Amazon dropshipping is a sales channel that can yield big returns for entrepreneurs.
Dropshipping has moved firmly into the mainstream and is now a popular business model for selling a variety of product categories. The global dropshipping market exceeded $464 billion in 2025 and continues to grow at an estimated 22% compound annual growth rate (CAGR), signaling strong long-term potential for ecommerce entrepreneurs.
But how exactly does Amazon dropshipping work, and how can you make it profitable for your ecommerce business?
Ahead, learn how to dropship on Amazon, and discover simple dropshipping tools to help you start selling today.
Table of contents
- What is Amazon dropshipping?
- How to start dropshipping on Amazon in 6 steps
- How much does it cost to dropship on Amazon?
- Is Amazon dropshipping profitable?
- How to choose a dropshipping supplier
- Top Amazon dropshipping software
- How to run an Amazon dropshipping business without money
- Running a dropshipping business with your online store
- Other ways to sell on Amazon
- Grow your dropshipping business today with Shopify
- Amazon dropshipping FAQ
What is Amazon dropshipping?
Amazon dropshipping is a business model where sellers list products on Amazon without holding inventory. When a sale is made, the seller purchases the item from a third-party supplier who ships it directly to the customer.
Does Amazon allow dropshipping?
Amazon allows dropshipping on its marketplace as long as you follow these rules:
- You must be the only seller of record for products.
- Your business must appear as the seller on packing slips, invoices, and other information in connection with products.
- All information identifying the third-party seller must be removed before shipping the order to customers, to avoid confusion.
- You must be responsible for accepting and processing returns.
- You must follow all terms of your seller agreement and Amazon’s dropshipping policy.
What Amazon sellers need to know in 2026
1. Fee credits for new sellers
Amazon offers incentives to help new sellers offset early costs. Instead of one flat credit, these benefits are tied to specific actions as you get set up.
For example, eligible sellers can earn credits toward inbound shipping or fulfillment fees when they ship inventory using Amazon-partnered carriers. Some new sellers also qualify for discounted Multi-Channel Fulfillment rates on their first shipments, which can help lower fulfillment costs when selling on other channels.
Available incentives vary by seller and expire after a set period, so it’s best to review what you qualify for directly in Seller Central before launching.
2. Higher promo costs during peak events
Amazon’s promotion fee model changed in 2025. On regular days, Lightning and Best Deals now use a hybrid model that combines a daily fee with a sales-based percentage. The model replaces older flat fees and makes longer deals more variable in cost.
During major sales events like Prime Day, Black Friday and Cyber Monday, sellers pay flat premium fees to run Lightning Deals (around $500) and Best Deals (around $1,000), which are generally higher than what many merchants paid in previous years.
3. End of the US $800 de-minimis duty exemption
Starting in 2025, US import rules changed how low-value shipments are treated at customs. The longstanding $800 de-minimis exemption was largely revoked, so many parcels that once entered duty-free now must clear customs and pay duties.
Private carrier shipments from FedEx, UPS, and DHL face full tariff rates. Postal parcels get a six-month, flat-fee grace period.
For Amazon dropshippers, import costs on low-priced inventory from China and most other countries have risen, so it’s important to factor duties into pricing and your broader dropshipping strategy.
As of November 2025, the US and China have established new trade agreements. Since information is constantly changing, stay up to date by using a tariff tracker or by leveraging Shopify’s built-in calculator for taxes and duties.
4. Free generative AI listing and video tools
In 2025, Amazon released Enhance My Listing (EML), which is a Seller Central Feature that analyzes existing listings and proposes fresher titles, bullets, and attributes.
The AI draws on Amazon shopping insights and has been shown to lift listing quality scores by 40% compared to pre-AI versions. Sellers can upload a single product photo, and EML will create ready-to-publish product page copy.
How to start dropshipping on Amazon in 6 steps
- Sign up for an Amazon seller account
- Get approved in your product category (if necessary)
- Log into your Shopify store
- Connect your Amazon account to Shopify
- Create an Amazon product listing
- Promote your products on Amazon
Ready to get started? Follow these six steps to connect Amazon with your Shopify store and start dropshipping.
1. Sign up for an Amazon seller account
To sell on Amazon, you’ll need to create an Amazon seller account. Head to sellercentral.amazon.com to sign up.
