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How To Avoid Amazon Dropshipping Suspension? (3 Major Reasons Why It Gets Suspended)

June 5, 2024

To avoid Amazon dropshipping suspension, you need to: 

  1. Dropship from approved suppliers.
  2. Season your Amazon seller account slowly.
  3. Buy an aged Amazon account.

To avoid Amazon dropshipping suspension, you need to follow the applicable Amazon policies exactly. Also, you must provide any documentation they ask for, like a letter of authorization. Ultimately, you’ll have to follow specific tactics, like seasoning your account over time, that will heighten your chances of staying off Amazon’s radar.

This article will clearly discuss to you the four reasons Amazon dropshipping gets suspended. Also, we will give you some tips on how to avoid suspensions to your Amazon dropshipping business. Additionally, we will give you info about what you are going to do when you receive Amazon dropshipping suspension. At the end, we will introduce you to a business model that will not let you suspended. 

How to Avoid Amazon Amazon Dropshipping Suspension?

1. Dropship from Approved Suppliers

Amazon doesn't like sellers dropshipping from retailers. Their issue? Your product cannot arrive at the customer’s door in any external packaging that identifies any other party besides you and/or Amazon. One option around this is to use an Amazon approved wholesaler. You can find them:

  • At trade shows
  • Listed on Worldwide Brands (requires onetime $299 purchase)
  • On Inventory Source

But remember, dropshipping has one of the lowest profit margins of other Amazon FBA business models. Margins are the best when you dropship from a retailer, and much smaller margins when using a wholesaler.

2. Season Your Amazon Seller Account Slowly

Amazon doesn’t trust new sellers. For the first 3 to 6 months, their seller performance team will watch your account for activity they don't like. A seasoned account is much less likely to receive requests from Amazon for letter of authorization.

Many dropshippers will first do the safe FBA model fo 3-6 months to create trust with Amazon. This is where you send product to Amazon fulfillment center and Amazon fulfills the order for you. Definitely not dropshipping so you need to invest in some inventories.

This is an example of how you can season your seller account in 3-6 months.

Do this by making a new Amazon account. List one item in the first month. In the second month, list a second product. Two weeks later, list your third. Upload a new product every two weeks for the first 3 to 6 months. Of course, this will limit your profits at the start. But, it may keep Amazon from asking for documentation. And, you will get used to handling customer service and order fulfillment at a sustainable pace.

A seasoned account allows dropshippers to continue to dropship from retailers like Wal-Mart or Home Depot without getting suspended.

Just know about the Amazon FBA start up costs because unlike dropshipping, there're more fees involved.

Dropshipping from retail stores becomes much safer once you have a seasoned account. No one knows how long this trick will work though.

But people still transition to dropshipping model because it provides a lot of easy money opportunities.

Find deals and list it for higher on Amazon. You don't even need to buy inventory. You can imagine the great flexibility of that.

3. Buy an Aged Amazon Account

If you don’t want the hassle of seasoning your account, you can also buy an aged account. Amazon will already trust an aged account. Find Amazon sellers through online marketplaces, like EmpireFlippers, business brokers, Facebook groups, or entrepreneur events. Here’s what an excellent account looks like:

  • At least 6-12 months of selling history
  • 1.5 years of selling history is optimal
  • Sold $100K or more
  • Expect to spend around $4K-$5K

Unfortunately, this is another tactic in Amazon's grey area. Typically, you can’t just transfer accounts to another person. You will need to purchase the seller’s business first, at which point Amazon wants you to start a new seller account. But, if the ownership of the business doesn’t change, you could be added as a user. Here’s how the Amazon policy breaks it down:

amazon policy

If you can purchase an aged account, you can start dropshipping on Amazon immediately. Amazon (most likely) won’t ask you for any letters of authorization.

What More You Can Do To Avoid Having Your Amazon Account Suspended

To avoid having your Amazon account suspended, you must either:

  • Have the requested letter of authorization, or

  • Avoid pushing Amazon to ask for the letter. By using aged seller accounts that are much less likely to get the request for a letter of authorization.

4 Major Reasons Amazon Dropshipping Gets Suspended

1. Dropshipping from Other Online Retailers

Amazon strictly prohibits sellers from buying products from other online retailers. This includes Walmart or Home Depot hen ship those products directly to customers. It is against Amazon's policy to engage in this practice. It can lead to severe consequences, including account suspension and loss of selling privileges.

The main reason for this rule is to maintain customer trust. Customers expect their orders to be shipped directly from the seller, not from a third-party retailer. When products arrive from another retailer, it can confuse customers about whom to contact for issues or returns. This confusion damages trust in both the seller and Amazon.

To avoid account suspension, Amazon sellers must ensure that they list themselves as the seller on all invoices, packing slips, and packaging. This means the seller's name should appear on all documentation, with no mention of the supplier or manufacturer. Sellers must also adhere to Amazon's Terms of Service and all related policies.

Engaging in prohibited dropshipping can cause account suspension or other penalties. You need to understand and follow Amazon's Dropshipping Policy. It's helpful in maintaining transparency and avoiding these risks.

