Ecom Today Blog | May 12, 2021

Amazon FBA VS Shopify Dropshipping: what to choose for a beginner?

Amazon FBA VS Shopify Dropshipping: what to choose for a beginner?
Amazon FBA VS Shopify Dropshipping: what to choose for a beginner?
To choose the option between Amazon FBA and Shopify Dropshipping you need to answer two questions:

  1. Do I want to invest money in purchasing products that may not be sold?
  2. Do I want to reduce risks and sell the products without having to deal with inventory, without having to own a warehouse to store my products, and without having to deal with shipping and handling?
The fastest answer is: choose dropshipping if you are a beginner. If you want to start a business with minimal cost and risks, it is better to start your business using this model. In the article, we will answer why.
To choose the option between Amazon FBA and Shopify Dropshipping you need to answer two questions:

  1. Do I want to invest money in purchasing products that may not be sold?
  2. Do I want to reduce risks and sell the products without having to deal with inventory, without having to own a warehouse to store my products, and without having to deal with shipping and handling?
The fastest answer is: choose dropshipping if you are a beginner. If you want to start a business with minimal cost and risks, it is better to start your business using this model. In the article, we will answer why.

What is Amazon FBA?

Amazon FBA (Fulfillment By Amazon) is a paid service that provides storage, packaging, and shipping assistance to sellers. The service allows sellers to ship their merchandise to an Amazon fulfillment center, where items are stored in warehouses until they are sold.

You can choose this program either for several items from your store or for the whole range of products you sell. The chosen items will be stored in the modern warehouses on the shelves with Amazon products.

Apart from storage, the service provides labeling, delivery, and return of products that did not fit the customers' needs. The delivery service is provided by Amazon ground transportation, or with the UPS and FedEx involvement.
What is Amazon FBA?
Amazon FBA (Fulfillment By Amazon) is a paid service that provides storage, packaging, and shipping assistance to sellers. The service allows sellers to ship their merchandise to an Amazon fulfillment center, where items are stored in warehouses until they are sold.

You can choose this program either for several items from your store or for the whole range of products you sell. The chosen items will be stored in the modern warehouses on the shelves with Amazon products.

Apart from storage, the service provides labeling, delivery, and return of products that did not fit the customers' needs. The delivery service is provided by Amazon ground transportation, or with the UPS and FedEx involvement.
What is Amazon FBA?

Amazon FBA specifics

Though Amazon is a highly profitable multibillion-dollar business, you, as an entrepreneur, take more risks if you are just beginning your entrepreneurial journey. This is how the Amazon FBA model works:

You find the product you want to sell, find a supplier in China and pay for the entire shipment and delivery in advance. The supplier ships your item to Amazon warehouses, then Amazon checks the item. You create a listing, people go to Amazon and buy your product. Amazon itself handles delivery and returns. You also pay for keeping your goods in warehouses in the USA.
Amazon FBA specifics
Though Amazon is a highly profitable multibillion-dollar business, you, as an entrepreneur, take more risks if you are just beginning your entrepreneurial journey. This is how the Amazon FBA model works:

You find the product you want to sell, find a supplier in China and pay for the entire shipment and delivery in advance. The supplier ships your item to Amazon warehouses, then Amazon checks the item. You create a listing, people go to Amazon and buy your product. Amazon itself handles delivery and returns. You also pay for keeping your goods in warehouses in the USA.

Shopify dropshipping advantages

The main difference of dropshipping in comparison with Amazon FBA is that you are selling the products without keeping the inventory and not purchasing them in advance. You simply import the supplier's product to your store, launch ads, and receive orders. Then you pay a part of your profits from the sale to the supplier, he sends the product to the customer, and you earn a margin. Thus, you do not need much money to start a business. No doubt, there still are some risks, but much lower than in other business models.

If you choose dropshipping, all you need to do is: buy a domain, choose a Shopify plan, import products, set up some apps, set an advertising budget, and start to make a profit in 3-4 weeks after you build the store.

Shopify is currently the most popular platform for work. No doubt, there are numerous other platforms with various options and features. However, in our opinion, Shopify is a platform that includes everything you need to create an online store. It allows entrepreneurs to start their own business with zero experience and minimum investment. The platform gives access to a variety of mobile-responsive themes and widgets. It has probably never been so easy to create a beautiful and unique online store and promote your brand.

To get acquainted with Shopify, read the article "15 steps to start a Shopify Dropshipping store".
Shopify dropshipping advantages
The main difference of dropshipping in comparison with Amazon FBA is that you are selling the products without keeping the inventory and not purchasing them in advance. You simply import the supplier's product to your store, launch ads, and receive orders. Then you pay a part of your profits from the sale to the supplier, he sends the product to the customer, and you earn a margin. Thus, you do not need much money to start a business. No doubt, there still are some risks, but much lower than in other business models.

If you choose dropshipping, all you need to do is: buy a domain, choose a Shopify plan, import products, set up some apps, set an advertising budget, and start to make a profit in 3-4 weeks after you build the store.

Shopify is currently the most popular platform for work. No doubt, there are numerous other platforms with various options and features. However, in our opinion, Shopify is a platform that includes everything you need to create an online store. It allows entrepreneurs to start their own business with zero experience and minimum investment. The platform gives access to a variety of mobile-responsive themes and widgets. It has probably never been so easy to create a beautiful and unique online store and promote your brand.

To get acquainted with Shopify, read the article "15 steps to start a Shopify Dropshipping store".
Shopify dropshipping advantages
If you have any questions wondering this or any other topic, you are free to ask them in our Telegram. Our specialists will provide fast help to solve your problem and offer the solution.
If you have any questions wondering this or any other topic, you are free to ask them in our Telegram. Our specialists will provide fast help to solve your problem and offer the solution.
Start your 14-day free trial to test all Shopify features today!
Start your 14-day free trial to test all Shopify features today!
Liked this article? Share it with friends

Search what you are looking for

Find articles or services you need
Search what you are looking for
Find articles or services you need
Useful links

ecomlife.pro/services – prebuilt dropshipping stores, Shopify store development, store review, video editing and other services.

@shopifyeasy – our fast-growing Ecommerce & Dropshipping community.

@ecomtoday_en – information channel with useful articles and topical news.
Useful links

ecomlife.pro/services – prebuilt dropshipping stores, Shopify store development, store review, video editing and other services.

@shopifyeasy – our fast-growing Ecommerce & Dropshipping community.

@ecomtoday_en – information channel with useful articles and topical news.

In our Ecommerce Community, we unite everyone who shares an interest in selling items online and wants to enhance knowledge in this area.
In our Ecommerce Community, we unite everyone who shares an interest in selling items online and wants to enhance knowledge in this area.