Affiliate Marketing vs drop shipping
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Is Affiliate Marketing Better Than Dropshipping?

Using Affiliate Marketers and Drop shippers suppliers is a much better way for small businesses to earn extra income. But which one is the best? Is affiliate marketing better than dropshipping?

According to Oberlo, there are similarities between affiliate marketing and dropshipping but first, let’s find out the terms and how they work.

What is Affiliate Marketing

Understanding the business model of Affiliate Marketing is quite essential, which works well. It means that as an affiliate marketer, you get to write reviews or informational posts to promote your favourite product that someone else has made. For example, a reader will read your article because they are interested in your opinion or hoping to solve an issue, They will hopefully click through and buy the product from you, and you make a sale. Once the sale is completed, the supplier will ship the product to your customer, and you will earn a commission.

How Affiliate Marketing works

The affiliate marketing business cycle below shows that earning passive income seems relatively straightforward.

Affiliate Marketing model

Affiliate Marketing Business Cycle

The Benefits of Affiliate Marketing

Affiliate Marketing what I like most about it is writing about my experience and knowledge of my favourite product. There are other benefits such as

  • Not having to design, creating or making products to sell
  • You don’t have to count stock or keep an inventory of products
  • Working from 9 to 5 instead, you can work your own hours
  • Getting told which products to promote, instead, you can get to choose
  • No upfront cash for your investment, you will need some money to get you started, and it’s not huge
  • Don’t have to rent a storage site for the products
  • Low Risk

 Instead, you get paid commission on sales you make

Disadvantages of Affiliate Marketing

Getting established in affiliate marketing takes time and patience. However, not everyone will be successful once you have decided on what product or service you want to promote through your writing; your next step will be to find an affiliate program. 

There are some drawbacks to doing affiliate marketing that I’ve found that can prevent you from moving forward.

  • Time, yes time. Setting aside even one hour a day can make all the difference to your business
  • Patience is not everyone’s cup of tea. You have to learn to be patient when you first start even if you are not making any money, you need to have faith that it will happen
  • You may not have chosen your ideal product or service 
  • Not all affiliate programs will support you until you have at least 20 articles published online for them to peruse

Pros & Cons of Affiliate Marketing

How do you Get Started with Affiliate Marketing?

  1. You need a plan
  2. Internet access
  3. Computer, iPad or mobile phone
  4. Find a platform such as Wealthy Affiliate (who will teach you everything)

What is Drop Shipping

The great idea behind the dropshipping system is order fulfilment. Whereby you don’t have to store the products that you sell. Ideally, your store will purchase the item from another supplier and organise it to be shipped to the client. You, as the seller, do not have to handle the product directly. But you are responsible for keeping your customers happy.

Dropshipping Business Model

Dropshipping business model

Is Starting a Drop Shipping Business a Sound Option for You?

Many believe drop shipping to be an excellent opportunity with a great business model that would be ideal for your e-commerce store. 

You don’t have to deal with the products, physically and you don’t have to be concerned with

  • Warehouse management and payments
  • Packaging products
  • Shipping products
  • Inventory
  • Dealing with returned items 
  • Ordering products or managing stock levels

The Benefits of Dropshipping

There are several benefits of establishing a dropshipping business. You can:

  • Choose from thousands of products to sell through your e-commerce store
  • Sell products without having to handle them yourself
  • Build a successful business on a minimal budget
  • No upfront investment on stock
  • You will not be sitting on hundreds or thousands of dollars of stock in your store or at home
  • Run your business from home, which means low overheads
  • You have the flexibility to run your business from anywhere in the world.
  • If you have access connection to the internet to communicate with your customers and the suppliers
  • No need to buy the products upfront

The Downside of Dropshipping

Like anything in business, dropshipping also has its disadvantages, which can also damage your reputation:

  • Low margins due to price competition in your niche, which could be highly competitive
  • Sourcing your products from many warehouses is not as simple as it can change today. If a product is not available, you need to say it’s not available. However, the tip is to choose a niche suited to drop shipping.
  • Shipping charges can differ between suppliers
  • Mistakes can be made from the customer to the supplier
  • Items can go missing
  • Packaging can be of low quality
  • “Botched shipments”

Pros & Cons of Dropshipping

Pros and cons of drop shipping

Establishing your Dropshipping business: What You Need To Do to get started

If you believe drop shipping is for you, you must do your business plan. Take your time and allocate some hours to develop a sound strategy

  • Plan
  • Research the best products
  • Choose the right niche that will work for you
  • Check out suppliers; after all, you will be working with them

Building Your Successful Drop Shipping Business

The most successful common approach for your dropshipping business is to 

  • Organise a professional logo for your business and an icon to use on your website.
  • Find a domain and hosting service such as Wealthy Affiliate; they provide their members with lots of tutorials, webinars, and community assistance to help your get started in reaching out to your customers more easily and quickly.
  • Then, choose an online service, such as WordPress. However, Shopify may help you get started much quicker.

Niche Ideas For Your Drop Shipping Business

So, you like the idea of drop shipping, but you are not sure what to sell. Below are some ideas, and there are plenty of others:

  • Pet accessories
  • Accessories for technology: mouse, external drives
  • Wireless accessories: headphones, speakers
  • Smartwatches
  • Sportswear
  • Printed T-Shirts
  • Gardening Accessories

It’s essential to research your niche idea; you can explore it through Google Trend. 

Provide an example of Google Trend research on a niche product.

Who are Your Dropshipping Suppliers?

Your business will benefit more once you find a good supplier that can

  • Dropship your products directly to your customers
  • Add your brand on the package before posting or delivering to the customers’ address

Some reliable dropshipping suppliers include:

  • AliExpress
  • Shopify

Comparison Between How Affiliate Marketing and Drop Shipping Work

Comparison table between Affiliate Marketing and Dropshipping.

Similarities and Differences of Affiliate Marketing and Dropshipping

Comparison Table on similarities and differences between affiliate marketing and drop shipping.

Conclusion

Whether you agree or disagree as to which one is better, the end deciding factor is yours. As for myself, I chose Affiliate Marketing because I have more control over how I market my niche. In addition, I don’t have to deal with customers; I deal with them all day where I work, which is one way to earn extra passive income without the stress. 

Also, I get to write my opinion about my niche topics, pointing out the negatives and the positives of why I like my niche, helping others solve a problem and providing additional information.

References

Dropshipping vs Affiliate Marketing

Shopify Market

The Definitive Guide to Dropshipping with Aliexpress

The Ultimate Guide to Affiliate Marketing A Legit Home Based Business

Is Affiliate Marketing Still A Popular Way to Earn Income

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