How To Dropship on Amazon without Getting Banned

Amazon dropshipping offers big potential—but also big risks.

But on Amazon, strict performance metrics (1% defect rate, 97% on-time delivery) make it tough—especially for new sellers relying on third-party fulfillment.

To avoid the hassles of getting your Amazon account suspended, this article shows you the quickest ways to run a compliant and profitable Amazon dropshipping business.

Understand Amazon’s Dropshipping Policy

Amazon's dropshipping policy serves as your best defense against account suspensions. Amazon takes a tougher stance on dropshipping compared to other e-commerce platforms because customer experience ranks above everything else.

Why Amazon is skeptical of dropshipping

Customer satisfaction stands as Amazon's core business principle. The company looks at traditional dropshipping with caution for several reasons. Such orders take longer to deliver, which goes against Amazon's promise of quick delivery. Quality control becomes tough when sellers never touch the products themselves. Customer service problems pop up when sellers don't directly handle shipping.

Amazon has seen too many cases where dropshippers list items with huge markups without checking quality. These practices leave customers unhappy and hurt Amazon's reputation for reliability and value. The marketplace also runs into trouble when dropshippers use other retailers as suppliers, which creates legal headaches and customer service issues.

What the Amazon dropship policy actually allows

In stark comparison to this, Amazon doesn't ban dropshipping completely. They just need you to follow specific rules:

• You must be the seller of record for all products
• Your company's name must appear on all packing slips, invoices, and external packaging
• You need to process customer returns
• You have to follow all terms in your seller agreement and Amazon's policies

Amazon lets you dropship only if you take full responsibility for the customer's experience. Their policy strictly forbids buying products from another retailer who ships directly to customers. Dropshipping from websites like Walmart, Home Depot, or other marketplaces will get your account suspended.

Tools like Wholesale2B's Amazon integration are a great way to get a safer approach to amazon dropshipping. This integration works within Amazon's policies while it automates your dropshipping process. Wholesale2B links you with verified wholesale suppliers instead of other retailers, which substantially cuts your risk of account suspension. Their system will give a way to make all shipments look like they come from your business, staying within Amazon's seller of record requirements.

The importance of being the seller of record

Being the seller of record stands as the most crucial part of Amazon's dropshipping policy. This title means you—not your supplier—must take official responsibility for the sale. As the seller of record, you need to:

• Make sure your business name shows up on all packaging and documentation
• Handle customer service questions directly
• Take care of all returns and refunds
• Meet Amazon's seller performance metrics

Packages arriving with other retailers' names or packing slips immediately flag policy violations to Amazon. Their algorithms scan for these issues, often through customer feedback and return requests.

The seller of record status affects your tax obligations and legal liability. Amazon holds you—not your supplier—responsible for fixing any product problems. This responsibility shows why picking compliant suppliers and using dedicated amazon dropshipping apps like Wholesale2B matters for long-term success.

Choose the Right Suppliers and Tools

A successful Amazon dropshipping business starts with choosing the right suppliers. Your operation could fail quickly without reliable partners who understand and follow Amazon's marketplace requirements – even if you know all their policies perfectly.

How to find Amazon-approved suppliers

You need to check potential suppliers carefully before partnering with them. Ask suppliers to provide authorization letters that confirm they can sell products under specific brand names. These documents help prove legitimacy and protect your account from counterfeit claims that could shut you down instantly.

Here are some effective ways to find reliable suppliers:

• Reach out to manufacturers directly and ask for their authorized wholesale suppliers who dropship products
• Make connections with key suppliers at trade shows in your target market
• Look up supplier directories that verify and list dropshipping suppliers by market or product type
• Learn about competitors by ordering small test products and checking return addresses

Your supplier evaluation should include specific questions about shipping times, return policies, order fulfillment, and their track record with Amazon sellers. Getting product samples helps you check quality and shipping speed yourself before making bigger commitments.

Using Wholesale2B for Amazon integration

Wholesale2B gives Amazon dropshippers a safer option that reduces account suspension risks. The platform links you to over 100 suppliers and lets you access more than a million products of all types.

