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Private Label Dropshipping with Amazon FBA: Pros and Cons

  • Writer: Abrarbhullah.com
    Abrarbhullah.com
  • 6 hours ago
  • 3 min read
private label dropshipping comparison with Amazon FBA
private label dropshipping comparison with Amazon FBA

Amazon FBA is one of the most well-known fulfillment options in eCommerce, but for Shopify sellers, it serves more as a point of comparison rather than a platform to build a long-term private label dropshipping brand. Many new sellers wonder whether they should use private label dropshipping, Amazon FBA, or a combination of both — but these models work very differently.

This guide breaks down the pros and cons of private label dropshipping with Amazon FBA, and explains why many sellers choose to stay with a more flexible system like Shopify + BSDropshipping.

What Is Amazon FBA?

Amazon FBA (Fulfilled by Amazon) is a system where sellers send bulk inventory to Amazon warehouses. Amazon then stores, packs, ships, and handles customer service for each order.

But unlike dropshipping, FBA requires:

  • Bulk purchasing

  • Upfront inventory investment

  • Storage fees

  • Strict rules regarding packaging and branding

Because you operate on Shopify, it’s important to understand how FBA compares to private label dropshipping, where your agent handles sourcing, branding, and fulfillment — without large upfront costs.

Pros of Using Amazon FBA for Private Label Brands

1. Fast Amazon Prime Shipping

Orders fulfilled through FBA qualify for Prime, giving customers ultra-fast delivery. This can increase conversions on Amazon, but it does not benefit your Shopify store.

2. Amazon Handles Customer Service

Returns, delivery updates, and support are managed by Amazon. However, for Shopify sellers, this means giving up control over your customer experience.

3. Built-in Traffic and Search Volume

Amazon is a massive marketplace with millions of buyers searching every day. But this also means:

  • You compete directly with similar listings

  • Amazon owns the customer relationship

  • Brand loyalty is weaker compared to Shopify

Cons of Using Amazon FBA for Private Label Products (Especially for Shopify Sellers)

1. Large Upfront Inventory Costs

Unlike private label dropshipping, Amazon FBA requires buying inventory in bulk — often hundreds or thousands of units at once.

If a product doesn’t sell, you lose money.

With BSDropshipping, you pay per order, eliminating inventory risk.

2. Strict Packaging and Branding Rules

Amazon limits how much customization you can apply to your packaging. Custom boxes, dust bags, EVA foam inserts, or thank-you cards often can’t be used.

For Shopify sellers who want:

  • Full brand identity

  • Custom logos

  • Personalized packaging

...Amazon FBA becomes restrictive.

3. Monthly Storage Fees

Inventory that doesn’t sell quickly results in costly Amazon storage fees — and long-term storage fees are even higher.

Private label dropshipping has no warehousing fees and no pressure to predict demand months in advance.

4. Easy for Competitors to Copy You

On Amazon, popular products are cloned rapidly by competitors. Private label sellers face:

  • Listing hijackers

  • Copycats

  • Price undercutting

  • Competitors using your keywords

This makes long-term brand building difficult.

5. You Lose Control of Customer Data

With Amazon FBA:

  • You don’t own emails

  • You can’t retarget customers

  • You can’t build loyalty programs

  • You can’t upsell or cross-sell easily

On Shopify + BSDropshipping, you own everything — including the customer list that builds long-term profitability.

BSDropshipping private label services for Shopify sellers

Why Shopify Sellers Prefer Private Label Dropshipping Instead

1. Full Branding Freedom

Using BSDropshipping, Shopify sellers can build a uniquely branded experience with:

  • Custom boxes

  • Dust bags

  • Embroidery or silicone logos

  • EVA foam inserts

  • Textile labels

  • Thank-you cards

  • Private label mailers

This level of customization is impossible with Amazon FBA.

2. Zero Inventory Risk

You only pay when a customer places an order.No storage fees, no bulk investment, no unsold stock.

3. Faster Testing of New Products

With a private label dropshipping agent, you can launch new branded products quickly, without committing to large manufacturing runs.

4. Control Over Every Customer Touchpoint

From unboxing to email marketing, Shopify sellers control the entire journey. That’s the advantage of building a real, standalone brand.

When Should a Shopify Seller Consider Amazon FBA?

You might consider Amazon FBA only if:

  • You already have a strong brand

  • A product is consistently selling very high volumes

  • You want to expand beyond Shopify

But for beginners — or sellers focused on brand building — private label dropshipping is usually the smarter, safer, and more flexible choice.

Final Verdict: Private Label Dropshipping Wins for Shopify Sellers

While Amazon FBA has advantages, its limitations make it less ideal for brand-focused Shopify sellers. Private label dropshipping with a partner like BSDropshipping gives you:

  • Full creative control

  • Lower costs

  • No inventory risk

  • Unlimited branding options

  • Direct customer relationships

If you want to build a real brand with long-term loyalty, Shopify + private label dropshipping is the winning formula.

Start your private label journey today:👉 Join BSDropshippingNeed help or want to discuss custom packaging options?📩 Contact Us


 
 
 

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