Thinking about starting an online business but not sure whether to go with Amazon FBA or dropshipping? You’re not alone. These two fulfillment models are among the most popular ways to launch an eCommerce venture with minimal upfront investment. While both let you sell products without managing a physical storefront, they operate very differently, and the right choice depends on your goals, budget, and long-term vision.
In this blog, we’ll break down the key differences between Amazon FBA and dropshipping, compare their pros and cons, and help you decide which model suits your business best.
What is Dropshipping?
Dropshipping is a retail fulfillment method where you sell products online without holding any inventory. Instead of stocking items yourself, you partner with a supplier who handles storage, packaging, and shipping directly to your customers.
When someone places an order on your online store, you forward the order to the supplier, who then ships the product under your store’s name. You earn the difference between the price you charge and the price you pay the supplier. It’s a low-risk way to start an eCommerce business, requiring minimal upfront investment, no warehousing, and no need to handle physical products.
What is Amazon FBA?
Amazon FBA (Fulfillment by Amazon) is a service that allows sellers to store their products in Amazon’s fulfillment centers, where Amazon takes care of storage, packing, shipping, and even customer service on your behalf.
Here’s how it works: You send your inventory to Amazon, and when a customer places an order, Amazon handles the entire fulfillment process. This includes picking, packing, shipping, and even managing returns and refunds.
FBA gives your products access to Prime shipping, boosting visibility and trust with customers. While it requires upfront investment in inventory and storage fees, it offers scalability, fast delivery, and a seamless shopping experience for your customers.
Why Affiliate Marketing Is Relevant for Dropshipping & Amazon FBA Enthusiasts
If you’re exploring ways to make money online through dropshipping or Amazon FBA, chances are you’ve also come across the term affiliate marketing. That’s because all three models fall under the umbrella of low-inventory or no-inventory online businesses, and many successful entrepreneurs actually combine them to diversify income and maximize results.
While dropshipping involves selling physical products without holding inventory, and FBA lets Amazon handle fulfillment for you, affiliate marketing allows you to earn commissions by promoting other people’s products without managing inventory, shipping, or customer service at all.
Whether you’re a content creator, a product reviewer, or already running an eCommerce store, adding affiliate marketing to your strategy can be a smart move. Let’s take a closer look at what affiliate marketing is and how it works.
What is Affiliate Marketing?
Affiliate marketing is a performance-based business model where you earn a commission by promoting someone else’s products or services. You share a unique affiliate link through your website, blog, social media, or email and whenever someone clicks that link and makes a purchase, you earn a percentage of the sale.
You don’t need to create or ship products yourself. Instead, you focus on driving traffic and influencing purchase decisions, while the seller or company handles fulfillment and customer service. It’s a popular way to make passive income online, especially for content creators, bloggers, and influencers looking to monetize their audience.
Amazon FBA vs Dropshipping vs Affiliate Marketing comparison
Here’s a detailed, in-depth explanation of Amazon FBA vs Dropshipping vs Affiliate Marketing, broken down feature-by-feature. This guide helps you clearly understand how each model works, what it demands, and which one best fits your online business goals.
|
Feature
|
Amazon FBA
|
Dropshipping
|
Affiliate Marketing
|
|---|---|---|---|
|
Inventory Management
|
You purchase and ship inventory to Amazon
|
No inventory needed; supplier handles fulfillment
|
No inventory needed
|
|
Upfront Investment
|
Moderate to High (buying stock, FBA fees)
|
Low (store setup, ads, minimal tools)
|
Very Low (mostly time and content creation)
|
|
Fulfillment & Shipping
|
Handled by Amazon (fast & reliable)
|
Handled by third-party suppliers
|
Handled by merchant/company
|
|
Customer Support
|
Managed by Amazon
|
You handle customer service
|
Handled by the product owner
|
|
Control Over Branding
|
Limited (Amazon-focused)
|
High (you run your own branded store)
|
Very Limited (you promote others’ brands)
|
|
Profit Margins
|
Medium (after Amazon fees)
|
Medium to High (depends on supplier and pricing)
|
Low to Medium (typically 5–30% commissions)
|
|
Platform Dependence
|
High (Amazon policies and ecosystem)
|
Medium (you own your store, but rely on suppliers)
|
High (rely on affiliate networks/platforms)
|
|
Scalability
|
High (with enough capital and good product research)
|
High (automation tools, global suppliers)
|
Medium (scales with audience and content reach)
|
|
Startup Time
|
Moderate (requires prep and shipping to Amazon)
|
Fast (low upfront setup, no inventory handling)
|
Very Fast (just need a platform to promote links)
|
|
Product Selection
|
Must source and stock products upfront
|
Wide range; easy to test new products
|
Limited to affiliate offers
|
|
Passive Income Potential
|
Medium (if automated and products continue to sell)
|
Medium (if store is optimized and ads run well)
|
High (content keeps earning over time)
|
|
Marketing Responsibility
|
You handle traffic and listing optimization
|
You handle all marketing and customer acquisition
|
You drive traffic and conversions
|
|
Risk Level
|
Medium to High (due to inventory investment and fees)
|
Low to Medium (based on ad spend and supplier reliability)
|
Very Low (no product or shipping risk)
|
Amazon FBA (Fulfillment by Amazon):
You purchase products in bulk and send them to Amazon’s warehouses. Amazon stores, picks, packs, and ships the products when orders are placed. You own the inventory, so you’re responsible for forecasting demand accurately. Unsold inventory can incur long-term storage fees.
