Platform Overview
Dropshipping Overview
Dropshipping involves selling products without holding inventory. Suppliers ship directly to customers. Low risk but lower margins.
Retail Arbitrage Overview
Retail arbitrage involves buying discounted items from retail stores and reselling online. Higher margins but requires time hunting deals.
Fee Comparison
| Aspect | Dropshipping | Retail Arbitrage | Notes |
|---|---|---|---|
| Startup Cost | $100-$500 | $500-$3,000 | Arbitrage higher |
| Product Sourcing | Online suppliers | Physical stores | Required skillset |
| Inventory Required | None | Yes (purchased) | Arbitrage risk |
| Profit Margin | 10-30% | 30-100% | Arbitrage higher |
| Time to Scale | Medium (months) | Slow (hours hunting) | Dropshipping faster |
| Risk Level | Moderate | Moderate-High | Varies |
| Product Control | None | Full | Arbitrage full control |
Our Recommendation
Retail arbitrage offers higher margins but requires more time. Dropshipping scales easier but has lower margins.
Key Takeaways
What to Consider
- Platform fees are only part of the equation - factor in fulfillment, shipping, and your time.
- Consider your product type and target audience when choosing between Dropshipping and Retail Arbitrage.
- Use our Profit Calculator to estimate exact costs.
Key Takeaways
- Always calculate your total fees before listing â use our free calculator below.
- Consider your product category and selling volume when comparing platforms.
- Factor in fulfillment costs for an accurate profit comparison.
Data Methodology & Disclaimer
Fee data and benchmarks in this article are sourced from official platform documentation and cross-referenced with publicly available rate schedules as of April 2026. Calculations use standard fee formulas; individual results vary based on product category and specific listing details.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Check the latest rates at each platform's official seller fees page. Fee structures reflect publicly available information as of April 2026 and are subject to change. Always verify current rates before making financial decisions.