Amazon FBA vs. AliExpress Dropshipping: Which Model is Better for Sellers in 2025?

Thinking of starting an e-commerce business or scaling the one you have in 2025? One of the biggest decisions you’ll face is choosing between Amazon FBA and AliExpress dropshipping.

Both models promise big profits, but they’re wildly different in cost, speed, and risk. In this guide, we’ll break down everything you need to know to choose the right path for your business. “ Comparison of Amazon FBA and AliExpress Dropshipping Fulfillment Models.

•  Prime shipping boosts conversions
•  High buyer trust on Amazon
• Ability to scale quickly

•  Faster shipping times vs dropshipping

•  Upfront inventory costs
•  Storage fees, especially in 2025 with new FBA limits
•  Risk of stranded or unsellable stock
  

•  No upfront inventory cost
• Wide variety of products to test
•  Easy to start with lower budget

•  Long shipping times (10–30+ days)
•  Lower product quality control
•  Higher refund and chargeback risks
•  Less brand control

• Cost of goods upfront

• Inbound shipping to Amazon

• FBA storage fees

• Fulfillment fees per order

• Potential long-term storage surcharges

• Only pay supplier cost after a customer orders

• Avoid storage fees

• Face higher unit costs and shipping fees per order

Key Insight: While dropshipping looks cheaper, FBA often delivers better margins long-term because of faster shipping and lower refund rates.

• Amazon FBA: 1–2 days with Prime

• AliExpress dropshipping: often 10–30+ days

Slow shipping can hurt your brand reputation, reviews, and repeat customers. This is a huge reason many sellers lean toward FBA in 2025.

 “Want to avoid FBA storage limits in 2025? Check out our guide on Improving Your Amazon IPI Score for tips to keep your costs low.”

• AliExpress margins often run 10–25%

• Amazon FBA margins can reach 20–40%

If you have capital to invest, FBA can be significantly more profitable because of higher conversion rates and lower refund rates.

Here’s how to decide:

→ You have budget for inventory

→ You want fast shipping and Prime eligibility

→ You’re aiming to build a real brand

→ You’re testing products without big investment

→ You’re new and want to learn e-commerce cheaply

→ You’re willing to handle longer shipping times

→ FBA is better for sellers ready to invest upfront for higher profits, brand trust, and fast shipping. Dropshipping suits those starting out with lower budgets.

→ Yes, but be cautious. Shipping times remain slow, and competition is high.

→ No! FBA comes with storage costs, policy changes, and risks of unsold inventory.

→ Absolutely. Some sellers start with dropshipping to test products, then switch to FBA for top sellers.

→ FBA, hands down. Faster delivery and Amazon’s trust help you build loyal customers.