--- title: Should You Pick Amazon Dropshipping or FBA (Fulfillment by Amazon) Part 1 description: "Dropshipping vs Amazon FBA: Which of the two is more suitable for your needs? Let's tackle their pros and cons." image: https://www.ranknbank.co/hubfs/assets/blog/amazon-drop-shipping-or-fba-1.jpg --- ![](https://rdcdn.com/rt?aid=20625&e=1&img=1) facebook   linkedin   instagram   google           [admin@ranknbank.co](mailto:admin@ranknbank.co)           [(858) 247-2517](tel:(858)%20247-2517) [![image](https://www.ranknbank.co/hubfs/Rank%20N%20Bank%20Assets-%20July%202020/image.png)](https://www.ranknbank.co/) - [Home](https://www.ranknbank.co) - [About Us](https://www.ranknbank.co/about-us) - Services - [PPC Advertising Management](https://www.ranknbank.co/services/ppc-advertising-management) - [Brand Store](https://www.ranknbank.co/services/amazon-brand-store) - [A+ Content/Brand Story](https://www.ranknbank.co/services/brand-story) - [Amazon Posts](https://www.ranknbank.co/services/amazon-posts) - [Product Listing Optimization](https://www.ranknbank.co/services/product-listing-optimization) - [Portfolio](https://www.ranknbank.co/portfolio/top-7-images) - [Top 7 Images](https://www.ranknbank.co/portfolio/top-7-images) - [A+ Content](https://www.ranknbank.co/portfolio/a-content) - [Amazon Post](https://www.ranknbank.co/portfolio/amazon-post) - [Sales Copy](https://www.ranknbank.co/portfolio/sales-copy) - [Product Studio Photography](https://www.ranknbank.co/portfolio/product-studio-photography) - [Brand Story](https://www.ranknbank.co/portfolio/brand-story) - [Brand Store](https://www.ranknbank.co/portfolio/brand-store) - [Our Process](https://www.ranknbank.co/our-process) - Resources - [Blog](https://www.ranknbank.co/blog) - [Case Studies](https://www.ranknbank.co/case-studies) - [Amazon Guides](https://www.ranknbank.co/free-downloadable-amazon-guides) - [Contact](https://www.ranknbank.co/contact-us) [(858) 247-2517](tel:(858)%20247-2517) [![SCHEDULE A CALL](https://no-cache.hubspot.com/cta/default/6977030/798bb890-045a-47df-92eb-82b9ef0358cf.png)](https://cta-redirect.hubspot.com/cta/redirect/6977030/798bb890-045a-47df-92eb-82b9ef0358cf) - [Home](https://www.ranknbank.co) - [About Us](https://www.ranknbank.co/about-us) - Services - [PPC Advertising Management](https://www.ranknbank.co/services/ppc-advertising-management) - [Brand Store](https://www.ranknbank.co/services/amazon-brand-store) - [A+ Content/Brand Story](https://www.ranknbank.co/services/brand-story) - [Amazon Posts](https://www.ranknbank.co/services/amazon-posts) - [Product Listing Optimization](https://www.ranknbank.co/services/product-listing-optimization) - [Portfolio](https://www.ranknbank.co/portfolio/top-7-images) - [Top 7 Images](https://www.ranknbank.co/portfolio/top-7-images) - [A+ Content](https://www.ranknbank.co/portfolio/a-content) - [Amazon Post](https://www.ranknbank.co/portfolio/amazon-post) - [Sales Copy](https://www.ranknbank.co/portfolio/sales-copy) - [Product Studio Photography](https://www.ranknbank.co/portfolio/product-studio-photography) - [Brand Story](https://www.ranknbank.co/portfolio/brand-story) - [Brand Store](https://www.ranknbank.co/portfolio/brand-store) - [Our Process](https://www.ranknbank.co/our-process) - Resources - [Blog](https://www.ranknbank.co/blog) - [Case Studies](https://www.ranknbank.co/case-studies) - [Amazon Guides](https://www.ranknbank.co/free-downloadable-amazon-guides) - [Contact](https://www.ranknbank.co/contact-us) [![SCHEDULE A CALL](https://no-cache.hubspot.com/cta/default/6977030/798bb890-045a-47df-92eb-82b9ef0358cf.png)](https://cta-redirect.hubspot.com/cta/redirect/6977030/798bb890-045a-47df-92eb-82b9ef0358cf) This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. Content Title Description < Previous page Next page > X Trigger the fancybox ![Ebook](https://www.ranknbank.co/hubfs/6977030/assets/images/popup-ebook-cover.png) ### Grab your **Free** Copy Ready to turn your Amazon business into a nine-figure powerhouse? Dominate the competition – get your hands on our FREE eBook today and discover the insider secrets to building a wildly successful brand