Reviewing Amazon dropshipping operations: shipper details, package contents and inventory

This article is for sellers on Amazon who have a third party, such as a supplier or logistics company, ship orders to buyers on their behalf (dropshipping, which here also includes selling without holding your own inventory). We set out the conditions the policy allows and the arrangements it prohibits, then walk through how to check your "package contents," "shipper details," and "inventory management," and how to approach your documentation if you face a restriction or suspension.

Key points of the dropshipping policy: what is allowed and what is prohibited

Amazon's Help page "Drop Shipping Policy" (ドロップシッピングポリシー) describes dropshipping as a third party, such as a wholesaler, manufacturer or logistics company, shipping orders directly to buyers on the seller's behalf, and permits it only when it is clear to the buyer that the seller is the "seller of record" (the one selling that order). What matters is not whether you keep inventory on hand, but whether buyers are correctly told who the seller is.

This article is based on the content of Amazon Help pages and official pages we were able to review as of September 2026. Policies and on-screen labels can change, so please also check the latest Help content.

Two arrangements that are prohibited without exception

• ① Buying from a third party (including Amazon or another seller in Amazon's stores) and having it ship directly to the buyer, where either of the following applies
  • Nothing in the shipment makes clear that you are the seller
  • A name other than yours appears on packing slips, invoices or external packaging
• ② Shipping orders with a seller name or contact information other than your own on packing slips, invoices, external packaging or other information

Amazon's reasoning is that when buyers perceive someone other than the seller as the seller, they are left confused about whom to contact if there is a problem. Because the policy explicitly names Amazon and other sellers as sources you might buy from, having a product you bought on Amazon delivered directly by Amazon or another seller can also fall under the prohibited examples.

Four conditions when you have a third party handle shipping

If you use another company's fulfillment service, a third-party logistics company (outsourced logistics), or a dropshipping provider, you must meet the following four conditions. Note that third-party logistics providers (3PLs) are covered too, so check any boxes or information cards bearing their company name as well.

Policy condition	What it means in practice
① Agree in your contract with the supplier that only you will be identified as the seller	Have only your business shown as the seller on everything, including packing slips, invoices and outer packaging
② Remove all information that could identify other sellers or the supplier before shipping	Leave none of the supplier's documents or branded materials in the package
③ Take responsibility for accepting and processing buyer returns	Make your business the point of contact for returns, and have returns sent to an address you designate and manage (addressed to your business)
④ Comply with the Business Solutions Agreement (BSA) and applicable policies	Also follow the basic rules on ship-by deadlines, packing slips, shipment confirmations and so on

What can happen if you violate it

The current policy states that a violation may lead to restrictions on your listings under merchant fulfillment (MFN, meaning you ship orders yourself). The criteria for the scope of enforcement are not published, so it cannot be said either that you will get off lightly or that suspension is certain.

What buyers see when they open the box: a checklist for package contents and outer packaging

Here, in order, are the things a buyer sees once the package arrives. "BSA S-2.1" refers to the "Sale and Fulfillment" (販売および出荷・配送) section of the Business Solutions Agreement.

Checkpoint	What to check	Relevant rule
Outer box and packing materials	Are the boxes or tape printed with the name or logo of the supplier or another store?	Policy (external packaging)
Shipping label	Is the supplier listed as the sender? Is it a label made specifically for another e-commerce platform?	Policy (external packaging; the sender field is our interpretation), Valid Tracking Rate Help page
Packing slip	Does each order include one slip showing your business as the seller?	BSA S-2.1(i)(j)
Invoices and receipts	Is anything issued in the supplier's name included?	Policy (invoices)
Flyers and stickers	Are any of the supplier's promotional materials, or another store's price tags or shop stickers, left in the package?	Policy (other information)
Return address	Is the return destination clearly stated as an address you designate and manage (in your business's name)?	BSA S-2.1(j), condition ③

We have not found any specific Amazon rule on the sender field of the shipping label, but because the label is attached to the outer packaging where buyers will see it, we believe it is safer to put it in your business's name.

One packing slip per order, in your business's name

The BSA requires you to include a separate packing slip with each order that identifies you as the seller and states the return address. You can generate packing slips by selecting an order in Manage Orders (注文管理) and using "Print packing slip" (納品書の印刷), so set up a workflow in which you print the packing slips yourself and give them to the supplier to include in each package. Orders from business customers (corporations and sole proprietors) must include a packing slip, and if the buyer has provided a PO number (purchase order number), include it on the slip.

