Whats easier to get started Amazon FBA or an Ecommerce Dropshipping Business??

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I would like to know what is easier to get started as a newbie...
An Amazon FBA business or a Ecommerce Dropshipping Business.
I have looked into dropshipping and can see the potiential. What I like
about Amazon FBA is that they take care of all the selling, advertising etc. With Amazon FBA though, if you are sending products in that aren't in demand you may not sell for months down the road and in turn not see money for awhile.
I'd love peoples thougths/experiences so I can make an informed decisions.
#amazon #business #dropshipping #easier #ecommerce #fba #started
  • Profile picture of the author gkuang2
    I think amazon FBA is easier to get into in the beginning. You can definitely start selling stuff you don't need at home. The fact that there are apps out there that tells you sales rank will help you a lot especially if you don't have a lot of capital. This makes it more risk-free. Good luck with whatever you choose.
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    • Profile picture of the author createfreedom
      Thanks for your reply. I also think the FBA model would be easier to get started. I have looked for a guide/course to get started so I don't go in blind. Have you or anyone else come across a good one?


      Originally Posted by gkuang2 View Post

      I think amazon FBA is easier to get into in the beginning. You can definitely start selling stuff you don't need at home. The fact that there are apps out there that tells you sales rank will help you a lot especially if you don't have a lot of capital. This makes it more risk-free. Good luck with whatever you choose.
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      • Profile picture of the author lifetimeprofits
        what are some of the apps that tells you about sales rank
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        • Profile picture of the author gkuang2
          Originally Posted by lifetimeprofits View Post

          what are some of the apps that tells you about sales rank
          I am currently using iBookseller, it was like 2 bucks from the app store. This works well if you are still deciding if you want to sell on amazon long term. But if you eventually start selling in higher volume this won't cut it. It does take a few seconds to read the barcode. If you are only selling part time looking to make some quick cash, this works fine. Hope this helps!
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      • Profile picture of the author gkuang2
        Originally Posted by createfreedom View Post

        Thanks for your reply. I also think the FBA model would be easier to get started. I have looked for a guide/course to get started so I don't go in blind. Have you or anyone else come across a good one?
        So far I have read "make thousands on amazon in 10 hours a week" by cynthia stine. This give you everything you need to get started. But if you are looking for a more in depth course you can try out "the proven amazon course" by jim crockrum and the "dewable course" by Andy Dew. I have never used the last 2 course personally but they were recommended to me by a friend. If you are on a tight budget I would go with the book by Cynthia Stine. Its the cheapest and I would rather spend some of the money for a good scanner which isn't cheap btw, but would help you immensely. The book is like 40 bucks or something on amazon, but gives you all the info you need IMO so the price isn't too bad. Hope this helps!
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  • Profile picture of the author Silas Hart
    Really wish I could just answer this one with a simple answer.

    FBA by Amazon is pretty expensive unless you do it the right way. Aside from the businesses that do more than probably $150,000 in sales a year (which isn't much) and more, the people below them are the people that send in tons of of books and knick knacks that if it were sold at a flea market - then they would have made more money in the long run because of the nickle and diming of fee's within FBA and how it really wasn't "for them."

    When Amazon launched the FBA system, I was already a high grossing Amazon seller and they called me up asking to be apart of it which I did. I'm pretty weary of the nickle and diming for small fee's in just about any situation but I sat down with an accountant and ran the numbers on if I sent Amazon about $100,000 worth of inventory, how much would I profit with the fees (which actually changed during the process) and my overhead. It was something like $32,000 in profit - and I personally was pretty excited about the whole fulfillment process as I had done a list testing with it with another company in the U.S. that didn't turn out so well. On eBay, this was 4 weeks of inventory meaning that on eBay, I would sell a specific amount in the 4 week period - for example, I would typically sell 40 Hello Kitty iPhone Cases (just an example) in 4 weeks for a competitive price. Normally on Amazon, I can make about 10% more sales for the same price, but for this example, I just sent the eBay rate of 40 items. Instead of it selling in 4 weeks, it took 9 which means I paid 3 times the amount of storage fees. I should also note that I'm always able to knock my prices down by a penny every time a competitor does.

    I personally wouldn't recommend going with FBA if you don't have a good amount of experience with Amazon already and have the money to invest without the risk of losing your business.

    Personally, I don't believe in fulfillment anymore. Nobody cares about my business, my products, and my customers like I do. I think Amazon's profit model is making a profit on uneducated sellers and people with too much inventory where they can simply make a good amount of income by letting your inventory collect dust in their warehouse.

    With dropshipping, you might not make much at first because most 3rd party resellers don't make a lot of profit on a per item basis but you the ability to learn how to gain more visitors to your store, you learn how to manage your brand, how to convert those visitors to customers and you can really expand the higher your rank. Someone told me once that Amazon sells more items than Google, meaning that Amazon sells more items than customers coming from Google - I quickly called bullshit, because much of Amazons customers come from Google and I personally spank Amazon in rankings all day on many of my niche items sometimes for higher prices too. More importantly, you going to gain so much more of an education in the online marketplace. Decide that you no longer want to sell handmade native american inspired wallets on your own website and want to close it down? You can sell it, and take your experiences and knowledge and apply it to another business and go from there.
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  • Profile picture of the author ChromeFox
    Easier: Amazon FBA, Better: ecommerce Store

    It's more difficult to start your own ecommerce store but in the long run, if you can gain traction, you won't be stuck under Amazon's thumb.
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    • Profile picture of the author Chenhang
      Originally Posted by ChromeFox View Post

      Easier: Amazon FBA, Better: ecommerce Store

      It's more difficult to start your own ecommerce store but in the long run, if you can gain traction, you won't be stuck under Amazon's thumb.
      Agree))))
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