Looking for the best dropshipping alternatives?
Dropshipping is a highly profitable business model that lets you sell products online without holding inventory. However, it’s just one option you can pursue to start making money from e-commerce.
We’ve compiled a list of 11 dropshipping alternatives that can help you build a profitable online business.
From higher profit margins to more control over your brand, each alternative offers unique benefits you’ll find worth exploring.
Comparison of Best Dropshipping Alternatives
| Alternative | Startup Cost | Profit Margins | Best For |
| Print on Demand | $0-100 | 15-30% | Creative individuals building a business around custom products |
| Affiliate Marketing | $0 | 10-25% | Content creators with an audience who can drive traffic |
| Digital Products | $0-100 | 70-95% | People with knowledge to share who can create templates or courses |
| Wholesaling | $1,000-5,000 | 20-50% | People who can invest upfront and enjoy building business relationships |
| Dropservicing | Under $100 | 30-70% | People comfortable with sales and managing clients and freelancers |
| Amazon FBA | $2,000-5,000 | 10-20% | People willing to invest in inventory and comfortable with Amazon’s rules |
| Retail Arbitrage | $100-500 | 20-40% | People who enjoy hunting for deals and want minimal investment |
| Freelancing | $0-100 | Keep 80-90% after fees | People with marketable skills who want schedule flexibility |
| Subscription Box Services | $3,000-10,000 | 30-50% | People who can curate products and handle recurring logistics |
| White Label Products | $2,000-5,000 | 20-40% | People wanting branded products without development time |
| Private Label Manufacturing | $5,000-10,000 | 30-50% | People ready to invest upfront and create their own brand |
1. Print on Demand
Print on demand works exactly like dropshipping. This business model involves creating custom designs for products like t-shirts, mugs, and hoodies. When someone orders from your store, a supplier prints your design and ships it directly to the customer.
Print-on-demand statistics show that there’s real money in this space. The global market sits at over $12 billion and analysts expect it to reach $19.8 billion by 2029. If you’re looking at what sells best, t-shirts dominate with over 60% of all orders, followed by mugs, posters, and hoodies.
With that being said, here are some important numbers breakdown you should know:
- Startup cost: You can start with almost nothing. Most platforms are free to join, and you only pay when someone actually buys your product.
- Profit margins: Standard items bring 15-30% margins, but niche products with higher perceived value can reach 40-50%, or if you have strong personal brand.
- Best for: Creative individuals and people who want to build a business around selling custom products or influencers.
Top platforms:
- Printful: Known for consistent quality and responsive customer service. Integrates smoothly with Shopify and Etsy.
- Printify: Offers an extensive network of printing partners for competitive pricing and a large product catalog.
- Gelato: Strong for international businesses needing fast local fulfillment.
- Amazon Merch on Demand: Lets you tap into Amazon’s customer base without building your own store.
- Redbubble and Zazzle: Marketplaces that handle production and shipping, making it simple for artists to start.
Not sure if POD is right for you? Maybe our dropshipping vs. print on demand comparison can help you decide.
2. Affiliate Marketing
Affiliate marketing lets you earn commissions by promoting other companies’ products. You share a unique link, and when someone clicks it and makes a purchase, you get paid a percentage of the sale.
The numbers show this can work. Analysts expect the global affiliate marketing industry to surpass $31 billion by 2031. North America leads with over 40% of global revenue, and most ecommerce businesses report earning around $15 for every $1 they spend on affiliate programs.
Here’s what the business of affiliate marketing potentially costs and offers:
- Startup cost: Free to start. Most affiliate networks don’t charge to join. You just need somewhere to share your links like a blog, YouTube channel, or social media account.
- Profit margins: Commissions usually range from 10-25% per sale. Digital products and SaaS can go up to 40-50%. You only earn when someone buys through your link.
- Best for: Content creators with an audience and people who can drive traffic without managing inventory.
Top platforms:
- Amazon Associates: Easy entry point with massive product selection, though commission rates vary by category.
