How to Start Dropshipping for Free on Amazon in 2026

So, you want to start Amazon dropshipping but don't know where to begin? What if we told you that you can start dropshipping on Amazon for free? That's right! Very few know this—which is why you're checking out our post. Lucky for you, you've come to the right place. Get ready for a complete breakdown because we'll reveal Amazon's dropshipping policy nuances, the top Amazon dropshipping suppliers, and so much more info that you don't want to miss!

What is Amazon Dropshipping?

Amazon dropshipping is straightforward: you sell products on Amazon without holding inventory. When a customer buys, you purchase from a supplier who ships directly to them. The catch? You're the seller of record. Your name goes on the invoice and shipping label, not your supplier's.

This differs from traditional retail where you stock a warehouse. With dropshipping on Amazon, you test products before investing heavily. You only pay for items after customers buy them. That's the appeal—you can start an Amazon dropshipping business with almost no upfront cost.

What is Amazon dropshipping exactly? It's a fulfillment model that lets you scale without capital. But it only works if you follow Amazon's strict rules about who appears as the seller. Break those rules and your account gets suspended.

Can you dropship on Amazon? Yes, but not the way most people think. You can't buy from Walmart or AliExpress and ship to customers. That's retail arbitrage, and Amazon bans it. You need legitimate wholesale suppliers who verify you're the merchant of record. That's the real distinction between what's legal and what gets you banned.

What Are Amazon's Selling Fees?

Before you launch, understand the fees. They add up fast and directly cut into profits.

Selling Plan Fees

You pick between two plans when you set up dropshipping on Amazon:

• Individual Plan: $0.99 per item sold, no monthly charge
• Professional Plan: $39.99 per month, unlimited listings

Most dropshippers start with Individual. You pay nothing unless you sell. Once you hit 40+ sales monthly, Professional becomes cheaper. To start dropshipping for free on Amazon, the Individual plan lets you literally begin with zero monthly costs.

Referral Fees

Amazon keeps a percentage of every sale. The rate depends on category and typically ranges from 6% to 45%. Most categories sit between 8% and 15%. Electronics run lower around 8%. Luxury items climb to 45%. There's also a $0.30 minimum per item, so even a $5 sale costs you at least $0.30 in referral fees.

Variable Closing Fees

Media products (books, DVDs, software) carry an extra $1.35 to $1.80 per unit. If you're not selling media, skip this cost.

High-Volume Listing Fees

If you maintain over 100,000 listings in non-media categories, you pay $0.005 per ASIN monthly. Most dropshippers never hit this threshold.

The math matters. If a product sells for $25 and your referral fee is 15%, Amazon keeps $3.75. Add shipping and supplier costs, and margins shrink fast. That's why product selection is everything.

Is Dropshipping Allowed on Amazon?

This is the question everyone asks first. The answer: yes, dropshipping is legal on Amazon in 2026, but only under specific conditions.

Amazon allows dropshipping because the company cares about one thing—customers knowing who they're buying from. The marketplace has zero problem with dropshipping itself. It has a massive problem with retail arbitrage: buying from Walmart, Target, or AliExpress and shipping directly to customers.

What Amazon Allows

When you dropship on Amazon for beginners or experienced sellers, follow these rules:

• You must be the seller of record on every order
• Your business name appears on invoices, packing slips, and shipping labels
• Remove all third-party branding before shipping
• Handle customer service and returns directly
• Have a formal agreement with your supplier confirming you're the seller of record
• Ship within Amazon's timeframe (typically 24-48 hours)

What Amazon Prohibits

Is Amazon dropshipping legal if you cut corners? No. Amazon explicitly bans:

• Buying from other retailers and shipping directly to customers
• Including supplier invoices or branding in packages
• Using unverified suppliers without traceable supply chains
• Listing products with third-party packaging
• Any form of retail arbitrage

Amazon's automated systems catch violations quickly in 2026. Most account suspensions happen because sellers unknowingly break these rules. The platform has gotten stricter about policing dropshipping policy violations. Don't assume you can slip through—you can't.

