Drop Shipping vs. Affiliate Marketing – Which is Better?

Affiliate marketing and drop shipping are some of the top ways you can earn money online. If you are new to the digital marketing world, you may be confused by these terms and even not be sure which you should consider. So, what is the difference between dropshipping and affiliate marketing? There is a need to understand the pros and cons of each of these passive income models to determine which is perfect for you.

The truth is that both these methods require a lot of hard work. It is unfortunate that most people get online thinking they can become rich within a few months. That is a common mistake. It does not matter whether you are in affiliate marketing, dropshipping, or other online business, consistent effort is required to take your business to another level.

What is Dropshipping?

Dropshipping can be defined as an e-commerce business model where you do not keep the products. In this case, you pass the orders to suppliers who ship it to customers. Thus, you earn money through arbitrage.

Benefits of Dropshipping

Easy to Start

Ideally, you can start the business with nearly no investment at all. The truth is that it is a lucrative venture that offers you rights over different products. In most cases, what a drop shipper needs are hosting and domain and a WordPress website with dropshipping enabled.

Several Opportunities to Earn

The reason a lot of people venture is that with affiliate marketing, they only get fixed commissions on the products they can sell. However, with intelligent advertising platforms, they can target every buyer who needs their products and pay only when they get the product. That is even after covering the costs of hosting, customer service, and advertisements. In fact, you can get a higher commission as compared to affiliate marketing.

Cons of Dropshipping

Like any other business, dropshipping has disadvantages. First, you need to provide customer support. For instance, whenever customers place orders, you ought to keep them in the loop by updating them about the time of delivery. Also, you have minimal control over shipping. That explains why some of the products may get delivered late.

Affiliate Marketing

Affiliate marketing can be defined as a business model where you promote offers of another business, and you earn a commission when referrals purchase the offers. When you compare it with dropshipping, you do not have to provide customer support or handle orders. Ideally, you only need to earn and promote.

Benefits of Affiliate Marketing

The good thing about affiliate marketing is that it is free to enter. In fact, prominent ecommerce stores are free to join. If you are interested, you can join to promote their products and earn a commission. Your only cost is to purchase domain and hosting.

The main disadvantage of affiliate marketing is that it is commission-based. That is because you are paid in commissions.