Services
Winning Products
Find top-selling products to enhance your store’s growth
One-Click Ordering
Simplify your process with one-click order fulfillment
POD & COD
Create personalized products with print-on-demand services
Global Warehousing
Speed up delivery with our global warehouse network
Product Sourcing
Access trending items from a vast network of suppliers worldwide
Custom Branding
Boost your brand with customized packaging and thank you cards
Growth Courses
Learn strategies to scale your business from experts
Quality Check Process
Ensure high quality with detailed inspections at every step
Auto Fulfillment
Process and ship orders quickly with automated fulfillment
Order Tracking
orders live, keeping everyone updated
Customer Care Team
Our responsive and friendly support team
Streamlined Logistics
Faster shipping with optimized global warehouse delivery
Verified Suppliers
Source products from reliable pre-vetted suppliers
24/7 Customer Support
Receive help anytime with our around-the-clock support
Real-Time Analytics
See clear insights instantly with performance reports
Social Responsibility
Giving back through meaningful charitable actions
EN
En
Try For Free
EN
En
< 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

  Have you thought about dropshipping through Walmart? Walmart is one of the biggest retailers in the world, and with the rise of Walmart online shopping, it’s becoming an even bigger player in the e-commerce space. But what can it really offer dropshippers? Today, let’s explore how Walmart can impact your dropshipping business and see if it could be the secret to your success! Walmart is more than just a big supermarket. It’s also a major player in e-commerce, with a strong presence online. Many sellers are already working with Walmart in the e-commerce space. So, if you’re thinking about starting dropshipping, Walmart is definitely worth considering. Now, let’s answer a big question: “Does Walmart offer dropshipping services?” Let’s see how Walmart can support your dropshipping business.   What is the scale of Walmart’s e-commerce business?     Source:Retail Brew From 2022 to 2024, Walmart’s e-commerce business has continued to grow and gradually become a key driver of the company’s expansion. In 2022, Walmart’s U.S. e-commerce sales reached $73 billion, with particularly strong performance in online groceries, where it captured 37% of the market share. In comparison, Amazon still holds a dominant position in the e-commerce market, but Walmart has gained a significant advantage, particularly in food retail, by integrating its online and offline businesses more effectively.   In terms of user engagement, Walmart’s e-commerce platform attracted over 150 million active users in 2022, while Amazon’s Prime membership surpassed 200 million globally, showing that Amazon’s user base is still far ahead. However, Walmart is narrowing this gap by launching membership services and optimizing the shopping experience. By 2023, Walmart’s e-commerce sales continued to grow, and it’s expected to approach $80 billion […]

Let’s be real—if you’ve done dropshipping, you’ve probably felt that soul-crushing moment when you burn through hundreds of dollars in ads, only to see barely a few “Add to Cart” actions in your dashboard. I’ve been there. I had a decent product, a solid landing page, and a pretty generous ad budget. But my ROI was stuck at 0.8—losing money every single day. Then I changed my approach. Instead of “selling a product,” I started telling stories using UGC-style ad copy and videos. The result? My ROI doubled—jumping from 0.8 to 1.7, and eventually peaking at 2.3. In this article, I’m going to break down exactly how I did it. No fluff, no theory—just real tactics that worked. What Was Wrong With My Previous Ads?  My old ads were a textbook example of “product-centric advertising”:Right off the bat — polished product photos, followed by three lines of copy about the features: looks great, portable, special price. Result?Lots of clicks, but barely any conversions. Why?Because me saying my product is awesome doesn’t hit as hard as a user saying: “Wow, I’ve been using this for a week and my sleep actually improved.” That kind of authenticity is what truly sells.  What Is UGC Advertising, and Why Does It Work So Well? UGC (User-Generated Content) refers to content created by real users—things like unboxing videos, everyday product reviews, or casual “selfie-style” testimonials. Why is UGC so effective? 1. It reduces buying anxietyNo matter how beautiful your models are or how polished your set is in a traditional ad, most regular people look at it and think: “Well, that’s not me.”But UGC feels different. The person in the video might be wearing pajamas, […]

Dropshipping is a flexible e-commerce model that allows you to run a business without holding inventory. Compared to buying and stocking products yourself, it has a lower barrier to entry and a faster startup time, making it the first choice for many entrepreneurs. TEMU, as a rapidly rising new platform, also offers fresh opportunities for dropshipping sellers. This article will guide you step-by-step on how to start dropshipping sales on TEMU, covering key practical points such as platform rules, product selection tips, pricing strategies, shipping coordination, and brand building. Why Choose TEMU?  TEMU is the cross-border e-commerce platform under Pinduoduo. Since its launch in 2022, it has quickly gained popularity in the US and European markets by focusing on “extreme cost-performance” and a “fully managed operation” model. In a short time, it has attracted a large number of overseas users, becoming one of the fastest-growing platforms in the cross-border e-commerce space. The core advantages of choosing TEMU include: Powerful Traffic Distribution System  TEMU borrows the “interest-based e-commerce” model from Pinduoduo, focusing on algorithmic recommendations like “You May Like” instead of relying on keyword rankings or store seniority. This means even new sellers and new products can get platform recommendations and quickly gain traction as long as the price is competitive and the product fits the platform’s style. Fully Managed Fulfillment  TEMU implements a “fully managed” model: sellers send their products to designated warehouses in China, and the platform takes care of everything else, including packaging, cross-border logistics, overseas delivery, and after-sales service. You don’t have to worry about complicated issues like international shipping, customer service, or returns, which greatly lowers the operational barrier. This is perfect for individual sellers, small teams, […]