Dropshipping vs. Affiliate Marketing, Which One to Choose?
Honestly speaking, both dropshipping and affiliate marketing requires hard work to start. Most people enter online marketing, thinking that they can easily get rich by making the website and streams of income will start popping out in no time. That is a grave mistake. Whether it is drop shipping business, affiliate marketing, or any other online business, it requires consistent effort to grow the business.
Both of these uses multiple online dropship & wholesale directories for eCommerce, eBay & Amazon sellers like Salehoo. See here to know what is Salehoo exactly?
Advantages of Dropshipping
Dropshipping is an eCommerce business model that you can start with almost no investment. It is a lucrative business model that grants the owner complete rights over the type of products he wants to sell and the ways in which he wants to sell them. In fact, most of the time, the only things a dropshipper will need are domain and hosting.
Disadvantages of Dropshipping
As dropshipping is an eCommerce store, so whenever a customer orders a product, provide the customer support, and keep them in a loop by briefing them about the order ID and timing of delivery. You can also automate this process by hiring a virtual assistant on freelancing websites.
Advantages of Affiliate Marketing
Every prominent e-commerce store has an affiliate program that is free to join. Interested people can sign up and join the affiliate program to promote links of the merchants. It is free. The only cost an affiliate marketer has to pay is of domain and hosting.
Disadvantages of Affiliate Marketing
The biggest disadvantage of affiliate marketing is that you are paid in commissions. This means, even if you spend more money on bringing visitors to the store through your affiliate link, you will still be paid a fixed commission – which can be lower than the amount you actually spent.
The price of the commission is fixed, and you can’t do anything about it.
Which Is More Profitable: Dropshipping or Affiliate Marketing?
While affiliate marketing is great for starters who don’t want to mingle with customer support, I believe dropshipping is a much more lucrative option. Running an online dropshipping store can make you more money than an affiliate marketing website. You can easily market your products through Facebook Ads and Google Ads. Further, if your store is providing great quality of products, you will soon start to get a consistent stream of orders.
Moreover, a dropshipping store can also be turned into a passive business by hiring freelance staff for marketing and management activities of the e-commerce dropshipping store.
Increasing Earnings with Dropshipping vs. Affiliate Marketing
In comparison with Dropshipping, affiliate marketing is a lot easier to start and manage. In a dropshipping website, you will have to actively monitor the store and order products through suppliers. All this requires time. But on an affiliate website, you don’t have to actually do any of this because you get a commission by letting people buy through your link. That’s it.
So, if you want to start both at the same time, simply start a review website and add affiliate links in the reviews. Add a ‘Store’ section to your website and fill that store section with dropshipping products. Promote these products on social media and search engines. This will help you run both the businesses at the same time and maximize earnings.