking steps to come into full compliance. The process requires you to craft a detailed Plan of Action (POA) that addresses the violation directly and clearly.

Your POA for a dropshipping violation must be a comprehensive document built on three key parts. You must first identify the root cause of the violation and take full responsibility for not adhering to Amazon's policy. Second, you must detail the immediate actions you have taken to correct the issue. This would include ending your relationship with the non-compliant supplier, closing any violating listings, and auditing your inventory to ensure there are no other policy breaches. Finally, you must outline the preventative measures you will implement to ensure you are in full compliance with the dropshipping policy going forward. This might involve only working with suppliers who agree to use your branding on all packaging, creating a new quality control checklist for all orders, or transitioning your business model to a more compliant fulfillment method.

Navigating a dropshipping suspension requires a clear and honest approach. A generic or misleading appeal will almost certainly be rejected by Amazon. If you are unsure how to articulate your plan to come into compliance with Amazon's strict policies, a professional can help you craft a persuasive POA that Amazon will accept.

Dealing with a dropshipping suspension? Don't risk your business by submitting a flawed appeal. Schedule a free, 30-minute consultation with our experts to get a clear, compliant plan for reinstatement.