In this episode , we’ll be discussing Shopify Dropshipping vs Amazon FBA and what’s the ideal business model for beginners.
✅ Inventory and Startup Costs: Dropshipping has a much lower startup cost (if you do it correctly) and you don’t really risk getting stuck with tons of inventory
✅ Generating Your First Sales: You can make your first dropshipping sale ina s little as two weeks. If you’re doing private label FBA, you’ll have to wait a little longer while you build up your listing reviews and wait for products to come in.
✅ How Much Control You Have: Amazon has a ton of organic traffic to bring to your business, but they also have a lot of control and can take things away in a heartbeat.
✅ Time to Make a Profit: Your first sale with dropshipping is likely to be profitable. With FBA, you’re not profitable until you get back more than you spent on your inventory.
✅ Scalability: Dropshipping is easy to go from zero to full time income, but if you have deep pockets, you could potentially scale private label FBA quicker. High ticket dropshipping scales more linearly while FBA can snowball if you have enough money to keep reinvesting
Sellability: Both are on around equal footing with sellability.
✅ Consequences of Failure: If you fail with FBA, you’re in trouble. You’re stuck with loads of inventory you’ll have to sell and it could be a major headache. If you fail with dropshipping you don’t really lose much at all.
Listen or watch the episode below:
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