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amazon fba or shopify dropshipping

Published on: February 7 2023 by pipiads

Shopify Vs Amazon FBA 2022 - Which One Is Better?

i'm going to share the pros and cons of amazon versus shopify and which one you should use to make money online, and i guarantee the answer at the end of this video is going to surprise you. and e-commerce is growing like crazy. two years ago, online sales only made up 12 of all retail sales. last year it jumped up to 16 and this year it's projected to be at 18 to 20, and it's pretty obvious that e-commerce, which basically just means people buying things online, is going to be the future. but what's crazy is last year e-commerce only made up 16 of all sales, which means it still has a lot of room to grow, which means it's a perfect time to start your online business. but which platform should you choose? and i have a lot of experience with e-commerce. eight years ago i had a corporate job. i quitted cold turkey, so for the last eight years i've been a full-time e-commerce entrepreneur. i've done over five million dollars in online sales, so i have a lot of experience with e-commerce and i'm very grateful. because of e-commerce, i've been able to stay here for the last week at a beach house with my family. i was recently able to buy my dream house on the beach in mexico, and because of internet marketing and all my e-commerce experience for the last three years, i've been able to make over a hundred thousand dollars passive income per year, while i spent my time traveling, enjoying life and doing the things that i love to do. so make sure to hit the like button, because i'm gonna give you the honest truth in this video that no one else will. for instance, did you know that 50 of all e-commerce sales happen on the amazon platform and another huge percentage of online sales happen on sites like walmart, alibaba and a bunch of other ones that i'll list right here now? don't worry, i'm going to tok about all the cons with amazon in just a few minutes, but amazon is a huge platform. it's a 1.6 trillion dollar company and they allow people like you and me to sell on their platform. in fact, two-thirds of all sales that happen on the amazon platform are from third-party sellers like you and me, and last year, amazon did over 400 billion dollars in e-commerce sales and because of that, over 200 000 sellers made at least a hundred thousand dollars last year alone. and i'm gonna be honest: amazon makes it very easy to sell on their platform. all you really need is some images of your product, a title, some bullet points, description and you're ready to go. now compare that with shopify. with shopify, you have to create an entire website just to be able to sell your products using a shopify website, but they also make it easy to sell on their platform because they've already got customers. in fact, they have over 112 million prime customers, which is a lot of people that are already shopping on amazon, already looking to buy your product with shopify. if you want to get someone to your website, you actually have to convince them to type in the url or click on your link to some weird website they've never been to. and once they get there, what are the chances they're actually going to trust your website that they've never seen before and purchase? the average conversion rate on a shopify website- meaning for every 100 people that go to a shopify website- is around one to three people- one to three percent. with amazon it's closer to 10 to 30 percent of the time that someone goes to a product listing that they're actually going to convert into a sale, and that's because people trust amazon as a website. they trust giving over their credit card information. if you have a shopify website, a lot less people are going to trust giving their credit card to some website they've never been to before. now again, there's a lot of cons with amazon- i'm going to get to in just a minute, but let's tok about some of the pros with shopify, because shopify is a pretty amazing company. in fact, they're 150 billion company and their stok has actually tripled in the last year alone, and even though it's a little bit more difficult to create an entire shopify website than it is just a simple amazon listing, it's pretty freaking easy to create a website with shopify. in fact, i did a video showing how to create your own shopify website in just five minutes. so in some ways, it's easier to create a website with shopify because you don't have to wait to get approved. you don't have to provide all kinds of documentation. you don't have to get ungated with certain categories like you do with amazon to create a shopify website, though there are certain products you're not allowed to sell on shopify, but i'll tok about that later. another pro with shopify is you own the website. they can't kick you off as easily as amazon can- though they still can kick you off, and i'll tok about that later- but since you own the website, you can customize it however you want an amazon listing. even though it's very easy to set up, it's very limiting. you can't change it around that much. another pro shopify is when someone purchases from you, you get their email, you get their phone number, you get their address. you can do a bunch of different methods to remarket to them, and one of the best ways to get more sales for your business is remarketing to customers who have already purchased from you. with amazon you don't get any of that data, which makes it a lot harder to remarket to existing customers. and one of the biggest pros with shopify is by having your own website. it opens up a ton of different internet marketing opportunities for you. for instance, you can do things like social media. you can start your own tik tok, instagram, pinterest, whatever you want, and direct all that traffic to your website. you can also run paid ads like google ads, youtube ads, instagram ads, tiktok ads- all these different types of ads. by having a shopify website, it opens up all kinds of internet marketing opportunities, also things like seo, which is a way for you to rank at the top of the search results for google. now the truth is, if you do have an amazon listing. you can use a lot of these different marketing tikniques, but in some ways it's easier if you have a really simple url to direct all that traffic to. and before i tok about the cons with both these platforms- and, trust me, there are a lot of cons with both these platforms- make sure to hit the subscribe button because i'm going to be doing an in-depth video toking about all the different ways that you can market both your amazon business and your shopify business using a bunch of different internet marketing tikniques that i've learned over the last eight years. and the first con with amazon is it's saturated, kind of. there's over nine million sellers on the amazon platform, four thousand new sellers joining every single day. but let's break down these numbers really quick, because even though there's nine million sellers, there's a lot less sellers that are actually selling in the united states. and of those sellers that are selling in the united states, a much smaller number are actually active seller. and even of those active sellers, most of them just aren't really taking it that serious. there are people selling used textbook and random junk around their house. there's only a very small number of really serious active sellers and, trust me, most people that are selling on amazon aren't watching youtube videos trying to learn how to sell on amazon. and if you want to get ahead of the curve for selling on amazon, i do have a completely free amazon fba course you can get right here and most people don't do that. most people don't take courses and learn how to actually do it. so, even though amazon's saturated, most people that are selling on amazon aren't doing it right, and i'll tok about one of the biggest mistakes that amazon sellers are making later in this video. but there are some real problems with selling on amazon. for instance, they can kick you off whenever they want. now, truth is this is really rare and it doesn't happen that often, and a lot of people tok about it and they've had fri.

