. With Amazon FBA , you ship a product in bulk to an Amazon facility. Then, whenever someone orders that product from your shop, fulfillment—the storage, labelling, boxing, shipping, returns and customer service—is handled by Amazon. Pricing varies based on units sold, but FBA allows you to distribute your product with less overhead than if you had to arrange it all yourself. However, FBA requires more upfront costs than dropshipping.
Amazon dropshipping, sometimes known as FBM or Filled by Merchant, does not require you to own any products. Instead, your storefront acts as a middleman between a manufacturer and the customer. The dropshipping model requires you to facilitate the purchase of goods you did not create, merchandise them, and advertise them; then they’re shipped directly from the manufacturer to the customer. Essentially, Amazon hosts your online store, and you never deal with inventory hands-on.
By using Amazon FBA or dropshipping for your business, you would be outsourcing many of the large structural costs to Amazon. Though you may be hesitant to entrust your to another organization, many entrepreneurs thrive as Amazon sellers. For example, top Amazon.ca seller Round3CA has received over 100,000 reviews in the lifetime of their Amazon store, of which 96 per cent have been positive in the last 12 months.Starting a business is rarely simple; there’s data to be gathered, products to be sourced, and research to be done, among various other things.