The Wholesale2B Amazon plan takes care of vital operations that keep you compliant with Amazon's strict policies:

• Daily updates of thousands of products and inventory levels
• Automatic tracking code updates to your Amazon account after shipping
• You stay as the seller of record for every transaction
• No third-party supplier branding appears on shipments

Amazon sellers pay monthly or yearly subscription for Wholesale2B's integration. This system works smoothly with Amazon's marketplace and helps maintain your account status. You can build unique product collections without handling inventory or shipping logistics.

Avoiding suppliers that include external branding

Your suppliers must agree to remove all external branding from packages, whatever source you choose. Amazon requires your business to appear as the seller on packing slips, invoices, and external packaging. Account reviews and possible suspensions happen often when sellers don't follow this rule.

Make sure your supplier agreements clearly state:

• They must remove all supplier branding before shipping
• Your business name should appear on all documents
• Other companies' promotional materials cannot be included
• Packages should not show another retailer as the source

Suppliers need to understand their role in keeping your Amazon dropshipping business compliant. Platforms like Wholesale2B offer “blind drop ship” features that ensure packages arrive without supplier branding.

The best Amazon dropshipping businesses work with multiple suppliers. This approach provides product variety and backup options if problems occur with any supplier. Building strong relationships with a few reliable suppliers who meet Amazon's shipping and packaging requirements consistently will give a solid foundation.

Monitor and Maintain Key Account Metrics

Your Amazon dropshipping success depends on healthy account metrics. Amazon keeps a close eye on seller performance through specific indicators. Perfect suppliers won't save your account from restrictions or suspensions if you don't track these metrics properly.

Order defect rate (ODR) and on-time delivery (OTD)

The Order Defect Rate (ODR) shows negative customer experiences and should stay below 1% to keep your account active. Amazon looks at three components over 60 days to calculate this metric:

1. Negative feedback (1-2 star ratings)
2. A-to-Z guarantee claims filed by customers
3. Credit card chargebacks

Most Amazon dropshipping accounts face suspension due to poor ODR. You can check your ODR through the Performance tab in Seller Central under Account Health. Weekly monitoring is essential since Amazon gives little time to fix problems before taking action.

Customer satisfaction heavily relies on On-Time Delivery (OTD). Amazon will require a minimum 90% on-time delivery rate without promise extensions for seller-fulfilled listings starting September 2024. Your business should target a 95% or higher rate. Top e-commerce companies maintain 98% or better OTD rates. Rates below 95% point to possible fulfillment issues.

Valid tracking rate (VTR) and cancelation rate (CR)

Valid Tracking Rate measures your accuracy in providing package tracking information. Amazon needs VTR to be at least 95% for all seller-fulfilled orders. Low VTR can lead to:

• Your seller-fulfilled listings getting suspended in affected categories
• Reduced access to premium shipping options

Choose Amazon-integrated carriers and double-check tracking information accuracy to maintain good VTR. Amazon Buy Shipping can help by uploading tracking details automatically.

Your Cancelation Rate needs to stay below 2.5%. This number reflects orders you cancel before fulfillment, usually because of inventory problems. High cancelations tell Amazon you're unreliable and hurt your revenue through missed sales. The platform checks this metric every 7 days and might disable your listings if you go over the limit.

How to use an Amazon dropshipping app to track performance

Wholesale2B's Amazon integration offers tools to monitor these vital metrics. This $37.99 monthly platform helps protect your account by:

• Daily inventory updates to prevent stockouts
• Direct tracking code transmission to Amazon after shipping
• Proper seller documentation for all shipments
• Easy-to-read performance dashboards for key metrics

Tools like Wholesale2B put all your metrics in one place instead of making you search through Seller Central. This helps you spot problems before Amazon's algorithms flag them.

Set stricter personal thresholds than Amazon requires for the best results. Create alerts at 0.7% for ODR, 97% for OTD, 97% for VTR, and 1.5% for cancelation rate. This gives you time to solve issues before reaching Amazon's limits.

The Perfect Order Percentage (POP) shows how many orders you fulfill correctly and on time. While Amazon doesn't enforce this metric directly, tracking it reveals weak spots in your fulfillment that could hurt other metrics later.