Dropshipping vs Amazon FBA - Was ist besser? | 2022

amazon, fps oder dropshipping, zwei super bekannte geschäftsmodelle. die einen schwören darauf, dropshipping ist der heilige gral. du musst dropshipping anfangen, wenn du ein eigenes business starten willst, wenn du schnell viel geld verdienen willst. die anderen sagen: hör mir, auch mit dropshipping, das ist alles nur scam. kein mensch glaubt produkte aus asien. ihr müsst amazon espey machen, ja, und dann sagen: die drop shock, weil wir ja, aber du brauchst du viel kapital für andere zb, und das ist ein viel höheres risiko, und es gibt zu viel konkurrenz. und dann sagen die wieder: ja, aber du musst teure werbung bezahlen, und so weiter und so fort. das heißt, es ist ein ewiger clinch. in diesem video werde ich dir ganz genau erklären, was die vorteile der beiden geschäftsmodelle sind, für wen das richtige geschäftsmodell. dropshipping ist für jeden das richtige geschäftsmodell, aber zb ist- ich habe heute nicht nur meine persönlichen erfahrungen, meinungen mitgebracht, sondern auch zahlen, also ganz klare zahlen, an dem du einfach auch mal die chancen abwerten kann- es zwischen den beiden, denn da gibt es eine riesengroße überraschung, die ich selbst so nicht erwartet habe, und genau darüber werden in diesem video sprechen, bevor wir los gehen. bevor wir loslegen, kurz zu mir: mein name ist das spiel. ja, ich mache hier auf youtube seit über drei jahren videos zum thema onlinehandel. ich habe selbst vor über fünf jahren angefangen und dann nämlich selbstständig gemacht- neben dem hauptberuf- damals hat bei mercedes gearbeitet- habe gestartet, viele sachen falsch gemacht- ja so. nicht so diese heroes story, sofort durch die decke gegangen, sondern erst mal viele sachen auch falsch gemacht, aber ist geschafft, wirklich finanziell unabhängig und frei damit zu werden. und ja, teile meine erfahrung. ich habe einblick in über 1300 produkte, die ich selbst oder gemeinsam mit meinen teilnehmern und kunden auf den markt gebracht habe. das heißt, ich habe auch super viele daten, die sonst so eigentlich fast niemand sieht, und davon werde ich heute auch viel berichten, damit du einfach eine bessere entscheidungen treffen kannst und ich auf keinen fall eben für das falsche geschäftsmodell entscheidest. denn das ist mir ganz wichtig, am anfang zu sagen: ich kenne leute, die mit dropshipping sehr viel geld verdienen. ich kenne leute, die mir damals dfb sehr viel geld verdienen. beide geschäftsmodelle können funktionieren, und in der beiden geschäftsmodellen steckt eine vollkommen andere strategie und herangehensweise, und das ist eigentlich das, was du verstehen muss, um dann zu wählen, welches für dich sinnvoll- als wenn es kann sein, das dropshipping für dich die beste wahl ist und damit viel, viel, viel schneller und viel mehr folge haben wirst, als dass jemand aber zb hättest, und andersrum ganz genauso. also starten wir mit dem thema nummer eins, und das ist immer eine große frage, wo man sich selbstständig macht, und zwar: wie viel geld brauche ich, um das business zu starten, und auf der einen seite, und wie aufwändig ist das? also, was muss ich alles lernen? also, wie komplex ist jetzt endlich so ein business? ja, weil ich sag jetzt mal grundsätzlich: wenn jetzt jemand um die ecke kommt und sagt: hey, man kann gerade gut geld verdienen mit raketentiknologie, dann wird das für dich relativ irrelevant sein, weil es zu komplex ist. das heißt, das spielt auch eine große rolle. wo finde ich, drüber nachdenken? denn auch das ist ein großer unterschied. schauen wir uns erst einmal thema kosten an. so das klischee in diesem markt ist: wie drop shipping kann ich mit null euro theoretisch staaten, bei amazonde brauche ich ein paar tausend euro, ware einzukaufen. tatsächlich ist es teilweise richtig. fangen wir mit dropshipping an, der job sharing kaufst du ja keine eigenen waren ein, sondern du erstellst einfach einen online-shop, und wenn deutschland mit dem shop eines seiner produkte bestellen, dann wird es nicht bei dir bestellt, sondern diese bestellung wird direkt an den hersteller und lieferanten weitergeleitet. der sendet das