Affiliate Marketing vs Dropshipping
Are you stuck in deciding which is better for you in the battle of Affiliate Marketing vs Dropshipping . I have worked as an Dropshipping expert as well as an Affiliate Marketer , so I am an right person to provide you an unbiased Affiliate Marketing vs Dropshipping comparison .
My name is Parag Jajoo and I am an hustling Internet Marketer from India , Thanks for having trust on our site to get the honest comparison between Affiliate Marketing vs Dropshipping ,we respect your time and you will not need to visit any website for same question after reading this article .
Firstly we will discuss some basics about Affiliate Marketing vs Dropshipping . Starting with the Affiliate Marketing :
What is Affiliate Marketing ? Affiliate Marketing vs Dropshipping
Affiliate Marketing is one of the most authentic ways to make money online.
In simple words, you need to promote third party product & you make commisions in accordance with the amount of sales you make .
According to Big Commerce , Affiliate marketing is the process by which an affiliate earns a commission for marketing another person’s or company’s products. The affiliate simply searches for a product they enjoy, then promotes that product and earns a piece of the profit from each sale they make.
Supported by Shoutmeloud.com , Affiliate marketing is one of the oldest forms of digital marketing wherein you refer someone to any online product and when that person buys the product based on your recommendation, you receive a commission.
Now lets talk about Basics of Dropshipping ,
What is Dropshipping ? Affiliate Marketing vs Dropshipping
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock.
As per Wikipedia , Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers its customer’s orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer .
Cloudways also shares the same views , Dropshipping is a supply chain model in which a dropshipper can directly ship one product from wholeseller’s warehouse to the customer’s house without handling logistics and management. This lets dropshippers focus on the ‘actual’ business aspect of their business, i.e., growth and scalability .
Now as you are clear with what Affiliate Marketing & Dropshipping is there are also some similarities in between them . Lets talk about that ,
Similarities -Affiliate Marketing Vs Dropshipping
Similarities between Affiliate Marketing & Dropshipping are as follows –
- Both are profitable online businesses .
- Both require similar skill sets like the potential to create ads, drive traffic to a landing page and other marketing skills .
- Both are low risk business models .
- Both businesses can be done on a part time basis .
- Both businesses requires low startup cost .
Now lets move on to the Advantages & Disadvantages of Affiliate Marketing,
* Affiliate Marketing Advantages – Affiliate Marketing vs Dropshipping
Affiliate Marketing is totally an risk free business in which you have to promote third party product which means you just have to promote the product other things like customers support is totally handled by the vendor . Here are some of the amazing advantages of Affiliate Marketing –
- There is no cost for being an affiliate you can promote the product once you are approved by the vendor .
- It is an Excellent source of passive income , you can do affiliate marketing as an full time professional as well as an part time worker , it wholely depends on you .
- There is no customer support dependent on you it is wholely managed by the Vendor of the product .
Now lets move on to the humiliating part , Affiliate Marketing Disadvantages .
*Affiliate Marketing Disadvantages – Affiliate Marketing vs Dropshipping
Every coin has to two sides , its same for Affiliate Marketing .Following are some of the Affiliate Marketing Disadvantages –
- The amount of money you will generate depends on the commision fixed by the vendor for the product which you are promoting it varies from product to product it is not fixed .
- The commisions are sometimes delayed , so if you are a new affiliate then you will get delayed commisions .
- If you work as an affiliate, you are not a real business. You are just a referrer of business.
Here is everything comprised in the table below about the Advantages & Disadvantages of Affiliate Marketing .
|Serial Number||Advantages of Affiliate Marketing||Disadvantages of Affiliate Marketing|
|1||No Cost for Being an Affiliate .||You Only Make a Percentage of Every Sale .|
|2||Excellent Source of Passive Income .||Payments Can Be Delayed.|
|3||No Customer Support .||Convenience and Flexibility .|
|4||No Expertise Needed (because Practice Makes Perfect) .||Performance Based Income .|
|5||Low Investment Costs .||You Can’t Establish Your Customer Base .|
Now as you are clear with Advantages & Disadvantages of Affiliate Marketing lets talk about the Advantages & Disadvantages of Dropshipping , Starting with the praising part .
*Advantages of Dropshipping – Affiliate Marketing vs Dropshipping
Dropshipping allows anyone to sell products from suppliers on their own website. Here are some of the Advantages of Dropshipping as follows –
- With an online store, you get to set your own prices so you can decide by your own how much profit will you like to generate .
- In dropshipping you are on your way to build your own brand , you will have your own personal website , you also have the opportunity to establish a reputation and a brand to get repeat business.
- Retargeting of your customers can be done very easily so you can promote all your products to them .
- As Dropshipping is like runing an ecommerce store , it is little bit easy to scale . It grows with time, amazingly with the word of mouth .
- With an Dropshipping Business , you get to set your own prices unlike affiliate marketing, where all commissions are fixed .
- With an online store, whenever someone purchases your product or service, you’ll get the credit for it which leads to mouth publicity .
