Dropshipping on Amazon in 2025: A Guide to Zero-Inventory Selling

It offers strict policies but comes with lenient rules if you are a professional seller who follows all the rules and regulations. Do you want to start dropshipping on Amazon?

Before that, you should know the primary rules. Today, we will discuss the step-by-step process of registering on Amazon and dropshipping products!

How Dropshipping on Amazon Works in 2025

The 2025 Dropshipping Process (Simplified)

Dropshipping on Amazon in 2025 has become more streamlined. Here are the simplified steps to get started.

• Step 1: Find products. Research on Amazon for all the hot-selling products. Now, find the same product from your dropshipping supplier.

• Step 2: List products. You list a supplier’s product on Amazon.

• Step 3: A customer purchases the product from your store. Obtain the customer’s shipping address.

• Step 4: When you receive an order, forward it to your supplier.

• Step 5: Ship. The supplier ships directly to the customer.

Amazon’s 2025 Dropshipping Policy Updates

Amazon has made strict rules for dropshipping in 2025. The seller has to comply with the following rules and regulations.

• Amazon now requires ‘Seller-Fulfilled Prime’ integration to ensure faster shipping. This means you need to compete with FBA sellers by meeting stricter delivery deadlines, typically 2-5 days for Prime orders.

• Amazon has banned arbitrage-style dropshipping, which involves sourcing products from retailers like Walmart, eBay, or Home Depot. The platform strictly monitors and suspends accounts that engage in this practice.

Once you have the fundamental knowledge, proceed to step-by-step instructions for setting up your Amazon store.

How to Start Dropshipping on Amazon in 5 Steps (2025 Edition)

Are you ready to take off your dropshipping business on Amazon? There are five simple steps to follow. Let’s learn them!

Step 1: Set Up Your Amazon Seller Account

Sign up on Amazon as a seller to continue the following steps.

• Open your Seller Central dashboard.

• Locate the subscription plans. There are two types of plans. One is the individual, and the other is the professional.

• Choose the ‘Professional’ plan ($39.99/month) if you plan to sell more than 40 items per month, as it allows for bulk listings and additional features.

• In 2025, Amazon will provide sellers with easy dropshipping access. You can enable “Dropshipping Mode” in Seller Central settings and connect various tools for an easy dropshipping system.

One more thing you should forget is the Seller-Fulfilled Prime. Register it earlier, as it can take weeks to months for approval.

Step 2: Find 2025’s Top Dropshipping Suppliers (That Work with Amazon)

There are several suppliers to choose from online, but you should work only with those who have warehouses in the US or Europe. This is because they can ship products on time and meet deadlines.

Use Amazon-approved suppliers

• SaleHoo

• Worldwide Brands

• AutoDS

Avoid Chinese suppliers as they fail to ship products on time. However, there is an exception. You can select those suppliers who ship within the US, not from China. Avoid “grey market” suppliers to prevent account suspension.

Test suppliers for:

• Neutral packaging

• Fast order processing (same-day/next-day)

• Integration capability (via API or CSV order syncing)

Warning: If your supplier ships products under their brand packaging, they can get your store flagged. You can face suspension later on.

Step 3: Choose Profitable Products to Dropship

On Amazon, you can drive 30-50% profit from the products. But ensure they are safe to sell and don’t violate any policy. Use Amazon’s 2025 Product Opportunity Explorer to identify low-competition niches with high demand.

It can find:

• Emerging trends

• Low-competition categories

• Products with high search volume but low fulfillment rates

Avoid electronics or branded products as they bring more returns, IP issues, and account suspension risks.

Here is what you should sell with proper strategy.

• Lightweight products under 2 lb (cheaper and faster shipping)

• Items under $40 (impulse-friendly)

• Sustainable or eco-friendly goods get ranking boosts due to Amazon’s environmental incentives.

• Replenishable goods, such as pet products, skincare, and home office supplies.

Step 4: Optimize Listings for Amazon’s AI Search Engine

Amazon is relying on AI and algorithm change. However, you can trick the algorithm by optimizing your description and including tags like fast shipping and biodegradable.

Here is what exactly you should do to gain a better ranking.

• Read your title and include the best-selling keywords.

• Optimize the description and include a fair density of those keywords.

• Use AI tools (e.g., Helium 2025) to auto-generate SEO-friendly descriptions.

• Use high-resolution and quality images and videos to gain customer confidence in your products.

• Highlight eco-friendly products and listings. Use keywords like GREEN to play with consumers’ emotional behavior.

Step 5: Automate Order Fulfillment

Once you receive an order, it is time to fulfill the order. If you don’t automate the orders, ultimately, you have to work on the orders manually. The simple tactic to automate order fulfillment is:

Integrate supplier APIs with Seller Central for instant order forwarding. Once you get orders, a notification will tell the supplier about the order. The supplier will prepare and package the products to ship them within 2-5 days to minimize the chances of order defects.

