Dropshipping and affiliate marketing are two widely-used online business models that have their advantages and disadvantages. So which one should you choose? Here’s what you need to know about dropshipping vs affiliate marketing to decide which model works best for your business.
What is affiliate marketing
In affiliate marketing, you earn a commission on sales from your recommendations. If a visitor buys a product through your link, you receive an affiliate commission based on that sale. The beauty of affiliate marketing is that you don’t have to stock or ship any products yourself.
What are dropshippers
The terms dropship and drop shipping have become popular buzzwords used by e-commerce merchants. But what exactly are dropshippers, where did they come from, and how do they work? If you find yourself scratching your head at these questions, don’t worry. With a little clarification, you can understand what dropshippers are, how to use them in your business, and if you should be using them at all.
Benefits of dropshipping
The biggest benefit of dropshipping (in most cases) is a lower barrier to entry. Because dropship companies do all of your fulfillment, you don’t need to worry about stocking inventory, managing shipments, or filling customer orders. Instead, all you have to do is focus on marketing your store—building brand awareness with Pinterest pins, Facebook ads, sponsored content on niche blogs, etc.
Advantages of affiliate marketing
An affiliate program can help you sell a product without worrying about overhead costs or inventory. It’s a good option if you have less capital to work with, want to keep your inventory costs low, or simply enjoy more freedom in how you run your business.
Disadvantages of affiliate marketing
There are some disadvantages to affiliate marketing, however. The main disadvantage of affiliate marketing comes from dealing with so many different companies. Depending on your niche, you might be required to work with dozens of different vendors. This can be overwhelming when first starting out.
Things to consider before starting a business
If you’re thinking about starting your own business, there are a few things to consider. The main thing you need to know before you start a new business (regardless of type) is whether or not there’s a market need. If people aren’t willing to pay for it, your business won’t succeed. What kind of market research should I do? What questions should I ask? Is my idea unique enough to get people excited about it?
Examples of successful businesses on each platform
The following sites are some of my favorites that you can learn from. Visit each site, sign up for their newsletter, connect with them on social media. As a business owner you can either focus on dropshipping or affiliate marketing, but both have a lot to offer. Both platforms will teach you how to start a business online so check out these recommended resources.