Why Start Using Amazon to Dropship?

There are solid reasons to start Amazon dropshipping over building your own store.

Huge Customer Base

Amazon has 200+ million Prime members in the US alone. That's immediate access to hundreds of millions of active shoppers. Your own website would take years to build that traffic. Dropshipping with Amazon gives you that audience on day one.

Built-In Trust

Customers trust Amazon. They're not worried about scams because Amazon's buyer protection is legendary. This trust translates to higher conversion rates than most independent websites.

Amazon Prime Eligibility

If you offer fast shipping, you can qualify for the Prime badge. Products with that badge get significantly higher click-through and conversion rates.

Lower Risk

How to start dropshipping for free means testing products cheaply. If something doesn't sell, you haven't lost money on dead inventory. You can validate dozens of products with minimal risk.

Automation Options

Tools like Spocket automate order fulfillment and inventory syncing. You can scale your Amazon dropshipping store without hiring staff or managing complex operations.

Supplier Costs and Other Operational Expenses

Beyond Amazon's fees, you'll pay suppliers and running costs. Understanding these is crucial for staying profitable.

Supplier Product Costs

Wholesale prices vary by niche. A smart home gadget might cost $5-15 wholesale. Apparel runs $3-8. Premium items cost more but carry higher retail prices. Quality suppliers on Spocket offer vetted US and EU products with consistent pricing and reliable stock.

Shipping Costs

Here's where many dropshippers get blindsided. US-based suppliers typically charge $2-8 per item for standard shipping. Heavy or oversized items run $15-30. International suppliers from China or Asia offer cheaper shipping but take 14-30 days, which tanks customer satisfaction and Amazon rankings.

The math: if your product sells for $25 and costs $8 wholesale plus $4 shipping, you've spent $12. After Amazon's 15% referral fee ($3.75), you're left with roughly $9.25 profit. That's decent but thin if you're running ads.

Marketing and Advertising

Many dropshippers use Amazon Sponsored Ads instead of waiting for organic traffic. Budget $50-200 monthly for testing. Some products need zero ads if they rank well; others demand constant ad spend to stay visible.

To start dropshipping on Amazon without money initially, skip ads and rely on organic search. Once profitable, reinvest 5-15% of revenue into ads for scaling.

Tools and Automation

Spocket costs $0-50+ monthly depending on your plan. There are similar platforms that offer additional features for inventory management and price monitoring. Most have free trials and tiered pricing so you start cheap.

How to Become an Amazon Dropshipper

The process isn't complicated, but precision matters. Follow these steps.

Step 1: Register as an Amazon Seller

Go to sell.amazon.com and choose your plan. If you're just starting, pick Individual ($0.99 per item, no monthly fee). Click "Sign up now" and create your account if needed.

You'll need:

• Government-issued ID (passport or driver's license)
• Proof of residential address from the last 180 days (bank statement, credit card statement, utility bill)
• Internationally chargeable credit card
• Business bank account number and routing number
• Tax information (EIN for businesses, SSN for individuals)

Step 2: Verify Your Identity

Amazon verifies your identity through document upload or video call. Have your government ID and proof of address ready. Ensure all names and addresses match exactly across documents. Mismatches are the top reason for approval delays.

Step 3: Set Up Payment Information

Enter your business bank account so Amazon deposits earnings. Use an account in your name or business name. If your account is brand new, wait for your first statement before applying to avoid verification issues.

Step 4: Create Your Seller Profile

Enter your business name as you want it displayed. Write a brief store description (optional but helps credibility). This is your official identity as a dropshipper on Amazon—use your real business name.

Step 5: Choose Your Fulfillment Model

Select dropshipping as your fulfillment method. You're managing orders yourself through suppliers, not using Amazon FBA. This matters for compliance—you're not reselling through FBA; you're managing independently.

Step 6: List Your First Products

Once active, create product listings. Add new offers to existing products or create new pages. Include professional photos, detailed descriptions, accurate pricing that covers all costs plus profit, and honest shipping times (24-48 hours is standard).