produkt dann zum kunden, und du erhältst als provision sozusagen die differenz zwischen verkaufspreis und dem einkaufspreis inklusive versand und so weiter und so fort. so jetzt ist halt wichtig zu sehen: ok, in dieser rechnung bedeutet das ja das jetzt, außer, dass so ein shop bauen musste, vielleicht monatlich irgendwie 30, 40 euro die software kostet, und ich hoffe das, was eigentlich ja gar kein geld investieren muss. das stimmt auch, soweit das problem ist. aber es muss ja einen weg und eine möglichkeit geben, erst mal überhaupt diese verkäufe zu generieren, denn von alleine kommt niemand auf deinen online shop. wenn du jetzt irgendein neues produkt auf marco ist, ganz egal, was du machst, es wird nicht auf einmal zig, tausend leute in deutschland geben, die da über irgendeine facebook gruppe wind von bekommen haben und jetzt allen ein brot kaufen wollen. das heißt, du musst social media werbung schalten. das kann zb facebook sein, das kann auch in fenster marketing sein, kann youtube werbung sein, das kann theoretisch google, wenn man seinen. und zweitens fordert gibt mehrere möglichkeiten, und diese werbung kostet geld. und wenn du jetzt den ablauf siehst, ist muss erst werbung geschaltet werden, bevor ein kunde gewonnen werden kann. das heißt, du musst erst geld investieren, um kunden zu gewinnen. und hier liegt ein riesengroßes missverständnis vor. manche leute denken, ich kann mal 20 euro investieren in solche anzeigen, und dann mache ich ja schon die ersten umsätze, und das ist leider einfach. das kann mal sein, mit glück, ja, aber das ist bei 99 prozent von allen projekten nicht der fall, und ich ärgere mich immer ein bisschen. ruhe, weil es halt so verkauft wird wie das business, mit dem kein startkapital brauchst. du musst sie hat vorstellen oder muss verstehen, wie facebook, werbung oder instagram werden funktioniert, damit du weißt, wie viel geld wirklich brauchst. facebook zum beispiel hat ja ganz viele kundendaten, ja, die haben ihre ganzen nutzer, das sind, glaube ich, schon 40 millionen. und jetzt verkaufst du dein produkt, und letztendlich zeigt facebook hat werbung aus, und facebook kann ja nicht an alle 45 millionen leute deine werbung ausspielen, so viel budget hast du ja nicht, sondern die fang vielleicht an und wollen das erst mal nur 1000 leuten zeigen. und jetzt stell dir vor, an diesem ozean, in dem es sicherlich viele leute gibt, die das produkt interessant finden würden und das will, das kochen würden, ja, schaltet amazon ich, aber erstmal nur auf 1000 leute, weil sie da ein paar mal den das zeigen können, weil die wenigsten leute kaufen, denken produkt, wenn sie das erste mal sehen. wir müssen es mehrmals angezeigt bekommen, und du musst jetzt vorstellen die wahrscheinlichkeit, dass unter diesen 1000 direkt leute sind, jetzt, jetzt, gerade in diesem moment dein produkt kaufen wollen, ist super gering, also wirklich super, super, super geringen. wenn du jetzt denkt: okay, wie viele sind das? von tausend vielleicht fünf oder sechs. es wird in den meisten fällen niemand sein. es wird auch unter den ersten 10.000 den meisten fällen niemand sein, und das verstehen die leute nicht. du musst dir vorstellen, die leute auf facebook so lange unterwegs sind. selbst wenn dein produkt für die interessant ist, ist die wahrscheinlichkeit, dass sie es jetzt direkt bei den kaufen würden, super, super, super, super, super gering, weil die gerade irgendwie katzen videos schauen, gar nicht an das produkt denken, weil die das produkt vielleicht schon haben. offensichtlich teil der zielgruppe sind zum beispiel verkaufs ein hundebett, und target ist auf facebook hundebesitzer. ja, dann sagst ja, gut, dann sind wir schon mal alle irgendwie grundsätzlich interessiert. ja, aber 90, wer hat denn kein ende? die leute haben ja alle schon drin, so. und selbst wenn sie jetzt sagen, ich bin gerade auf der suche nach dem hundebett, selbst wenn sie dann auf dein ding draufklicken, wie hoch ist die wahrscheinlichkeit, dass sie dann deines kaufen und nicht noch woanders im internet andere hundebetten sich anschauen? und das ist super, super, super, super wichtig zu beachten. ich s.