on Amazon. Don’t miss out on this opportunity to take your business to the next level and live your dream life! Name\* Work Email\* ![](https://forms.aweber.com/form/displays.htm?id=TAxM7CyMLOycHA==) ![Privacy Icon](https://www.ranknbank.co/hubfs/assets/images/privacy-icon.png) We respect your privacy. Your information is safe with us. Blog # Should You Pick Amazon Dropshipping or FBA (Fulfillment by Amazon) Part 1 ![ Should You Pick Amazon Dropshipping or FBA](https://www.ranknbank.co/hubfs/assets/blog/amazon-drop-shipping-or-fba-1.jpg) Posted by [James Hyatt](https://www.ranknbank.co/blog/author/james-hyatt) on August 2, 2021 - [Tweet](https://twitter.com/share) [![RSS Feed](https://www.ranknbank.co/hubfs/assets/images/rss-icon.png)](https://www.ranknbank.co/blog/rss.xml) One of the most important decisions you have to make in structuring your eCommerce business is how you will deliver the products to your customers. Both dropshipping and Amazon FBA handle the order fulfillment for you. But which of the two is more suitable for your needs? Let’s tackle their pros and cons: ### Dropshipping Advantages: - **Lesser investment** – ideal for entrepreneurs who are not yet ready to invest huge capital. - **Minimal risks** – since you get the difference between what the customer pays and the price charged by your supplier, you’ll hardly lose money if a transaction didn’t go well. - **Time-saving** – no need to put a lot of time and effort into product packaging, shipping, and managing your inventory. - **Jump into markets with ease** – This one is a huge advantage of drop shipping. Since all it takes really is to find the right product and a good supplier, there is no limit on the number of categories you can explore. You can easily dive into different markets and establish yourself as a major seller. ### Dropshipping Disadvantages: - **Less profit margin** – since you are not the only one selling the products, returns are comparatively lower than FBA. - **Customer service issues** – it can go out of control if you don’t have a support team to handle customer complaints. - **Promotions and PPC campaigns** – since your profit margins are slim, it will be hard for you to offer amazing discounts or run PPC campaigns. - **Huge competition** – many sellers are trying to sell using the same business model. Some sellers even compromise profits just to sell. - **Inventory is not in your control** – It will be a bit detrimental for your business if your supplier fails to deliver the number of stocks you need or suddenly goes out of stock. Going out of stock will also negatively affect your ranking on Amazon. Once that happens, you will need to basically start from scratch to regain your position. - **You can't guarantee shipping** – Just like inventory, shipping is another aspect that is out of your hands in dropshipping. It will all depend on your supplier’s capability to process and deliver the orders on time. Amazon dropshipping is a great business model, provided you find a trustworthy and reliable supplier. On your end, you need to make sure to create a good listing, gather reviews, and improve your product’s visibility. Learn more about strategizing on Amazon today. [Book a call with us.](https://app.squarespacescheduling.com/schedule.php?owner=22762613&appointmentType=24218929) [![SCHEDULE A CALL](https://no-cache.hubspot.com/cta/default/6977030/798bb890-045a-47df-92eb-82b9ef0358cf.png)](https://cta-redirect.hubspot.com/cta/redirect/6977030/798bb890-045a-47df-92eb-82b9ef0358cf) Topics: [FBA](https://www.ranknbank.co/blog/tag/fba) ### About the Author ![James Hyatt](https://www.ranknbank.co/hubfs/james-linked-in-profile.jpg) James Hyatt is the founder and CEO of Rank N Bank, an Amazon Advertising Agency that prides itself on quick, clear communication, transparent pricing, and industry-leading expertise. He graduated with a degree in Business Management at San Diego State University. A self-made entrepreneur, he has built Rank N Bank with no funding or debt, with the sole purpose to help clients grow their businesses profitably. 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