- CJ Affiliate: Connects you with large brands across multiple industries.
- ShareASale: Wide range of products from clothing to digital downloads.
- ClickBank: Specializes in digital products with higher commission rates.
- Impact: Features major advertisers including Target, Gap, and software companies.
- Rakuten Advertising: Established network with prominent brand partnerships.
If you’re weighing your options between different business models, you might want to explore affiliate marketing vs dropshipping to see which one matches your goals better.
3. Digital Products
Digital products are items you create via software such as Canva, Photoshop, or course platforms. Examples include online courses, ebooks, templates, printables, stock photos, music files, and planners. You build the product, upload it, and customers download or access it instantly after purchase.
The market for these products is expected to reach $416 billion by 2030. That alone shows there’s demand for solutions people can download and use immediately.
- Startup cost: It takes around $0 to $100 to get started depending on what tools you already have. Most creators use free platforms like Canva and just need somewhere to host their products
- Profit margins: Most people keep 70-95% of each sale as profit since there’s no production or shipping involved. Once you create a digital product, your only ongoing costs are platform fees and marketing.
- Best for: People with knowledge to share and those who can create templates, guides, or courses.
Top platforms:
- Thinkific: Best for online courses with full control over branding and pricing.
- Gumroad: Simple platform for selling ebooks, templates, and digital downloads.
- Etsy: Popular marketplace for printables, planners, and creative templates.
- Teachable: Strong option for educational content and membership sites.
- Payhip: Easy setup for selling digital products directly to customers.
- Amazon KDP: Self-publishing platform for ebooks with built-in audience access.
4. Wholesaling
Wholesaling means buying products in bulk from manufacturers at discounted rates and reselling them at a markup. You essentially act as the middleman between factories and businesses. Your main tasks involve sourcing products, managing inventory, and getting everything to retailers.
Analysts expect the wholesale market to hit $107.8 billion by 2032. That means businesses will keep relying on suppliers who can deliver products in bulk at competitive prices.
Startup cost: You can start a wholesale business with $1,000 to $5,000 if you keep inventory minimal. Larger operations with warehouses require $70,000 or more as upfront investment.
Profit margins: Wholesale margins usually fall between 20-50% depending on what you sell and how well you negotiate with suppliers
Best for: People who can invest money upfront and enjoy building business relationships.
Top platforms:
- Alibaba: Global marketplace covering almost every product category for business buyers.
- Faire: Popular with independent retailers looking for lifestyle and home goods brands.
- JOOR: Fashion-focused platform connecting brands with retail buyers.
- Amazon Business: Bulk selling to businesses through Amazon’s platform.
5. Dropservicing
Dropservicing is a business model where you sell services rather than products. Think logo design, website development, content writing, or video editing. You take on projects from clients and then outsource them to freelancers at a lower rate. Your main job involves communicating with clients and making sure work gets delivered on time.
With the services market expected to reach $24.03 trillion by 2029, dropservicing will continue growing as more businesses need digital services and remote work becomes standard.
Startup cost: You can start with under $100 for a domain, hosting, and basic website setup. You pay freelancers only after clients pay you.
Profit margins: Margins range from 30-70%, with some services reaching 90% or higher since there’s no inventory or shipping costs.
Best for: People comfortable with sales and managing both clients and freelancers.
Top platforms:
- Shopify: Build your own service-based storefront with booking and payment capabilities.
- Fiverr: List and sell your services directly to a large marketplace of buyers.
- Upwork: Create a profile and offer services to businesses looking for solutions.
- Squarespace: Set up a professional services website with built-in booking tools.
- Ecwid: Grow your service business with an e-commerce platform.
- Facebook Marketplace: Sell services locally with location-based reach.
6. Amazon FBA
Amazon FBA (Fulfillment by Amazon) means you send your products to Amazon’s warehouses and they handle storage, packing, and shipping for you. It allows you to source products from anywhere and sell them on Amazon without managing logistics yourself.