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Amazon FBA Vs Shopify Dropshipping: Which Is Better For Beginners?

amazon fba versus shopify drop shipping, which is better for beginners? we'll tok about that more with that after the intro. hey guys, how's it going? my name is mike vasyl. welcome to this video. before we actually begin to remind you that several spots have opened up for this week's free workshop. where it's the fastest and easiest way to make money online? check it out in the free workshop below. so these are probably two of the most popular businesses known to man right now. it's either amazon fba or shopify drop shipping. it's what a lot of beginners first kind of like dip their toe in. but the thing is you gotta understand which one is better for beginners, because the thing is when you do one, there is an opportunity cost that's going to prevent you from actually wasting time to do the other. does that make sense? and it's not necessarily which one is best for beginners, but which one is a better use of your time. you know this is what not a lot of people actually think about when they first get started in a business, is they don't actually have an exit strategy and the time investment that they're willing to put in. maybe they're like: oh you know, i'll put 100 bucks in, i'll put 200 bucks in and just like that. you know they don't have this end goal or exit strategy, and if they don't have that extra strategy, they're literally might be stuck in a business that they hate, or build something that actually isn't growing, okay. so it's always very crystal clear to understand your end goal. now let's tok about the pros with amazon, the cons with amazon, and the pros with shopify drop shipping, the cons with shopify drop shipping, and then we'll find out which one is actually for beginners. okay. so the pros with amazon is: it's great. okay, you are partnering with amazon, which is a trusted resource. they literally have millions of people searching on amazon every single day. i want to buy grill gloves- all right. barbecue gloves i want to buy, you know, socks- right, there's people already looking for that, right. so amazon has this entire marketing machine where you could just kind of like plug into the marketing machine and find ways to see if you could actually go ahead and make money. you go get products in china, you ship it at amazon. the moment you actually pick the right product, you literally don't have to do anything. you don't have to do customer service, you don't have to reach out and deal with complaints or returns or whatnot. all you really got to do is, when you get low in stok, you literally press a button, get people from china to send over more products from china, refill up the stok in amazon and just like that you know. once you get it up and running, it's pretty much passive. at that point you get paid every two weeks and then you can start living your life paying yourself a salary from that business. now, that being said, let's tok about the pros of shopify, drop shipping. okay, the thing about that is it's more scalable because you own your own brand. so in amazon you can't really get your customers email addresses. with shop by drop shipping, you do get the email addresses. now, think about how powerful that is. okay, most of the time when you launch a product on amazon, you are just hoping and praying that amazon's gods are literally just gonna like give you traffic and visitors to your product and go ahead and buy it right. a lot of it is dependent in crossing your fingers and hoping that amazon for some reason loves your product and wants to sell more of it. but every single time you want to launch a new product, you're always in that. oh my god, is it going to sell or is it not going to sell? how am i going to actually get more reviews? but here's the thing: when you do shop by drop shipping and you sell a product, you get their email address and that customer's email address is so valuable because now you can sell them for as much as you want, for free, until they actually opt out of that email newsletter. now here's like an example of why it's really popular, right? so, for example, back in the day we did like shopify drop shipping print on demand, so we were selling a bunch of like elephant t-shirts and elephant pillow, pillowcases and whatnot to people that wanted elephants or liked elephants and whatnot. so, of course, when i made a sale on a design that i had a graphic designer just like put up on my shopify website to like sell a t-shirt and a sweater, i started actually collecting an email address of people that actually like, uh, elephant stuff. so guess what, when i created a new design, instead of me just putting it on my website, i emailed people directly and i was like: hey guys, like i emailed thousands of people at the exact same time. hey guys, new stok, come in, new design, get yours while supplies last. and just like that: i sent out an email. i didn't have to wait on facebook. i didn't have to wait on amazon. i didn't have to wait on anything. i made the sale. guys, email marketing is huge. like, think about how many emails you get every single day. those emails make someone money. why don't you be the person that makes money from those emails? i think the most powerful thing when it comes to shopify drop shipping is the fact that you kind of own the customer. in amazon, you don't own the customer. okay, amazon owes a customer. in shopify drop shipping, you own the customer, which is the most valuable thing, because that email address and that asset you could actually sell. that that is your business. that's a business that you could actually hand down to your next generation. you could sell it for six figures or seven figures because that database of free people to send emails to for offers or products that they actually have said they wanted, it's so valuable. now let's tok about the cons. okay, the cons about amazon is: you need a huge startup cost. okay, you may be like i toked to my friend on um. i toked to my girlfriend's friend's boyfriend, who's like this big amazon fba seller. he's like mike. you know, if you don't have five thousand dollars to launch