Dropshipping:
There is no need to buy or hold inventory. When someone places an order, your supplier ships the product directly to the customer. This is ideal if you want to test different products without upfront risk. You act as a middleman, focusing on sales and marketing.
Affiliate Marketing:
No inventory involved. You promote someone else’s products using your unique referral links. When a customer buys through your link, the merchant handles the inventory, shipping, and delivery.
Learn differences between Dropshipping and Affiliate marketing
Amazon FBA:
Requires significant upfront capital:
- Purchase of inventory
- Shipping fees to Amazon
- Amazon FBA fees (storage, fulfillment, referral)
- Branding, photography, and product listings
Dropshipping:
Minimal investment required:
- Shopify or WooCommerce store
- Domain and hosting
- Paid ads and marketing tools
- Optional: apps for automation and analytics
Affiliate Marketing:
Very low entry cost:
- Start with a free blog or YouTube channel
- No product or platform fees
- May spend on content creation or ad campaigns
Amazon FBA:
Once inventory reaches Amazon, all logistics are handled by them:
- Fast Prime delivery
- Professional packaging
- Reliable tracking and return services
Dropshipping:
Your supplier handles fulfillment. However:
- Shipping times can vary (especially with overseas suppliers)
- Less control over packaging and delivery quality
- Delays and errors affect your brand reputation
Affiliate Marketing:
You don’t deal with shipping. The seller does everything.
Your job ends when the user clicks your affiliate link and purchases.
Amazon FBA:
Amazon handles customer service and returns.
You only get involved if issues escalate or policy violations occur.
Dropshipping:
You must:
- Answer pre-sale questions
- Handle complaints, refunds, and returns
- Maintain satisfaction to prevent chargebacks or bad reviews
Affiliate Marketing:
You don’t provide support. The product creator handles any post-sale issues.
Amazon FBA:
- Branding is possible through private label products.
- Limited ability to personalize the customer experience (Amazon controls the interface and packaging unless you use Amazon Brand Registry).
Dropshipping:
- Full control over custom branding, packaging (with private, white label suppliers), and customer experience.
- Customize your store layout, domain, emails, and ads.
Affiliate Marketing:
- You cannot change the product, checkout experience, or branding.
- You promote someone else’s product, so you’re building their brand, not yours.
Amazon FBA:
- Moderate profit margins (~15–30%) due to Amazon fees and ad costs.
- You can scale quickly with high-selling products.
Dropshipping:
- Margins can be higher (~20–60%) if you price wisely.
- But ad costs and refund risks can eat into profits.
Affiliate Marketing:
- Typically lower margins (5–30% commissions).
- High-ticket affiliate programs offer better returns.
- You don’t set prices, so control is limited.
7. Platform Dependence
Amazon FBA:
- Heavily reliant on Amazon’s rules and policies.
- Your account can be suspended for minor violations.
- You don’t own your customer list.
Dropshipping:
- You own your website and customer data.
- However, you still rely on third-party suppliers and sometimes tools (Shopify apps, plugins).
Affiliate Marketing:
- Dependent on affiliate networks.
- If they shut down or remove a product, your income can vanish overnight.
8. Scalability
Amazon FBA:
- Highly scalable once you find a winning product.
- Amazon handles logistics even at large volumes.
- You may need to expand to international marketplaces over time.
Dropshipping:
- Easy to scale with paid traffic and automation tools.
- Hiring virtual assistants can help you grow quickly.
