Drop Shipping On Shopify: Amazon vs. Oberlo vs. Domestic Dropship Suppliers

No upfront inventory costs? No involvement in shipping logistics?

Yes, we are talking about dropshipping! A business that has no end!

There are many advantages to starting your Shopify dropshipping business, one of which is that you're not required to carry inventory. 

Often a shop is looking to make a little money on the side. 

This could be anything from an experiment just to see whether an online shop can earn money or it could be a full-time online business with its own warehouse, etc. 

Dropshipping on Shopify comes in handy with work like this where one person wants to test out selling products before setting up a physical location for distribution and storage of raw material. 

It's not only viable for entrepreneurs who are starting out but also for established businesses who want to provide added services for their customers as well!

If you're dropshipping products from overseas, there's always the risk of long shipping times and quality issues. That's why many store owners prefer to work with domestic suppliers.

Another vital factor is finding a supplier with a good reputation and who is easy to work with. The big three drop shipping suppliers are Amazon, Oberlo, and Domestic suppliers.

What is Dropshipping?

Dropshipping requires no inventory, so you do not need to store or carry merchandise. You place the order, and the shipment process begins. To some, this may feel like a complicated thing and takes a lot of work. 

But the truth is that there are sites that can make this process relatively easy for you. Now, it's easier to buy for clients from all over the world.

Advantages of Dropshipping

Staying true to the idea of 'being your boss, you can launch a dropshipping business that's virtually risk-free! 

When starting a business from scratch, the number of resources that must initially invest sets many budding entrepreneurs out of the picture.

Don't worry about buying inventory or having enough capital to buy everything you need (like an eCommerce store) because, with dropshipping (just like FBA), your stock will be provided for you by the wholesaler and supplier! 

There are many advantages to dropshipping, including the following: 

  1. No need to carry inventory or invest in products upfront
  2. Low overhead and startup costs
  3. Easy to scale
  4. Ability to dropship globally
  5. Access to a wide range of products

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Starting a dropshipping business is not much different from starting any other kind of eCommerce store. 

As an entrepreneur, you must consider your product and your customers carefully. All that remains the same is that you're not responsible for the actual manufacturing and carrying of inventory. 

Dropshipping On Shopify

Shopify is a platform where entrepreneurs can set up their stores for selling products. Dropshipping defines e-Commerce companies that don't have any stock of finished goods.

Ask other businesses to ship directly to their customers when ordered. For example, a supplier would contact Shopify when it has received an order from a customer via a store owner.

Dropshipping is convenient for both customers and suppliers who want multiple items delivered. But, at the same time, those who buy numerous products in one place don't want to wait until the owner receives all of their products before sending them out.

The number of dropshipping suppliers to choose from is countless! If you want a comprehensive solution for checkout and automation, Shopify's third-party apps come in handy. 

You will want to use platforms like Shopify since it promotes your drop shipping fulfillment process.

Three Largest Dropshipping Suppliers

There are a good number of options when it comes to e-commerce platforms, regardless if you plan on creating your own brand and selling products wholesale or starting up a business as a reseller. 

The three most popular options include: Amazon, Oberlo, and Domestic dropship suppliers.

Choose the correct option, which would be essential for your business, but luckily, there are several routes to take to sell online.


It is the largest online retailer in the world, but it's important to note that there are some downsides. 

For example, they have very high fees compared to other services, and you'll be competing with many other sellers on their platform. 

However, it's essential not to disregard this because Amazon has many buyers who flock to their website for all their needs. 


Oberlo is a popular dropshipping app that integrates with Shopify. It is a good option for beginners retailers, as it's quick and easy to use. 

However, Oberlo's selection is not as large as Amazon's and can be more expensive.

Domestic Dropship Suppliers

Domestic dropship suppliers are another option to consider. They often have lower prices than Amazon and Oberlo, which can be a great option.

Suppose you're looking for a more personal relationship with your Supplier. However, finding suitable domestic dropship suppliers can be more challenging, and you'll need to manage your inventory yourself.

When choosing a dropshipping business, it is wise to do plenty of research. It will also have the ability to provide you with a Dropship Management System (DMS) so that you automate your dropshipping business for greater efficiency.

Comparison of Dropshipping Suppliers

Do you want an answer to find out to choose the best product suppliers, we've created a guide you should check out!  