each product, then you're literally wasting your time, because the thing about that is: number one: you have to get a bunch of inventory from china. number two: it has to be enough so that they would actually be able to put your own logo on it. they're not going to be able to give you your own logoed branding. you know product for just like 50 or 100 products you have to buy. you literally have to buy like thousands and you need to have a good amount of money to advertise. you have to be able to spend money on things called ppc campaigns, which mean pay-per-click or just like advertising commercials on amazon. you have to be willing to know how to hire people. you have to know about like. you have to decide if you want to sell this business. if you want to sell this business, you need to have the right places in place or the right assets in place. the right finance is in place, the right people in place. actually go ahead and sell it. amazon fba is a great business model, but maybe for someone getting started it might be a little bit too advanced. now let's tok about the cons of shopify. drop shipping- uh, one of the biggest things is product quality. okay, because the fact that you can literally drop it from any supplier. you could literally accidentally dropship a bad product to somebody. and not just that, you could sell hundreds of products and thousands of products and say you have like a really good winning facebook ad campaign and you start making money. you're like, oh my god, i'm making so much money with shopify dropshipping. this is so cool. it could be like 15 or 30 days and you've already spent that money and reinvested it back into the business. you could get like a bunch of refunds, right and just like that, because the supplier was bad. you have to now give all those refunds back. but not only did you give all those refunds back, you've already spent the money on advertising. so it's like you are out of that money and now the risk is on you. so that's also another scary thing when people are first getting started.

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Amazon FBA VS Dropshipping with Shopify (Which is Better in 2023?) | Dropshipping for Black Women!

hey, babe, welcome back to my channel. today we are going to tok about a very hot topic, and that is amazon fba versus branded drop shipping. i am your host, asia appston, the ceo of the lux life academy, where i have helped over 2 000 digital entrepreneurs launch passive income streams, and today you are going to stik around to the end of this video so that you have a full understanding of what amazon fba is and why. well, listen, just hold on. i'll let you make your own judgment of which of these two methods actually rocks and which one kind of sucks. all right, let's get into it. okay, so, really quickly, a definition of amazon fba. so amazon fba is fulfilled by amazon. it's basically drop shipping, but on amazon. okay, let's say, you order three things on amazon and they come in three different packages. well voila, you are dealing with amazon fba. most people have ordered from there and didn't even know it. so that's what this is and that's what we're toking about, versus branded shopify drop shipping. so that's what i teach. that's where you launch your own store on shopify and run your own business without using amazon's platform. okay, so we're gonna get into some of the pros and cons and let's start with a number one: amazon fba is very high risk, okay. the reason being is because you first have to order all of your products in bulk. so this might be hundreds of products or thousands, you know, depending on what you sell. you have to order it in bulk first, and then you have to ship those orders to amazon, right? so what that means is you have to have a lot of money and a lot of confidence in what you're doing to make sure that you are not throwing money down the drain. right, because a lot of you are new business owners and you've never sold anything before. so here we go, spending thousands or tens of thousands of dollars just to purchase a large enough order to work with amazon. and another one of those risks is the fact that you've got to pay amazon to hold your orders for you in their warehouses. so, as a new business owner, that can be extremely risky. now, on the other hand, with shopify branded drop shipping, you don't have that issue right, because our products are coming directly from the supplier and we don't pay for them until a customer has already ordered it. so amazon fba- risky on that one- branded drop shipping- no risk at all. number two: so some suppliers will not want to work with you if you are on amazon fba. the reason is suppliers want to get their products sold, but they don't want to over saturate and they don't want to be competing in a place where there's too much going on in the market- and a great place as an example for that is on amazon. they may have their own store on amazon. therefore, they can't work with you because you are a direct competitor. so this happens often in a lot of niches. so you may have to really think about what it is you sell and what suppliers are going to want to deal with you and what suppliers are going to turn you down. honestly, that could be a significant challenge, depending on what product you decide to sell. now, with branded drop shipping, this is not nearly as much of an issue because you are launching your own standalone business. there will be no amazon type of platform where you can just type in an item and see 500 versions of it. you're going to have your own store, your own website, your own customers. so it is a lot less of an issue, usually a non-issue. third- and this is a massive one- you have almost no access to your customer data when you use amazon- and i know that sounds insane, but it's true. so when you use branded drop shipping through shopify, which is obviously my favorite platform, you have all of your customers information. you have their name, you have their address, you have their phone number, you have their email address. you know everything that they give you. you have that information. when you use a service like amazon fba, you have almost none of that