You’ll be asked for the following details about your business:
- Business email address
- Internationally chargeable credit card
- Government ID
- Tax information
- Phone number
- Bank account for receiving sales
2. Get approved in your product category (if necessary)
Amazon requires sellers to get approval for certain product types. Collectibles, music, and watches are popular categories that require approval before setting up your Amazon store. Check the overview of product categories to see if you need approval for what you plan on dropshipping.
Note that certain products may require approval, even when their category doesn’t. To see if an individual product needs approval, search this list and click Show Limitations.
If you’re looking for products to dropship, try Amazon’s Product Opportunity Explorer. This can help you evaluate trends in customer demand for products on Amazon before you purchase inventory or commit to a supplier.
3. Log into your Shopify store
If you don’t have a Shopify store, start a free trial. Dropshipping through a Shopify store helps manage the entire process, from syncing products to connecting with suppliers and tracking orders.
4. Connect your Amazon account to Shopify
Once you’ve created an Amazon account and requested any necessary approvals, connect your Amazon store to Shopify using an Amazon integration app from the Shopify App Store.
Amazon integration apps bridge Amazon and Shopify. Using an app, you can automate order fulfillment, give your customers up-to-date tracking information, and sync product inventory.
These apps help automate fulfillment and keep inventory in sync so it’s easier to scale once you find dropshipping suppliers that meet your needs.
Here are some apps you might use:
Once you’ve selected and installed your app, you’ll be able to create listings for your products and manage sales across both platforms.
5. Create an Amazon product listing
Your dropshipping products don’t automatically list on Amazon after you add an integration app. To manage your Amazon dropshipping listings with Shopify, you have three options:
- Link your listings on Shopify to your Amazon listings using your integration app.
- Link an existing Amazon listing to your Shopify store.
- Create a new listing for a new product on Amazon.
If you’re new to Amazon and dropshipping, you may not be able to list a large number of products right away. Amazon limits the number of new Amazon ID numbers (ASINs) you can create each week until you become an established seller.
6. Promote your products on Amazon
While options for marketing on the marketplace are restricted, there are several ways to promote products on Amazon.
Run Sponsored Product ads
If you have a marketing budget, consider spending on Sponsored Product ads. Amazon’s ad program operates on a cost-per-click (CPC) model that will position your products more favorably in search results.
Optimize your listings
With all Amazon product pages sharing the same layout, features like product titles, images, and “About This Item” bullet points need careful thought and planning. Remember that your customers will skim your pages and compare items with similar products.
Use social media
There are no restrictions to promoting Amazon links on most social media platforms. That means you can create Instagram Reels to show off your product, or make a Facebook ad campaign.
Win the Featured Offer (formerly Buy Box)
On shared Amazon listings, the platform awards the Featured Offer to sellers who offer the best overall customer experience. Factors like competitive pricing, fast and reliable fulfillment, strong seller metrics, and inventory availability all play a role.
Using Fulfillment by Amazon (FBA), keeping prices consistent, and maintaining high account health can improve your chances of winning the Featured Offer and capturing more sales.
How much does it cost to dropship on Amazon?
Amazon seller fees vary by product type but are usually between 8% and 20%. If you’re working with small margins when dropshipping Amazon products, this could eat into your profits.
Product categories with the lowest seller fees include appliances, consumer electronics, tools, and automotive products.
However, because Amazon charges fees as a percentage of the total price, the actual fee amount will vary depending on an item’s overall cost. For all types of products, Amazon takes a minimum fee of 30¢.
To sell on Amazon, you’ll also need to purchase a selling plan. Amazon’s Individual plan costs 99¢ per unit sold, while the Professional plan costs $39.99 per month, no matter how many products you sell.
Is Amazon dropshipping profitable?
There are many pros to Amazon dropshipping, and it can be profitable. Most Amazon sales are made by independent sellers, including dropshippers, who don’t need to worry about unsold inventory or unpredictable shipping costs.
Dropshipping margins can reach as high as 40%, meaning there’s lots of room for profit. But remember, Amazon will take referral fees on sales. Your success as a dropshipper will also rely on the success of your marketing strategies.
How to choose a dropshipping supplier
Your main competitive edge over other Amazon dropshippers will be price, and—beyond cutting your profit margins where possible—the best way to outcompete sellers in your dropshipping niche is to partner with the right supplier.
Here’s what to look for in a dropshipping supplier:
- The supplier offers reliable shipping to your customers’ locations.
- They stock a range of products in your niche of comparable or superior quality to competitors.