Affiliate Marketing:
- Grows with content and traffic.
- Blog posts, YouTube videos, or emails can generate income passively for years.
9. Startup Time
Amazon FBA:
- Slowest to start.
- You need time for:
- Product research
- Ordering samples
- Manufacturing
- Shipping to Amazon
Dropshipping:
- Can launch in 1–3 days.
- Apps like Qikink or Spocket help import products instantly.
- You can test and replace products quickly.
Affiliate Marketing:
- Fastest to start.
- Join an affiliate program, get your link, and begin promoting.
10. Product Selection
Amazon FBA:
- You choose and invest in specific products upfront.
- Unsold inventory = loss.
Dropshipping:
- Easily test dozens of products at low cost.
- Remove poor performers without waste.
Affiliate Marketing:
- You promote what’s available in the affiliate network.
- You don’t control supply or offer customizations.
11. Passive Income Potential
Amazon FBA:
- Once listings rank and ads perform, sales can become semi-passive.
- You’ll still need to restock and manage your brand.
Dropshipping:
- Possible with automation, email marketing, and optimized funnels.
- Customer support often remains manual unless outsourced.
Affiliate Marketing:
- Most passive model.
Content like blogs, YouTube videos, or email funnels can earn money long after you post them.
12. Marketing Responsibility
Amazon FBA:
- You manage listing optimization, Amazon ads, and product reviews.
- Some organic traffic from Amazon’s internal search engine.
Dropshipping:
- You’re fully responsible for traffic: Google Ads, Facebook Ads, SEO, influencers, etc.
Affiliate Marketing:
- Focus is on content marketing or paid ads to drive people to your links.
- SEO, email marketing, and social media are key channels.
13. Risk Level
Amazon FBA:
- Higher risk due to upfront investment and storage fees.
- Also exposed to Amazon’s strict policies.
Dropshipping:
- Low to medium risk.
- No inventory risk, but unreliable suppliers or unprofitable ads can hurt margins.
Affiliate Marketing:
- Lowest risk.
- No inventory, no fulfillment, and no customer service = minimal overhead and liability.
Which Model is Right for You?
|
Platform
|
When to choose
|
|---|---|
|
Choose Amazon FBA if
|
You have some capital, want Prime-level logistics, and aim to build a product-based brand with Amazon’s infrastructure.
|
|
Choose Dropshipping if
|
You want low-cost entry, full control over your brand/store, and are comfortable handling marketing and customer service.
|
|
Choose Affiliate Marketing if
|
You prefer a hands-off approach, want to monetize your content, and have an audience or platform to promote products.
|
Can you Combine Amazon FBA and Dropshipping?
You cannot dropship on Amazon using third-party suppliers like AliExpress, CJdropshipping, or Walmart. But you can combine both models across platforms, or use them in a hybrid business strategy.
Can you Combine Amazon FBA and Dropshipping?
1. Test With Dropshipping - Scale With FBA
This is the most common and safest way to combine both models.
How it works:
- Start a dropshipping store (Shopify, WooCommerce, etc.).
- Run ads, promote on social media, or use influencers.
- Track what sells best and which products get good reviews.
- Once validated, order those winning products in bulk and send them to Amazon FBA.
- Now sell those validated products on Amazon’s marketplace.
Why this is smart:
- Dropshipping lets you test without risking inventory.
- FBA helps you scale with fast delivery, higher trust, and Amazon traffic.
2. Use Amazon FBA’s Multi-Channel Fulfillment (MCF)
Amazon allows you to fulfill non-Amazon orders using FBA.
How it works:
- Set up an online store (Shopify, etc.).
- You hold stock in Amazon’s warehouse (FBA).
- When someone buys from your store, Amazon ships the product for you via Multi-Channel order Fulfillment.
- You can even brand your store independently, while using Amazon’s logistics.
Caution:
- Amazon charges extra fees for MCF compared to normal FBA.
- MCF does not include Amazon Prime and is not as fast as FBA orders.
3. Sell on Amazon with FBA + Run a Dropshipping Store Separately
This is a dual business model, where you operate:
- An FBA store on Amazon, and
- A dropshipping store elsewhere (Shopify, Etsy, WooCommerce, etc.)
Benefits:
- Amazon captures high-intent shoppers.
- Dropshipping lets you test and diversify your product catalog.
- You can build a brand website that complements your Amazon listings.
Example:
- You sell yoga mats via Amazon FBA.
