Comparing the profitability of Amazon FBA and Shopify dropshipping.

[Sk8rid]

There's a lot of information available online about the pros and cons of different e-commerce methods, which can make it feel like a PS3 vs Xbox 360 debate. As someone who has provided digital services such as web design, SEO, PPC, social media, and graphic design for over 5 years, I'm interested in exploring the e-commerce space and other opportunities.

I wasn't aware of many of these opportunities until I discovered MMO, as I had mainly focused on finding clients and projects. However, this eventually became a soul-sucking experience.

Now, I'm excited to explore new ventures in the new year and see where it takes me.

Given my experience in digital services like web design, SEO, PPC, social media, and graphic design, what would you recommend as the best e-commerce route for me? In my opinion, Amazon FBA involves a steep learning curve since it's completely new to me, so I'm more inclined towards dropshipping, which feels more familiar. However, finding a product that fits well with high traffic could be the biggest challenge.

What has been your experience with either of these routes, and which one do you think will be more profitable in 2023?

Lastly, I wish everyone a happy new year and hope that all of your dreams - whether they be for happiness, wealth, or most importantly, good health - come true in 2023.

 

[LinTaru]

In my view, when it comes to FBA (Fulfillment by Amazon), you have the authority to make decisions. For dropshipping, the outcome varies based on the location of your suppliers. If your suppliers are based in China, I strongly advise against it. On the other hand, if you have a reliable local supplier for dropshipping, you can expect to benefit from better profit margins.

 

[Sk8rid]

In my view, when it comes to FBA (Fulfillment by Amazon), you have the authority to make decisions. For dropshipping, the outcome varies based on the location of your suppliers. If your suppliers are based in China, I strongly advise against it. On the other hand, if you have a reliable local supplier for dropshipping, you can expect to benefit from better profit margins.

Definitely agree! I completely understand your frustration with using the Shopify platform. I've personally created two dropshipping stores with WordPress and integrated dropshipping, but unfortunately, neither of them made any sales. During this time, I was experimenting with different methods and came to realize that offering a shipping time of 7-16 days with a $25 charge is simply not practical in today's fast-paced world. It's almost laughable to think that I would get any sales with such shipping conditions. In fact, I had 15 abandoned carts during my first campaign, which made me rethink my approach.

To avoid this issue in the future, there are a couple of strategies you could consider. First, you could discuss with your dropshipping supplier if they would be willing to make accommodations to let Amazon handle the shipping for you. This way, you can tap into Amazon's efficient shipping services and offer faster delivery times to your customers. Alternatively, you could explore finding a supplier located closer to the region where you want to sell your products. By doing this, you might be able to offer quicker shipping times and reduce the shipping costs, making your products more appealing to potential customers.

Ultimately, the goal is to find a balance between a product that you are confident will be profitable and a shipping solution that meets your customers' expectations. Shipping time and costs play a significant role in the success of a dropshipping business, so it's crucial to address this issue to increase your chances of making sales.

 

[Sk8rid]

In my view, when it comes to FBA (Fulfillment by Amazon), you have the authority to make decisions. For dropshipping, the outcome varies based on the location of your suppliers. If your suppliers are based in China, I strongly advise against it. On the other hand, if you have a reliable local supplier for dropshipping, you can expect to benefit from better profit margins.

Additionally, why do you mention having greater control over Amazon FBA? Is it due to the fact that you have the products within the warehouse and are assured of Amazon's safe handling?

 

[LinTaru]

Additionally, why do you mention having greater control over Amazon FBA? Is it due to the fact that you have the products within the warehouse and are assured of Amazon's safe handling?

With Amazon FBA, you have visibility into your inventory and shipping times, and you can rely on Amazon's efficient delivery system, which is nearly 100% accurate. On the other hand, dropshipping can be less reliable as some suppliers lack transparency and may accept orders without having the products in stock, causing delays in delivery.

I recommend starting by ordering a small batch of products, private labeling them, and testing the market. Afterward, you can make an informed decision between using Amazon FBA or handling the shipping yourself. Personally, I would advise against dropshipping, but the final choice depends on your suppliers' reliability.

 

[Sk8rid]

With Amazon FBA, you have visibility into your inventory and shipping times, and you can rely on Amazon's efficient delivery system, which is nearly 100% accurate. On the other hand, dropshipping can be less reliable as some suppliers lack transparency and may accept orders without having the products in stock, causing delays in delivery.

I recommend starting by ordering a small batch of products, private labeling them, and testing the market. Afterward, you can make an informed decision between using Amazon FBA or handling the shipping yourself. Personally, I would advise against dropshipping, but the final choice depends on your suppliers' reliability.

Appreciate the guidance!

 

[WireKrool]

Additionally, why do you mention having greater control over Amazon FBA? Is it due to the fact that you have the products within the warehouse and are assured of Amazon's safe handling?

Absolutely right. Achieving peace of mind leads to improved sleep and better overall health.

 

[Sk8rid]

Absolutely right. Achieving peace of mind leads to improved sleep and better overall health.

Is it inappropriate to ask about the relative profitability of different methods, considering that their success might be contingent on person skill levels? Alternatively, is it simpler to generate income through Amazon?

 

[WetSizzlin]

Both Amazon FBA and dropshipping can be lucrative, but each has its own advantages and challenges, requiring different strategies and skill sets for success.

Ultimately, it comes down to your individual circumstances, including your skills, experience, marketing approach, and the products you choose to sell.

So why not take the plunge and give it a try?