information- uh, you own at this time, because it changes often, but at this time, all you get to see is your customers address and the thing that they ordered. so why is that such a big deal and a problem? you can't contact your customer. you cannot email them through email marketing, which is a massive money maker in e-commerce. you no longer have that option. you don't have that phone number, so that you can't do any type of text marketing to that person, and not only that, since they never visited your actual website, you cannot retarget them through ads at all. amazon has all that data and you have none of it. so, as a business owner, having your data, owning your data, having access to your data, is paramount, because those are your customers and amazon doesn't let you have them in that way. so it's just something to think about if you are entertaining the concept of doing fulfilled by amazon. next up, amazon is a tricky platform and it is a massive platform and because they own everything that you do on that platform, because you signed their terms and conditions, amazon can shut you down at any time for any reason, no explanation. this happens all the time. it's kind of how, uh, instagram works right, where sometimes people will lose their instagram pages and it's literally impossible to get it back. amazon is the same way. if they find, or think they found, or their algorithm found or a bot found, some issue with your brand, they can shut your entire business down at will. and, uh, there are processes and procedures to get it back. but the bottom line is, however long you're down, if that's one hour, one week, one month, you are missing, um, tons of money in your business. so, with branded drop shipping with your own store that you own, on a platform like shopify, this is no longer an issue. shopify will never come and shut your website down. so, unless you are not paying your 29 a month, this is not an issue you will ever face on the platform. and, lastly, one of the largest cons of working with amazon fba is that your amazon store is not truly a sellable asset, not in the way that it would be if you owned your own branded drop shipping store. and here's why, when you begin to work with amazon, you have to sign away a lot of your privileges in their terms and conditions, and one of those main terms and conditions is that you are not allowed to sell your amazon sellers account. so, essentially, this massive business or small business that you have spent all of your time and energy and money into building, you're stuck with it, you own it and that's it. and one of the beauties of entrepreneurship, especially in something like e-commerce, is building these businesses and then selling them. build and sell and repeat, and that is not exactly an option on a platform like amazon. people do sell their stores, they do get away with it, but the vast majority, if amazon finds out, they will flag you, they will shut down your account, they will keep your money, they will ban you from the platform. it is a whole, massive, massive ordeal. so this is something to be extremely wary of. and not only that: when you run an independent business, you own an email list and an email list and your retargeting pixels and all that good stuff that you own is a part of the valuation of your business. so you can sell a business for a lot more when you own it outright, versus if you are using a marketplace like amazon. so my question to you is: are you into amazon fba? will you still try it, knowing the cons that come with it, or are you gonna run directly to branded drop shipping? i would really love to know. you know there's no wrong answer. it's really a personal choice. let's continue this conversation in the comments as well as on my instagram account. you can find it linked in the description below. and not only that. if you want more information about the beautiful journey that is drop shipping and this incredible business model, i have got a free beginners drop shipping master class that i want to personally invite you to. registration is open right now and you can register down here at the link in my bio. i cannot w.

Amazon FBA vs Dropshipping | Shopify vs Amazon ( Which One Should You Choose?)

we're about to cover the drop shipping model and amazon fba and determine once and for all which one of the two is the better business model. so let's just give it a try. and, first and foremost, there is one fundamental concept they both have in common, and that is price arbitrage. now, this is pretty important to understand. according to google, this is the practike of taking advantage of a difference in price in two or more different markets, but in practike, things are going to be a lot more straightforward, so let me illustrate that. let me give you a clear example. you see, what most sellers are looking to do is find undervalued product from cheap suppliers such as aliexpress or alibaba. these are the two main platforms that people typically turn to. now let's just say we are doing some research, looking for new products we can start selling right, for example, literacy. we are looking to start selling this item right here. i'm not completely sure why the website is in portuguese, but i'm gonna solve that in a second. there you have it. this crystal ball right here could literally make a pretty good drop shipping item. in all seriousness, we can actually start selling this item online. but now here's the most important we gotta keep in mind. the thing is, we can purchase this item for ten dollars on aliexpress. there are also going to be some shipping costs that we need to cover, and then we can keep a profit. in other words, we can list this exact item for twenty 20 on amazon or ebay and keep a profit whenever somebody purchases the item. that is the drop shipping model in a nutshell, and that is a clear example of price arbitrage: you're finding a certain price on aliexpress and then selling it for a different price on ebay. it doesn't get any easier than that, does it. however, guys, there is a little bit more to it than miss the eye. now let's just say that is our winner product. we want to pick this exact item and sell it on ebay. one thing