Amazon Dropshipping: How To Start in 2026

Amazon dropshipping is a business model where sellers list products for sale on Amazon that are then fulfilled through a third-party vendor. When a customer buys a product, their order details are sent to a supplier who selects, packs, and ships the Amazon order on the dropshipper’s behalf.

Dropshipping has moved firmly into the mainstream and is now a popular business model for selling on Amazon in a variety of product categories, including clothing, gadgets, and wellness tools. The global dropshipping market is valued at $583 billion in 2026 and will continue to grow at an estimated 20.7% compound annual growth rate (CAGR) through 2033.

Ahead, learn how to dropship on Amazon and dropshipping tools to help you start selling today.

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 and keeps the difference between the wholesale price and the sale price as profit. 

Amazon’s marketplace presents a huge opportunity for dropshippers. The platform reported over $716 billion in revenue in 2025, and had over 2.7 billion website visits in June 2026 alone. 

Does Amazon allow dropshipping?

Amazon allows dropshipping on its marketplace. The business model is legal, provided 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 (including packing slips, invoices, and packaging) before shipping the order to customers.
• You are responsible for accepting and processing returns.
• You must follow all terms of your seller agreement and Amazon’s dropshipping policy.
• You can’t buy the product from another retailer (such as Walmart or Home Depot) and have it shipped to the customer in that retailer’s branded packaging. This is known as retail arbitrage.

The FTC also has a rule that states that you must ship products within a reasonable time frame. If you can’t do so within 30 days and realize that after taking the customer’s order, you’ll need their consent to the delayed shipment. 

It’s important to note that legal requirements may differ by region. Consult a legal professional in your area to determine your obligations before dropshipping on Amazon.

What Amazon sellers need to know in 2026

Before you start dropshipping on Amazon, here’s an overview of the rules and platform features that may apply to you:

Fee credits for new sellers

Amazon offers incentives to help new sellers offset early costs. These benefits are tied to specific actions as you get set up. For example, eligible sellers can earn $100 in credits toward inventory shipping. Some new sellers also qualify for 25% off Multi-Channel Fulfillment rates on their first 100 units, 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.

Higher promo costs during peak events

Every deal you run on Amazon is subject to extra fees, though the exact cost will vary depending on whether it’s a peak or non-peak day. 

On non-peak days, Lightning and Best Deals use a hybrid model that combines an upfront fee of up to $70 per day with a variable fee of 1% of sales, capped at $2,000. The model replaces older flat fees and makes longer deals more variable in cost.

During major sales events, like Prime Day, Prime Big Deals Day, Black Friday, and Cyber Monday, sellers pay an upfront fee of $100 per promotion, plus a 1.5% variable fee of sales, capped at $5,000.

End of the US $800 de-minimis duty exemption

Many parcels that once entered the US duty-free must now clear customs and pay duties. The US ended its $800 de-minimis exemption in August 2025, which means that private carrier shipments from FedEx, UPS, and DHL now face full tariff rates. 

With this in mind, make sure to factor duties into pricing and your broader dropshipping strategy. Since information is constantly changing, stay up to date by using a tariff tracker or use Shopify’s built-in calculator for taxes and duties.

Free generative AI listing and video tools

Enhance Listings are an Amazon Seller Central feature that analyzes existing listings and proposes fresher titles, bullets, and attributes.

The AI tool draws on Amazon’s 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 the Enhance My Listing tool will create ready-to-publish product page copy.

How to start dropshipping on Amazon in 6 steps

To start dropshipping on Amazon, you’ll need to create an account and be approved in your product category. Connect your Amazon account, build a product listing, then promote your products on the marketplace. For a more detailed step-by-step, follow the outline below:

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, including collectibles, fine jewelry, and watches. Keep in mind, certain products may require approval, even when their category doesn’t. 

If you’re looking for products to dropship, try Amazon’s Product Opportunity Explorer, which can help you evaluate trends in customer demand for products on Amazon before you purchase inventory or commit to a supplier. Amazon’s own data shows that new products launched using insights from this tool have 2.5-times higher sales potential in their first three months.