- There are no customer service red flags or regular poor reviews.
- They have low per-order fees that won’t eat into your profit margin.
- Other successful dropshippers use the supplier.
- The supplier can compete with average shipping times in your niche.
- They offer live customer support for your business.
Due to the popularity of dropshipping in recent years, there’s been an increase in fake or malicious dropshipping supplier services. Follow the latest dropshipping guidelines to avoid wholesalers that charge unnecessary fees.
For reliable suppliers, consider Shopify Collective, which connects you with verified Shopify brands offering quality products with better margins. You can also explore dropshipping apps that provide access to thousands of verified suppliers worldwide, including options like DropCommerce for North American suppliers and Syncee for global sourcing.
Top Amazon dropshipping software
The tools in this list are designed to help you get started with Amazon dropshipping:
MerchantWords
This software checks search volume and data for product keywords.
Price: Paid plans start at $35 per month.
Sellery
This real-time Amazon repricing software suggests repricing strategies to win the Featured Offer and increase sales.
Price: You can use the trial version for free. Paid plans are 1% of your gross monthly sales, with a minimum fee of $50 per month.
FeedCheck
FeedCheck monitors customer reviews to help you respond promptly across Amazon and other sales channels. Plus, it lets you monitor competitors’ product reviews and questions so you can analyze and improve your own product descriptions.
Price: Provided on request.
How to run an Amazon dropshipping business without money
Most dropshippers spend money to build their businesses, investing in assets like an online store, content creation, advertising, and marketing or management software. But it is possible to start dropshipping on Amazon without spending a dollar.
Choose the Individual Seller plan
Unlike Amazon’s Professional Seller plan, which is a paid subscription, the Individual Seller plan is charged per item sold—so you won’t be billed before you’ve made a sale.
Pick suppliers with zero upfront costs
Most reputable dropshipping suppliers will not charge an upfront fee to do business with you. That means you shouldn’t need to pay your supplier until you’ve made a sale and have been paid by the customer.
Test out your products
If you can spare a few dollars, you may want to purchase the product(s) you intend to sell. Being able to physically hold, view, and try out your product will let you test the quality and help you create higher-quality marketing content.
Create your own content
Write your own product descriptions and reviews, take your own product photos, and create product demonstration videos using your phone.
There’s no denying that self-made marketing content is time consuming, and depending on your writing and production skills, it may be hard to replicate the quality of professional copy and images.
However, by paying close attention to your competitors’ content and deeply researching your target customers, it’s possible to create effective content that communicates the key details of your products—and explains why your customers will benefit from buying them.
Harness organic marketing channels
Organic marketing channels are the most accessible way to promote your products without spending money on advertising.
Social media platforms like Facebook, Instagram, and TikTok are powerful tools for spreading awareness about your products—if your content can strike a balance between entertainment and promotion. Spend time absorbing the latest trends and put your own twist on popular memes.
SEO marketing strategies involve optimizing your content to rank higher in search engine results. By including relevant keywords in your product descriptions and making your content as useful as possible, you can appear more often in Amazon and Google searches.
Running a dropshipping business with your online store
The alternative to dropshipping Amazon products through third-party marketplaces is to start your own online store to list and promote your products.
Using your own store may be a more successful dropshipping business model in the long term, as it gives you more control over your customer service and flexibility over marketing and branding.
That shift is something many business owners experience as they scale. As Louise Verity, owner of Bookishly, explains on Shopify Masters, it’s important to rely on your own marketing too.
“I can’t rely on other people’s marketing completely,” says Louise. “I’ll continue to sell on marketplaces for as long as it’s useful, but I can’t be completely reliant on somebody else’s website. Once you have staff and real responsibilities, that level of control matters.”
Pros of dropshipping with your online store
More control
When you build your own online store, you get to create a shopping environment that’s conducive to selling your products. You can customize the look and layout—and create custom product pages optimized to suit your customers and niche.
Easy design
With store builders like Shopify, there’s no barrier to designing and running your own store. And once your site is up and running, it’s simple to add extra features that increase your conversion rate.
Within a day, it’s possible to create a store, brand it, add your products, and connect a payment gateway to make your first sale.
Mobile-ready
Don’t prevent your customers from shopping on their mobile devices. If you choose to build your online store with an ecommerce platform, your site will be responsive, which means it will adapt to different screen sizes.