How Much Does It Cost to Dropship on Amazon?

Let's break down real numbers. The answer depends on your approach.

Absolute Minimum

• Amazon seller account: $0 (Individual plan, pay-per-item)
• First product purchase: $10-50 (sample order to test)
• Domain name: $0-16/year (optional; not required for Amazon)
• Tools: $0 (start free, upgrade later)
• Total: $0-66 to launch

You literally can start with nothing if you have a credit card and bank account. Your first sale covers itself.

Realistic Budget

• Amazon seller account: $39.99/month (Professional plan)
• Product samples: $50-150 (test 2-3 products)
• Automation tools: $0-50/month
• Initial marketing/ads: $100-300/month
• Total: $200-600/month to run actively

This budget assumes you're serious about testing products and driving sales. Most successful dropshippers operate in this range initially.

Scaling Budget

Once you have profitable products:

• Professional account: $39.99/month
• Supplier costs: Varies by product and volume
• Shipping: Built into supplier pricing
• Tools and automation: $50-150/month
• Advertising: 5-15% of revenue (reinvested profits)
• Total: Variable based on sales

At $5,000/month in sales with 20-30% margins, you're profitable and can reinvest aggressively.

The reality: how to start dropshipping with no money is possible, but $200-300 initially gives you room to test products, use automation tools, and run basic ads. Many beginners find this investment necessary for real results.

How to Ensure Amazon Dropshipping Compliance

Compliance isn't optional—it's the difference between a thriving business and account suspension. Amazon is ruthless about enforcing its dropshipping policy.

Be the Seller of Record

Every invoice, packing slip, and piece of packaging must identify you as the seller. Your supplier's name should never appear to the customer. If your supplier auto-includes their invoice, you must remove it before shipping. This seems obvious, but it's the number one violation Amazon cites.

When you dropship on Amazon, you're not a middleman—you're the official merchant. Customers should never know who packed the box.

Maintain Supplier Documentation

Keep every supplier agreement, invoice, and purchase order. Amazon may audit your sourcing to verify you're not doing retail arbitrage. Your documentation should prove:

• You have written agreements with suppliers
• Products are purchased directly from wholesalers or manufacturers
• You're purchasing in your business's name
• You have valid invoices for every product

Disorganized records get sellers suspended during audits. Use Google Drive or Dropbox to maintain organized digital files.

Handle Returns Yourself

You're responsible for processing returns, not your supplier. If a customer requests a refund, you handle it first. Work with your supplier for a refund after that, but Amazon's customer sees you managing the return. This builds trust and keeps you compliant.

Monitor Seller Metrics

Amazon tracks your performance through metrics like order defect rate, return rate, and late shipment rate. Stay below these thresholds:

• Order defect rate: Below 1%
• Return rate: Below 15% (varies by category)
• Late shipment rate: Below 4%

High metrics lead to warnings, deactivation, or suspension. Reliable suppliers and fast shipping keep these healthy.

Use Vetted Suppliers Only

Don't source from AliExpress, Wish, or Temu. Use established wholesale suppliers who verify they're selling authenticated products. Spocket and SaleHoo pre-vet suppliers, reducing your risk. Never buy from unverified sources or you'll likely face authenticity complaints.

What It Takes to Start an Amazon Dropshipping Store

Starting your store involves more than just listing products.

Business Foundation

Register your business legitimately. You can operate as a sole proprietor, LLC, or corporation. For dropshipping, an LLC offers legal protection without excessive complexity. Registration costs $50-300 depending on your state. While not strictly required for individual sellers, it's highly recommended for credibility and tax purposes.

Bank Account

Open a business bank account in your business name. Amazon requires this (or at minimum, a personal account with your name). You'll need a recent bank statement for registration.

Valid Government ID

Have a passport or driver's license with current information ready. Amazon verifies your identity against government records. Any discrepancies cause rejection.

Credit Card

Have an internationally chargeable credit card ready for fees. Amazon charges your card for monthly fees (if Professional) and other costs. The billing address should match your business address.

