Before discussing the actual topic, let’s talk about something very important. Do you really know which selling models are accepted on Amazon and which are not? If no, then it’s the perfect time to get to know Amazon and make sure you’re not violating its policies!
Is Drop Shipping Allowed?
Yes and no, it depends! If you look at what Amazon says, you will get the impression that drop shipping is not only allowed, but also admired on the platform. However, we warn you, it’s not! Amazon only says that it’s generally acceptable and nothing more! Here’s what Amazon says: “drop shipping, or allowing a third-party to fulfill orders to customers on your behalf, is generally acceptable.”
However, Amazon also talks about certain business operations that are also considered drop shipping but are not acceptable on Amazon. These options are:
- “Purchasing products from another online retailer and having that retailer ship directly to customers, if the shipment does not identify you as the seller of record or if anyone other than you (including the other online retailer) appears on packing slips, invoices, or external packaging”
- “Shipping orders with packing slips, invoices, external packaging, or other information indicating a seller name or contact information other than your own.”
What’s So Bad About Drop Shipping?
- Well, the first thing that makes drop shipping one of the worst selling models for Amazon sellers is the approach the platform has towards it! Numerous sellers found their accounts deactivated because of that! And you know why? Because they were not the seller of record, they simply didn’t identify themselves as the sellers of products on packing slips, invoices, external packaging, and other information, and they were not responsible for accepting and processing customer returns of their products.
- Another issue concerns the control you have (or don’t) over your business. Many sellers create their own store, their own business because of being tired of working for someone else. If you are also one of those people who love control, then this selling model is not for you! In this case, everything will be handled by retail stores and companies that don’t even think about you or your customers!
- What’s even more annoying, you will always rely on others! This means that you will never have your own stock and your own products. Even though this doesn’t look like a serious problem, believe us, it is! You will always run out of stock, because you will never be aware of the available inventory of the company you’re working with! If you hate ambiguity as much as we do, take this fact into account!
- Unfortunately, drop shipping doesn’t bring you much money! This happens because drop shipping is all about individual orders, which means you will always pay more for a single product and its delivery, than you would normally pay under another selling model such as wholesale. At the same time, if you operated your business under wholesale, you would purchase all that products in bulk, which will save your time and money!
- Amazon is the most customer-orientated marketplace, you know that! This is why you have to guarantee excellent customer service if you want to maintain your own store on Amazon! However, this is not possible with drop shipping on Amazon, because as we said, you have almost no control over your business.
Everything here is handled by the retailer or other company you’re working with. So, if you have a pending order, you will have that retailer ship to your customers. If the product is damaged on its way to the buyer, or they don’t even get their product at all, guess who will pay the price? You! So, make sure you think twice before starting a drop shipping business on Amazon.
Please note that we talk about drop shipping on Amazon, and not on other marketplaces. However, if you’re thinking about Walmart dropshipping, contact us for more info on that! Even though drop shipping doesn’t require high costs and helps you save time, remember that drop shipping is generally not accepted on Amazon – one of the strongest eCommerce giants of our reality!
If you feel that your business needs a little boost, we have energy drinks made specifically for you and your business! Together with our marketing, digital and Amazon product launch services, your business will have everything it needs – speed, endurance and incomparable stamina!