No third-party fees
With your own store, you won’t have to pay Amazon’s referral fees. That will significantly improve your profit margins.
Building a real business
By creating an independent store, you’re building a long-term business with a distinctive brand identity and feel. That makes it possible to pursue repeat business from a loyal set of customers who will tell others about your website.
More shipping and supplier options
When you run a dropshipping business on your own site, you can build relationships with different wholesalers and access specialized supplier networks. Shopify’s dropshipping ecosystem includes apps that connect you with suppliers offering faster shipping times, higher-quality products, and better profit margins than many Amazon suppliers.
Cons of dropshipping with your online store
No free traffic
With your own site, you’ll be responsible for generating traffic through marketing, social media, SEO, and paid advertising. This can be a heavy lift if you don’t have the bandwidth or resources to tackle some or all of these elements of running your own ecommerce business.
Other ways to sell on Amazon
If you want a seller presence on Amazon, but feel that a dropshipping business isn’t right for you, there are other options. Two popular ways to sell on Amazon besides dropshipping are affiliate marketing and Fulfillment by Amazon.
Amazon affiliate marketing
Amazon’s affiliate marketing program, known as Amazon Associates, is a free, popular alternative to dropshipping. Amazon affiliates promote products sold on Amazon via their own websites, ads, or social media posts.
When a website visitor or social media user clicks on an affiliate link, they are taken to Amazon to make their purchase. Affiliates receive a commission whenever they persuade a customer to buy a product through an affiliate link.
Commission rates vary depending on the product category, but most range from 3% to 5%. To become an Amazon affiliate, first check that your website or social media account meets the eligibility criteria.
Amazon FBA (Fulfillment by Amazon)
Amazon also has its own fulfillment centers, known as Fulfillment by Amazon.
With this model, you send your products to Amazon’s FBA centers. Amazon takes care of storage, packaging, and shipping products to customers. It also handles customer service and order returns.
While this can save a lot of time and effort, FBA comes with various fees, including storage fees and fulfillment fees.
Amazon FBA vs. dropshipping
Amazon FBA and Amazon dropshipping are both fulfillment models that allow you to list and sell products without holding inventory.
The difference between FBA and dropshipping is that with FBA, Amazon will store, pack, and ship your products. With dropshipping, a third-party supplier of your choice handles inventory management and order fulfillment.
Grow your dropshipping business today with Shopify
Amazon dropshipping can be a great way to increase sales for your business, whether you’re established or just starting out. If you choose to include this dropshipping method in your Shopify store, there are many tools ready to help you with dropshipping fulfillment, sourcing, pricing, and marketing.
Consider diversifying your supplier base with Shopify’s dropshipping apps to reduce dependency on any single platform, and be sure to also check out some top dropshipping tips.
Read more
- How To Source Products To Sell Online
- The 9 Best Dropshipping Websites for Your Online Store
- Product Ideas: 17 Places To Find Profitable Products
- What is Shopify and How Does it Work?
- What Is Affiliate Marketing and How to Get Started
- Amazon Affiliate Program: How To Join and Earn More
- How To Start Affiliate Marketing With No Money
- Video- How to Validate Your Product Ideas
- 8 Dropshipping Software for New Dropshippers
Amazon dropshipping FAQ
Is Amazon dropshipping profitable?
Dropshipping can be a profitable business model. Many entrepreneurs make good money from dropshipping on Amazon. However, success depends on identifying a profitable niche, sourcing quality products, and marketing the business effectively.
Is Amazon dropshipping legal?
Amazon dropshipping is legal. Dropshippers must follow Amazon’s policies, including being the seller of record for products and taking full responsibility for customer returns.
Is Amazon-to-eBay dropshipping allowed?
Dropshipping is allowed on eBay, but listing an item on eBay and then purchasing it from Amazon to ship directly to the customer is not permitted. Sellers can operate on both platforms, yet they cannot use Amazon to fulfill eBay orders.
Is Amazon FBA dropshipping worth it?
Using Amazon FBA to dropship can be worthwhile if Amazon is the primary sales channel and the business lacks resources to store, package, and ship orders. FBA lets sellers start and scale with lower overhead costs.
Can you dropship for free on Amazon?
Selling on Amazon, including dropshipping, requires an Amazon seller account. The Professional plan costs $39.99 per month, while the Individual plan costs 99¢ per unit sold. Additional fees—such as referral, closing, or high-volume listing fees—may also apply.