Keep the supplier's invoice out of the package

A supplier's invoice shows the supplier's name (and its registration number, if it is a qualified invoice), so if it ends up in the package, the buyer will see the supplier's name, which may fall under one of the policy's prohibited examples (an invoice bearing a name other than the seller's). Amazon issues qualified invoices to buyers on behalf of sellers who have provided their registration number, and sellers can download them from "Manage Invoices" (請求書管理) in the order details (this applies to orders placed on or after the launch date in December 2024). If you have concerns about the tax treatment, consult a tax accountant.

Check your shipper details in three places: settings, shipment confirmations and shipping labels

When a supplier or 3PL ships your orders, the actual shipping location can easily drift away from the address you have registered. Check the following three places. Match ① and ② to the actual shipping location, and ③ to your business's name.

Where	What to check
① Ship-from address in Shipping Settings	Is your actual shipping location listed under Settings (設定) > Shipping Settings (配送設定) > the Addresses (住所) tab? If you ship from multiple locations, create an address for each one and assign them using Shipping Settings Automation (SSA)
② Ship-from address in shipment confirmations	Are you selecting the address the order actually shipped from? (If none is selected, your default ship-from address is used, or your business address if there is no default)
③ How the package looks	Does the supplier's name or contact information appear in the sender field of the shipping label or on the outer box?

If you don't use SSA, ship-by deadlines and similar dates are calculated from the settings for your default address. If you ship from a distant supplier warehouse but keep listing with settings based on your own address, your ship-by deadlines and estimated delivery dates won't match reality, making late shipments more likely, along with negative feedback and A-to-z Guarantee claims caused by late deliveries.

Send shipment confirmations after handing over the package, with the correct tracking number

A shipment confirmation (Manage Orders > "Confirm shipment" (出荷通知を送信)) requires the ship date, the shipping method, a valid tracking number and the ship-from address. Even if you leave shipping to your supplier, this part is still yours to manage as the seller.

• Send it within 4 hours of pickup, after the package has been handed to the carrier. Sending it before handover, known as pre-confirmed shipment abuse (出荷通知事前送信の乱用, or PCSA), is treated as a violation of the Code of Conduct, and if it continues, your merchant-fulfilled sales may be restricted.
• With major trackable shipping services in Japan, entering an incorrect tracking number will cause the shipment confirmation to be blocked. Make any corrections within 24 hours of confirming shipment whenever possible.
• Choose the carrier from the Amazon-specified options in the drop-down menu, and pair the shipping service with the tracking number correctly (Amazon explicitly states that labels and shipping methods meant for other e-commerce platforms should not be used).

For more detail, see also reviewing your procedures to keep shipment confirmations in line with actual dispatch and checks for improving your Valid Tracking Rate.

The numbers that slip first when you sell without inventory: four metrics and a worked example

With dropshipping, your supplier's stockouts and delays show up directly in your own performance. You can check the metrics by opening "View details" (詳細を表示) under "Shipping Performance" (出荷パフォーマンス) on the Account Health (アカウント健全性) page and looking at each tab (the Order Defect Rate is under "Customer Service Performance" (カスタマーサービスのパフォーマンス)).

Metric	Period	Target	Why it tends to slip
Cancellation Rate (Pre-fulfillment Cancel Rate)	7 days	Under 2.5%	You only learn of the supplier's stockout after placing the order
Late Shipment Rate	10 or 30 days	Under 4%	Supplier shipping delays; direct shipments from overseas
Valid Tracking Rate	30 days, by category	95% or higher	Tracking numbers not shared, or entered incorrectly
Order Defect Rate	60 days	Under 1%	Negative feedback and A-to-z Guarantee claims caused by late deliveries

Missing any of these targets can lead to your merchant-fulfilled listings or your selling privileges being deactivated or restricted. Amazon's Help explicitly lists "delivery delays caused by dropshipping from overseas" as one cause of a high Late Shipment Rate.

Worked example: how many cancellations are allowed in 7 days?

This example calculates, by order volume, how many cancellations stay within the target (under 2.5%). Check your actual figures on your screen and in your reports.

Orders in 7 days	Rate with 1 cancellation	Cancellations within target
20	5.0%	0
40	2.5%	0
80	1.25%	Up to 1
200	0.5%	Up to 4

If you have 40 or fewer orders in 7 days, a single cancellation due to a stockout is enough to miss the target. Even at 80 orders, two cancellations will do it. In addition, Amazon automatically cancels any order without a shipment confirmation within 7 business days of the expected ship date; the buyer is not charged even if you actually shipped the item, and the cancellation also counts toward your Cancellation Rate.

