Amazon FBA and dropshipping are two separate things. Consequently, every eCommerce seller has to choose either that suits their business.If you’re a new start-up and want to launch your eCommerce store, it may be challenging to pick from the two. Both have become game-changers on their own.
Both models take lots of work to succeed. You also have to risk and put a lot of consideration into your business.That’s why today’s post will focus on dropshipping and Amazon FBA. You will get to learn everything about these two models.
What Is Amazon FBA?
Amazon is a fantastic eCommerce platform where you can list and sell your products as a seller. You can opt to dispatch or use the widely known FBA service.Well, FBA includes initials that mean ‘Fulfillment by Amazon.’ It’s a process that is easy to undertake. Amazon stands out because it can cater to a large audience and handle enormous demands.
It also has a program that offers warehousing and shipping for your products. It is how it works; you, as a seller, send your inventory to one of Amazon’s warehouses.You can do so before posting your product on the Amazon website. Then, your order gets picked, packed, and shipped on every sale you make.
In short, Amazon handles all this directly from their warehouse. It also deals with your customer service and returns.
What Is Dropshipping?
Dropshipping is an excellent eCommerce solution where you, as the retailer, place an order with your vendor. The vendor, in this case, happens to be a wholesale company.After you hand over the order to them and give out your customer’s details, they ship the items directly to your customer.
Dropshipping is convenient and cost-effective. Retailers from the UK, Australia, Canada, and Europe have been beneficiaries of dropshipping for quite some time.
It’s helpful because you don’t need significant investment. That makes it ideal for low-scale traders. Low-scale traders can reap benefits from this eCommerce business model.It is ideal for store-fronts and small retail shops that are internet-based.
How to Choose Between Amazon FBA and Dropshipping?
Despite seeming similar, choosing between dropshipping and Amazon FBA can be daunting. But, when you narrow down consideration into business and your situation as an individual, you can easily pick what suits you best.
If you start your eCommerce business with no funds, you can choose dropshipping since it gives a lower-risk model with no hassle of an initial investment.Another advantage is that there are plenty of platforms to choose from to promote your products.
Shopify is one of them. Also, setting a dropshipping account and doing business is effortless. Dropshipping is ideal for non-risk-takers and those who want to try an eCommerce opportunity.
On the other hand, Amazon FBA is best for you if you are a risk-taker and have invested capital. With Amazon, you’ll also get good leverage due to an existence of an audience.
Amazon FBA needs a good investment, although that doesn’t amount to your success ratio. But, it’s okay if you already have a running eCommerce business and want to scale higher.Amazon FBA allows you to concentrate more on marketing your product and business.
Remember, neither Amazon nor dropshipping will give you complete control over your business venture. With Amazon FBA, you’ll have to adhere to the rules and regulations, while you’ll experience small profit margins with dropshipping.
Your reliable fulfillment center in China
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As a leading tech-powered fulfillment company in China, PFC owns shenzhen Fulfillment Center and Dongguan Fulfilment Center, utilizes smart software to provide simple and reliable China warehouse fulfillment service for ecommerce businesses, dropshipping businesses and crowdfunding projects.
PFC are committed to providing a secure warehouse, efficient fulfillment, diverse packing options, flexible shipping solutions and other value-added services to help you enhance your business with less time and money.With over 6000㎡ storage space in Shenzhen, Dongguan (China) and automated equipment, PFC can warehouse your products safely, process orders and prepare shipments speedily.
Order fulfillment will start after your goods are placed in our China warehouse. When your customers worldwide place an order in your online store, they all want to receive them as soon as possible. But how can you meet their expectations and yet control your cost? An automated order fulfillment system is needed.
In order to meet the diversified logistics needs of cross-border sellers, PFC adheres to the customer-centric approach, integrates high-quality flights resources, and works closely with major international express and postal companies to launch a series of fast, efficient and safe cross-border B2C e-commerce dedicated lines, international express , postal services, and FBA Prep services.PFC eCommerce logistics routes cover 200 regions and countries around the world, including emerging markets and remote areas. Daily flights ensure delivery of eCommerce orders on time, and even during peak season.
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