E-commerce for Military Spouses: Dropshipping vs FBA Guide

Bottom Line Up Front

E-commerce offers military spouses location-independent income selling physical products without managing inventory headaches. Dropshipping requires $100-$500 to start and works from anywhere, but margins are thin (15-30%) and customer service demands are high. Amazon FBA requires $2,500-$10,000 to start and Amazon handles fulfillment, but inventory investment and prep logistics create PCS challenges. Both can generate $1,000-$10,000+/month once established. The right choice depends on your startup capital, risk tolerance, and PCS timeline.

The Military Spouse Career Challenge

Physical retail businesses seem incompatible with military life—who wants to move inventory every PCS? But modern e-commerce models solve this:

Dropshipping: You never touch inventory. Supplier ships directly to customer.

Amazon FBA: You send inventory to Amazon. They store, pack, and ship everything.

Both models let you run a product business from anywhere with an internet connection. The question isn't whether e-commerce works for military spouses—it's which model fits your situation.

Dropshipping Explained

How It Works

1. Customer orders from your online store
2. You forward order to supplier
3. Supplier ships directly to customer
4. You keep the difference between selling price and supplier cost

Dropshipping Pros

Low Startup Cost: $100-$500 to launch

• Shopify store: $29/month
• Domain: $12/year
• Initial marketing: $50-$300
• No inventory investment

Zero Inventory Risk: Never buy products until they're sold

Location Independent: Works from any duty station, including OCONUS

Easy to Pivot: Test products without financial commitment

No Shipping Logistics: Supplier handles everything

Dropshipping Cons

Low Margins: 15-30% typical (vs. 50%+ with owned inventory)

Quality Control Issues: You never see products before customers do

Shipping Times: Many suppliers ship from China (15-30 days)

High Competition: Low barriers mean many sellers

Customer Service Burden: You're responsible for supplier mistakes

Supplier Reliability: Your business depends on their performance

Dropshipping Startup Costs

Item	Cost
Shopify Basic	$29/month
Domain	$12/year
Theme (optional)	$0-$180
Apps (essential)	$20-$50/month
Initial Ads	$100-$500
Total Startup	$150-$750

Best Products for Dropshipping

Good Dropshipping Products:

• Lightweight (reduces shipping costs)
• Not fragile (fewer damage claims)
• Not electronic (quality issues)
• Passion niches (people pay more)
• Problem solvers (clear value proposition)

Examples:

• Pet accessories
• Home organization items
• Fitness accessories
• Hobby supplies
• Unique gifts

Avoid:

• Electronics (returns, quality issues)
• Clothing (sizing/returns nightmare)
• Fragile items
• Products with strict regulations
• Commodity items (compete on price only)

Dropshipping Platforms

Shopify + DSers/Spocket

• Most popular combination
• DSers connects to AliExpress suppliers
• Spocket offers faster US/EU suppliers
• Cost: $29-$79/month for Shopify + app fees

WooCommerce + AliDropship

• WordPress-based (more control)
• One-time plugin cost (~$89)
• More technical to set up
• Lower ongoing costs

Print-on-Demand (Hybrid)

• Printful, Printify, Gooten
• Custom designs printed per order
• Better margins than standard dropshipping
• Faster US-based shipping

Amazon FBA Explained

How It Works

1. You source products and send to Amazon warehouse
2. Products listed on Amazon marketplace
3. Customer orders through Amazon
4. Amazon picks, packs, and ships
5. You receive payment minus fees

FBA Pros

Amazon's Customer Base: 300+ million active customers

Prime Eligibility: Customers trust and prefer Prime shipping

Hands-Off Fulfillment: Amazon handles storage, shipping, returns

Scalable: No shipping bottleneck as you grow

Customer Service: Amazon handles most issues

Higher Margins: 30-50% possible with proper sourcing

FBA Cons

Higher Startup Costs: $2,500-$10,000+ to start properly

Inventory Investment: Must buy products before selling

Amazon Fees: ~30-40% of sale price (referral + FBA + storage)

Account Risks: Policy violations can shut you down

Competition with Amazon: They can copy successful products

Inventory Prep/Shipping: Must get products to Amazon warehouses

PCS Complication: Physical inventory management

FBA Cost Breakdown

Item	Cost
Professional Seller Account	$39.99/month
Initial Inventory	$1,000-$5,000
Product Photography	$0-$500
Barcodes (GS1)	$250 (minimum)
Prep Supplies/Shipping	$200-$500
Software Tools	$50-$200/month
Total Startup	$2,500-$10,000+

FBA Product Strategies

Private Label

• Create your own branded products
• Source from manufacturers (often China)
• Higher margins, more control
• More work and investment

Wholesale

• Buy from established brands at wholesale
• Resell on Amazon
• Lower margins, faster start
• Brand approval required

Arbitrage

• Buy clearance/sale items, resell higher
• Retail arbitrage (stores) or online arbitrage
• Low investment per item
• Time-intensive sourcing

Dropshipping vs FBA Comparison

Factor	Dropshipping	Amazon FBA
Startup Cost	$150-$750	$2,500-$10,000+
Profit Margins	15-30%	30-50%
Traffic Source	Must build yourself	Amazon provides
Customer Trust	Must build brand	Amazon's reputation
Inventory Risk	None	Significant
Fulfillment Work	None	Prep and ship to Amazon
Competition	High	Very high
Scalability	Supplier limited	Highly scalable
PCS Friendliness	Excellent	Moderate
Learning Curve	Marketing-heavy	Operations-heavy

PCS Considerations

Dropshipping During PCS

Impact Level: Minimal

• Business runs entirely online
• No physical inventory to move
• Pause ads temporarily if needed
• Customer service can continue anywhere

Best Practices:

• Set customer service hours that work across time zones
• Have email templates for common issues
• Pause heavy ad spending during chaotic move days
• Resume within 1-2 weeks of arrival

FBA During PCS

Impact Level: Moderate to Significant

Challenges:

• Physical prep supplies need to move
• May have inventory at your location
• Shipments to Amazon need address updates
• Can't easily pause Amazon listings

Solutions:

Use Prep Centers:

• Third-party companies receive, prep, and ship to Amazon
• Cost: $1-3 per unit
• Eliminates home-based prep entirely
• PCS becomes nearly irrelevant

Popular Prep Centers:

• AMZ Prep Services
• MyPrepCenter
• FBAforward

Inventory Management:

• Don't overstock before PCS
• Time large shipments for after settlement
• Use Amazon's "vacation settings" if needed
• Consider 3PL for large operations

OCONUS Considerations

Dropshipping OCONUS:

• Works seamlessly (business is 100% digital)
• Time zone differences can benefit customer service coverage
• Ensure payment processor works internationally

FBA OCONUS:

• Continue selling, but prep becomes harder
• Prep centers essential
• Can't easily do retail/online arbitrage
• Shipping products internationally to Amazon expensive

Realistic Income Expectations

Dropshipping Timeline

Month 1-3: Learning and testing

• Revenue: $0-$1,000
• Profit: Often negative (advertising costs)
• Focus: Finding winning products

Month 4-6: Optimization

• Revenue: $1,000-$5,000
• Profit: $0-$1,000
• Focus: Scaling winners, cutting losers

Month 7-12: Scale

• Revenue: $5,000-$20,000
• Profit: $1,000-$5,000
• Focus: Expanding product line, reducing costs

Year 2+: Mature business

• Revenue: $10,000-$100,000+/month
• Profit: $2,000-$20,000+/month
• Focus: Brand building, diversification

FBA Timeline

Month 1-3: Product launch

• Revenue: $0-$2,000
• Profit: Often negative (inventory + launch costs)
• Focus: Getting reviews, ranking

Month 4-6: Gaining traction

• Revenue: $2,000-$10,000
• Profit: $500-$3,000
• Focus: Optimizing listings, PPC

Month 7-12: Expansion

• Revenue: $5,000-$30,000
• Profit: $1,500-$10,000
• Focus: Adding products, inventory management

Year 2+: Scaled operation

• Revenue: $20,000-$200,000+/month
• Profit: $5,000-$50,000+/month
• Focus: Brand building, expansion

Reality Check

Most people who try dropshipping or FBA don't reach significant profitability. Success requires:

• 6-12 months of consistent effort
• Willingness to fail and iterate
• Marketing skills (dropshipping) or operations skills (FBA)
• Capital to survive learning period
• Treating it as a real business, not a side hustle hack

Which Model Should You Choose?

Choose Dropshipping If:

• You have limited startup capital (<$500)
• You're uncertain about long-term commitment
• PCS moves happen frequently
• You want to test e-commerce before investing heavily
• You're comfortable with marketing and ads
• You can handle customer service frustrations

Choose FBA If:

• You have $3,000+ to invest
• You're at a stable duty station for 2+ years
• You want higher potential margins
• You prefer Amazon's built-in traffic
• You're comfortable with operations and logistics
• You can use prep centers or have prep space

Consider Print-on-Demand If:

• You're creative/design-oriented
• You want custom, unique products
• You want dropshipping simplicity with better branding
• You're building around personal brand

Consider Neither If:

• You need immediate income (service businesses faster)
• You're risk-averse with money
• You don't have 10+ hours/week to dedicate
• You're looking for passive income (e-commerce isn't passive initially)

Getting Started: Action Plans

30-Day Dropshipping Launch

Week 1:

• Research niches (pet, home, hobby)
• Set up Shopify trial
• Create DSers or Spocket account
• Study competitors

Week 2:

• Build store (theme, pages, policies)
• Add 10-20 products
• Set up payment processing
• Create social media profiles

Week 3:

• Launch Facebook/Instagram ads ($5-10/day)
• Test different products and ads
• Monitor metrics

Week 4:

• Analyze results
• Double down on winners
• Cut losers
• First sales (hopefully)

90-Day FBA Launch

Month 1:

• Amazon seller account setup
• Product research (Jungle Scout, Helium 10)
• Supplier outreach (Alibaba)
• Sample orders

Month 2:

• Select product
• Order inventory (start small: 100-300 units)
• Create listing content
• Arrange shipping to Amazon

Month 3:

• Inventory arrives at Amazon
• Launch listing
• Start PPC ads
• Get initial reviews (vine, early reviewer)
• Optimize based on data

Resources

Dropshipping:

• Shopify: shopify.com
• DSers: dsers.com
• Spocket: spocket.co
• Oberlo YouTube tutorials

Amazon FBA:

• Jungle Scout: junglescout.com
• Helium 10: helium10.com
• Seller Central: sellercentral.amazon.com
• Amazing Selling Machine (course): amazingsellingmachine.com

Print-on-Demand:

• Printful: printful.com
• Printify: printify.com
• Gooten: gooten.com

Prep Centers:

• MyPrepCenter: myprepcenter.com
• FBA Prep Centers Directory: Google "[your area] FBA prep center"

Learning:

• YouTube: Wholesale Ted, Travis Marziani
• Reddit: r/dropship, r/FulfillmentByAmazon
• Podcasts: AM/PM Podcast, My Wife Quit Her Job

This Website:

• E-commerce Guide
• Business Tax Guide
• militarytransitiontoolkit.com

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E-commerce isn't get-rich-quick, but it is get-location-independent. Both dropshipping and FBA offer military spouses a path to building real business assets that survive PCS moves. The key is choosing the model that matches your capital, timeline, and temperament—then executing consistently.