Even if you are facing challenges of returns and risks of negative reviews, get AI chatbots to handle and deal with your customer queries. They will answer all the queries based on past experiences and help minimize customer complaints.

There are a few rules you should never ignore!

3 Amazon Dropshipping Rules You Can’t Ignore in 2025

Amazon dropshipping comes with various issues and liabilities. You can’t ignore fundamental to advanced rules. Here are three standard rules every seller should follow to avoid suspension.

Rule 1: Be the seller of record” on all packaging/invoices.

Since you are selling products on Amazon, there is no chance that a supplier appears on the invoices. Whether packaging or invoices, your name should appear on the top. You can do this by following ways.

• Take products and remove supplier logos and prices.

• Repackage and use your branding.

Rule 2: Shipments must arrive within Amazon’s 2025 delivery windows (2-5 days for Prime).

Fast shipping is the primary rule. If your order defect rate is high, you can get suspended.

During dropshipping, contact only those suppliers who have local warehouses in the US and Europe so they can ship instantly. Confirm the shipping and provide the premium delivery to your consumers. Keep a timeframe of 2-5 days for the standard shipping of products.

Rule 3: Maintain a 95%+ order defect rate

Order defect rate shows your overall performance. It includes late deliveries, returns, and quality issues. Maintain an order defect rate below 1% to avoid penalties. This includes minimizing returns, cancellations, and late shipments.. Ensure a timely response to returns and refunds. Settle all the problems in your inbox with the customer to avoid a negative review.

Apart from rules, you should focus on the top tools that guarantee a successful journey.

Top Tools for Amazon Dropshipping Success in 2025

There are must-have tools to minimize the dropshipping failures on Amazon. Let’s check them out!

Tool 1: AI Pricing Software

A popular example of pricing software is SellerApp, which offers features like real-time competitor tracking and AI-based profit margin optimization. It can do the following tasks.

• Real-time competitor tracking

• AI-based profit margin optimization

• Auto-price adjustments to win the Buy Box without undercutting profits.

It reduces your time to adjust prices and helps you stay in competition.

Tool 2: Virtual Supplier Auditors (e.g., DropshipPro)

Suppliers are also an integral part of your dropshipping journey. Tools like DropshipPro can help by verifying suppliers’ delivery history and ensuring compliance with Amazon’s policies.

• Verifies suppliers’ delivery history

• Checks for invoice compliance

• Monitors fulfillment errors that could affect your Amazon account

Tool 3: Returns Management Bots

Do you want to avoid the issues related to quality and handle returns effectively? We have tools like Returnly that are ideal and provide the following functions.

• Fully automates the return/refund process

• Offers instant refunds or store credit

• Helps avoid negative reviews by resolving issues swiftly

There are a few challenges that can defeat you. So, fix them ASAP!

2025’s Biggest Amazon Dropshipping Challenges (and Fixes)

Beginners often get trapped in selling in a highly competitive market and make several mistakes. They have to fight the challenges.

Here are the three most common challenges.

Challenge 1: High competition in popular niches

Avoid highly competitive niches like electronics. Instead, focus on micro-niches, such as eco-friendly travel accessories or specialized kitchen tools. Instead, target products in the micro-niches. For example, you can target:

• Compostable travel toiletries

• Kid-safe silicone baking kits

Challenge 2: Amazon’s strict IP/copyright enforcement.

Copyrighted products get you instant suspensions. Verify all the copyrighted products and listings with reverse image search and confirm supplier product ownership.

Challenge 3: Rising ad costs for Amazon Sponsored Products.

Be proactive and find new opportunities to reduce ad costs. Leverage Amazon’s Audience Builder (2025 features) to target high-conversion audiences and reduce ad spend by focusing on narrow, interest-based segments:

• Target high-conversion audiences.

• Reduce ad spend waste by using narrow, interest-based targeting.

Frequently Asked Questions (2025 Updates)

Can I dropship from AliExpress to Amazon in 2025?

Yes, but only if the AliExpress supplier has warehouses in the US or Europe that can meet Amazon’s 2-5 day shipping requirement for Prime orders.

Do I need a license to dropship on Amazon?

Not always, but some states require a business license for selling products. There are 12 states as of 2025 that require a permit. You can check on Amazon’s Seller Legal Hub.

Conclusion

While dropshipping on Amazon offers a straightforward path to e-commerce, it’s crucial to navigate shipping challenges and adhere to Amazon’s policies. Focus on fast shipping, compliance, and niche products to succeed.

Do you want a hassle-free dropshipping journey on Amazon?

Contact JustChinaIt and follow these steps to launch your store. Focus on compliance, automation, and niche products. Test 5-10 products first. Scale the winners and cut the losers fast.