we could do is just download all of these different pictures, then add a new listing, increase the price artificially and then just wait, but most of the times, this is not gonna work, because- here's the thing- ebay is a huge platform, and even though it gets a lot of organic traffic, there is a lot of competition as well, and so whenever people search for an item such as that one, chances are ours is not gonna be the first one that pops up on top of the list. we've got a lot of different competitors that we need to out compete, and that's where shopify comes into play. instead of being platform dependent- in other words, instead of depending on ebay to promote your item- what you can do is create your own e-commerce store using shopify, which, at its core, is just a website builder, but it's one that gives you a lot of functionality. you can start selling items here as a beginner in a couple of hours. they've got all sorts of different integrations you can make use of, and most of the times, it's really beginner friendly and user intuitive. thus its popularity. this is one of the most popular websites out there, especially for e-commerce. but even then, there is one more problem that we need to overcome. how are we gonna send people to our website? just creating an income, our story, is not enough. people would have to be driven to the website if we really want to generate any sales, and that's where advertising comes into play. what most people do is that they create some special content specifically engineered for advertising, and then they start posting it on facebook and instagram and zig tok and all of these other social media platforms. even google ads are frequently used in order to promote dropshipping items. advertising can get quite costly unless you really know what you are doing. it is not as simple as one, two, three. you need to make sure that you are cost effective with your ads and you're not just throwing money away, because otherwise you will end up wasting money over the long run instead of being profitable. and so how does amazon fba aim to solve this problem? how does it work? well, guys, the two business models are very, very similar up to a certain point. you see, when it comes to drop shipping, you do not need an inventory and thus you do not need to have a storage space. you do not need to keep items in your garage in order to sell them. the way the drop shipping model works is that you're just going to list the item on ebay whenever somebody purchases an order, you will connect the supplier with a customer and then have your suppliers ship the items straight over to your client, and that is how you're selling items online without even actually handling them yourself. you don't even have to see the product in reality. that's precisely why a lot of beginners are turning to drop shipping. but when it comes to amazon fba, things are slightly different. you do need an inventory. research is still going to play an important part. you still want to head over to a cheap supplier such as alibaba or aliexpress and find unique, undervalued items such as this one right here, for instance. this is just a random example, but once you find that it is not enough to just download the pictures and create your own ecommerce store, you need to purchase a certain number of items and ship them straight over to amazon's fulfillment center. in order to make sure everything is crystal clear, i've got a short presentation here that you can take a look at. the first step of the process would still be finding a unique, undervalued item. let's just say this: right here is our winner product- and then the natural next step would be listing it on amazon for a higher price. up to this point, the process is identikal to drop shipping. there is virtually no difference. but this is where things are starting to get a little bit different. listing the item on amazon is not enough. you actually need to purchase a certain amount of them ahead of time. let's just say you can buy one of these products for five dollars. well, what you want to do is buy more of them in advance. you need to have an inventory. let's just say you want to get 100 of these items, that you would have to pay 500 for it, but because of the nature of the purchase- because it's a bull purchase- you might even get a discount from the supplier, which is an additional bonus here. this is not always the case, but most of the times the supplier will give you a discount because you're buying more items in advance. once you've made that purchase, what you want to do is ship the items straight over to amazon's fulfillment center. this is where they are going to be stored and packed and then shipped straight over to your customer. amazon handles everything, ranging from receiving the items to packing them, to handling customer support. if that is the case, they're gonna cover you and for that reason, you do not need any sort of storage space yourself. amazon is gonna store them. now, guys, here's the thing. amazon is renowned for their one day delivery and, generally speaking, for their very sweet delivery. they're fast delivery times right. you could go ahead and order an item and have it at your door in a couple days or so. in comparison, when it comes to the drop shipping model, what you're looking to do is have aliexpress shift the item straight over to your customer from china. now, if your customer is based in the united states, you can imagine that's going to be a long time, and americans do not have that kind of patience. what is that going to result? to bad customer reviews. in comparison, the nature of the fast delivery that amazon provides will increase the overall ratings that you will receive. more customer satisfaction equals more exposure on amazon and more sales. as you might expect, getting a better review is always going to help you. so what are the fundamental differences between these two? and these are just some that i could spot. there are probably more differences than that. well, when it comes to the drop shipping model, customer satisfaction is going to be an issue again. people are not used to waiting.

Shopify Vs Amazon FBA 2022 - Which One Is Better?