Amazon FBA allows you to take advantage of Amazon’s massive customer base. Your items may also become eligible for Prime shipping, which is Amazon’s membership program for faster delivery that many customers prefer.
Startup cost: You’ll need $2,000 to $5,000 to launch your first product. This covers buying inventory, shipping to Amazon, the monthly seller account fee, product photos, and initial advertising.
Profit margins: Most sellers see 10-20% net profit after all Amazon FBA fees and advertising. Private label products can reach 25-35%, while wholesale typically brings 7-13%. Established brands with less competition can hit 30-50%.
Best for: People willing to invest in inventory upfront and those comfortable with Amazon’s rules and fee structure.
Top product sourcing options:
- Alibaba: Find manufacturers for private label products you can brand.
- Retail Arbitrage: Buy discounted products from stores and resell on Amazon.
- Wholesale: Purchase products in bulk from distributors at discounted rates.
- Private Label: Create your own branded products through manufacturers.
- Handmade: Sell handmade items through Amazon Handmade with higher margins.
7. Retail Arbitrage
Retail arbitrage is an interesting business that involves buying discounted products and reselling them for profit. You go to stores like Walmart, Target, or clearance sections, find items on sale, and then list them on Amazon at regular prices.
The appeal is low barrier to entry. You can start with whatever money you have and scale as you find profitable products. Many people begin with retail arbitrage before moving into other models.
Startup cost: You can start with $100 to $500. Money goes toward buying inventory from retail stores, shipping supplies, and platform fees. Some people start even smaller by flipping items from thrift stores or clearance racks.
Profit margins: Margins vary widely but typically range from 20-40% depending on the deals you find and how competitive pricing is on your selling platform.
Best for: People who enjoy hunting for deals and those wanting to start with minimal investment.
Top platforms:
- Amazon: Largest customer base makes it easiest to move inventory quickly.
- eBay: Good for unique items and products Amazon restricts.
- Walmart Marketplace: Growing platform with less competition than Amazon.
- Mercari: Popular for clothing, electronics, and home goods.
- Poshmark: Focused on fashion and accessories with built-in audience.
8. Freelancing
Freelancing means offering your skills and services directly to clients without being employed by a company. This business model comes with flexibility since you set your own rates, choose your projects, and control your schedule. Writing and graphic design are some examples of services you can provide as a freelancer.
The freelance platforms market is projected to reach $14.39 billion by 2030, showing how popular this way of working has become for both freelancers and businesses hiring them.
Startup cost: It doesn’t cost much to start freelancing. You just need a computer and an internet connection to get going.
Profit margins: Whatever you earn minus platform fees and taxes is yours. Platforms like Upwork and Fiverr take 10-20% from the money you make per project.
Best for: People with skills they can sell and those who want control over their schedule and clients.
Top platforms:
- Upwork: Largest marketplace connecting freelancers with clients across industries.
- Fiverr: Popular for packaging services you can sell repeatedly.
- Freelancer: Global platform with projects in many categories.
- Toptal: High-end option for experienced developers, designers, and finance pros.
- PeoplePerHour: Good for hourly work and ongoing client relationships.
9. Subscription Box Services
Have you ever ordered a box of your favorite snacks delivered monthly? That’s a subscription box. You can start your own by picking a niche, sourcing products, and sending curated boxes to subscribers every month.
The subscription box market is projected to reach $87.06 billion by 2029. This shows strong consumer appetite for curated products delivered on a schedule.
Startup cost: You’ll need $3,000 to $10,000 to launch. Costs include initial inventory, packaging and branding, website setup, payment processing, and marketing to acquire your first subscribers.
Profit margins: Margins typically range from 30-50% depending on your niche and sourcing. Your goal is keeping the cost of goods and shipping low enough that subscription fees cover expenses and leave room for profit.
Best for: People who can curate products around a specific interest and those comfortable with recurring logistics and customer service.
Top platforms:
- Cratejoy: Marketplace specifically built for subscription box businesses.