Now lets discuss the humilating part of Dropshipping ( i.e Disadvantages of Dropshipping )
*Disadvantages of Dropshipping – Affiliate Marketing vs Dropshipping
Like Affiliate Marketing , Dropshipping is not all side clean it also has some disadvantages as follow –
- It takes a lot of effort in the beginning of establishing an Ecom store for Dropshipping Business .
- The main downside of Dropshipping is that as you are the store owner, you’re responsible for customer support. Fortunately, you can easily outsource the customer support to someone who is an specialist in managing it from Upwork.com or Fiverr.com for an affordable price.
- As an Dropshipper you have less control over Shipping . You have the complete control over the type of products you can sale or keep in your store but you can’t manage shipping . This leads to complaints from customers as sometimes they recieve product at a delay or something they get defected items which can damage your reputation , it also leads to negative word of mouth .
- There is less profit in Dropshipping, if your online store is not completely optimized .You will likely pay more for each item you sell as compared to paying less for a large inventory of items which will lead to less profit .
- Being able to offer new products immediately or stop selling slow-moving products is a major benefit of dropshipping. The major drawback here is that you can’t control your supplier’s . If they run out of stock, you will run out of stock too .
- At present there is high competition in Dropshipping it is an competetive business model at present .
Here is everything comprised in the table below about the Advantages & Disadvantages of Dropshipping .
|Serial Number||Advantages of Dropshipping||Disadvantages of Dropshipping|
|1||More Opportunities to Earn .||Less Control over Shipping .|
|2||No Barrier to Entry .||Highly competitive .|
|3||Easy to Scale||You Need to Manage Customer Support|
|4||Dropshipping is a Low-Risk Business Model .||Difficult to build a brand|
|5||Dropshipping Allows You to Have High Margins .||No control over supply-chain .|
Now as we are clear details about the Advantages & Disadvantages of Affiliate Marketing & Dropshipping , now lets discuss the comparison between Affiliate Marketing & Dropshipping .
* Comparison – Affiliate Marketing vs Dropshipping
In the beggining Affiliate Marketing is little bit easy to start and setup as compared to Dropshipping as there is no need to setup any online store , you just have to figure out your marketing strategies and start promoting it.
In a Dropshipping website, you will have to actively monitor the store and order products through suppliers all this will require time , efforts and energy .
Whereas in 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 and you will start making money .
For one thing, the amount of profit that you can make Dropshipping will be much higher than the money made by you just as an Affiliate. With an online store, you get to set your own prices unlike Affiliate Marketing, where all commissions are fixed .
When you act as an affiliate, you are not a real business. You are just a referrer of business, whereas in case of Dropshipping you sell the product through your own online store and if your product or service is good , the customer will promote you by the ‘word of mouth‘ publicity .
When it comes to making money Dropshipping has higher potential than Affiliate Marketing . But , In the battle of Affiliate Marketing vs Dropshipping when it comes to making money it solely depends on how much efforts you take while working on them .
Opening an online store takes more effort and it takes a lot of efforts in the beginning , it is also less “passive” but the difference is that you are building a true business, one that will naturally grow as your reputation spreads with the ‘word of mouth‘ marketing strategy .
When it comes to Customer Support work , In the battle of Affiliate Marketing vs Dropshipping ,There is no headache of handling the customer care for the product in Affiliate Marketing , whereas in Dropshipping you are in-charge of handling all the customer support for the product .
In Affiliate Marketing you might some times get delayed payments if you are a new affiliate its not the case with Dropshipping you get payment on time in this .
Whenever you make a sale as an affiliate, it’s a one time transaction. That’s pretty much the only sale you are going to make from that customer, whereas in Dropshipping you can easily retarget them to sell all of your products which leads to an long term business .
With Dropshipping , whenever someone gets excited about your product or service, you’ll get the credit for it. Whereas someone asks for a referral, the vendor will be the one referred.
Dropshipping is ideal for people who want to start a company selling physical products. It will require more work and capital to put off as compared to affiliate marketing .
On the basis of Ease of Use, In this battle of Affiliate Marketing vs Dropshipping , Affiliate Marketing will always win the battle . It is more convenient for everyone looking make money online oppurtunity .
When it comes to control over the business , In the battle of Affiliate Marketing vs Dropshipping , Dropshipping wins the battle . But yes you rely on supply chain .
*Conclusion – Affiliate Marketing vs Dropshipping
Both Dropshipping & Affiliate Marketing are great business models to try out at some point.
From the beginning of this battle of Affiliate Marketing vs Dropshipping we were trying to figure whether to go for Affiliate Marketing or Dropshipping but you can work on both simultaneously .
My personal call for you will be, If you want to start both Affiliate Marketing & Dropshipping at the same time, simply start a review niche website and add affiliate links in the reviews. After you are done with setting up the website add a ‘Store’ section to your website and fill that store section with dropshipping products which you want to sell .
Promote these products on social media and search engines , you can also promote them through paid ads . This will help you run both the businesses at the same time and maximize your earnings.
If you have came this far I urge you to share this article with people who are confused in between Affiliate Marketing vs Dropshipping it will be helpful for them to overcome the confusion .
Thanks for reading our Affiliate Marketing vs Dropshipping Article on Lala Review .