What Makes the MOST MONEY? Amazon vs. Dropshipping with Aliexpress
What makes the most money and is the better… Amazon FBA or dropshipping with Aliexpress?
►► Free $10,000/Month ebook: http://wholesaleted.com/4-step
►► Dropship with Aliexpress w/ No Money: https://www.youtube.com/watch?v=2CWrd2gdTIs
***OTHER LINKS MENTIONED IN THE VIDEO***
Pick the Best Items to Private Label: https://www.youtube.com/watch?v=8rMIW8zKptI
How to Create a Shopify Store: https://www.youtube.com/watch?v=IakKkA_DWdQ
How to Create a Woocommerce Store: https://www.youtube.com/watch?v=Qih6gvJWXPI
How to Launch Your First Amazon Product: https://www.youtube.com/watch?v=JPwscpE-53g
How to Hire a Virtual Assistant: https://www.youtube.com/watch?v=CHVf-_OItWU
Which is Cheaper – Amazon FBA vs. Dropshipping
With dropshipping, you don’t have to purchase any inventory in-advance. You only purchase products after the customer has bought them. In addition, the fulfillment costs are low – usually $10 an item, which means you don’t need a lot of cash-on hand to start making sales.
Instead, your main expenses come from having a store ($29/month with Shopify, and as low as $35.88/year with Woocommerce) and from the advertising (which costs around $21/product to test).
Amazon FBA on the other hand requires you purchase the products you are private labeling in bulk – which means you have much higher upfront costs. It costs around $1,000 to start and launch an average Amazon FBA business.
WINNER: Dropshipping
Which is Passive – Amazon FBA vs. Dropshipping
Dropshipping requires that you check every day for orders and that you fulfill them. There are manual processes involved. You can hire out the work to a VA once you’re successful but in the beginning you’ll need to do it yourself.
With Amazon FBA private labeling all of the work is upfront. Once the products have been shipped into the Amazon FBA warehouses, they take care of most of the work for you – including fulfillment – and it makes it very passive.
WINNER: Amazon FBA private labeling
What Makes the Most Money – Amazon FBA vs. Dropshipping
It’s a lot easier to scale to big, fast products with dropshipping because you don’t have to wait to manufacture inventory. You can scale up if you have the ability to test lots of products.
Amazon FBA takes longer, because you need to manufacture your inventory in-advance. In addition, you have less ability to capture customers contact details. When you are dropshipping you can remarket to the customer over and over again.
WINNER: Dropshipping
Which Has the Least Risk – Amazon FBA vs. Dropshipping
With dropshipping, you need to test lots of different products to find a winner. On average it tends to be that for every 20 products you test you’ll find 1 winning item – but there are no guarantees.
With Amazon FBA private labeling, you are selecting products using data from tools like Jungle Scout. You can see how many sales are being made, how well your competitors listings are optimized and you can use that data to select successful products. You can also follow a proven launch formula to rise your listing to the top of the Amazon search results.
WINNER: Amazon FBA private labeling
Which is the Best for Free Traffic – Amazon FBA vs. Dropshipping
When dropshipping in your own store, you can take advantage of free search engine optimization (SEO) traffic. However, it is slow. It takes a long time for Google to rise your listing to the top of the search results. For competitive keywords, you will also need to spend time/money on backlinks, which is tricky. Optimizing meta data isn’t enough for competitive keywords.
With Amazon FBA private labeling, your main source of sales is going to be the Amazon search results. The Amazon search engine is a lot easier to manipulate than the Google search engine.
WINNER: Amazon FBA private labeling
Which is Best for Paid Traffic – Amazon FBA vs. Dropshipping
Dropshipping is a great match for paid traffic, because you don’t have to worry about manufacturing products. You have access to all of the products in the Aliexpress catalog. You can immediately go and start creating ads for them.
If you have a successful product you are private labeling on Amazon, then you should definitely run paid ads to it. However, you have a bottleneck where you have to go and produce/manufacture a new product and ship it into the Amazon warehouse before you can run more ads. If you like paid traffic and want to utilize it to it’s fullest, dropshipping works best.
WINNER: Dropshipping
It’s a tie! The moral is that both business models have their advantages/disadvantages. Comment below with what one you prefer!
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