- Shopify: Build your own subscription store with apps like ReCharge.
- Subbly: All-in-one platform for managing subscription logistics.
- WooCommerce: WordPress plugin for creating subscription services.
- Bold Subscriptions: Shopify app for recurring billing and management.
10. White Label Products
White label products are items made by one company that you can buy, rebrand, and sell as your own. For example, you might find a manufacturer producing water bottles, add your logo and custom packaging, then sell them under your brand name. That’s white labeling for you.
White labeling gets you to market fast with minimal changes. If you need more control over product specs and features, private label makes, which we’ll cover next, more sense.
Startup cost: You’ll need $2,000 to $5,000 or more to start. Money goes toward branding, marketing, buying minimum quantities from suppliers, and any platform fees.
Profit margins: Expect 20-40% margins depending on your niche and how competitive it is. Since other sellers can buy and brand the same product, your profits depend on how well you market and build trust with customers.
Best for: People who want branded products without spending time on development or customization.
Top platforms:
- Amazon: Large customer base makes white label products sell well through FBA.
- Shopify: Set up your own store to control how you present products.
- Alibaba: Find white label products ready for your branding.
- Walmart Marketplace: Growing option with less competition than Amazon.
- eBay: Lower barriers to entry than other major platforms.
- Etsy: Works for white label beauty, home goods, and similar categories.
11. Private Label Manufacturing
Private label manufacturing involves finding an existing product from a manufacturer and putting your own brand name and packaging on it. The manufacturer makes the product, but you sell it under your brand. You can do this with everything from workout clothes to skincare products or kitchen gadgets.
Consumer perception has improved significantly over the past few years. 68% of consumers now view private labels as good alternatives to name brands, according to Nielsen. And with private label sales growing 4.3% year-over-year, the opportunity looks solid.
Startup cost: You’ll need $5,000 to $10,000 or more to get started. Most money goes toward manufacturing, branding design, marketing, and platform fees if you’re selling on a platform like Amazon.
Profit margins: Most private label manufacturers earn 30-50% profit from their business. However, this can drop to 10-20% for competitive categories like apparel.
Best for: People ready to invest upfront and those who want to create their own brand.
Top platforms:
- Alibaba: Find manufacturers who can make and brand products for you.
- Amazon: Sell through FBA and tap into their massive customer base.
- Shopify: Run your own store with complete control over how you present products.
- Etsy: Good option for private label items in creative categories.
- Walmart Marketplace: Growing platform with room for private label sellers.
Side note: Private label manufacturing means you handle inventory, packing, and shipping yourself. If you’d rather avoid that, try private label dropshipping where manufacturers handle fulfillment while you focus on sales.
Is Dropshipping Dead?
No, dropshipping is quite far (read: nowhere near) from being dead.
In fact, it’s growing steadily and is expected to keep expanding for years to come. Analysts predict that the dropshipping market will reach $476.1 billion by 2026. Plus, dropshipping accounts for 23% of all online sales worldwide and growing.
So the next time you hear someone say dropshipping is dead, take it with a grain of salt. It’s a business model that will continue to be around for as long as people buy things online.
Why Consider Dropshipping Alternatives in 2026?
Dropshipping remains a solid business model that’s helping entrepreneurs build profitable online stores. The market is growing, barriers to entry are low, and thousands of people are making good money with it.
In fact, 23% percentage of all online sales come from dropshipping businesses, and 27% of online stores use dropshipping as their main fulfillment method, clearly showing that dropshipping is big part of the e-commerce industry as a whole.
But it’s not the perfect fit for everyone. Some people discover that long shipping times frustrate customers or that thin profit margins require too much volume to see real income. Others succeed with dropshipping but want to expand beyond a single revenue stream.
Maybe you want more control over product quality. Maybe you’d rather build something with higher margins or faster fulfillment. Or maybe you’re already running a dropshipping store and looking to diversify without abandoning what works.