Product Research Skills

You need to identify products with demand, manageable competition, and decent margins. Use keyword research tools or simple Amazon search to find opportunities. Look for items with 1,000-5,000 monthly searches and 20+ reviews.

Supplier Network

Find reliable suppliers before launching. Spend time on Spocket, identifying 5-10 potential products from different categories. Order samples and verify quality before committing.

Time for Management

Even with automation, you'll spend 5-10 hours weekly on customer service, supplier management, and listing optimization initially. As you scale with tools like Spocket's automation, this drops to 2-3 hours weekly.

How to Make Money Dropshipping on Amazon with Spocket

Spocket is one of the most popular platforms for finding Amazon dropshipping suppliers. Here's how to use it effectively.

What Spocket Offers

Spocket connects you to vetted US and EU suppliers (80% are based in these regions). The platform features:

• Pre-vetted product catalog with trending dropshipping products
• Automated order fulfillment and inventory syncing
• Real-time price and stock monitoring
• AI-driven product discovery tools
• Print-on-demand product customization
• Fast shipping (typically 2-5 days from US/EU suppliers)
• Integrations with Wix, Amazon, and more

Getting Started with Spocket

Sign up for a free account and browse their supplier catalog. Spocket offers a free tier with limited product access, plus paid plans starting around $30-50/month for expanded features.

Import products directly to your Amazon listings with one click. Spocket syncs inventory automatically, so if a product sells out with your supplier, your Amazon listing updates to prevent overselling.

When customers purchase, Spocket automatically processes the order with your supplier and updates tracking. You stay in control as the seller of record; Spocket handles logistics.

Profit Strategy with Spocket

Spocket works because suppliers already price products wholesale. You mark them up 50-200% depending on competition and demand.

Example:

• Supplier cost: $8 per unit
• Your Amazon price: $24.99
• Amazon referral fee (15%): -$3.75
• Shipping (built into supplier cost): -$2
• Spocket fee (if applicable): -$0.50
• Your profit: ~$10.75 per unit

That's healthy margin before advertising. Reinvest 20-30% into ads and you're scaling profitably.

Best Practices with Spocket

Test products in low-competition niches first. Avoid saturated categories like phone cases or simple gadgets where margins are razor-thin. Look for products with 50-500 monthly searches and 3-8 reviews.

Order samples before listing. Verify quality, packaging, and shipping speed match what Spocket claims. A product listed as "ships in 2 days" that arrives in 7 will hurt your metrics.

Communicate with your Spocket supplier before launching. Confirm they'll respect Amazon's packaging rules—your branding only, no third-party invoices.

Monitor price fluctuations. Spocket alerts you to price changes, but check weekly. If a supplier's costs rise, adjust your Amazon price or test a new supplier.

Top Amazon Products to Dropship in 2026

Here are specific products trending in 2026 that actually work for dropshipping on Amazon.

Smart Home Devices

Smart WiFi plugs and motion sensor night lights see consistent demand. Smart plugs wholesale at $6-12 and retail for $18-35. Motion sensor lights cost $5-10 wholesale and sell for $20-40. These products have proven repeat-purchase rates and solid margins.

Portable Fitness Gear

Resistance band sets and yoga mats remain evergreen. Adjustable resistance bands wholesale at $8-15 and retail for $25-45. These appeal to fitness enthusiasts willing to spend on quality equipment.

Sustainable Products

Reusable water bottles, biodegradable phone cases, and eco-friendly cleaning supplies appeal to conscious consumers. Stainless steel water bottles cost $4-8 wholesale and sell for $20-35. These command premium prices and attract loyal buyers.

Pet Care Products

Pet beds, grooming tools, and portable pet carriers see strong demand. Orthopedic pet beds wholesale at $12-18 and sell for $35-55. Pet owners spend freely on quality products for their animals.

Kitchen Organization Tools

Air fryer accessories, food storage containers, and meal prep tools are consistently popular. Vacuum storage bags cost $3-6 wholesale and sell for $12-20. Kitchen organizers and drawer dividers wholesale at $4-8 and retail for $15-25.