2. Submitting False or Recycled Tracking Information

Amazon strictly prohibits dropshippers from submitting false or recycled tracking information. This practice is fraudulent and can lead to severe consequences. It includes account suspension and permanent termination.

Examples of Submitting False or Recycled Tracking Information

  • Submitting Inaccurate Tracking Numbers: Some dropshippers provide tracking numbers that do not reflect the actual shipping status. This might include tracking numbers for orders that haven't been shipped or for items not yet in transit. This deceptive practice creates a false impression of prompt processing and shipping.
  • Reusing Tracking Numbers: Another common violation involves reusing the same tracking number for multiple orders. This can confuse customers and make it difficult for them to track their orders. This deceptive act is strictly prohibited.
  • Providing Fake Tracking Information: Some dropshippers might offer fake tracking numbers that either don't exist or aren't associated with the actual order. This gives customers the illusion that their orders are being processed and shipped when they are not.

Violating this policy can cause severe penalties. It includes the suspension of your Amazon seller account. This can lead to significant financial losses and damage your business reputation. To avoid these results, always give accurate and unique tracking info for each order. Also, make sure to be transparent and maintain customer trust.

3. Necessity for Valid and Verifiable Invoices for Amazon Product Authenticity

Valid invoices are necessary for Amazon's dropshipping policy. They must be verifiable and are crucial for ensuring product authenticity. This Amazon's policy stops counterfeit sales, protecting your customer trust and its reputation.

Why Valid and Verifiable Invoices are Necessary?

  • Preventing Counterfeit Products: Valid invoices ensure that products are not counterfeit. Amazon uses these invoices to verify that the products were sourced from legitimate suppliers. This helps prevent the sale of fake products, protecting both customer trust and Amazon's reputation.

  • Ensuring Product Quality: Invoices help verify that products meet expected quality standards. Amazon checks product descriptions, images, and part numbers on the invoices to match the actual products being sold. This prevents the sale of low-quality or defective items.
  • Protecting Customer Trust: By ensuring that products are authentic and of high quality, Amazon maintains customer trust. Your customers will feel confident about buying genuine products from reliable suppliers. It enhances their shopping experience.

If an Amazon seller fails to provide valid and verifiable invoices, they risk having their account suspended. This can lead to significant financial losses and damage to their business reputation. To avoid these consequences, sellers must always supply authentic invoices that can be easily verified by Amazon. This ensures transparency and maintains trust with customers.

4. Shipping Orders with Packing Slips, Invoices, or External Packaging Indicating Another Seller’s Information

Amazon strictly prohibits shipping orders with packing slips, invoices, or any other info that shows a seller’s name or contact info. This practice confuses and reduces customer trust. Customers expect clear information about where their products come from. The packaging slips are incorrect. The invoices show another supplier's details. Or, the external packaging has another retailer's branding. These mistakes mislead customers and violate Amazon’s dropshipping policy. This deception undermines Amazon’s marketplace. It can lead to severe consequences, such as account suspension and termination.

To comply with this policy, sellers must ensure that all packaging, slips, and invoices describe the seller of record. Using your branding is essential. You must regularly audit shipments and work with compliant suppliers. Following these practices keeps you trusted and accountable. It ensures your business stays in good standing on Amazon. Breaking this policy can lead to account suspension. It can also lead to financial loss and loss of selling privileges.

Did You Receive an Amazon Dropshipping Suspension?

You’re not alone. In 2022, Amazon is suspending accounts of new dropshippers every day. 

This is their dropshipping policy.

All the money is made in dropshipping from retail store like Wal-Mart or Home Depot because they always have great deals.

However Amazon doesn't like products dropshipped from retailers because it can cause a lot of confusion for customers that thought they purchased from Amazon but when they get the product, the packaging, the invoice, the packaging slip all show that the product was shipped from Wal-Mart.

It was much easier to dropship on Amazon prior to 2020. That year, Amazon asked new dropshippers for an invoice from their supplier. This invoice needed to show that the seller had permission from their dropshipping supplier to sell the product they had listed on Amazon.

This is called letter of authorization.

How to avoid amazon dropshipping suspension
example authorization letter

Before this, a simple receipt would suffice. It was possible to dropship from retailers like Walmart, Home Depot, and others without having to worry. Now, that receipt wouldn’t cut it. Amazon stopped the seller accounts that couldn’t deliver the requested evidence. 

The only way to reopen the seller account involved uploading a letter of authorization from the intellectual property owner of the product. The owner might be the wholesaler, manufacturer, or middle man allowed to sell on behalf of the owner.

Documentation Galore: Do You Need a Tax ID Number or Resale Certificate to Dropship on Amazon?

This isn’t the only documentation that you’ll need to dropship on Amazon. Wholesalers and retailers alike might require a resale certificate before allowing you to sell their product. Sometimes, you need a business license, like an LLC, to get this certificate. 

What Can You Do If Your Amazon Seller Central Account Gets Suspended?

