Let’s discuss what is affiliate marketing and what is drop shipping business – and why you should choose one over another!
✎Please note that today, we are going to view the affiliate marketing as a product affiliate marketing only – by this, I mean promoting goods from Amazon and AliExpress on the Internet and getting paid for that.
✌Both AliExpress and Amazon have their affiliate programs. If you join any of them, the merchant manages the inventory and ships the products.
You promote the products, but you don’t set the prices and only receive a commission after someone buys a product following your affiliate link. This link contains your affiliate code and helps to track your sales. In a nutshell, you get paid for selling other people’s products.
👀What is drop shipping? It is a way of selling other people’s products as well. The merchant still handles inventory and shipping. The difference is that you can set prices yourself and get higher profit margins. In short, you buy stuff from your vendor and resell it to your clients, but contrary to the traditional e-commerce, you don’t store your products.
👉Check out this video to learn more about this business model: https://www.youtube.com/watch?v=-l3NERZwzvA&t
💰Both of these methods allow you to start earning online without holding inventory and enable an easier business launch in comparison to other models.
😟The main problem with affiliate marketing is quite a low profit. Furthermore, it’s better to check out the terms and regulations of Affiliate program as there might be lots of restrictions and pitfalls. As for dropshipping, its’ biggest challenge is customer acquisition.
👈👉Which way to go? See what is important before making your decision and make the first step! When you take part in someone else’s affiliate or monetization program, you accept their requirements.
At the same time, when you do drop shipping, you fully own your venture. Affiliate programs won’t give you as much freedom as drop shipping store can. That’s why I personally prefer dropshipping.