all right if you're looking to start an online business in 2022, but you're torn between selling through shopify, drop shipping or building an amazon fba business. this video's for you. after doing both models and producing over 500 thousand dollars by drop shipping products to customers in north america, and after building multiple amazon private label businesses, today, what i want to do is go through the pros and the cons that i see in both business models. now, both business models are definitely perfect for the right person, depending on what they're looking for. after building businesses in both drop shipping as well as amazon fba today, what i want to do? in just seven categories, i'm going to break down the differences between both amazon fba, as well as shopify, drop shipping, and which one you could potentially consider. i think one thing that's very, very important to note is these are both great models, but it really depends on who you are as a person in regards to which model is going to be a better fit for you. myself, as you guys know if you're tuning in on youtube here, i am an amazon fba seller. this model made a lot more sense for me, and i'll go over exactly why in just a minute here. okay, so the first category that i want to tok about is the customer base. the reason why i love amazon fba so much is because we actually get a tap into over 200 million prime users. now, that is prime users, not even all the additional people that come on to amazon. they may not be 100 loyal, but they come and make purchases every now and then. leveraging a existing customer base of over 200 million prime users allows us to essentially start making money sooner. now, with the fact that we get to leverage that customer base, there is data to show that amazon prime users are more likely to buy than a regular customer. so for toking and putting that into perspective with shopify drop shipping, we have to pay to acquire the attention of a customer at that point and because of that, we don't really know what is actually going to entail in terms of us actually acquiring that customer in the first place. there's a lot of emotional base selling involved with that, which we'll get to in another category. but all said and done, because amazon is a search engine that is search term based, as opposed to running digital ads to a direct website, we actually have a significantly harder time acquiring customers on the front end of building a business. okay, guys. the second category we're going to tok about is order fulfillment. so, with amazon, fba- fba standing for it, fulfilled by amazon- our goal is to actually go ahead and send our product directly into amazon's warehouse and we get to leverage their massive distribution network all across the united states, canada, wherever you're selling. because of that, we are able to actually offer customers two-day shipping, which creates a very positive customer experience, again, tapping into those customer base that we actually get to leverage. all of those prime users get access to that two-day shipping right at the gates, which gives us that little bit of a leeway compared to the shopify drop shipping model. now, when it comes to shopify drop shipping, the downside of this is: all said and done. we need to actually be able to manage the fulfillment of every single order, which comes with a couple of different stems. the first one is actually making sure that we acquire the customer information and sending that product from china all the way in to wherever we're looking to sell it- canada, united states, if you're selling in the united kingdom. now, the downside of that: yes, there are apps to automate that per se, but the downside of that is we do need to deal with all the customer inquiries, as you can imagine, coming from china. in order to be profitable, selling products through the drop shipping model, we are going to have 30 day shipping times at least. you can potentially have sooner shipping times depending on where your supplier is located. but all said and done with long shipping times creates bad customer experience. with bad customer experience creates a whole other workload that you need to consider having a good customer service support team in place. now, with amazon fba, amazon allows for returns more often than not and, all said and done, they deal with all the processing of that return. so it takes that time off of you and, on top of that, deals with all the customer service that's involved with those returns as well. so this is another reason why the amazon fba model makes a lot of sense and made a lot of sense for me specifically. so the next category that shows significant differences is the listing that you create on your amazon, on an amazon search engine or the website, and listing that you have through the shopify drop shipping model. so with the shopify drop shipping model, there really is no structure. so when it comes to actually developing your listing, you have a lot more creative freedom when it comes to actually connecting with your customer. with amazon fba, the listing that we create needs to be created for the search engine. meaning sometimes, when you create all the copy associated to that, it may not actually sound as sexy as you want it to sound, because your goal is to really index for certain keywords in your listing, by optimizing it for search volume, that are rel are keywords that are relevant to the customers that you're going to be targeting. now there are also a lot of back end things when it comes to developing your listing on amazon- miniscule things that are honestly, very, very tedious to put together. there's a lot of compliance notifications that come with that. now, with the webs or the website or the listing that you create with your shopify website- again, a lot more freedom and a lot less work in order to go ahead and actually do that. all right. the fourth category that we're going to tok about is startup costs. this is probably one of the biggest differentiations when it comes to choosing the amazon fba model over the shopify drop shipping model. okay, with amazon fba, like i had mentioned, we store our inventory in amazon's warehouse. the reason why we can promise that two day shipping is because they have that and we're leveraging their existing infrastructure in order to ship that product to the customer. with that comes the fact that we need to order our product in bulk in china. a couple of downsides with that is significantly higher startup cost. we are actually going to acquire all of that cost associated to developing and producing, but also shipping, that product all the way into the united states, canada, wherever you plan to sell. the other downside of that is lead time. you now have to project a lot more time specifically for getting that product from point a to point b. so inventory planning is very, very crucial on that now. with that said, i want you guys to put into respect of the drop shipping model. we still deal with those shipping times, but on an order basis as opposed to a bulk order basis. so we're still dealing with 30 to 60 day shipping times after that order is made. okay, now, when we're toking about the startup cost with drop shipping, one of the most advantageous things about this is there is very minimal startup costs associated to the drop shipping model. as you can imagine, we don't actually acquire any kind of inventory on the front end when a sale is made. we will coordinate that with a supplier or we'll coordinate that on aliexpress and actually coordinate that delivery directly to the actual customer itself. there are also a lot of other startup costs associated to both business models: developing your listing, taking photos, things along those lines. one thing: when it comes to amazon fba, i would say that having a more optimized listing, when it comes to having good images, your copy, getting that done professionally, is very crucial for the 2022 age, and the reason i state that is there are more and more competitors coming in. if you aren't standing out like a sore thumb in a posi