Overview

Amazon’s marketplace still draws entrepreneurs who want a low‑cost entry, and dropshipping remains one of the quickest ways to start selling without buying inventory upfront. By partnering with third‑party manufacturers who ship directly to buyers, sellers can tap into Amazon’s massive traffic while keeping cash outlay minimal—provided they follow the platform’s rules.

Key Points

• No inventory to purchase — The seller never handles the product; the supplier fulfills each order straight to the customer, eliminating warehouse rent and upfront stock costs.
• Amazon fees still apply — Every sale incurs referral and closing charges that typically range from 6 % to 15 % of the item price, so profit calculations must include these mandatory deductions.
• Strict stock‑availability rule — Amazon will deactivate a listing that remains out of stock for more than 30 days, making real‑time inventory visibility essential for compliance.
• Data‑driven product research is vital — Tools that surface search volume, price trends, and competition scores help sellers pinpoint niches where demand outpaces supply, reducing the chance of dead‑stock.
• Supplier vetting prevents headaches — Confirming a manufacturer’s shipping speed, return policy, and quality‑control metrics (e.g., a 95 % pass rate on sample inspections) shields the seller from negative feedback and potential account suspension.
• Automation accelerates growth — Order‑routing software that pushes Amazon orders to a supplier’s dashboard in seconds cuts manual entry time and enables handling dozens of orders daily.
• Customer‑experience guarantees matter — Amazon expects sellers to meet the promised delivery window; a single late shipment can trigger a warning that jeopardizes the entire account.
• Profit margins depend on product selection — High‑ticket items with low competition often yield better net margins after fees, whereas low‑priced commodities may require larger volumes to be worthwhile.

How Dropshipping on Amazon Works