Amazon FBA vs. Shopify Dropshipping: What’s Better?
Apr 2, 2025
Joel Turcotte Gaucher
Amazon FBA vs. Shopify Dropshipping: What’s Better for First-Time Sellers?
If you’re new to ecommerce, you’ve likely come across two popular ways to start selling online:
Amazon FBA and Shopify dropshipping
Both offer a way to sell physical products without a retail store. But they couldn’t be more different in how they operate—and what they require from you.
At Flapen, we specialize in launching and scaling Amazon FBA brands. But we also guide sellers who are exploring Shopify dropshipping and wondering where to start.
This guide compares both models—based on real experience—to help you decide which one is right for your goals, budget, and timeline.
📚 Table of Contents
What Is Amazon FBA?
What Is Shopify Dropshipping?
Amazon FBA vs. Shopify Dropshipping: Side-by-Side Comparison
Which Is More Beginner-Friendly?
Which One Offers Better Long-Term Potential?
What Flapen Recommends (And Why)
Final Thoughts
1. What Is Amazon FBA?
FBA (Fulfillment by Amazon) means Amazon stores your products, ships them to customers, and handles customer service. You focus on sourcing the product and managing your listing.
How it works:
You order inventory upfront from a supplier
Amazon stores it in FBA warehouses
Customers buy through your Amazon listing
Amazon ships and supports the customer
You pay fulfillment and referral fees
💡 Amazon is a ready-made marketplace with high trust and built-in traffic.
2. What Is Shopify Dropshipping?
With Shopify dropshipping, you build your own ecommerce store and sell products without holding inventory. When a customer places an order, it’s fulfilled by a third-party supplier (like AliExpress or CJdropshipping).
How it works:
You create a Shopify website
List products you don’t own (yet)
When someone buys, you order from your supplier
The supplier ships directly to the customer
You manage customer service, returns, and marketing
💡 With dropshipping, you control everything—but you also have to build your own traffic from scratch.
3. Amazon FBA vs. Shopify Dropshipping: Side-by-Side Comparison
Feature | Amazon FBA | Shopify Dropshipping |
---|---|---|
Platform Traffic | Built-in (Amazon search + Prime) | You must run your own ads (Facebook, TikTok) |
Upfront Investment | Higher (inventory, FBA prep) | Lower (no inventory needed) |
Profit Margins | Higher long-term (owning inventory) | Lower (due to middlemen and shipping costs) |
Fulfillment | Amazon handles storage + shipping | Suppliers ship per order |
Branding Control | Moderate (Amazon listing structure) | Full (your own site, logo, layout) |
Customer Data | Limited (Amazon owns the customer) | Full (emails, retargeting) |
Learning Curve | Moderate (listing, ads, logistics) | High (ads, CRO, site setup, suppliers) |
Long-Term Scalability | Strong (brand equity, FBA automation) | Medium (depends on ad performance) |
Risk Level | Medium (inventory risk) | High (ad-dependent, supplier reliability) |
Trust and Buyer Intent | High (Amazon shoppers are ready to buy) | Lower (you need to build trust) |
4. Which Is More Beginner-Friendly?
🟢 Amazon FBA wins here.
Why?
Amazon already has millions of daily shoppers
Your product can show up in searches without running external ads
Amazon handles logistics and customer support
You don’t need to design or manage a full website
With dropshipping, you’ll need to learn:
Shopify
Website conversion optimization
Facebook/TikTok Ads
Customer service
Retargeting, returns, and supplier communication
At Flapen, most of our clients are first-time sellers with no ecommerce background. Amazon is simply a faster and more predictable starting point.
5. Which One Offers Better Long-Term Potential?
📈 Amazon FBA has stronger brand-building potential over time.
Why?
You can launch multiple SKUs under one brand
Build reviews, organic rank, and customer trust
Eventually expand to other platforms (Shopify, Walmart, etc.)
Potential to sell your brand for 3×–5× annual profit
Shopify dropshipping, on the other hand:
Depends on constant paid ads
Faces higher refund rates and trust barriers
Often revolves around short-term, trendy products
Is harder to exit unless you build a unique product or audience
Flapen helps sellers build brands with long-term exit value—not just short-term sales.
6. What Flapen Recommends (And Why)
We recommend starting with Amazon FBA—especially if:
✅ You want a proven ecommerce business model
✅ You prefer built-in traffic and fewer moving parts
✅ You want to build a brand you can scale—or sell
✅ You’re working with a launch budget of $20K–$30K
✅ You’re new to paid ads and website optimization
You can always add Shopify later to support brand-building and email capture. But most first-time sellers are better off dominating one channel first—then expanding when systems are stable.
7. Final Thoughts: Choose the Model That Matches Your Goals
There’s no one-size-fits-all answer—but there is a smart path.
✅ If you want faster traction, higher buyer trust, and a scalable business: Amazon FBA wins
✅ If you want full brand control and have experience with traffic generation: Shopify dropshipping may fit
Just don’t confuse “low startup cost” with “easy.” Shopify requires constant marketing effort and can burn cash quickly without a clear strategy.
At Flapen, we help sellers launch Amazon FBA brands the right way—from product selection to PPC and logistics—so you can grow with confidence, then expand into Shopify later with a solid foundation.
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