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Amazon dropshipping: What Singaporean e-commerce businesses should know

Last update: June 5, 2025

Contents

If you’re a Singaporean business interested in dropshipping on Amazon, you might be looking for answers to certain questions:

Is it even possible to dropship on Amazon?
How do you find reliable suppliers?
How do you stay profitable when selling internationally?

This guide will answer all of those questions and more. We’ll also show you how cross-border e-commerce brands can save on the costs of international trade with WorldFirst’s multi-currency accounts.

Read on to learn:

Can you dropship on Amazon?
How to set up an account for dropshipping on Amazon
How WorldFirst helps you find the best suppliers and retain more of your profits when dropshipping on Amazon
How to create a WorldFirst account

Looking to get started as soon as possible? You’ll need local bank account details for buying and selling internationally. Open a World Account today to hold and receive funds in 20+ currencies.

Can you dropship on Amazon?

First things first – yes, you can use Amazon as a platform for dropshipping. You can source goods from third-party suppliers and then sell those goods on the marketplace, providing you adhere to certain rules.

If you break any of these rules when dropshipping, Amazon may shut down your page:

You must be the ‘sole seller of record’ for the dropshipping products you offer. This means that your customers should believe they’re buying from you, and not a third party
Your business name must be clearly shown on invoices, packing slips and any documentation included with the products
Any third-party seller information must be removed – including from the external packaging – before the customer order is shipped
Your business is fully responsible for handling and processing all customer returns

Amazon enforces these rules so that customers aren’t confused as to who they’re buying from. If customers make a purchase through your Amazon store, it’s not ideal if the product arrives with a different company’s name, logo or information.

In these cases, customers may question whether they received the correct item – and this damages Amazon’s credibility. You can find Amazon’s dropshipping policy here, along with examples of dropshipping violations.

The benefits and drawbacks of dropshipping on Amazon

Now that you know you can dropship on Amazon, it’s worth considering whether you should get set up on the platform as a dropshipper. Here are some pros and cons to consider.

The benefits

Global reach. Amazon is one of the world’s most popular marketplaces and has market dominance in both the US and Europe. If your business is looking to expand into these regions, Amazon puts you in front of hundreds of millions of active customers. In October 2023, it reported having 181 million users across the EU.
High levels of international credibility. Amazon has forged a reputation for selling well-made and reliable goods on its marketplace. Competitors such as Wish – no longer operational – focused on low prices, but quickly became known for items being poor quality.
Amazon has never fallen into that category, and one study puts US consumer trust in Amazon at 70%, making it the most trusted brand in America. While Amazon is smaller in Singapore, it has received the highest possible transaction safety rating for the past three years. Whether selling domestically or internationally, trust in Amazon is high.
One of many options. You don’t need to pick a marketplace for dropshipping and hope that you’ve made the right choice. If you launch on Amazon, you can also launch on a variety of other marketplaces to give you the best opportunities for selling products.

The drawbacks

Profit margins can be slim. As Amazon is so popular, it’s also highly competitive. That means that, depending on what you’re selling, it’s unlikely you’ll be able to charge a high markup on an item, as a competitor may offer it for less. When you also consider Amazon’s seller fees, which vary depending on where you’re selling, your profit margins can get squeezed.
You need to source reliable suppliers. If you’re dropshipping on Amazon, sourcing suppliers is entirely your responsibility. You’ll need to take care over these decisions – as if customers are unhappy with the products they’ve purchased, it’s your business that will suffer reputationally.
Dropshipping rules are strict. As outlined above, Amazon is specific on how you can dropship. You need to ensure that your suppliers follow the guidelines on removing their information before items are shipped to customers or you could find yourself being penalised.

Fulfilment by Amazon (FBA): An alternative to dropshipping which also saves manual processing

An alternative to adopting an Amazon dropshipping business model, you may have come across is Fulfilment by Amazon (FBA).

FBA enables your business to let Amazon handle shipping and storage directly. So, you can sell goods while avoiding the manual processing yourself, just like with dropshipping. However, unlike dropshipping, you’re the owner of the products you’re selling and you have to send them to Amazon yourself.

You can find out more about the service here: Amazon FBA Singapore: How to get started.

If you want to use Amazon FBA, you need to communicate to Amazon which products you’re sending to their order fulfilment centre and how many you’re sending. You’ll have to package and label items yourself to ensure the correct item is chosen for delivery.

