Amazon Dropshipping from India 2026 — Complete Guide
Amazon dropshipping allows you to sell products on Amazon without holding any inventory. When a customer places an order, your supplier ships directly to the customer. It’s a low-capital way to start an e-commerce business from India — ideal for NRIs and Kerala entrepreneurs testing new markets.
Amazon FBA vs Amazon Dropshipping — Key Differences
| Feature | Amazon FBA | Amazon Dropshipping |
|---|---|---|
| Inventory | You hold stock at Amazon warehouse | Supplier ships directly |
| Capital required | ₹2–5 Lakhs+ | ₹10,000–50,000 |
| Profit margin | 25–45% | 10–25% |
| Control | High | Low (depends on supplier) |
| Scalability | Very high | Medium |
| Amazon policy risk | Low | Higher — must follow dropshipping policy |
Amazon Dropshipping Policy — Must Know
- You must be the seller of record — your name/brand on all packing slips
- Supplier’s name/logo must NOT appear on packaging
- You are responsible for returns and customer service
- Retail arbitrage (buying from Flipkart/Amazon and reselling) is NOT allowed
- Violation = account suspension
Step 1: Business Registration
- Private Limited Company or Sole Proprietorship
- GST Registration — mandatory for Amazon India
- IEC Registration — for international dropshipping
- Amazon Seller Central account
Step 2: Find Reliable Suppliers
- India suppliers: IndiaMart, TradeIndia, Alibaba India
- Kerala suppliers: Spice Board, Coir Board, Handicrafts Board empanelled suppliers
- International: AliExpress, CJ Dropshipping, Spocket (for US/UK markets)
- Key criteria: Fast shipping, quality consistency, white-label packaging, return policy
Step 3: Product Selection
- Use Jungle Scout or Helium 10 for demand research
- Target: Low competition, high demand, lightweight, non-seasonal
- Kerala opportunities: Organic spices, ayurvedic products, handloom, brass items
- Avoid: Electronics, branded goods, restricted categories
Step 4: List & Manage
- Create optimized Amazon listings — title, bullets, images, A+ content
- Use inventory management tools: Sellerboard, InventoryLab
- Automate order forwarding to supplier
- Monitor supplier shipping times — Amazon penalizes late shipments
Finance & Registration
Related E-commerce Guides
- Amazon FBA Guide
- Etsy Dropshipping Guide
- E-commerce Store Guide
- Digital Marketing Agency Guide
- Import Export from India Guide
City-Specific Guides
Kochi | Trivandrum | Kozhikode | Thrissur | Malappuram | Kannur
Country-Specific Guides
UAE | USA | UK | Canada | Australia
Related Blog Articles
📌 Ready to Start Dropshipping on Amazon?
📞 Free Business Consultation → | NRI Kerala Complete Resource Hub →
⚠️ Disclaimer: Amazon policies subject to change. Always review Amazon’s current drop shipping policy before starting. Blueberry is a business services facilitator. ASCI compliant.