Table of Contents
What is Amazon Dropshipping?
Amazon dropshipping is an online business model where you sell products without storing inventory. Instead of keeping stock, you purchase items from a supplier who ships them directly to customers. This method allows you to start a business with low upfront costs.
How Amazon Dropshipping Works
- Find a Product to Sell – Choose a trending or high-demand product.
- List the Product on Amazon – Add it to your Amazon store at a marked-up price.
- Customer Places an Order – When someone buys, you forward the order to your supplier.
- Supplier Ships the Item – The supplier fulfills the order directly to the customer.
- You Keep the Profit – Your profit is the difference between the selling price and supplier cost.
Amazon’s Dropshipping Policy: What’s Allowed & What’s Not
Amazon allows dropshipping but with strict conditions:
✅ The seller must be responsible for returns and customer service.
✅ The seller must be the official seller on record.
❌ You cannot use suppliers that ship with invoices, packing slips, or branding from another retailer.
❌ Retail arbitrage (buying from Walmart or Target and reselling on Amazon) is against Amazon’s policy.
Violating these rules can lead to account suspension or bans, so compliance is essential.
Is Amazon Dropshipping Still Profitable in 2025?
Yes, but it’s not as easy as it used to be. Success depends on the right strategy, choosing high-demand products, and working with trusted suppliers.
Pros of Amazon Dropshipping
- Low Startup Cost – No need for bulk inventory.
- No Need for Warehousing – Suppliers handle storage and shipping.
- Scalability – You can test different products without financial risk.
Cons of Amazon Dropshipping
- Low-Profit Margins – Due to fees, competition, and price wars.
- Strict Policies – One violation can result in account suspension.
- High Competition – Many sellers competing for the same products.
How to Find the Best Dropshipping Products on Amazon
To maximize success, focus on winning products with high demand and low competition. Use tools like Jungle Scout, Helium 10, or AMZScout to research trends.
Winning Product Criteria:
✔ High Demand – At least 300+ monthly sales.
✔ Low Competition – Fewer competing sellers and low Amazon brand presence.
✔ Good Profit Margin – Aim for at least 30% profit after fees.
✔ Lightweight & Easy to Ship – Avoid fragile or oversized items.
Choosing the Right Suppliers for Amazon Dropshipping
The success of your Amazon dropshipping store depends on reliable suppliers. The best suppliers provide fast shipping, quality control, and competitive pricing.
Top Supplier Options
- AliExpress – Large selection but slow shipping.
- CJ Dropshipping – Faster shipping than AliExpress.
- Wholesale Suppliers – Better quality control and bulk discounts.
- Print-on-Demand – Custom-branded products with no inventory.
Pro Tip: Use Amazon’s Fulfillment by Amazon (FBA) if you want faster shipping and better customer service, but this requires bulk purchases.
Final Thoughts: Is Amazon Dropshipping Right for You?
Amazon dropshipping can still be profitable, but it requires smart product selection, supplier vetting, and compliance with Amazon’s policies. If you’re willing to invest time in research and optimization, it can be a great online business model.
Frequently Asked Questions
1. Can you still make money with Amazon dropshipping in 2025?
Yes, but success requires choosing the right products, following Amazon’s policies, and managing competition effectively.
2. Is dropshipping allowed on Amazon?
Yes, but you must comply with Amazon’s strict dropshipping policies to avoid getting banned.
3. What is the best alternative to Amazon dropshipping?
Shopify dropshipping gives you more control over branding, pricing, and customer service compared to Amazon.
4. How much money do you need to start Amazon dropshipping?
You can start with as little as $100, but having $500–$1,000 helps cover advertising and initial product testing.
5. How do you find reliable Amazon dropshipping suppliers?
Use platforms like AliExpress, CJ Dropshipping, or wholesale directories to find reliable suppliers with fast shipping and good reviews.