Amazon will then charge you two types of fees to complete this service:

Fulfilment fees cover the handling, ‘pick and pack’ charges and weight handling of each item
Inventory management and storage fees are charged monthly, and are dependent on the size and weight of your inventory

FBA can be a great way to sell on Amazon and make the most of their logistical prowess when it comes to handling and delivering goods. But this is for businesses selling their own goods, not dropshipping from third parties.

How to set up an account for dropshipping through Amazon

Regardless of whether you’ve run a dropshipping business before or you’re a complete beginner, there are certain steps to know in order to dropship successfully through Amazon.

Here’s a step-by-step runthrough of what you’ll need to do to get set up.

1. Open an Amazon seller account

To open a seller account on Amazon you’ll need to provide a few basic details about your business. These include your company name, tax information and government-issued ID.

You’ll also need bank account information local to the country you want to sell in. For example, if you’re looking to sell in the US, you’ll need to have a USD account with local account details. This can be a challenge as opening a US business bank account as a non-resident can be a complicated process, often requiring you to make a trip to the US and register your business there.

Alternatively, you’ll need to work with a multi currency account provider to access local details and the documentation that Amazon requires, such as a proof of record.

You can open a seller account online through this link.

2. Check if the goods you’re selling need approval from Amazon

In order to be sold on Amazon, certain product categories require approval. For instance, items like collectibles, watches and DVDs will need to be approved.

You can see the categories requiring approval here, and to be extra safe you can check individual items via this link once you have created your account.

3. Create your online store on Amazon

You can now start adding products to your page, as well as information like a company description. Use the Amazon Storefront feature to include your mission and values alongside your products, making it easier for customers to connect with your brand.

Amazon also provides you with advice on best practices for free. Its Seller University is a multimedia resource bank which gives you detailed guides and videos on how to best sell on Amazon – for instance, how to optimise your product page. It’s split into four phases, covering everything you need to know from registration and research to launching on Amazon.

4. Consider using a specific dropshipping software

To help you dropship most effectively, you may want to consider using a specific software for dropshippers. For instance:

Jungle Scout is a tool you can use for product research and market analysis
ZonGuru helps you identify which product you could sell next through its ‘niche finder’. Enter a keyword and set filters, or be given a ‘random niche’ if you’re not sure where to start
MerchantWords helps you understand customer search behaviour and optimise your Amazon product listings to help you get in front of more customers
Sellery will help you adjust your pricing in real-time to give you the best chance of success

These tools vary in price, but can be very affordable to begin with. There are more out there, so it’s worth searching for a solution if you’re struggling with something in particular.

5. Customise your store to improve your sales

Once you’re up and running, it’s worth experimenting with the features, offerings and policies of your store to find the most profitable setup:

Ensure product descriptions are clear, targeted and optimised for your audience. Highlight the specific benefits that the product will bring your audience and be sure to proofread the wording – poorly-worded product descriptions can make buyers question the product.
Judge whether faster shipping times are worth the cost. Many customers are used to next-day or even same-day delivery. If you’re shipping orders internationally this isn’t going to be an option, but you may be able to choose whether to ship your goods by sea or by air. Air freight is quicker but more expensive, so you need to make a judgement over whether your customers prioritise speed or lower costs.
Get buyer protection from your dropshipping suppliers to make refunds easier to tolerate. As a dropshipper, you’ll need to process refunds if deliveries don’t arrive or they arrive damaged. If you try and make this difficult for the customer, your reputation will suffer and it may lead to fewer sales.

Instead, ensure you get buyer protection from the seller so you don’t have to shoulder the cost of their mistakes. You can then refund the customer knowing that you can claim this money back from the supplier afterwards.

These steps show you what you need to start dropshipping. But to do it most effectively, you’ll need to work with a multi-currency provider like WorldFirst.

How WorldFirst helps you find the best suppliers and keep more of your profits when dropshipping on Amazon

Running a successful dropshipping business on Amazon means navigating tight margins, international payments, and a complex web of global suppliers. That’s where WorldFirst comes in.

The World Account is a powerful multi-currency account that helps you get paid like a local, manage currencies with ease, and keep more of your hard-earned revenue – no matter where you do business.

Read on to find out more about how we can help. Or apply for an account today.

