Is dropshipping directly from China cheaper than FBA?

While it eliminates domestic warehouse storage fees and bulk ocean freight, ePacket or direct air-carrier shipping from China to a US consumer is incredibly expensive per unit (often $6 to $12 for a 1lb item). Dropshipping trades high variable shipping costs for zero upfront inventory risk.

📦 Amazon & eCommerce

Dropshipping from China Cost Calculator — True Cost & Margin

Use our dropshipping from china cost calculator to calculate the true cost of dropshipping from China. Compare dropship vs hold inventory model for China-sourced products.

Updated: 2026-04-13

Planning Reference

Inputs Last Reviewed April 2026

Reference Basis

Based on current Amazon FBA fee schedules, published referral rates, and benchmark import cost assumptions.

Planning Note

Amazon fees change periodically. Verify current FBA rates in Seller Central before finalizing your cost model.

Primary opportunity

dropshipping from china cost calculator
Low SERP difficulty

Landed Cost Per Unit USD Your all-in cost per unit including duties, freight, and all fees.

Selling Price Per Unit USD

Quantity units

Platform / Channel Fees % Amazon: 8–17%. eBay: 12–14%. Shopify: 0–3% + payment fees.

The True Economics of Dropshipping

Dropshipping directly from Chinese factories or agents involves sending individual parcels via air freight (ePacket, YunExpress). While the upfront capital requirement is zero, the unit economics are terrible. You generally cannot compete on price with an Amazon FBA seller who imported the same item via ocean freight for $0.50 per unit in shipping costs.

Tips for China Importers

Calculate your total Amazon cost before importing. FBA referral fee + fulfillment fee + storage + PPC + returns typically absorbs 45–55% of your selling price. Build this into your landed cost model before placing an order.
Start with 300–500 units for launch. Launching with 2,000+ units before validating demand is one of the most common (and expensive) mistakes. Test velocity with a smaller shipment first.
Send FBA-ready cartons from China. Prep work (poly-bagging, labeling, bundling) done in China costs $0.05–0.20/unit. Done at an Amazon prep center in the US: $0.50–1.50/unit. Same work, 5–10× the cost.
Account for returns in your margin model. Amazon electronics return rates: 10–20%. Apparel: 20–30%. Toys/general: 5–10%. Factor your category's return rate into your per-unit profit calculation.
Track your IPI score to avoid storage surcharges. Amazon charges long-term storage fees on inventory over 365 days. Keep your Inventory Performance Index (IPI) above 400 to avoid storage limits and surcharges.