Compare Amazon Business Models - Don't get into the trap!



Wholesale FBA OR Drop Shipping OR Private Label, Compare first! Don’t get into the trap…

To clear some concepts and misconceptions about these business models, let’s talk about each one individually and its pros and cons.

The safest business model on Amazon is Wholesale FBA. Why? Because you source products directly from the legitimate authorized wholesales in the region where you are selling.

You do not have to face IP Complaints

You start small, grow and scale the business.

You can start this business with as low as $2000 USD or even lower.

You do not have to deal with customer service, fulfilling orders, etc.

The profits are over 15% to 20%


One of the largest businesses still being done on Amazon is Drop Shipping. There is a minor risk involved in this business but it can be taken care of very easily if you do things right.

You can start selling in a few hours if you have an active Amazon seller account


If you dropship from the wholesale drop shippers, you have no risk and its fully compliant with Amazon dropshipping policies.

There is a risk of IP Complaints if you dropship from other retailers, but people still do it and doing it for years and the revenues are in millions in the overall business.

It’s time-consuming. You need team members to work with you on this business for product research and order fulfillment process.

The positive side is, you are putting more people at work and giving them the opportunity of “Halal Rozgar”.

It grows fast if you manage a good team. The profits are high and can be above 15% even.


Another business model is Private Label. The most riskier business on Amazon is Private Label, WHY? Because it is a large investment business.

Be ready to face sleepless nights

You have to keep in mind a large investment upfront like $12k+ and you have no returns in the first 8 to 12 months unless you are lucky

The concept of asset building, less than 10 people hit that goal of 100. So the probability of building an asset is less than 10%. If someone is claiming more, it’s most likely false information.

Be ready to face Amazon suspensions and patent violations including review policy suspension, sale velocity manipulation, listing hijack, patent complaints.

And on top of all, when you face these difficulties and if you have stock in Amazon warehouse, this becomes another big hassle for you because you won’t be able to take it anywhere and ultimately either discard or liquidate.


There will be a NEW business model I’ll introduce this December and this will be the lowest risk-oriented business on Amazon.

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