PayPal permits pre-sales on a limited basis as long as the seller:
- Guarantees shipment within 20 days from the date of purchase.
- Clearly identifies the item as a pre-sale.
- Provides proof, if needed, that they can successfully deliver the product (supplier information, purchase invoices, shipping information, or delivery confirmation).
Drop shipping, or allowing a third party to fulfill orders to customers on your behalf, is generally acceptable. If you intend to fulfill orders using a drop shipper, you must always:
- Be the seller of record of your products;
- Identify yourself as the seller of your products on all packing slips and other information included or provided in connection with them;
- Be responsible for accepting and processing customer returns of your products; and
- Comply with all other terms of your seller agreement and applicable Amazon policies.
Examples of drop shipping that is not permitted:
- Purchasing products from another online retailer and having that retailer ship directly to customers; or
- Shipping orders with packing slips, invoices, or other information indicating a seller name or contact information other than your own.
Failure to comply with these requirements may result in the suspension or removal of your selling privileges.
My opinion: 1. EVERYONE knows we are dropshipping. 2. They “don’t like” this kind of online arbitrage dropshipping (many reasons why). They prefer DS sellers that produce genuine invoices, have tax ID/VAT and wholesale suppliers. Not arbitrage resellers from retail stores. But since they make money they look the other way. This is why well placed gray windows in their policies, allow them to both permit or forbid DS depending on the situation. This way, if a seller is marked as DSer and they don’t like his activity -regardless if this activity is related to DSing or not-, they can use the DS pretext to flag him, regardless of the real reason.