< Blogs

Amazon FBA vs. Dropshipping | What Are Their Differences?

admin
Created on October 18, 2024 – Last updated on February 6, 20254 min read
Written by: admin

Are you considering entering the world of eCommerce but unsure whether to choose Dropshipping or Amazon FBA? These are two of the most popular and successful fulfillment options available. The question is, which one is better suited for your business?

Amazon FBA vs. Dropshipping

In this article, we will break down the key differences between these two methods, comparing their pros and cons to help you make an informed decision. Whether you’re looking for low-risk startup solutions or more automation, this guide will provide valuable insights for growing your online business.

What is Dropshipping?

what is dropshipping

Dropshipping is a business model where you don’t hold any inventory. As a seller, you list products in your store, and when a customer places an order, the supplier ships the product directly to them. For those looking to start selling with minimal costs and lower risks, dropshipping is a great choice. You don’t need a warehouse or worry about logistics. You only pay after a sale is made. However, dropshipping requires careful management of suppliers and effective marketing to bring traffic to your store.

What is Amazon FBA?

How Amazon FBA works

Amazon FBA (Fulfillment by Amazon) is a service that allows you to send your products to Amazon’s warehouse, and they handle storage, packing, and shipping when an order is placed. You won’t need to manage packaging or logistics, as Amazon will also take care of returns and customer service.  Commonly, you can say it is an automated dropshipping Amazon service.

FBA is ideal for sellers who want to leverage Amazon’s vast customer base and logistics network. Products become eligible for Amazon Prime shipping (Amazon Dropshipping), attracting more buyers. However, FBA requires upfront inventory investment and fees for storage, shipping, and fulfillment.

Dropshipping vs. Amazon FBA: Key Differences

dropsure vs. amazon fba

To make it easier for you to understand, We’ve prepared a comparison table that highlights the key differences and similarities between Dropshipping and Amazon FBA.

Here’s a table you can learn about Amazon FBA vs Dropshipping. We hope this will help you decide which option is better suited for your business.

Feature Amazon FBA Dropshipping
Upfront Investment ❌ High startup cost, inventory needed ✔ No upfront investment, pay as you go
Inventory Management ❌ Requires pre-purchased inventory ✔ No inventory needed, ship as you sell
Order Fulfillment ✔ Amazon handles fulfillment ❌ Manual handling, but can use automation
Advertising ✔ Built-in Amazon advertising ✔ Flexible, use any platform (e.g., Meta ads)
Profit Margins ✔ Discounts for bulk orders, but high fees ❌ Higher product costs but no fees
Customer Contact ❌ No direct contact with customers ✔ Full control over customer interaction
Customer Base ✔ Access to Amazon’s customer base ❌ Need to find your own customers
Control ❌ Limited control, Amazon handles everything ✔ Full control over your business
Scalability ❌ High costs to scale, limited flexibility ✔ Easy to scale, especially for new businesses
Risk ❌ High risk with inventory investment ✔ Low risk, no inventory holding

While both Dropshipping and Amazon FBA are effective ways to sell products online, they each have their own unique advantages and challenges.

Choosing between Dropshipping and Amazon FBA depends on your business goals. If you’re just starting out and want low-cost, low-risk options, Dropshipping is a flexible choice. It offers no upfront investment and more freedom to scale. If you have the budget and want to leverage Amazon’s strong infrastructure, Amazon FBA might be the better option. Both methods provide great opportunities for building a successful eCommerce business—so choose the one that best fits your needs.

If you prefer automation and don’t want to handle inventory, Dropsure could be your best choice. (Want to learn more about Dropsure’s platform and features? Please read What is Dropsure for more details.) It combines the flexibility of dropshipping with the automation benefits of FBA, offering a low-risk, no-inventory solution.