- On your dropshipping store, you offer yoga accessories (blocks, straps, apparel) from suppliers.
- Over time, you identify which accessories perform well and move them into FBA too.
What You Cannot Do: Dropshipping on Amazon Using AliExpress or Walmart
Amazon strictly prohibits traditional dropshipping methods on its platform.
If you’re selling on Amazon, you cannot:
- Buy a product from AliExpress/Walmart/another retailer after someone places an order on Amazon
- Ship products with another brand’s packaging, invoice, or label
Have the product show that it was fulfilled by anyone other than you
If you do, Amazon may suspend your seller account.
What’s Allowed by Amazon:
- You are the seller of record
- Your name/brand appears on packaging, slips, invoices
- You fulfill orders yourself or through your own supplier
- You comply with all Amazon return and customer service standards
So, dropshipping on Amazon is only allowed if you’re buying from a supplier (wholesale or private label) that ships under your brand.
Comparison of Using Both Models Together
|
Feature
|
Amazon FBA
|
Dropshipping
|
Combined Strategy
|
|---|---|---|---|
|
Inventory Risk
|
High
|
Low
|
Medium (only for proven products)
|
|
Startup Cost
|
High
|
Low
|
Medium
|
|
Branding Control
|
Limited
|
Full
|
Full (on own store)
|
|
Fulfillment
|
Amazon
|
Supplier
|
Amazon (FBA + MCF) or Mixed
|
|
Speed
|
Fast (Prime)
|
Slow to Moderate
|
Depends on channel
|
|
Scalability
|
High
|
High
|
Highest if combined wisely
|
|
Testing Products
|
Difficult (risky)
|
Easy
|
Dropship → FBA
|
Tools to Make This Combination Easier
- Shopify or WooCommerce: Build your own dropshipping store
- Qikink / Spocket / Zendrop: Dropshipping automation tools
- Amazon Seller Central + FBA: For managing FBA inventory and sales
Amazon MCF integration apps (like Bytestand or WebBee): Automatically fulfill Shopify orders using your Amazon FBA inventory
Smart Strategy: The “Test–Learn–Scale” Hybrid Funnel
- Test products using dropshipping (minimal risk, fast feedback)
- Analyze winners (sales, reviews, low returns)
- Scale proven products with Amazon FBA (Prime, bulk discounts, higher trust)
- Repeat the process to build a data-driven product catalog
Final Thoughts
Yes, you can absolutely combine Amazon FBA and dropshipping, but not in the way most people assume. You can’t dropship random AliExpress items on Amazon, but you can use dropshipping to test and Amazon FBA to scale.
This hybrid approach gives you:
- Lower risk
- Faster testing cycles
- Access to Amazon’s massive customer base
- Full control over branding through your own store
Conclusion: Amazon FBA vs Dropshipping – Which is Right for You?
Both Amazon FBA and dropshipping offer unique advantages for launching and scaling an online business, but the right model depends on your goals, budget, and risk tolerance.
- Choose Amazon FBA if you’re ready to invest upfront, want to leverage Amazon’s massive traffic, and aim to build a scalable product-based brand with faster shipping and higher customer trust.
- Choose Dropshipping if you prefer to start lean, test products quickly without inventory risk, and have more control over branding and your store.
If you’re still unsure, consider a hybrid approach: use dropshipping to test the market, then scale winning products using Amazon FBA. This strategy balances low risk with high growth potential. In the end, success comes not just from the model you choose, but how well you execute, test, market, and serve your customers.
Read More
- How dropshipping works for your online store?
- Top 10 Dropshipping Extensions to automate business
- 10 Profitable dropshipping business ideas to try
- Shopify Dropshipping: The Ultimate Guide To Sell Online
- AI Tools for Dropshipping: How to start and scale guide
- 15+ Trending Dropshipping products for high profit
Frequently Asked Questions
1. 1. Is Amazon FBA or dropshipping better?
Amazon FBA is better for scaling quickly with reliable fulfillment and Prime shipping, but it requires upfront investment. Dropshipping is ideal for beginners who want to start lean without holding inventory.
2. Which is more profitable, Amazon or Shopify?
Amazon offers higher traffic and conversion rates, but comes with more fees and less branding control. Shopify allows for higher profit margins and brand building, though it requires more effort to drive traffic.
3. Is it worth it to dropship on Amazon?
Traditional dropshipping on Amazon is risky and often against their policies. It’s more sustainable to dropship through your own store and use Amazon FBA for proven products.
