How to Start a Dropshipping Business Online- What is Best: Shopify or Amazon to Start Dropshipping Business Online and Why
Blog Overview
Dropshipping is a great way to start an online business. It’s easy, low-risk, and you don’t need any money upfront. But which platform should you use? Shopify or Amazon?
We know it can be hard to choose between the two platforms because they both have pros and cons. That’s why we are here today – to help you decide what is best for your dropshipping business.
Suppose that sounds like something you want. Then keep reading because, in this blog, we will compare Shopify vs Amazon so that by the end of it, you will know precisely how to start a dropshipping business online. Let’s get started.
What is Amazon Dropshipping?
First of all, we have to define Amazon Dropshipping. As the term implies, Amazon dropshipping is a business model in which you sell products via Amazon but don’t hold any inventory.
In short, here is how it works: when someone buys something from your store, you purchase the item from a third-party supplier and have it shipped directly to the customer. These suppliers are located in China or other countries, and they will ship the product to your customers directly without charging you anything for shipping.
This way of selling on Amazon has many benefits over regular Amazon selling, such as:
- no upfront cost;
- no need to keep an inventory because these products come straight from suppliers.
What is Shopify Dropshipping?
Let’s go more into detail about how to start a dropping business online with Shopify. With Shopify, you are selling products directly from your store. When someone buys something on your site, you purchase the item from a supplier and have it shipped to the customer or sent straight to your location so that you can ship it yourself.
This way of doing things has many benefits as well:
- there is no upfront cost;
- no need for an inventory;
- less risk because these products come straight from the supplier.
Moreover, Shopify dropshipping offers some additional services that Amazon dropshipping doesn’t provide, such as 24/7 support and custom themes, and more.
Shopify or Amazon to Start Dropshipping
Now that we know how both platforms work, it’s time to see how they compare against each other. Let’s take a look!
Upfront Cost
Let’s begin with how much it costs to get started on both platforms. There is absolutely no upfront cost for Amazon dropshipping, and you can start selling right away. You don’t have to pay anything or deposit any money to get started. This makes this business model very attractive for many entrepreneurs who want to have their online store without investing a lot of money upfront.
The price is higher on Shopify, but so are the benefits. To sell products on your platform, you will need a monthly subscription that starts from $29/month. This might sound a lot, but it’s pretty reasonable considering how many services Shopify provides for this price.
Fees and Commission
Now let’s compare how much commission you have to pay when selling on both platforms. In the case of Amazon dropshipping, there are no fees or commissions to be paid unless you decide to keep some inventory in your warehouse.
In other words, you don’t have to pay anything upfront, and instead of that, you only need to cover the shipping costs, which vary depending on how fast the customer wants their order. This is a great advantage because all you have to focus on is how well your online store sells and how much money you make from each sale – how much commission you have to pay doesn’t matter.
At Shopify, the situation is different because there is a monthly fee that you need to pay, and then there are commission fees that vary depending on how big your store is and how many products you sell per month. All in all, it’s around 2% of each sale which isn’t so bad considering how many services Shopify provides and how useful this platform is for dropshipping businesses online.
Shipping Costs
Let’s move on from the fees now and focus on how shipping costs work for these two platforms. In the case of Amazon, if you want to keep some inventory in your warehouse, then yes, you will have to pay for shipping plus some extra storage fees.
If you only want to dropship, then there are no shipping costs because your supplier will ship the product directly to your customer or direct it to your location so that you can ship it yourself. This way of doing things makes Amazon dropshipping more cost-effective compared to how Shopify works.
Now, if we are talking about how Shopify works, how much you pay for shipping depends on how many products you sell per month and the size of your store. Some Store plans offer free shipping, but they don’t have as many benefits as other subscription packages have.
Customer Support and Ease of Use
The last thing we need to talk about is how effective customer support work and how easy both platforms are when it comes to managing your online store. In the case of Amazon, how much information is given about how you can contact their customer support depends on how good your subscription package is.
If you go for the cheaper ones, then the information given to contact them will be very limited. If you choose one of their more expensive packages, then more information is provided on getting customer support, more options to reach Amazon support, and how fast they respond.
As for how easy Shopify is when it comes to uploading products, managing everything that has to do with shipping costs, or how useful the apps are, many online tutorials will show you how things work on this platform. There are some paid tutorials but how much they cost is not that high when you consider how much this knowledge will help you out in the future.
If you are already decided which platform to use, you now need to look for the right niche for your business. Read more on this blog: 6 Most Profitable Niches for eCommerce Dropshipping
Frequently Asked Questions
Do I need to have any previous experience to use Shopify?
You only need to have basic computer knowledge of using text editing software and how to upload products. That’s all you need to know how Shopify works, how many apps there are, and how your products can be improved by using those apps.
Does Amazon dropshipping require me to have a warehouse?
No, Amazon dropshipping doesn’t require you to have your warehouse. That is how Amazon works – when you start working with them, there are no fees or commissions for keeping inventory in your warehouse, and instead of that, all you need to do is monitor how well your online store performs and how many products per month you want to sell.
Can I stop my subscription anytime so that I don’t pay for services I’m not using?
Yes, with how flexible Shopify subscription plans are, they allow you to change your plan anytime so that you only pay for what you use. They also offer 14-day free trials, which give you time to test everything out before making a final decision.
Conclusion
In the end, effective ways on how to start a dropshipping business online depend on how well you manage your eCommerce website and how customers respond to it. Shopify can be beneficial for those who don’t have previous knowledge of how to make their website or how to sell products over the internet. Still, if you already know these things, then Amazon might be a better option.
All in all, how much easier Shopify will work for you largely depends on how big your store becomes and whether you can keep up with the competition. On the other hand, with Amazon, how much it will work for you largely depends on how good your products are in customers’ eyes and how hard you work to get them interested in your store.
