Can you dropship on Amazon, and is online arbitrage the same thing?
Max VershininFounder of Arbitrage Herodropshippingonline arbitrageamazon policyfbafbm
Ask AI to summarize this article:
Yes, Amazon allows dropshipping when you are the only seller of record: your supplier agrees to name only you, no other seller appears on the parcel, and you handle returns. No, online arbitrage is not the same thing. Amazon's Drop Shipping Policy bans having a store, another seller or Amazon itself ship your order in their name. In online arbitrage you buy the units from online stores before you sell them. With FBA, you label them and send them to Amazon's warehouses, and Amazon ships each order from your stock.
So can you dropship on Amazon as an arbitrage seller? You do not need to: Arbitrage Hero is built for the buy-first model. It scans 430 US and UK stores against Amazon and shows the profit, fees and ROI of each match before you buy. This guide quotes Amazon's policy in the US and the UK, shows how its wording changed since 2017, and explains the 2026 label rule that decides how arbitrage units reach FBA.
Amazon's drop shipping policy allows a supplier to ship only in your name
Amazon's drop shipping policy lets another company ship your orders, as long as the customer sees only you as the seller. The US Drop Shipping Policy says that drop shipping "is not acceptable unless it is clear to the customer that you are the seller of record". The rule covers "another company's fulfillment service, a third-party logistics company, or a drop shipper".
The policy names two cases that are "strictly prohibited". The first is buying products from a third party, "including Amazon or another seller in Amazon's stores", and having that third party ship to your customer when the shipment does not name you as the seller of record. The second is shipping orders with packing slips, invoices or packaging that show any seller name or contact details other than your own.
When someone else ships for you, Amazon says you must always:
- Have an agreement with your supplier that makes you the only seller of record and the only seller named on all packing slips, invoices and external packaging.
- Remove any packing slip, invoice, packaging or other information that names a different seller or supplier before the order ships.
- Accept and process customer returns, and follow the Business Solutions Agreement and Amazon's other policies.
Online arbitrage is not dropshipping, because you own the units before the sale
Online arbitrage is a different model from dropshipping, because you buy the units from online stores before you sell them. You then ship orders yourself or send the units to FBA. In dropshipping you buy the product only after the customer orders, and the supplier ships it to the customer under an agreement that meets Amazon's policy. Our guide to what online arbitrage is and how it works covers the full model.
The table compares four ways an Amazon order can reach the customer, judged by the drop shipping policy alone. Only one of them, a store that ships your order in its own name, breaks that policy. Amazon's other rules, such as category approval, still apply to every flow.
| Order flow | When you buy the unit | Who ships to the customer | Another seller's name on the box or paperwork | Allowed by the drop shipping policy |
|---|---|---|---|---|
| Dropshipping with a supplier agreement | After the customer orders | Your supplier | No | Yes, under the three rules |
| A store ships your Amazon order in its name | After the customer orders | The store (Walmart, Target, Argos) | Yes, the store's | No |
| Online arbitrage with FBA | Before the sale | Amazon, from your FBA stock | No | Yes |
| Online arbitrage, you ship it yourself (FBM) | Before the sale | You | No | Yes |
The diagram shows the same three flows as the first three rows of the table. In the allowed dropshipping flow, the supplier ships in your name under an agreement. In the banned flow, the shipment names the store, not you, as the seller. In the online arbitrage example, the units stop with you or a prep center for labels before Amazon stores and ships them.
Can you dropship on Amazon from Walmart, Target or Argos?
A Walmart, Target or Argos shipment to your Amazon customer breaks Amazon's drop shipping policy if it does not identify you as the seller of record. It also breaks the policy if the store's name is on the packing slip, the invoice or the box. You must also have the supplier agreement that Amazon requires, and you must handle the returns.
For example, suppose you place an ordinary store order without that agreement. A customer buys a blender from your Amazon offer. You order the same blender on walmart.com and type in the customer's address. If the parcel arrives in Walmart's box or with Walmart's packing slip, the customer sees a second seller for one order, and the policy is broken. In the UK the same order through Argos breaks the same rule.
The same store is a normal source in online arbitrage. Walmart, Target and Argos are among the 430 US and UK stores Arbitrage Hero scans. The difference is the address: in arbitrage the order goes to you or your prep center, not to an Amazon customer.