You can follow all the strategies to avoid suspension on Amazon and still get blocked from your funds. If it happens to you, follow these steps:

How to find the spot within Amazon that you can appeal your account:

Go to Amazon Seller Central, Seller Central>Performance> Performance Notifications> location suspension notice> Appeal. Create an appeal outline prior to contacting Amazon.

What is an Amazon Appeal Service and How Can It Help You Get Reinstated Quickly?

This service is seller support that handles your Amazon appeal. This is a person and/or company, like Appeal Wizards. They will work to:

  • Figure out the reason for suspension,
  • Write your appeal letter, and 
  • Create a plan of action. 

Some services will also give you advice on how to avoid suspension occurring again in the future. If they cannot help you, you can also hire a lawyer that specializes in Amazon account suspensions. 

Last, if you don’t want to spend the extra money on an Amazon appeal service, you can attempt to reopen your Amazon store yourself.

 When you get the account suspension notification:

  • Respond within 24 hours. This will show Amazon that you are active and serious.
  • Acknowledge what you did, even if it wasn’t intentional. Don’t pretend to be clueless- this makes you seem less professional.
  • Explain what happened. For example, you might tell them that your wholesale supplier ran out of product, so you had to use a retailer.
  • Share a recovery plan that explains how you will correct the issue.
  • Describe how you will prevent the issue from occurring in the future.
  • Keep the letter brief, but include a few reasons detailing how your store is an excellent part of the Amazon marketplace.

Even with your own attempt, an Amazon appeal service, and/or a lawyer, there is no guarantee that you will win your Amazon account back. Even information in the best Amazon dropshipping courses won't be able to give advice on your exact situation. So, you will need to decide: is Amazon dropshipping worth it? check out Amazon Dropshipping Review: Worth Trying? or Bad Business?

Do These Tactics Guarantee How to Avoid Amazon Dropshipping Suspension?

Not entirely. These tactics simply minimize the chance of Amazon suspension. No matter what you do on Amazon’s platform, they ultimately have control. And, there is no A to Z answer that guarantees a successful appeal.

Failing to provide a letter of authorization isn’t the only way you can suffer Amazon seller suspension. It can also occur if:

  • Your late shipment rate is too high
  • Your Amazon product does not match its product listing exactly
  • You have too many customer returns
  • You accidentally sell a restricted product
  • Your supplier runs out of inventory
  • Any of your Amazon seller performance metrics aren’t up to their stringent standards

In the end, this won’t last long term. You will always watch over your shoulder for an imminent suspension. One wrong move, and Amazon will suspend your account and withhold your funds for 3 months or more. But, if you're willing to operate in this way, it can be a lucrative business model.

Is Amazon Dropshipping Profitable?

Yes, Amazon dropshipping is profitable, but there are important details to consider. The average profit margin for Amazon dropshippers is between 10% and 30%, according to Shopify. Beginners should expect to start with around a 10% margin. You also need to account for Amazon's fees, which take about 15% of your revenue. This means if you start with a 10% margin and don’t consider these fees, you might lose money at first. Experts say a good profit margin is around 15% to 20%, but this requires careful control of costs like goods, labor, and advertising.

Amazon dropshippers can earn between $1,000 and $50,000 per month. To make $1,000 in profit, you need about $7,000 in sales. To make $50,000, you need around $335,000 in sales. Starting dropshipping on Amazon costs between $150 and $250. However, competition is high with over two million sellers. This makes it hard to stand out and stay profitable. Despite these challenges, the dropshipping industry is growing. It is expected to grow by 28.8% each year until 2025. This shows there are still opportunities for those who manage the complexities well.

Conclusion: Why Local Lead Gen Biz Is Superior Compared To Amazon Dropshipping?

Local lead generation biz is superior compared to Amazon dropshipping due to significantly lower competition and the potential for more passive income. According to RevenueGeeks, over two million sellers use Amazon Marketplace. Forty-five percent made $1,000 to $25,000 per month in 2023. With dropshippers fulfilling 34% of Amazon's sales, the competition is fierce. It makes it challenging for newcomers to stand out and maintain profitability. In contrast, local lead gen typically competes with just 10-15 local companies, making it easier to dominate the niche.

Each lead gen site can earn between $500 and $3,000 per month, with far less effort. This reduced competition makes achieving higher earnings possible and likely. Also, local lead generation provides a passive and predictable income. Amazon dropshipping requires ongoing tasks. These include inventory management, customer service, and trend monitoring. They can be time-consuming and stressful. Conversely, once a local lead gen site is set up and ranked in search results, it needs minimal maintenance. Leads generated are sold to local businesses that ensures a steady income without continuous effort. 


Local lead generation offers financial stability and peace of mind, making it a more attractive option for entrepreneurs seeking reliable and less labor-intensive revenue. If you're ready to build a sustainable and profitable business with less competition and more passive income, start your local lead generation journey today!

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Ippei Kanehara

$52K per month providing lead generation services to small businesses is for digital hustlers, industry leaders and online business owners.

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  1. Great Tips! I'm additionally using Stockmorpher extension instead of relying on those flawless stock photos from retailers

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