Get paid like a local and keep more of your profits wherever you’re selling

With a World Account, you can hold over 20 currencies and receive local account details for each. This means you can connect directly to major marketplaces like Amazon US, UK, EU and more, and get paid without worrying about hidden conversion fees or poor exchange rates.

Whether you’re just starting out or scaling your dropshipping operation, a World Account helps you:

Avoid unnecessary fees
Simplify international payments
Expand into new markets with ease

Dropshipping margins are notoriously thin. And when you add Amazon fees, international payment charges, and fluctuating FX rates, it’s easy to lose a big chunk of your revenue.

So, instead of converting every transaction into SGD or another base currency, you can hold and pay in local currencies. That means fewer conversions — and more profit.

Expand to new markets and manage all your accounts in one platform

Planning to sell on Amazon US or Europe? With a World Account, you can generate USD, GBP, and EUR account details in minutes. These local account details allow you to:

Open Amazon seller accounts as a non-resident
Receive payments without setting up overseas bank accounts
Download account verification letters directly from your dashboard

It’s a faster, more affordable way to unlock new markets, without flying across the world to open a local bank account.

And once you’re set up, WorldFirst makes it easy to manage your global business by bringing all your payments into one platform. You can receive and manage income from over 130 global marketplaces, including Amazon, eBay, Etsy, and more — all from a single login.

Plus, you can integrate directly with Xero and NetSuite to keep your accounting in order, even as you scale.

No more toggling between accounts. Just clear, centralised visibility into every transaction.

Connect to 10+ million Chinese suppliers with direct access to 1688

Finding reliable suppliers is a major challenge for dropshippers. With WorldFirst, you gain a competitive edge by paying suppliers efficiently and securely – in their local currency.

With your CNH currency account, you can:

Pay suppliers in CNH using local Chinese payment rails
Enjoy same-day or next-business-day settlement
Build stronger relationships with suppliers who value fast, reliable payment

Faster payments mean faster dispatch – helping you reduce delivery times and stand out from the competition.

WorldFirst is the only Singapore-based account provider with a direct payment connection to 1688.com, one of China’s largest wholesale platforms, home to over 10 million suppliers.

Here’s how easy it is to pay a 1688 supplier:

Link your World Account to your 1688.com account
Select WorldPay as the payment method when checking out on 1688.com
Ensure you have enough funds in your CNH account, as payments are instant

You can also connect to supplier marketplaces like TaoWorld and AliExpress directly through your World Account.

Save money on currency exchange with FX tools

Exchange rate swings can wipe out profits. That’s why WorldFirst offers smart FX tools that give you control and clarity.

With your World Account, you can:

Lock in FX rates for up to two years with forward contracts
Set firm orders to automatically buy currencies when your target rate is met
Get alerts when preferred rates become available

These tools help you plan better, budget more accurately and grow with confidence – even in unpredictable markets.

Get started with Amazon dropshipping today with a multi-currency World Account

As with all marketplaces, there are challenges with dropshipping on Amazon as an e-commerce business, but there are also substantial opportunities.

Using an account provider like WorldFirst gives you the best chance of success through a number of key benefits:

You can directly connect to 130+ marketplaces around the world to sell your goods
You can foster strong relationships with suppliers by paying them in their local currency and offering same-day settlement
You can hold on to more of your profits by keeping payment costs low
You can manage all of your financial operations in one place, saving you time and reducing errors

Open a World Account today to begin your Amazon dropshipping journey.

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Amazon dropshipping: What Singaporean e-commerce businesses should know

Can you dropship on Amazon?

The benefits and drawbacks of dropshipping on Amazon

The benefits

The drawbacks

Fulfilment by Amazon (FBA): An alternative to dropshipping which also saves manual processing

How to set up an account for dropshipping through Amazon

1. Open an Amazon seller account

2. Check if the goods you’re selling need approval from Amazon

3. Create your online store on Amazon

4. Consider using a specific dropshipping software

5. Customise your store to improve your sales

How WorldFirst helps you find the best suppliers and keep more of your profits when dropshipping on Amazon

Get paid like a local and keep more of your profits wherever you’re selling

Expand to new markets and manage all your accounts in one platform

Connect to 10+ million Chinese suppliers with direct access to 1688

Save money on currency exchange with FX tools

Get started with Amazon dropshipping today with a multi-currency World Account

Continue reading

Open a World Account for free

Get local currency accounts, fast payments and competitive FX – all in one place.

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