Dropshipping, also known as store flipping, is a business model where you sell products online without having a physical store. When you start dropshipping, you’re essentially creating your own online store from scratch. However, there are some important things to keep in mind when starting out, including how to avoid common mistakes that can lead to your Amazon account being closed.
What is Dropshipping?
Dropshipping is a business model where you sell products without having any inventory. This means that you only have to ship the products that your customers order.
Dropshipping is a great way to start a business because it’s easy to set up and you don’t need a lot of money to start it. You can also make money dropshipping even if you have little sales experience.
There are two main ways to dropship: Direct shipping and Fulfillment by Amazon (FBA). If you decide to dropship through FBA, Amazon will act as your wholesale supplier and handle all the shipping for you. This can be a bit more complicated than direct shipping, but it can be more profitable.
If you want to learn more about dropshipping, check out our blog post on the subject: How To Dropship Like A Pro.
What are Amazon’s Dropshipping Rules?
Dropshipping is a great way for new ecommerce entrepreneurs to get started, but it can be risky. Amazon is an especially big concern for dropshippers, as the company has strict rules about what qualifies as a sale and how much inventory you can have on hand. Here’s a look at what Amazon considers a sale, and what you need to do to stay in compliance.
What Is an Amazon Sale?
An Amazon sale is any purchase that meets one of the following conditions:
The customer has never made a similar purchase from you before.
The customer has made at least one other purchase from you within the past thirty days.
The total value of the items purchased is $25 or more.
If the total value of the items purchased is less than $25, then the sale is not counted as an Amazon sale.
How Much Inventory Can You Have on Hand?
You can have up to 100 units of inventory on hand at any given time. This includes both physical products and digital products. If you have any units of inventory in excess of this limit, then your account may be closed for Dropshipping violations.
How to Avoid Getting Your Amazon Account Closed
One common fear among new Amazon sellers is that Amazon will suddenly close their account for dropshipping. However, there’s no need to be afraid – Amazon has a very strict policy against closing accounts without good reason. In fact, even if you make a few mistakes, Amazon is usually willing to work with you to correct them. Here are some tips to help you avoid getting your Amazon account closed for dropshipping:
1. Make sure your products are selling well. If your products aren’t selling well, it’s more likely that Amazon will take action against your account.
2. Avoid making too many mistakes. If you make too many mistakes, Amazon may view you as a risk and decide to close your account. Make sure you’re keeping track of your sales and inventory levels so you can quickly address any issues.
3. Follow Amazon’s guidelines carefully. While there’s no guarantee that Amazon will always agree with your business decisions, following their guidelines will greatly increase the odds of avoiding account closure. For example, don’t sell items that violate Amazon’s policies on promotional materials (such as misleading claims about the product).
4. Communicate with Amazon regularly. Keep in touch with Amazon representatives to let them know about your sales and inventory levels, and to ask for help resolving any problems. This will help ensure that your account remains open and that you’re able to continue selling on Amazon.
Tips for Overcoming Amazon’s Dropshipping Rules
When starting out in Amazon Dropshipping, there are a few things you need to be aware of. One of which is the rule that Amazon requires a fixed price for all products sold through their platform. If you don’t adhere to this rule, Amazon may close your account.
Here are some tips to help you overcome this obstacle:
1. Choose products that are commonly sold at a fixed price. This will help you stay within Amazon’s rules and avoid any account closures.
2. Make sure your products have a competitive fixed price. If your products are priced too low, Amazon may view this as an attempt to undercut their competition and may close your account accordingly.
3. Create a detailed product listing that includes all the necessary information about your product. This will help potential buyers make an informed decision about whether or not to buy your product.
4. Frequently update your product listings to ensure that they are accurate and up-to-date. This will help potential buyers find the correct product and make an informed purchase decision.
Conclusion
As one of the most popular online marketplaces in the world, it’s no surprise that Amazon has a strict policy against dropshipping. In short, dropshipping is selling products through your own Amazon account without having any other physical inventory associated with it. While this can be an incredibly profitable strategy, Amazon doesn’t condone its use and may take action if they suspect you are violating their policies. If you are Dropshipping on Amazon and find your account is being closed for any reason, don’t panic — there are steps you can take to protect yourself and continue operating your business as usual.
