What Is Dropshipping? How Amazon Dropshipping Differs From Other Business Models

The Star of E-Commerce: Dropshipping

In today’s world, online commerce is no longer a luxury—it’s a necessity. Yet many believe “you need large capital to do e-commerce.” This is where Amazon dropshipping Amazon Dropshipping comes in.

Amazon dropshipping lets you earn foreign currency through inventory-free sales on Amazon without major upfront investment. So how does this model differ from others? What are the differences compared to arbitrage, FBA, and FBM? Let’s explore together!

  1. What Is Dropshipping?

Dropshipping is an e-commerce model where the seller does not physically stock products. Instead, when a customer places an order, the seller sources the item from a supplier and ships it to the customer via an intermediary warehouse. In this model, the seller is responsible for marketing the product, managing customer relationships and post-sale support—but does not hold inventory or pre-purchase stock. This means you have no physical inventory and don’t need large capital to start. Amazon dropshipping, especially offers substantial sales potential thanks to its vast customer base.

How Does Dropshipping Work?

  1. Product Selection & Store Setup: The seller selects products to sell and lists them in their own e-commerce store or on a marketplace.
  2. Customer Order: The customer places an order from the seller’s store and completes payment.
  3. Order Forwarding to Supplier: The seller forwards the order details to the supplier and purchases the product.
  4. Shipping to Customer: The product is shipped to the customer via an intermediary warehouse.

In this process, the seller is responsible for marketing the product, customer relations, and after-sales support. However, the product is not stored, no inventory is held, and nothing is pre-purchased.

This model requires no physical inventory, eliminating the need for large upfront investments. Amazon dropshipping,in particular, offers significant sales potential thanks to its massive customer base.

  1. How Is Amazon Dropshipping Different from Other Models?

There are various ways to sell on Amazon. How does dropshipping, differ from, retail arbitrage, FBA (Fulfilled by Amazon), and FBM (Fulfilled by Merchant) ?

📌 Dropshipping vs Arbitrage

Arbitragemeans buying a product at a discounted price from another store (e.g., Walmart, Target, or local retailers) and reselling it on Amazon at a higher price.

Dropshipping Advantages:

  • No need to hold stock.
  • Better suited for low-capital entry.
  • Easier process management.

Arbitrage Disadvantages:

    • You must physically buy and store products.
    • Scaling at large volume is harder.
  • Higher capital requirements.

📌 Dropshipping vs FBA (Fulfilled by Amazon)

With Amazon FBA, sellers send their inventory to Amazon’s warehouses. Amazon stores, packs, and ships the products to customers.

FBA:

  • Leverages Amazon’s powerful logistics.
  • Access to Prime customers.
  • Fast delivery.

Dropshipping Advantages Over FBA:

  • No storage or logistics costs.
  • Lower startup cost.
  • Enables low-capital selling.

📌 Dropshipping vs FBM (Fulfilled by Merchant)

Amazon FBM model, the seller manages products from their own or a third-party warehouse, packing and shipping orders directly.

FBM:

  • Full control over operations.
  • Avoids Amazon storage fees.

Dropshipping Advantages Over FBM:

    • No need to stock products.
    • Supplier handles logistics and shipping.
    • Easier to scale.
  • Enables low-capital selling.
  1. Advantages of Amazon Dropshipping

 ✅ Low-capital entry: Start without inventory or warehousing costs.
Foreign currency income: Earn in dollars or euros.
Risk minimization: You don’t pay for products you haven’t sold.
Flexible work: Manage your business from home or while traveling.
Access to Amazon’s massive customer base: Sell on the world’s largest e-commerce platform.

  1. How to Succeed with Dropshipping on Amazon

Key focus areas for success:

 📌 Proper Product Selection: Find high-potential, low-competition items.
📌 Reliable Suppliers: Work with partners who deliver quality service.
📌 Competitive Pricing: Price strategically to outperform competitors.
📌 Amazon Policy Compliance: Follow Amazon’s dropshipping rules carefully.

Note: Operating outside Amazon’s defined policies can lead to account suspension.

  1. Time to Take Action!

Don’t be deterred by the risks and high costs of traditional business models. Amazon dropshipping is a new-generation commerce model that lets you enter the global market with low capital, minimal risk, and maximum return. Today, you can become a successful, location-independent entrepreneur earning foreign currency.

You don’t have to do it alone.
hi5 is with you:
✅ Beginner-to-advanced Amazon dropshipping training
✅ One-on-one expert consulting
✅ Optional done-for-you store setup and full operation management

You focus on profit—let us handle the rest.

Don’t miss this opportunity. Act now!

Fill out the contact form to get detailed information and for us to call you.

Remember: The decision you make today can change your life tomorrow.

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