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 help you bridge Amazon and Shopify seamlessly. By using an app, you can automate dropshipping fulfillment, give your customers up-to-date tracking information, and sync product inventory.

Options include:

• Marketplace Connect
• CedCommerce
• Amazon Importer
• Amazon MCF
• CS Amazon Integration & Sync

Once you’ve selected and installed your dropshipping app, you’ll be able to create product listings and manage sales across both platforms.

5. Create an Amazon product listing

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. You can:

• 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

There are several ways to promote your products on Amazon. You can:

Run Sponsored Product ads

Amazon’s ad program, Sponsored Product ads, operates on a cost-per-click (CPC) model that will position your products more favorably in search results. Retailers spent a collective $68.64 billion on these Amazon ads in 2025.

Optimize your listings

Amazon uses several key details to determine where products rank in their search results. For the best chance at success, follow the guidelines below:

• Product titles are informative and concise.
• Product descriptions share details like product usage, tech specs, and benefits. 
• Product descriptions include up to five bullet points, which Amazon says can help boost sales. 
• Product descriptions include generic keywords, phrases, and synonyms your target customer searches. 
• Products are properly classified, including using Item Type Keywords. 

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 to generate more clicks.

Win the Featured Offer (formerly Buy Box)

Amazon awards the Featured Offer placement to sellers based on factors like the product price, availability, and proximity to their shipping address.

How much does it cost to dropship on Amazon?

Amazon seller fees vary by product type, and typically range between 3% and 20%. Product categories with the lowest referral fees include appliances, consumer electronics, baby products, and video game consoles.

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?

Amazon dropshipping can be profitable if you have the right infrastructure in place. According to Amazon’s selling stats, independent sellers—including dropshippers—averaged more than $375,000 through their Amazon store in 2025. Roughly 75,000 made more than $1 million, while 11,000 US-based sellers grew their sales by more than 10 times. 

By choosing dropshipping in particular, you won’t need to worry about unsold inventory or unpredictable shipping costs. Margins average between 10% and 15%, but remember that Amazon will take referral fees on sales you make through the marketplace.

How to choose a dropshipping supplier

A reliable dropshipping supplier is incredibly important, as that’s the company that will be selecting, packaging, and shipping orders to your customers. You’ll use their products, and they own the delivery experience, but they act under your business’ name. 

Here’s what to look for in an Amazon dropshipping supplier:

• The supplier offers reliable shipping to your customers’ locations
• They stock a range of products in your niche that are 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 Amazon profit margin
• Other successful dropshippers use the supplier
• The supplier can compete with average shipping times in your niche
• The supplier can strip their branding from your Amazon deliveries and external packaging (known as blind dropshipping)

To check a supplier’s quality, order samples of the products you plan to sell before listing them on Amazon. “I don’t see a lot of people that are terribly successful with dropshipping without product samples,” says Jacqui McLellan, a Shopify Community Moderator.

If you’re unsure where to start, consider Shopify Collective, Shopify’s own curated supplier network that connects you with verified Shopify brands offering quality products with better margins. 

You can also explore the Shopify Product Network, which displays products from other retailers on your own ecommerce website. You’ll earn commission when buyers buy those products without buying or shipping them yourself. 

Other dropshipping apps 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 dropshipping software in this list is designed to help you get started with selling on Amazon:

MerchantWords

MerchantWords is an Amazon keyword research tool that displays search volume and data for product keywords. It also has a keyword multiplier tool to help you find related and complementary keywords you can target in Amazon listings. 

Pricing: Paid plans start at $35 per month.

Sellery

Sellery’s real-time Amazon repricing software suggests repricing strategies to win the Featured Offer placement and increase sales.

Pricing: 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.

Helium 10

Helium 10 is an Amazon management tool that lets you optimize listings, conduct product research, and manage refunds. There’s also a Chrome extension that shows demand, revenue, profitability, and competitor data when browsing a product on Amazon. 

