Dropshipping vs Amazon FBA vs FBM: What’s the Best E-Commerce Model for You?

Starting an online business can feel overwhelming, especially when terms like dropshipping, FBA, and FBM keep popping up. At first glance, they may sound similar — after all, in all three models, you don’t always ship the product yourself. But in reality, these are very different business models, each with unique costs, pros, and cons.

And while I’m familiar with all of them, I’ll be honest — I’m not the biggest fan of this approach to selling. Still, since so many people ask me about it, I decided to create this article to explain how each model works — so you can make an informed choice based on your own goals, budget, and values.

Dropshipping is one of the easiest ways to start selling online.

• You create an online store (Shopify, Simvoly, WooCommerce, Wix, etc.).

• A supplier holds the inventory for you.

• When someone buys from your store, the supplier ships the product directly to the customer.

Key facts about dropshipping:

• No need to buy inventory upfront.

• Low startup cost.

• You handle marketing and customer service.

• Profit margins are usually lower because you pay suppliers per item.

• Delivery times can be long if you rely on overseas suppliers (like AliExpress).

💰 Costs:

• Shopify Basic plan: $39/month.

• Payment fees: ~2.9% + $0.30 per sale (Stripe/PayPal).

• Ad spend is your biggest cost (Facebook, TikTok, Google Ads).

FBA = Fulfillment by Amazon.

Here’s how it works:

• You buy inventory upfront (from a manufacturer or supplier).

• Send the products to Amazon’s fulfillment centers.

• Amazon stores, packs, ships, and handles returns for you.

Key facts about FBA:

• Products are Prime eligible → faster shipping and more trust.

• Access to Amazon’s massive customer base.

• Requires upfront investment in inventory (usually 100–500 units from overseas suppliers, or 10–50 from domestic suppliers).

• You don’t own customer data (Amazon controls it).

💰 Costs:

• Professional Seller account: $39.99/month.

• Referral fee: ~15% of sale price.

• Fulfillment fee: $3–5 per unit (depending on size/weight).

• Storage fees if your products sit in the warehouse.

FBM = Fulfillment by Merchant.

• You list your products on Amazon, but you ship orders yourself (or use a third-party logistics provider).

• Lower fees because Amazon doesn’t handle fulfillment.

• You’re responsible for storage, packing, shipping, and returns.

Key facts about FBM:

• No upfront inventory storage with Amazon.

• More control, but more work.

• No Prime badge → customers may trust you less compared to FBA sellers.

💰 Costs:

• Professional Seller account: $39.99/month.

• Referral fee: ~15% of sale price.

• Shipping costs depend on your courier.

Let’s break it down:

Dropshipping (Shopify + Stripe EU):

• Sale price: $50

• Stripe fee: –$1.00

• Product cost: –$20

• Ads: –$15

• ✅ Profit: $14

Amazon FBA:

• Sale price: $50

• Referral fee (15%): –$7.50

• FBA fee: –$3.50

• Product cost: –$10

• ✅ Profit: $29 (before ads)

Amazon FBM:

• Sale price: $50

• Referral fee (15%): –$7.50

• Shipping: –$5

• Product cost: –$10

• ✅ Profit: $27.50

It depends on your budget and long-term goals:

• Tight budget / testing ideas? → Start with dropshipping.

• Capital to invest & want long-term brand? → Choose Amazon FBA.

• Already have inventory or want control? → Go with Amazon FBM.

Each path can work—you just need to match the business model to your resources and vision.

Starting an online business sounds exciting, but here are some insider truths to keep in mind before you dive in:

1. Returns & Customer Expectations

• Dropshipping often means long shipping times → expect more refunds.

• Amazon customers are used to Prime speed → if you can’t deliver, bad reviews will hurt your ranking.

2. Hidden Costs

• With FBA, don’t forget about storage fees. Unsold products sitting in Amazon’s warehouse can get expensive.

• With Shopify, the real “silent killer” is advertising cost. Test ads carefully before scaling.

3. Product Quality

• Always order samples first (whether dropshipping or FBA). Poor quality = higher returns and bad reviews.

• Don’t rely only on supplier photos. Create your own branded content.

4. Legal & Taxes

• Moving products across borders? Be ready for customs, VAT, and import duties.

• Always register your business properly to avoid nasty surprises later.

5. Scaling Smart

• Dropshipping is great for testing ideas → but if a product works, switch to bulk orders or FBA for better margins.

• Think long-term: brand, repeat customers, and building an email list matter more than a “quick win”.

💡 The biggest tip: don’t chase trends blindly. Research, test, and focus on creating value. That’s how you build something sustainable.

If you find yourself juggling multiple tools—Shopify store, landing page builder, email platform, appointment scheduler—then the idea of an “all-in-one” platform might feel like a dream. That’s where Simvoly comes in.

Simvoly combines website building, e-commerce, funnels, booking systems, and even marketing automations under one roof, simplifying your tech stack.

Imagine not needing 5 different logins, plugins, or integrations—everything is in one place. For many creators and coaches, that trade-off (a bit less flexibility in some niche areas) is totally worth the ease and clarity.

If you’re building your brand, not just testing, Simvoly is an option worth considering as a Shopify alternative or a complement to your setup.

Dropshipping, Amazon FBA, and FBM all have their place in the e-commerce world. The biggest mistake is assuming they’re the same. They’re not.

• Dropshipping = fast start, no inventory.

• Amazon FBA = investment-heavy, but scalable and trusted.

• Amazon FBM = flexible, but more work and fewer sales opportunities.

👉 Want help deciding which model is best for you?

👉 Ready to choose the right model for your business? Book a private 1-on-1 coaching session with me here.