WHAT'S BETTER DROPSHIPPING OR AMAZON FBA?

 In general, dropshipping is a good eCommerce solution where the retailers can directly place an order with the vendors running a wholesale company. Dropshipping is one of the best retail business that can be done cost-effectively and conveniently. Retailers in Germany are in to the dropshipping business for several decades. This business is a profitable model for Internet-based storefronts and small retail shops. On the other hand, Amazon FBA is an opportunity for entrepreneurs who gather a large audience. FBA stands for Fulfillment by Amazon. Amazon's FBA program provides warehousing and shipping services for your products. It has a unique approach to business because Amazon is a huge market for popular products today. To make it more advanced, Amazon Prime plays a vital role.

 

Advantages of dropshipping:

§ Dropshipping doesn't demand more investment in a business. Also, it doesn't need a strong base for the business establishment. 

§ It is a pocket-friendly business and saves you from substantial initial investments.

§ In dropshipping, you have to place an order for your customers online with the supplier.

§ You are free from shipping the order to your customer and handle any returns.

§ You save more time in drop shipping compared to Amazon FBA.

 

Disadvantages of dropshipping:

§ Although the dropshipping business doesn't demand a higher initial investment, the returns in revenue are less. In short, dropshipping is lesser in profit margin.

§ Sometimes, your supplier may not provide the required information. So, there are high chances for scant information which you cannot offer to your customers.

§ Dropshipping has a lot of freedom, but when it comes to customer handling, the information you provide to the customer concerns are less since you have scant information.

§ In dropshipping, there is a huge number of competitors providing lower prices to overtake your business.

 

Advantages of Amazon FBA 2020:

§ It gives more time for scaling and focusing.

§ Large customer base since Amazon is a popular market place to establish your products.

§ Customer services are primary in Amazon's FBA, and it allows you to maintain loyal customers.

§ You need not be concerned about packaging, shipping, or returns.

§ Better profits compared to dropshipping.

 

Disadvantages of Amazon FBA 2020:

§ High competition because many other businesses are selling the same products as you do.

§ Amazon FBA cannot deliver flammable products.

§ You will not have direct contact with customers.

§ No profits are guaranteed with Amazon FBA 2020.

§ No record of inventory.

 

Comparing both Amazon's FBA 2020 and dropshipping, both have higher competition. When it comes to investment and risk, dropshipping is best though it provides less profit margin and not very good shipping.