 

DropSure is Your Best Partner
22 Years Experience
Affiliate Rebates
100% Quality Guarantee
Top-Up Rewards
10+ Global Warehouses
Custom Branding Support
Smart inventory System
24/7 Customer Support
Get a Quote in 24 Hours
Start Sourcing for Free

Keep Learning

Managing a dropship store can often feel overwhelming, especially when you’re handling everything on your own. With no assistant by your side, you must tackle everything from product uploads to marketing promotions on your own. Fortunately, your suppliers take care of all the packaging and shipping, so you don’t have to worry about logistics. However, you still need to deal with customer inquiries, product displays, and the ever-changing market demands. If you find that despite your continuous efforts, your sales remain stagnant, it might be time to invest in some efficient dropship tools. These tools can help you save valuable time, enabling you to run your store more efficiently with the aid of technology. Whether you’re a newcomer just starting out or an experienced merchant, choosing the right tools will give you a significant boost. Next, we will introduce 8 essential dropship tools designed to optimize your workflow and ensure the continuous growth of your e-commerce store. DropSure Automated Software Under traditional methods, you need to manually obtain product images, set prices, wait for customers to place orders, and then contact your suppliers via SMS, phone, or chat to ship the products. Although this manual process can be effective, it often suffers from delays due to multiple points of communication, which negatively impacts customer experience. DropSure Automated Software resolves these issues. It integrates seamlessly with major e-commerce platforms—such as Shopify, Lazada, Shopee, Etsy, eBay, Amazon, and others—automating tasks like product uploads, order management, shipment tracking, and invoice generation. As a result, whether it’s product display or order processing, everything is completed at the highest speed, enhancing both customer satisfaction and your store’s profitability. With DropSure, you can effortlessly achieve fully […]

Why Is Stuff on Temu So Cheap? Sure, some products are cheap because the quality isn’t the best—but that’s not the whole story. There are a few key reasons behind the low prices: aggressive discounts, tax advantages, and even direct sourcing from factories by the platform itself. But don’t get it twisted—Temu isn’t the only place to find affordable products. And cheap doesn’t always mean bad. Tools like Dropship.IO can help you discover budget-friendly products with solid quality. Right now, you can even try it for free for 7 days—perfect for finding your next best-seller if you’re running a dropshipping store! So, why is Temu so cheap? It comes down to three main reasons: ● Some of the products really are lower quality● The platform uses loss-leader pricing to drive traffic● It’s a highly digitized operation, which cuts out a lot of middle costs By the way—Temu itself isn’t a seller. It’s a marketplace, and the actual products come from third-party merchants. In this article, we’ll break down exactly why Temu’s products are so cheap—and cover a few big questions: ● Is Temu a good option for dropshipping?● How do you connect Temu to Shopify?● What are the risks of using Temu for dropshipping? Why Are Temu Products So Cheap? Direct Sourcing from Factories One major reason Temu can offer such low prices is because it sources directly from suppliers and factories—cutting out all the middlemen who would normally mark up the prices.Think of it like skipping the wholesale market and going straight to the assembly line—you’re bound to get better deals. Compared to that, while many sellers on AliExpress are manufacturers themselves, they still tend to price things closer […]

Are you still struggling with having no followers or resources, yet hoping to make some extra cash through product promotion? Worried about not having time to shoot videos, no inventory on hand, and no idea where to start? Don’t worry—now with the combo of AI-generated videos and dropshipping, even with zero followers and zero stock, you can become an influencer and effortlessly generate passive income. In this article, I’ll walk you through the key points and help you get clear on: ● Why is AI video + dropshipping the best combo for selling without followers?● How can you use AI tools to quickly create high-quality short videos?● How to choose the right products and set up a dropshipping store?● At the zero-follower stage, how can you run content operations and drive targeted traffic to start making money fast? By the end of this article, you’ll know exactly how to start from scratch and build your own automated product promotion system using AI and dropshipping. Why AI Video + Dropshipping Is the Perfect Combo? You’re probably already familiar with the traditional influencer model: spend months building a fan base, shoot tons of creative content, stock up on inventory, handle shipping, deal with returns… It’s time-consuming, resource-heavy, and incredibly risky—one wrong move and you’re out a ton of money. Many people give up before even starting because the barriers are just too high. But the combination of AI-generated videos and dropshipping breaks through all those limitations. It’s practically a tailor-made money machine for beginners with zero followers: AI-Generated Videos: No Camera, No Face, No Problem Creating traditional videos requires gear, space, makeup, styling—you name it. But with AI video tools, all you […]