If you are considering starting an eCommerce business in 2025, you have probably come across three different models: dropshipping, wholesaling, and retail. Each has its pros, cons, and unique requirements. The best choice depends on your budget, goals, and how you want to structure your business.
In this post, I will break down dropshipping vs wholesaling vs retail, explain how each model works, and show you which one might be the best fit for you.
What is Dropshipping?
Dropshipping is a fulfillment method where you sell products online without holding inventory. When a customer places an order, your supplier ships the product directly to them.
Pros of Dropshipping:
Cons of Dropshipping:
👉 Related: Best Dropshipping Niches for Beginners in 2025
What is Wholesaling?
Wholesaling involves purchasing products in bulk directly from manufacturers or distributors at discounted prices, then reselling them for a profit.
Pros of Wholesaling:
Cons of Wholesaling:
What is Retail?
Traditional retail means purchasing products at wholesale prices and selling them directly to customers, either in a physical store or through an online storefront where you manage all inventory and fulfillment yourself.
Pros of Retail:
Cons of Retail:
👉 Related: Is Dropshipping Worth It in 2025?
Dropshipping vs Wholesaling vs Retail: Key Differences
Here is how these three models compare:
1. Upfront Investment
2. Profit Margins
3. Risk Level
4. Scalability
5. Customer Experience
👉 Related: Common Dropshipping Mistakes Beginners Make
Which Business Model Should You Choose?
If you are new to eCommerce and want to get started quickly with minimal risk, dropshipping is the easiest entry point. You can test products, niches, and suppliers without investing heavily upfront.
If you have some capital and want better margins while maintaining flexibility, wholesaling may be a strong choice. You can stock products, manage fulfillment, and potentially expand into retail later.
If your goal is to build a long-term brand with full control, retail offers the most authority but also comes with the most risk and upfront investment.
The good news is that many entrepreneurs start with dropshipping, transition into wholesaling, and eventually move into retail once they have validated their niche and built cash flow.
Final Thoughts
When comparing dropshipping vs wholesaling vs retail, the right model depends on your goals, budget, and appetite for risk. For beginners, dropshipping provides the lowest barrier to entry and the fastest way to learn the ropes of eCommerce.
If you want to learn the exact system I have used to build multiple profitable dropshipping stores, join my free training at dropshiplifestyle.com/webinar.
Question: If I wanted to offer my product for dropshipping resellers, What are the steps to accomplish.
A good first step would be creating a spreadsheet of with all of your product info including:
– Product Names
– Product SKUs
– Wholesale Price
– MAP
– MSRP
– Product Descriptions
– Product Features
– Links to Product Photos
You can then reach out to internet retailers who are already selling similar items in your niche 🙂
Hi Anton,
I like your writing and read it through translation. I must learn English as soon as possible.
Thank you, Reha! I’m happy to hear you’re enjoying the blog 🙂
Good morning Anton, I signed up for the DSL Labs. I have a strong will to do things, thank you for offering all of your courses.
Welcome aboard, Jerome!
Looking forward to seeing you become a future success story 🙂
Worldwide Brands has a great supplier list working with real wholesale suppliers in the US
Hi Jared,
We’ve signed up with them in past to see what they have to offer… and honestly, you’re MUCH better off just doing your own market research if you want to work directly with the brands you want to sell for.
That’s where the real money is made with drop shipping.
Thanks!
Anton
Anton, should one go with a niche or general store? Particularly if one is a beginner.
Namely, will suppliers of product A be ok and willing to accept one’s store if it’s already selling completely unreleated to A and also in different niche products B, C, D, etc?
Or should the products be at least *somehow* related to each other?
100% a niche store. Not selling 1 product, but 1 product type.
The main reason for this is it increases conversion rates and return on ad spend.
Thanks Anton this is great.
You’re welcome, Julie! Happy to share 🙂
Guy on YouTube says that not enough of your students actually make enough money, consistently to make your program worth the money and time invested.
Candy Edmonds
Hi Candy,
Guys on YouTube also say the earth is flat :p
You can see some of our student bios here:
Drop Ship Lifestyle Reviews (UPDATED)
Hope that helps!
Yes, that is because the earth is flat indeed. Unless you can proof how water can cling to a ball without leveling out (ever heard of “water level” – because water always levels out)? And please don’t say “gravity” keeps trillions of tons of water on a ball because then you will have to explain why “gravity” is selective to hold water perfectly in place even in a round shape (which is scientifically impossible) yet doesn’t influence a bird of 5 kg floating above the sea, or the clouds in the air which weighs thousands of tons of water, and how it has no influence on humans walking on a boat or next to the ocean. Do you have any idea how indescribably “gravity” must be to hold so much water on a ball? Well, it’s not possible – it’s not natural. Anton, please don’t leave remarks about things you know very little/nothing of. Focus primarily on Drop Shipping… at least you know what you’re talking about concerning that. Thanks
That’s why there’s a saying “Everything that goes up must come down”, it’s because it does. You mentioned birds’ flight, ever heard of air currents? You mentioned clouds? Do you seriously think clouds are just big blobs of water floating above us? YOU are the one that should do some research and not speak of what you don’t know of. Understanding how the world works isn’t as superficial as people who believe in a flat earth make it out to be. The perception is skewed. That being said, Anton can say whatever he wants. It’s his blog.
This is great but still have no idea how to find suppliers.
Glad you enjoyed it, Cori!
Checkout this section on our blog for info on how to source suppliers:
Find USA Dropshipping Suppliers
Thanks so. Ugh!
Meant to say thanks so MUCH lol. Autocorrect is evil
😆