These metrics are the foundations of a lasting Amazon dropshipping business. The best products and suppliers can't protect your account if you don't watch these numbers carefully.

Avoid Common Mistakes That Trigger Suspensions

Amazon dropshippers with years of experience can still get their accounts suspended for breaking common policies. You need to know these mistakes to protect your business from sudden shutdowns and lost money.

Never dropship from other retailers like Walmart

Amazon has strict rules against buying products from other online retailers (including Walmart, eBay, Home Depot, or similar sites) and shipping them straight to your customers. This creates confusion about who actually sends the order. Your account will get flagged for review when customers get packages with external retailer branding on packing slips or packaging.

We spotted this violation happens when:

• Shipping labels show another retailer's name
• Packing slips list a different seller
• Packages come with other retailers' branding

Wholesale2B's Amazon integration helps you avoid this issue. It connects you with real wholesale suppliers instead of retail stores. Their system will give you compliant shipments that keep you as the seller of record during delivery.

Avoid false or recycled tracking numbers

Amazon sees fake tracking information as fraud and takes it very seriously. Many dropshippers used to put in fake tracking numbers as temporary fillers, but Amazon now catches this easily with their advanced systems.

Your account will get shut down for using fake tracking numbers. You'll get Section 3 policy violations that are very hard to appeal. Their systems can quickly spot tracking numbers from their own network or numbers that multiple sellers have used.

Make sure your invoices check out

Amazon often asks for supplier invoices to check if products are real, especially when quality issues come up. Dropshippers need valid invoices to keep selling on the platform.

Your invoices must have:

• Dates within the last 365 days (they won't take older ones)
• Clear, professional formatting (no handwritten stuff)
• Working supplier website links and matching addresses
• Product quantities that match or beat your Amazon sales

Making up fake invoices is the fastest way to get banned forever. Amazon trains their investigators to spot doctored documents. You won't be able to talk your way out of this violation.

What to Do If You Get Suspended

Getting suspended on Amazon can feel scary, but you can get your selling privileges back with quick action and the right steps. Stay calm when you see that notification and follow a clear path to reinstatement.

How to write a strong appeal plan

Your Plan of Action (POA) is the foundation of your appeal. Amazon wants a well-laid-out document that shows you understand the problem and will fix it. A successful POA needs these three vital parts:

1. Root Cause Analysis – Explain exactly why the violation happened. Own up to the issue without pointing fingers at Amazon or customers. Be direct about what caused the dropshipping policy violation.
2. Corrective Actions – List the steps you've already taken. To cite an instance, “I have removed all active listings which were sourced from Walmart and against the FBM policy of Amazon”.
3. Preventive Measures – Show your plan to stop this from happening again. This part needs to convince Amazon you've changed your system.

Keep in mind that honesty is vital—lying will destroy your chances of getting reinstated.

Making real changes Amazon will believe

Amazon looks hard at appeals to find solid proof of real changes. Skip the vague promises and show specific actions like:

• Using Wholesale2B's Amazon integration to substantially lower suspension risk by staying the seller of record
• Creating new ways to check suppliers
• Building teams that make sure you follow the rules

Back up what you say with proof—show wholesale supplier invoices, images of your new processes, or proof of staff training. Amazon's system spots form letters, so write your own appeal.

When to ask for professional help

Professional help might make sense if Amazon keeps saying no. Most complex dropshipping suspensions need about eight appeals before getting approved. Companies like AMZ Sellers Attorney know how to handle Amazon's reinstatement process.

Check their success rate with cases like yours before hiring help. Good services create custom appeals instead of promising quick fixes. Many services also work on a “no win, no fee” basis, which helps reduce your risk during this tough time.

Stay patient as Amazon reviews your case. Keep improving your appeals and you'll likely succeed.

Conclusion

Amazon dropshipping can be profitable—but only with strict policy compliance and strong account health. Tools like Wholesale2B reduce risks by automating key tasks and connecting you to verified wholesalers.

Keep metrics like Order Defect Rate under 1% and on-time delivery at 97% to avoid suspensions. Even if issues arise, a clear, corrective appeal can help recover your account.

With the right tools and discipline, you can build a compliant, successful dropshipping business on Amazon.