My Honest Experience with Dropshipping and FBA

Hey everyone, Steven here! Today, I want to share my personal journey with dropshipping and Fulfillment by Amazon (FBA). If you’re thinking about starting an online business in 2025, this article will give you valuable insights into these business models and why I eventually pivoted to affiliate marketing. Grab a coffee and let’s dive in!

What is Dropshipping?

Dropshipping is often pitched as an easy, low-cost way to start an online business. The idea is simple: find a supplier, list their products on your Shopify store, and run ads to bring in customers. When someone makes a purchase, the supplier ships the product directly to the customer. Sounds great, right? Well, it’s not all sunshine and rainbows.

My Dropshipping Experience: The Harsh Realities

I started dropshipping in 2016, leveraging my background in digital marketing to set up my Shopify store. I sourced products from Alibaba and AliExpress, listed them on my store, and ran ads. Here’s what I learned:

• Finding Winning Products: It takes time and money to test multiple products. By the time you find a winner, competitors may flood the market.
• Shipping Times: Products from China can take 2 weeks or more to reach customers, making it hard to compete with Amazon Prime’s 2-day shipping.
• Customer Trust: Shopify stores lack the brand recognition of Amazon, making it harder to convince customers to buy.
• Customer Service: You’re responsible for handling complaints, returns, and refunds, which can be overwhelming as sales grow.
• Profit Margins: The race to the bottom on pricing often leaves razor-thin margins.

After two years and thousands of dollars spent, I realized dropshipping wasn’t a sustainable business model for me.

Fulfillment by Amazon (FBA): A Step Up?

Next, I tried FBA. With this model, you buy products in bulk, ship them to Amazon’s warehouses, and let Amazon handle storage, shipping, and customer service. Sounds like a dream, right? Not quite.

Here’s what I encountered:

• Bulk Purchases: You need significant upfront capital to buy inventory.
• Import Challenges: Dealing with import agents and quality control adds complexity.
• Competition: Amazon often launches its own private-label versions of popular products, making it hard to compete.
• Low Margins: Between Amazon’s fees and price wars, profits can be minimal.

While I managed to sell some items successfully, including kitchen tools like garlic presses and peelers, the overall effort wasn’t worth the return. After a year, I decided to move on.

Why I Chose Affiliate Marketing Instead

After my experiences with dropshipping and FBA, I turned to affiliate marketing—and it’s been a game-changer. Here’s why:

• No Inventory: I don’t have to buy, store, or ship products.
• Low Risk: There’s no upfront investment in inventory, reducing financial risk.
• High Profit Margins: Digital products often offer commissions of 50-90%, and recurring subscriptions provide ongoing income.
• Scalability: I can scale my business without hiring additional staff or dealing with logistics.

Getting Started with Affiliate Marketing

If you’re considering affiliate marketing, here are a few tips to get started:

1. Choose Your Niche: Focus on an area you’re passionate about or knowledgeable in, such as fitness, tech, or online business.
2. Find Quality Products: Promote products you believe in and that offer high commissions.
3. Create Valuable Content: Build trust with your audience by providing helpful content through blogs, videos, or social media.
4. Drive Traffic: Use SEO, paid ads, and email marketing to bring visitors to your affiliate links.

Conclusion: Is Dropshipping or FBA Right for You?

While dropshipping and FBA have their merits, they come with significant challenges. For me, affiliate marketing—especially with digital products—has proven to be the best business model. It offers low risk, high rewards, and the freedom to work on my own terms.

Apply to join my private online community today. It's FREE to join for those serious about changing their financial future! Click here to apply now.

Related Articles

• Start an Online Business While Working Full-Time in 2025