Table of Contents
- 1 Dropshipping: What does it mean?
- 1.1 Dropshipping with Amazon
- 1.2 Shopify Dropshipping
- 1.3 Dropshipping with eBay
- 2 Conclusion
Dropshipping is much easier if you are familiar with the best dropshipping platforms. Shopify, Amazon, and eBay are the top dropshipping platforms. They offer many opportunities for beginners to start their own online shops by dropshipping.
We have done an easy comparison between Amazon dropshipping platforms and Shopify eBay. Let’s compare them to see which platform is most user-friendly.
Dropshipping: What does it mean?
Dropshipping is a way to sell products online, but not hold stock or manage logistics for shipping them to buyers.
Dropshipping with Amazon
Amazon’s huge customer base is the main reason why they chose Amazon to dropship. In 2018, Amazon held 49% of the eCommerce market in the USA.
Dropshipping on Amazon is allowed
Drop shipping is technically allowed by Amazon, but it does have strict rules. You can sell any item already sold on Amazon . You simply need to be able offer the item to your buyers and identify you as a seller (in terms of shipping, packing, invoicing, etc. You can.
Dropshipping on Amazon FBA is risky
Its policy states that dropshipping on Amazon requires you to buy inventory before you can send it to Amazon fulfillment center (aka FBA). The product will be displayed on Amazon. You don’t need to create a website for your online store.
Many FBA sellers also choose to launch products by sending samples out to influencers and paying for advertising on Amazon. If you are interested in dropshipping on Amazon, these are additional financial considerations.
Is it possible to dropship on Amazon?
It is much easier to sell on Amazon because you don’t have to create a website like Shopify. You might also find eBay easier to sell on than Amazon. On Amazon, you must go through a verification process before selling. This is unlike eBay which takes 3-4 months from the time you make your first sale.
Is Amazon FBA financially viable?
If done correctly, it can be very lucrative. This is the simple rule of business: the greater the risk, the greater the reward. Amazon and Shopify offer big-money opportunities, but with higher risks.
Dropshipping is possible on Shopify, one of the largest eCommerce platforms. First, you need to create your shop on Shopify. To track potential buyers, you’ll need to advertise your store.
Are you looking for inventory to dropship Shopify products?
Shopify is a dropshipping-friendly merchant platform. Shopify allows you to dropship without having to purchase or keep inventory. You will again be a digital marketer who presents the product to customers and then contacts the supplier when they place their order. Your dropshipping provider will deliver the goods to you.
Shopify is the most risky business model.
Dropshipping on Shopify has one main characteristic. You need to generate traffic. Therefore, you will need to invest in advertising campaigns to reach potential buyers. Your business is your brand.
This makes it one of the most risky business models. Unlike inventory with Amazon FBA, which you can sell at least in some loss, advertising incorrectly can be costly and sales are not guaranteed.
Dropshipping with Shopify is the most difficult business model to run
Dropshipping with Shopify requires knowledge of design, analytics, as well as advertising. These skills are important regardless of which platform you choose to dropship from.
It is often more difficult to learn all the details at once than slowly learning them as your business grows. This is what Amazon and eBay allow you to do because they offer both the store (the shop) and the traffic (the market visitors).
Dropshipping with eBay
After Amazon, eBay is the second largest eCommerce platform. It had 183 million users at the start of 2020. Is it the best dropshipping option for beginners?
Dropshipping is simple on eBay
eBay is faster than Amazon and Shopify in setting up a seller account. This is why eBay is so easy to use for dropshipping.
You don’t have to create your own website or invest in web design, unlike Shopify dropshipping. Your eBay store will act like your website once you are a seller.
You can also use the DSM Tool automated dropshipping software with eBay. This works with European dropshipping providers as well as China, USA, Canada, Australia. This software allows you to list your products on eBay in seconds. It will also monitor and update them throughout the day.
Profitable business model using a $0 advertising budget
Dropshipping is easy on eBay. You don’t need to spend money advertising to find potential buyers. You can instead use the concept of retail arbitrage to find buyers. To get onto the first pages of eBay search results, optimize your listings for ebay SEO. This is how potential buyers will find your products.
Pro tip: To understand the full costs of dropshipping on eBay, please read the How much does it cost to begin dropshipping article.
Are you looking to dropship on eBay but don’t have inventory?
No. No. After a sale, they contact the supplier to ship the item directly to their customers.
Dropshipping on eBay has its downsides
It’s not as scalable. You can’t build your brand and it doesn’t comply with the eBay Dropshipping Policy so you will need to work with limited traffic.
Traffic means less buyers, which ultimately means lower potential profits. Here again, the business rule is risk-return.
Dropshipping on eBay is a low-risk business model that makes it easy for beginners. However, you need to remember that to grow your business you will need to master other business models.
Dropshipping is a great option for those who don’t have any prior experience with digital marketing and aren’t willing to take on a lot of risk in building a business.
Shopify and Amazon offer greater potential for profit if you have experience in digital marketing and have the capital to finance it.
This overview focuses on three major eCommerce platforms that you can dropship to: Amazon, Shopify, and eBay. Each one offers multiple ways to start and grow a dropshipping company.
We hope you found this information helpful in helping you choose the right dropshipping platform and what challenges and opportunities you will face.
All the best!