Settings that keep your numbers on track

• Set your inventory quantity to what the supplier can actually secure: Amazon's Help even cites quantities like 9999 as a cause of cancellations. You can cap the quantity per order with the maximum order quantity in your inventory file.
• Match your handling time to reality: The expected ship date is the order date plus your handling time (in business days). Change the default under Settings > Shipping Settings > General Shipping Settings (一般配送設定) > "Handling time" (出荷作業日数), and change it for individual products through places such as "Edit details" (詳細の編集) in Manage Inventory (在庫管理).
• Use the order limit: This optional setting automatically adds one day of handling time to orders beyond the number you can process in a day (it does not apply to orders under Seller Fulfilled Prime (マケプレプライム) or expedited-shipping (お急ぎ便) programs).
• Use vacation settings (休止設定) to match your supplier's closures: Pending orders are not automatically canceled, so check them in advance. Even while your listings are inactive, you must still process return requests and reply to buyer emails within 24 hours, and your monthly subscription fee continues to be charged.

Listings canceled twice in a row, among others, may be removed. Countermeasures are covered in detail in addressing your pre-fulfillment cancellation rate and ways to improve your Late Shipment Rate.

Note that if a worsening Cancellation Rate, Late Shipment Rate or Order Defect Rate puts your merchant-fulfilled listings at risk of deactivation, a five-question quiz may appear in a banner on the Account Health page (the Help pages for the Cancellation Rate and Order Defect Rate specify that it must be answered within 72 hours). Amazon explains that if you pass, no plan of action is required, but this mechanism concerns the metrics; it is not a substitute for responding to a notification of a dropshipping policy violation.

Arrangements with suppliers and 3PLs, and how responsibilities are divided

Condition ① requires a "contract" with your supplier. Put the following items in writing, for example in a contract or memorandum, and keep it on file so you can present it if you are asked to submit it.

What to check when choosing a supplier

As guidelines for choosing a supplier, Amazon lists factors such as business registration and legal compliance, relationship with the brand, reputation, workflows for order processing, inventory management and quality control, and a contract that makes clear who is responsible when complaints arise. Products sourced from individuals (other than sole proprietors) cannot be listed as "New," and depending on how you source, whether you need a secondhand dealer license may also become an issue, so check with the police station with jurisdiction or with a specialist.

Having retail stores or other e-commerce sites ship directly

Ordering from a retail store or similar business as a customer and having it ship directly to the buyer is close to the prohibited examples. The policy wording is conditional, but because ordinary retail orders typically come with a box or packing slip bearing the store's name, we think it would be difficult to meet the conditions. The same applies when you order from Amazon itself or another seller and have the item shipped directly: if a box or packing slip bearing the name of Amazon or another store arrives with it, that alone falls under the prohibited examples. It also makes it harder to gather the invoices that prove your sourcing.

Returns and buyer support are the seller's responsibility

Sellers must offer a return policy at least as favorable as Amazon's, and the return address is set under Settings > Return Settings (返品設定) > "Manage Return Addresses" (返送先住所の管理). In cases such as an item not arriving by the latest estimated delivery date, an A-to-z Guarantee (Amazonマーケットプレイス保証) claim may be granted automatically, in which case the refund is made at the seller's expense.

Responding to a restriction or suspension: sorting out the facts and taking stock of your evidence

When you receive a notification, work through the following steps in order before deleting listings or sending any explanation.

STEP 1. Confirm the scope of the issue in the notification and on screen

Write down the name of the violation, the listings and period concerned, and the action requested, and also check Account Health, Performance Notifications (パフォーマンス通知) and Product Policy Compliance (商品規約の遵守). The procedure differs depending on whether only merchant fulfillment is restricted or your entire account is suspended. For the former, see also what to check when merchant fulfillment is disabled.

STEP 2. Compare orders in the affected period with how they were actually shipped

For each order, list who shipped it, what was included in the package, the sender on the shipping label, and the ship-from address and tracking number in the shipment confirmation.

STEP 3. Decide on your approach and gather documents

On the Japanese Seller Forums, Amazon staff directed a seller whose account had been locked over this violation to the following documents (a post from about two years before the time of writing). This was an individual reply, and the documents requested may differ from one notification to another.

Approach	Main items the staff member pointed to
You want to continue dropshipping	Show an agreement with your supplier that you will be clearly identified as the seller, the removal of information identifying third parties, and your responsibility for accepting and processing returns
You believe you were suspended in error	① Proof of sourcing: evidence of inventory, such as supplier invoices covering your sales over the past 30 days ② Verification that the supplier exists: the supplier's name and contact information (Amazon may contact them to verify) ③ Authorization to sell: evidence that you are permitted to sell the products ④ Proof of outsourcing: your contract, if you used a dropshipping provider

Invoice requirements for appeals in general are set out in the Help page "Invoice requirements for policy violation appeals" (ポリシー違反の申し立てに関する請求書の要件). They include an issue date within the 365 days before you received the Performance Notification, quantities covering your sales over the past 365 days and your on-hand inventory, the ASINs concerned, product codes that can be verified online, the supplier's contact information, and being an unaltered original (prices may be redacted); the supplier must also have a web presence that can be verified through public information or similar sources. Because this standard differs from the "past 30 days" in the forum reply, give priority to the period and quantity instructions in the notification you received. If you don't have formal invoices, see reviewing your documents when you don't have invoices; if your documents have been questioned, see what to do when you're told an invoice is forged or altered.