Pricing: Plans start at $99 per month. 

Jungle Scout

Jungle Scout is an Amazon intelligence tool that lets you benchmark Amazon performance, view competitor pricing, and track your ad spend on the marketplace. It also has a Model Context Protocol that lets you pull Jungle Scout data into AI tools like ChatGPT and Google Gemini.

Pricing: Starter plans begin at $29 per month, with a seven-day free trial available. 

How to run an Amazon dropshipping business without money

To start dropshipping on Amazon on a tight budget, you’ll want to make a few strategic choices, including:

• 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. 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 each item will let you test product quality to avoid returns or disputes. You’ll also be able to create your own marketing images, which will save you money.
• Invest in Amazon SEO. “The search engine optimization on Amazon is really based on two levers that you can pull,” says CJ Forse, co-founder of The Feel Good Lab, in a Shopify Masters interview. “It’s social proof through reviews, and it’s sales and conversion rate”
• Promote Amazon products on social media. Facebook, Instagram, and TikTok are powerful tools for spreading awareness about your products, as long as your content strikes a balance between entertainment and promotion. Jacob Winter, for example, posted a series of TikTok videos for Mush Studios that generated 23 million views in their first year. 

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 where you list and promote your products. This 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 in a Shopify Masters interview, 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 and cons of dropshipping with your online store

Advantages of Amazon dropshipping with your own online store include:

• 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.
• No third-party fees. With your own store, you won’t have to pay Amazon’s referral fees. Shopify, for example, charges a fixed monthly subscription fee starting at $5 per month. There’s also a payment processing fee that starts at 2.9%, plus 30¢ per transaction. 
• 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. You can also source products from Shopify Collective, Shopify’s curated network of verified brands with direct fulfillment and no inventory required.

The downside of dropshipping alongside your own ecommerce website is that with your own site, you’ll be responsible for generating traffic through marketing, social media, SEO, and paid advertising. 

“It’s good to have a couple of venues for selling,” says Mary Helt, co-founder and owner of Abracadana. “You can cycle it. But try a couple of channels to see what works. You can’t have all of your eggs in one basket, that’s for sure.”

Other ways to sell on Amazon

If you want a seller presence on Amazon but feel like a dropshipping business isn’t right for you, there are other options you can explore. Three popular ways to sell on Amazon besides dropshipping are affiliate marketing, Fulfillment by Amazon, and print-on-demand:

Amazon affiliate marketing

Amazon Associates is an alternative to dropshipping that’s more suitable for entrepreneurs who don’t want to sell products themselves. 

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’re taken to Amazon to make their purchase, and affiliates will 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 1% to 10%. To become an Amazon affiliate, first check that your website or social media account meets the eligibility criteria.

Amazon FBA (Fulfillment by Amazon)

With Fulfillment by Amazon, you send your products to Amazon’s FBA centers, where Amazon will take care of storage, packaging, and shipping your products to customers. It also handles customer service and order returns. 

That said, FBA comes with various fees, including storage fees and fulfillment fees. There are also additional charges for extra-large products and shipping during peak season.

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. These items are eligible for free two-day Prime shipping. With dropshipping, a third-party supplier of your choice handles inventory management and order fulfillment.

Amazon print on demand 

Print on demand (POD) works similarly to dropshipping. The difference is the ability to customize your own products using apps like Printful, Gelato, and Printify before they’re manufactured and delivered to the customer. 

“With Printful, I’ve also worked with a couple of other dropshipping and print-on-demand companies, and I really appreciate the ability to connect everything together,” says Raven Gibson, founder of Legendary Rootz, in a Shopify Masters interview.

“I have an idea. I’m able to go in and see if they have a product that serves me or serves that idea that I have, then get that sample created. And once it’s approved through me, cause I’m the approver, obviously I’m able to go in, and it’s all connected to Shopify. I love it.”