Exploring alternatives doesn’t mean dropshipping failed you. It means you’re building multiple paths to income. The alternatives we cover can work alongside dropshipping or replace it entirely, depending on your goals and what you’re willing to invest.
Current Dropshipping Challenges
Dropshipping comes with a few hurdles that can slow you down, but none of them are impossible to work around. Here are the main ones people run into:
- Long shipping times: Products shipped from overseas can take 15-30 days to arrive, which tests customer patience. You can fix this by working with US or EU-based suppliers.
- Thin profit margins: Margins typically sit between 10-30%, so you need more volume to make decent money. Better product selection and smart pricing can help you earn more.
- High competition: Popular products get saturated fast. You can focus on less competitive niches or add your own branding to differentiate.
- Limited control: You don’t handle the product, so quality issues or shipping delays fall on your store. Pick reliable suppliers and communicate clearly to avoid most problems.
Benefits of Alternative Business Models
While dropshipping works well for many people, other business models offer advantages you might find more appealing. Here are some benefits you’ll get from exploring alternatives:
- Higher profit margins: Models like wholesaling or private labeling give you better margins since you buy in bulk or control production costs directly.
- More control over quality: When you handle products yourself or work closely with manufacturers, you decide what goes to customers.
- Stronger brand identity: Owning your products or creating unique content lets you build a brand people remember and trust.
- Diversified income streams: Running multiple business models protects you if one slows down or becomes too competitive.
- Scalability on your terms: Some alternatives let you scale without dealing with supplier stock issues or overseas shipping delays.
Easily Build Your Dropshipping Business with ZIK Analytics
Finding products that sell is the hardest part of dropshipping. You might spend months testing items only to realize nobody wants them.
ZIK Analytics makes sure you’re launching products based on accurate, live marketplace data. Our platform tracks trending items on Shopify and eBay, competitor stores, and gives you the sales metrics you need to make informed decisions.
For those serious about scaling, ZIK also offers supplier sourcing tools and performance tracking so you can replicate success across your store.
Try ZIK Analytics today and improve your chances of making money with data-backed insights.
Frequently Asked Questions about Dropshipping Alternatives
In this section, I’ll answer the questions people frequently ask about dropshipping:
How much do beginner dropshippers make?
Beginner dropshippers typically make between $0 and $1,000 per month based on the effort and work they put in. You might be able to earn more with high-ticket dropshipping products or by focusing on less competitive niches. Success comes down to finding profitable dropshipping products and learning effective advertising strategies.
Is dropshipping worth it as a side hustle?
Yes, dropshipping can work as a side hustle if you’re willing to put in the effort. It won’t make you rich overnight, but the low startup costs make it easy to test without risking much money. Tips for success include batching tasks to save time, using dropshipping automation where possible, and starting with one or two products so you’re not overwhelmed while working your main job.
How hard is dropshipping?
Dropshipping isn’t very hard if you take it seriously. However, like most businesses, it requires time and consistency to see results. The most challenging part is getting customers to trust your store and buy from you. You can try tactics like running social media ads, offering fast shipping, and sharing real customer reviews to build credibility.
Is dropshipping a scam?
No, dropshipping isn’t a scam. That belief usually comes from misleading ads or “get-rich-quick” claims that make it seem effortless. In reality, dropshipping is a legitimate e-commerce model where you sell products without holding inventory used by many e-commerce stores. Keep in mind that success still depends on choosing good suppliers and managing your store responsibly.
How much does it cost to dropship on Amazon?
It typically costs between $50 and $100 per month to start dropshipping on Amazon. You’ll need a Professional Seller plan ($39.99/month) plus Amazon referral fees that range from 8–15% per sale. Additional costs may include supplier charges, marketing, and product research tools to keep your business running efficiently.
What is the success rate of dropshipping?
The success rate of dropshipping varies, but studies suggest that around 10–20% of stores find lasting success. That said, you can improve your chances of building a profitable dropshipping store if you start off on the right foot. Focus on understanding your audience, choosing reliable suppliers, and creating a brand that customers remember.