STEP 4. Appeal with the root cause and preventive measures laid out together

To appeal an account suspension, go to "Reactivate your selling account" (出品用アカウントの再開) on Account Health and follow the on-screen instructions. Amazon's guidelines ask you to be factual and concise and to present the root cause and the actions you have taken, together with the dates they were carried out and any related documents. Below is a sample that assumes the supplier had been including packing slips in its own name. It is a hypothetical example, not a real case, so rewrite it to fit your own facts.

Root cause: The supplier to which we outsource shipping was shipping orders directly with packing slips in its own name and outer boxes bearing its company name, and we had no procedure for checking package contents before shipment.
Actions taken: By Month X, 20XX, we identified all orders in the affected period. On Month X, 20XX, we concluded a memorandum with the supplier stipulating that only our company is shown as the seller, that our packing slips are included, that no outer boxes, documents or materials bearing the supplier's name are used, and that returns are accepted and processed by our company (memorandum attached). All shipments since that date have been switched to plain outer boxes.
Preventive measures: We receive a photo of how each shipment is packed to check its contents, and a staff member cross-checks the ship-from address and tracking number.

For a detailed explanation, see how to build a plan of action.

Switching to holding inventory is also an option

If putting these arrangements in place is difficult, you can also hold inventory and switch to FBA or to shipping orders yourself. Switching alone will not get your account reinstated, so decide how you will sell going forward and make sure it does not contradict what you say in your appeal.

What not to do

• Continuing to sell through another account: Under the Seller Code of Conduct (出品者行動規範), you are generally allowed only one account per region where you sell, and a separate account opened to avoid a suspension or restriction is not permitted.
• Recreating or editing invoices, or backdating a memorandum: Invoices must be unaltered originals. If you are putting an arrangement in writing for the first time, date it with the date it was actually concluded.
• Asking buyers to cancel: When you can't ship an order, you as the seller cancel it and select a reason. Cancellations you request from buyers through messages still count toward your Cancellation Rate.
• Sending shipment confirmations before handing over the package (PCSA, described above)
• Treating the problem as solved just because the supplier's name has been removed: If nothing changes in how inventory, tracking numbers and returns are managed, problems may surface in other metrics.

Frequently asked questions

Q. Is all selling without holding inventory prohibited?

A. It is not prohibited across the board. It is allowed only when buyers can tell that you are the seller and the four conditions are met.

Q. I noticed that my supplier's packing slips were being included in packages.

A. Have the supplier stop including them, switch to your own packing slips, put the arrangement in writing, and record when the problem started and which orders were affected. If you have received a notification, follow its instructions.

Q. I placed an order and found that the supplier was out of stock.

A. Cancel the order yourself as the seller, citing out of stock as the reason, and then add to your arrangement how that supplier's inventory counts will be reflected and a deadline for notifying you of stockouts.

Q. I ship directly from an overseas supplier.

A. Set your handling time to the actual number of days, and choose a shipping method that lets you enter the tracking number correctly in the shipment confirmation. Import-related requirements need to be checked separately for each product.

Summary

The core of the check is whether any name other than your own appears on anything that reaches the buyer. With that in mind, get the following four areas in order.

• Package contents: Include a packing slip in your business's name with each order, and leave out the supplier's documents and promotional materials
• Shipper details: Match the ship-from address in Shipping Settings and in shipment confirmations to the actual shipping location, and put the shipping label and outer packaging in your business's name
• Inventory management: Set inventory quantities you can actually secure and a realistic handling time, and check your metrics weekly
• Arrangements: Put the rules with your suppliers and 3PLs in writing, and keep responsibility for returns and buyer support with your business

If you receive a notification, the basics are to verify the facts one by one and explain them with legitimate documents. If you're unsure which approach to take, consider consulting a specialist.

*This article provides a general explanation. The appropriate response in individual cases depends on the circumstances.

Further reading

When Amazon disables merchant fulfillment: checking restrictions and reinstatement requirements Read article → Reviewing how you handle Amazon buyer data: responding to misuse allegations Read article → Addressing Amazon's pre-fulfillment cancellation rate: inventory and order-processing checks Read article →