Beauty and Personal Care Tools

LED face masks and facial rollers tap into the self-care trend. LED face masks cost $15-25 wholesale and retail for $50-85. Regular facial rollers wholesale at $1-3 and retail for $8-15.

Travel Accessories

Luggage organizers, travel neck pillows, and packing cubes appeal to travelers. Packing cube sets cost $4-7 wholesale and sell for $15-25. Compression bags wholesale at $5-10 and retail for $18-30.

Gaming Accessories

Ergonomic gaming chairs, cooling laptop pads, and gaming headsets serve an engaged audience. Laptop cooling pads cost $8-15 wholesale and retail for $25-45. Gaming keyboards with RGB lighting wholesale at $15-25 and retail for $45-75.

Notice the pattern: successful products have wholesale costs between $3-20, retail prices between $15-60, repeat appeal or growing demand, and reasonable shipping weights. Products heavier than 5 pounds or oddly sized can hurt margins when shipping adds $8-15 to your costs.

How to Set Up an Amazon Dropshipping Store

Setting up your store is straightforward but requires attention to detail.

Create Your Seller Account

Navigate to sell.amazon.com and sign up for the Individual plan if starting small. Upload all required documentation. Amazon typically approves accounts within 24-48 hours with clean paperwork.

Build Your Brand

Register for Amazon Brand Registry if you have a trademark or plan to file one. This unlocks enhanced content, a brand storefront, and better protection. You can launch without it, but registered stores see better conversion rates.

Create a brand store for free using Amazon's Store Builder. Add your logo, write a compelling brand story, and organize products by category. This builds credibility and keeps customers on your store longer.

List Your Products

For products already on Amazon, add a new offer using the existing listing. For new products, create a new page. Include high-quality photos (zoom-enabled), detailed keyword-rich titles, compelling bullet points, thorough descriptions, accurate pricing that covers all costs plus profit, and honest shipping times.

Optimize for Search

Use relevant keywords throughout your listing. Research keywords competitors rank for using Amazon search suggestions or tools like Helium 10. Include your main keyword 1-2 times naturally in the title, 2-3 times in bullet points, and 5-8 times throughout the description.

Don't keyword stuff. Amazon's algorithm rewards natural, readable content. Prioritize customer benefit over search optimization.

Set Competitive Pricing

Price is crucial. You need margin to reinvest in ads and cover fees, but you also need to be competitive. Check competitor pricing using CamelCamelCamel or Keepa. Price within 10-20% of top competitors; if you're 30%+ higher, traffic suffers.

Configure Shipping Settings

Set shipping time to 1-2 days if possible with a US-based supplier. Amazon's algorithm favors fast shipping. Offer free shipping if margins allow; if not, calculate shipping costs transparently. Many successful dropshippers include shipping in the product price to appear cheaper.

Prepare for Customer Service

Enable message center notifications so you respond to inquiries quickly. Amazon tracks response time as a seller metric. Commit to responding within 24 hours. Most questions are simple and take 2 minutes to answer.

Can You Make Money Dropshipping on Amazon?

Yes, but margins matter. Can you make money dropshipping on Amazon depends on product selection and execution.

Realistic profit margins range from 20-40% per sale after Amazon fees and supplier costs. If a product wholesales for $10 and you price it at $35, after Amazon's 15% referral fee and $3 shipping, you're left with roughly $10.50 profit. Add advertising (usually 10-20% of revenue) and you're closer to 10-15% net profit. Many dropshippers do this profitably, but it requires volume and discipline.

The difference between successful dropshippers and failing ones isn't luck—it's product selection. You need items with demand, low competition, and healthy margins. Test multiple products monthly and scale winners.

Conclusion

To become a dropshipper on Amazon, start today. Your first account costs nothing. Your first product costs $10-50 in samples. Your first sale covers those costs. That's the beautiful part of how to start dropshipping on Amazon in 2026—you're not risking much, but the upside is genuinely there.

If you want to start an Amazon business with no money, begin now. Register, list a product, and drive your first sale. You'll learn more from that first sale than weeks of planning.