Can You Dropship on Amazon Australia? Amazon's Drop Shipping Policy Explained

You can dropship on Amazon Australia only in a narrow form: you must be the seller of record, and the customer must be able to see that. Amazon's policy says drop shipping, "or allowing a third party to fulfil orders for customers on your behalf, is not acceptable" unless it is clear to the customer that you are the seller of record. The common model, buying from a retailer after the sale and having that retailer ship straight to your customer, is strictly prohibited. The policy text below was read from Amazon's page in October 2026.

What does Amazon's drop shipping policy say?

Amazon's fulfilment page sets out two prohibited practices:

1. Purchasing products from a third party, including Amazon or another seller in Amazon's stores, and having that third party ship directly to customers, if the shipment does not identify you as the seller of record, or if anyone other than you appears on packing slips, invoices or external packaging. The page says this is "strictly prohibited without exception".
2. Shipping orders with packing slips, invoices, external packaging or other information that shows a seller name or contact details other than your own. The page also calls this "strictly prohibited".

Read those two rules together. The test is not where the stock sits. The test is whose name the customer sees on every document and package, and who is accountable for the sale.

What is allowed on Amazon Australia?

Amazon does allow a third-party fulfilment provider or drop shipper if you meet three conditions:

• You have an agreement with your supplier under which you are the only seller of record, and the only entity identified as the seller on packing slips, invoices, external packaging and any other information included with the products.
• You remove any packing slips, invoices, external packaging or other information that identifies a different seller or third-party supplier before the order ships.
• You stay solely responsible for accepting and processing customer returns, and you comply with the Business Solutions Agreement and applicable Amazon policies.

In practice, that means these set-ups can fit the policy if the paperwork is right:

• A manufacturer or distributor that ships blind-labelled for you. You own the brand or have a supply agreement, and the parcel carries your name.
• A third-party logistics or prep provider that stores your own stock and ships it as you.
• Fulfilment by Amazon, where your stock is in an Amazon fulfilment centre and Amazon ships it. See Amazon FBA vs FBM in Australia.

What is banned?

Amazon does not publish, on that page, a list of named supplier types, countries or fulfilment companies that count as compliant. The rules are about identification and responsibility.

What happens if you break the rule?

Amazon says violations "may result in a restriction of your ability to sell using Amazon's Merchant Fulfilled Network (MFN)", and that non-compliance may result in suspension or removal of selling privileges. A parcel that carries someone else's invoice is the kind of problem that can lead to customer complaints, which affect your account health. See account health rating and policy warnings. If your account is suspended, Amazon's process for suspensions is explained separately; the plan-of-action route belongs to Amazon, not to any outside service.

What are the practical problems even if you stay compliant?

Compliance is only the first problem. Dropshipping on Amazon tends to be hard for operational reasons:

• Prime. Amazon says using FBA is the easiest way to get Prime badge eligibility for most offers. Its page does not say how seller-fulfilled offers qualify, so check Seller Central before promising fast delivery.
• Stock accuracy. If your supplier runs out and you have an open offer, you cancel orders. Amazon sets a pre-fulfilment cancel rate target under 2.5%.
• Late shipments. The late shipment rate target is under 4%, and the order defect rate target under 1%. A supplier who ships slowly pushes you toward those limits.
• Margins. You pay the supplier's price plus Amazon's referral fee on the full sales price, including delivery. Many dropship items from marketplaces have no margin left once that fee is paid.
• Brand rules. Branded goods you do not own may need you to be an authorised reseller.
• Australian Consumer Law. You are the seller to the consumer, so confirm your consumer-law obligations with the ACCC or a lawyer; this is general information, not legal advice. See Australian Consumer Law for Amazon returns.

A compliant structure, step by step

1. Choose a supplier that will sign a written agreement naming you as the only seller of record.
2. Confirm in writing that every packing slip, invoice and external label carries your seller name and contact details only.
3. Order a sample parcel to yourself and check the outside of the box and everything inside.
4. Set a handling time you can meet with that supplier, and check stock levels daily.
5. Handle returns yourself: set a returns address that you control.
6. Keep the agreement and sample photos on file in case Amazon asks.

Alternatives that fit the policy better

• Hold a small amount of stock and use FBA. FBA has no subscription fee, carrier contract or minimum inventory requirement.
• Use a prep centre or 3PL that ships FBM orders under your name; see FBM with Australia Post.
• Use Multi-Channel Fulfilment for orders from your other sales channels; see MCF. That applies to your own stock stored with Amazon.
• Source wholesale stock and sell it yourself; see Amazon Australia wholesale.

FAQ

Is dropshipping legal on Amazon Australia? Dropshipping is not illegal, but Amazon restricts it by policy. It is acceptable only if you are clearly the seller of record on every document and package, and you handle returns. Breaking that policy can restrict your seller-fulfilled access or your whole account.

Can I use a supplier in China to ship to my Amazon customers? Only if the supplier agrees you are the sole seller of record and ships with your name and no supplier paperwork, and you handle returns. Delivery times and consumer-law obligations are your responsibility. Many sellers instead import stock first; see shipping from China to Amazon FBA Australia.

Can I buy from Amazon and ship to my customer? No. Amazon's policy names purchasing from Amazon or another seller in its stores and having them ship directly as strictly prohibited when the shipment does not identify you as seller of record.

Is FBA dropshipping? No. With FBA you own the stock and send it to Amazon, which ships and handles customer service and returns. You are still the seller of record.

What happens to a dropshipping seller who gets caught? Amazon says it may restrict your Merchant Fulfilled Network access or suspend or remove your selling privileges. Amazon decides what action applies.

Do I need a Professional plan to dropship? Amazon's public pages do not tie dropshipping to a plan; the policy applies to all sellers who use seller fulfilment. A Professional plan costs A$49.95 a month excluding GST. Compare plans in Individual vs Professional.

Choosing a model that fits the policy

If you want to start with little stock, decide between FBA, a compliant blind-ship supplier and a prep partner before you list. Blooprint, an Amazon SPN verified partner, can help check the set-up through Amazon account management in Australia. More set-up guides are on the Australia hub.