Amazon's wording changed, and some pages still quote the 2017 version
Amazon's policy today names more third parties than "another online retailer": Amazon itself and other Amazon sellers. Its banned example applies when the shipment does not identify you as the seller of record, or when anyone else appears on the packing slips, invoices or external packaging. The 2017 text was shorter:
- In the copy of December 8, 2017 in the Internet Archive, the banned example was "Purchasing products from another online retailer and having that retailer ship directly to customers", with no condition.
- Today, read on October 17, 2026, the example has the seller-of-record condition and names "a third party, including Amazon or another seller in Amazon's stores".
The archive does not show the exact date of the change. Its copies from 2023 to 2025 hold no policy text, because the page is now drawn by JavaScript.
Some pages still repeat the 2017 example. Amazon's own UK guide "What is dropshipping" (updated January 27, 2026) lists "Buying from another online retailer and having them ship directly to your customer" as a violation. In the US Google AI Overview for "can you dropship on amazon" captured on October 17, 2026, Google labeled the same case "No Retail Arbitrage". The policy itself does not mention arbitrage. It is about who ships the order and whose name the customer sees.
Since March 2026 Amazon US requires your FNSKU label on every arbitrage unit
Since March 31, 2026, every unit an arbitrage seller sends to FBA in the US must carry an Amazon barcode before it arrives. Amazon's US FBA Barcode Choice and Labeling FAQ says: "Resellers are now required to use Amazon barcodes for products even if they have a manufacturer barcode." Units that are not labeled as Amazon requires "are not eligible for reimbursement".
For an arbitrage purchase, you can receive and label the units yourself or use a prep center. Our guide explains why resellers must put an FNSKU label on every unit: how to print the labels, the end of Amazon's own labeling service and the UK rules. The glossary explains what an FBA prep center does.
What to do next
Before you sell your first unit, decide who ships your orders. When another company ships for you, check that the shipment names you as the seller and names no other seller or supplier. This guide explains Amazon's published policy as read on October 17, 2026. It is not legal advice, and Amazon can change the policy.
- Read Amazon's Drop Shipping Policy for your marketplace before your first order. The US and the UK pages have the same three rules.
- If you ship any orders yourself, check that every packing slip, invoice and box names you as the seller, not another seller or supplier. The glossary explains FBM, where you ship orders yourself.
- Do not have a store or another Amazon seller fulfill your order unless the arrangement meets all three of Amazon's drop shipping rules.
- For arbitrage, decide where your units get their FNSKU labels before your first buy: at home or at a prep center.
- Check the profit after Amazon's fees and your label cost before you buy. Arbitrage Hero shows the profit, fees and ROI of each match, and the free FBA calculator checks one product at a time.
Can I buy a product on Amazon and have Amazon ship it to my customer?
Buying on Amazon and entering your customer's address does not by itself meet Amazon's drop shipping rules. The Drop Shipping Policy names this case directly. Buying from "a third party, including Amazon or another seller in Amazon's stores", and having it ship to your customer is "strictly prohibited without exception" when the shipment does not identify you as the seller of record. The same holds when anyone else appears on the packing slips, invoices or external packaging.
What happens if you break Amazon's drop shipping policy?
Amazon's Drop Shipping Policy says that its examples of drop shipping violations "may result in a restriction of your ability to sell using Amazon's Merchant Fulfilled Network (MFN)". MFN means the orders you fulfill yourself instead of through FBA. The policy page lists no other penalty. It also requires every seller who uses a drop shipper to follow the Business Solutions Agreement and Amazon's other policies.
Can a prep center or 3PL ship my seller-fulfilled Amazon orders?
Yes, a prep center or a third-party logistics company (3PL) can ship your seller-fulfilled Amazon orders, because Amazon's Drop Shipping Policy covers "another company's fulfillment service, a third-party logistics company, or a drop shipper". The same three rules apply. You need an agreement that makes you the only seller of record and the only seller named on packing slips, invoices, external packaging and other information in the parcel. Any information that names another seller or supplier is removed before shipping. You accept and process the returns, and you follow the Business Solutions Agreement and Amazon's other policies.
Does Amazon UK have the same drop shipping policy?
Yes, Amazon UK's Drop shipping Policy on Seller Central UK has the same rule, the same two banned examples and the same three requirements as the US page, in British spelling. It says drop shipping "is not acceptable unless it is clear to the customer that you are the seller of record". Our FNSKU guide covers the UK label rules for FBA.