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Which to choose dropshipping or FBA?

by bm2
12 replies
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Hello,

Which one of these should I choose? Which would offer you the highest chance to succeed, and which would require the least amount of capital?
#choose #dropshiping #fba #wich
  • Profile picture of the author MValmont
    I've been doing both,

    I've been successful with both,

    And if you are just starting out, I would recommend Dropshipping.

    With Amazon FBA, you will need AT LEAST , and I say AT LEAST $500 to get started. You have to pay for the inventory, but then you have to rank your product on the first few pages for your keyword if you want to make sales. The best way to do this is to give away units at a discount price...so you will have to potentially LOSE MONEY on 50+ units in order to rank well. This is the Amazon game, it is ALL about ranking well in the search engine.

    Now for dropshipping, you can easily start with less than $100 and start making sales. You don't have to pay the inventory upfront because you are doing DROPSHIPPING. You have absolutely ZERO INVENTORY RISK. Your only risk is your ads. Let's say you do Facebook Ads and you spend $5 per day for 5-6 days to test a product, then you might lose a little bit of money if it doesn't sell. But if you do this correctly you will make sales. There are ways to promote on Instagram for FREE also, so you wouldn't even have to pay for ads...

    The bottom line is that it is MUCH easier to get started with Dropshipping. And this is coming from a guy with an Amazon coaching program that taught more than 1000 people, so you can trust me on that one. Start with dropshipping. Once you reach 5k per month then you can think about going on Amazon.
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    • Profile picture of the author DWaters
      Originally Posted by MValmont View Post

      I've been doing both,

      I've been successful with both,

      And if you are just starting out, I would recommend Dropshipping.

      With Amazon FBA, you will need AT LEAST , and I say AT LEAST $500 to get started. You have to pay for the inventory, but then you have to rank your product on the first few pages for your keyword if you want to make sales. The best way to do this is to give away units at a discount price...so you will have to potentially LOSE MONEY on 50+ units in order to rank well. This is the Amazon game, it is ALL about ranking well in the search engine.
      .

      This all depends on how you start your business. When I set up my FBA business the initial start up costs were under $100.
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      • Profile picture of the author MValmont
        Originally Posted by DWaters View Post

        This all depends on how you start your business. When I set up my FBA business the initial start up costs were under $100.

        In 2017, this would be impossible. This was probably a long time ago.
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        • Profile picture of the author DWaters
          Originally Posted by MValmont View Post

          In 2017, this would be impossible. This was probably a long time ago.

          This was about 4 years ago. Granted I was starting small (obviously) and scaling up as the business took off. I often suggest to people who are interested ion FBA to start out small, learn the business and then build the business. IMO definitely not impossible.
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          • Profile picture of the author Importexport
            Originally Posted by DWaters View Post

            This was about 4 years ago. Granted I was starting small (obviously) and scaling up as the business took off. I often suggest to people who are interested ion FBA to start out small, learn the business and then build the business. IMO definitely not impossible.
            I have had numerous newbies start off with very small amounts and succeed. Some have written to me direct and some have posted on the forum.

            As I teach, if they have done their market research properly, and they buy at the right price, they can start small and build the business up.

            Buying at the right price means finding genuine manufacturers and negotiating a good deal. Most "Manufacturers" listed on sites such as Alibaba are not what they claim. They are traders taking advantage of westerners' ignorance of the real picture in Chinese manufacturing.

            Walter Hay
            Provenchinasourcing.com
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  • Profile picture of the author Fred Kimberly
    Which would require the least amount of capital?

    Dropshipping.

    Wich would offer you the highest chance to succeed?

    Lets say for a given product "Power Strip" in a given period of 1 month and a given budget of $100 on either facebook ads for dropshipping or Amazon PPC for FBA:

    I think FBA would have higher success rate due to the algorithmic chance that Amazon provides to FBA sellers.

    Wich one of these should i choose?

    Choose wisely. It totally depends upon your product. If the competition is high on Amazon then go for dropshipping. If you find sales are good on Amazon and you can easily rank on top then FBA is better choice. But question here is how to find sales, well you can use Amazon research and tracking tools such as AMZ Insight or Shark to find out the estimated sales.

    There's lots of examples of success with both methods. You can also start dropshipping to your Amazon customers. So choose wisely based on your product niche.
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    • Profile picture of the author bm2
      The initial start up money dosen`t really matter i have to start a business whether i start it now or in 4 months makes no difference . I just want it to have success
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  • Profile picture of the author shim333
    Thanks for info
    My question I think that also in FBA the buyers will get the product faster, because its from Amazon and not from china?
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    • Profile picture of the author Importexport
      Originally Posted by shim333 View Post

      Thanks for info
      My question I think that also in FBA the buyers will get the product faster, because its from Amazon and not from china?
      Dropshipping from China almost guarantees unhappy customers due to the slow shipping. Dropshipping from suppliers in the US overcomes that problem.

      Buying inventory from China and using FBA gives you not only fast delivery for your customers, but also much higher profit margins.

      I'm sure DWaters could tell you about other advantages.

      Walter Hay
      Provenchinasourcing
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      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
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      • Profile picture of the author Shellg
        I was going to start dropshipping until I discovered Importexports book and never looked back.

        I use FBA and Amazon do my selling for me and handle all the customer service so the fees I pay are well worth it.
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        • Profile picture of the author MValmont
          Originally Posted by Shellg View Post

          I was going to start dropshipping until I discovered Importexports book and never looked back.

          I use FBA and Amazon do my selling for me and handle all the customer service so the fees I pay are well worth it.
          I used to do that. If what you like about FBA is how automated the business is, you should do dropshipping then. IMO it is even more automated.
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          • Profile picture of the author bm2
            Valmont,

            But how true is the following. That you have fake products on ALIEXPRESS and ALIBABA and i takes forever of the purchase to reach the customer. Isn`t that a reason to stay away from Dropshipping?
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