Dropshipping Vs. Amazon FBA – which one is right for you?

Hellow World,

Big questoin of the day, Amazon FBA or Dropshipping?

1. You conduct product research. Choose products or a product first.

Amazon FBA: You reach out to a supplier of the product, for example on AliBaba or AliExpress. You ask for samples. They send you samples, you approve. Then you order the amount of products you want to send to Amazons fulfilment center. What you are doing is buying inventory space from Amazon and Amazon does the rest. When a customer orders that product from your page, Amazon ships it out.

Risks: You might not sell out, hence inventory space has a cost. There is a loss right there. Plus, buying bulk will cost you a lot of money.

Don’t forget, packaging, shipping, advertising and businesses also has fees.

However, with higher risks there is higher returns. You have potential of making well over $80,000 a month on Amazon FBA depending on your product research. Let that sink in! Do your research if you have money to invest.

2. You conduct product research. Choose products or a product first.

Dropshipping: You set up droppshipping on many different sites such as Shopify or WIX. Shopify and or WIX act as a store where people buy the product you are dropshipping. You can use many dropshippng sites such as Oberlo, WIX, there are numerous ones out there OR, you can go to suppliers directly. You reach out to a supplier of the product, for example on AliBaba or AliExpress. You can skip this part but it would be good that you ask for samples.

Once your dropshipping, for example, Oberlo is set up with Shopify. A customer can come to your website and order the item. You would see the order, go to that item on AliExpress /AliBaba (it’s integrated with Shopify), then fill out the required information and order. Ali Express will directly ship the product to your customer.

Custom packaging: Ask your suppliers they will gladly do it for you but it will cost you.

Risks: You might not sell out without proper marketing. You need target audiences and heavy marketing.

Don’t forget, packaging, shipping, advertising and businesses also has fees.

However, with lower risks and investments the return may be much lower than Amazon FBA. You have potential of making well over $12,000 to $40,000 a month by Dropshipping depending on your product research and marketing. Let that sink in! Do your research if you have money to invest.

At the end, it all comes down to how well you are branding and marketing the products. Use Facebook advertising and marketplace. Use every social media channels you have!

The thing is, there is potential! You just have to take the chance and do your research!

Main question: Which one is good if you are just starting off? Dropshipping ask for lower investments hence, lower risks. You are basically selling someone elses products for them!

Thank you,

Dla

TikTok: Dlaofficial_

Day in the Life of a Hustler - My small business journey - How to get started with small business

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