Here's a snippet:

Supplier NameBest forProsCons
AmazonBest for beginners- Amazon is a trusted platform with a large customer base.
- Dropshipping business on Amazon is fast and easy to manage.
- You'll have access to Amazon's vast product catalog.
- Amazon has strict rules and regulations for dropshippers.- You'll be competing with other dropshippers on Amazon.- You'll have to pay Amazon's fees and commissions.
OberloBest Supplier for the most companies- Oberlo is a dedicated dropshipping platform.- It's easy to find and add products to your store.- Oberlo offers excellent customer support.- Oberlo is a paid platform, so you'll have to pay monthly fees.- Oberlo is geared toward Shopify stores, so it may not be the best option if you're selling on Amazon.
Dropshipping Domestic SuppliersBest for the Profit- You'll be able to find suppliers who are closer to your target market.
- If you work with domestic suppliers, they will help you build relationships with manufacturers and suppliers and improve communication between them.
 - You may be able to get better-priced items from domestic manufacturers and suppliers since you'll know them firsthand instead of blindly relying on sketchy unknown contractors for your goods.
- Shipping times may be longer if you're working with suppliers from other countries.
- There's a greater risk of miscommunication when working with suppliers in other countries.

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Dropshipping Method

A dropshipping supplier is a product retailer that ships directly to the end user instead of shipping their products to retailers. 

It provides sellers the opportunity to import and sell various products. Some may require a minimum order quantity on certain items, while others entirely exclude products.

But most suppliers will meet their needs, and they're happy to work with an entrepreneur of any size. 

Factors to Consider 

Though there are some ways and means of choosing your drop shipper, as an entrepreneur, there are a few things you should consider:


You'll need to factor in the wholesale price of your products and any shipping and handling charges. 

The second is the cost of the dropshipping service itself. A few steps are involved in calculating the markup on your products during the ordering process. 

You calculated the cost of goods divided by your selling price, or (price per unit - total cost). 

Second, you need to consider applicable fees that may be charged at each stage of production and delivery, such as shipping and handling. 

Consider opportunity costs associated with inventory, including storage fees plus the cost of capital investment – which minimize by increasing turnover and minimizing idle inventory.

Shipping Times

Shipping is a factor to consider when ordering from a supplier. But, it's important to check/ confirm if they have the product in stock. 

If they don't, one may have to wait longer for them to get more of the inventory, which will delay the shipping time because production will be slower. 

Second, where is the Supplier located? The shipping time will increase if they are in another country, and it takes more time for their merchandise to get shipped to you. 

If you're using a slower-than-normal option, you'll have to wait longer for your item(s) to be delivered!

Product Quality

Look at the products themselves and see if they meet your quality standards. For example, are they well-made and durable?

Do they look like they would be appealing to your target market? If yes, then you may order or otherwise consider another supplier.

Customer Service

If there are any product problems, can you quickly get in touch with the Supplier to resolve the issue? Always look for a supplier who would be responsive and helpful.

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Frequently Asked Questions

Which platform is best for dropshipping?

Many platforms use dropshipping. However, the best platform for dropshipping depends on the needs of the business.

Some businesses need a platform that is easy to use and has many features. Other companies require a less expensive venue.

The best platform for dropshipping is the one that meets the needs of the business. 

Is Amazon allowed dropshipping?

Yes, suppose you want to use drop shipping services on Amazon; you must meet the drop shipping policy guidelines.

Are multiple dropshipping stores better to have?

As an entrepreneur, you should try to tailor your business' services to meet the demands of ever-changing crowds; in this way, the more niche markets you can cater to, the better.

The downside is that they will take a considerable amount of your time, so if you are looking to simply stock and sell everything and anything because you enjoy variety.

 Then this may not be best suited to your circumstances. You also have to watch out for any competition creeping into your waters!

Can you have multiple suppliers for dropshipping?

Using your dropshipping order management software to have multiple suppliers, you can increase your stock inventory, price competitiveness, and product variety for customers. 

The best way to manage multiple suppliers is by contracting your orders to dropshipping your business.

Final Word

Some dropshipping suppliers are more reliable than others, and some offer better products or services. Searching for the right dropshipping supplier is not an easy feat; you need to be thorough in your search.

After all, it's a supplier you'll continue to source from throughout your business. So you wouldn't want to end up with suppliers who don't offer the best quality products or one that won't deliver on time.