Dropshipping Vs Affiliate Marketing 2020
Is dropshipping better than affiliate marketing?
The truth is that this is like comparing apples to oranges.
They are both very different business models with their own unique pros and cons.
‘Dropshipping vs Affiliate Marketing’- These are the two most popular ways to earn money online. However, selecting one for your e-commerce business can be quite daunting.
In this quick post, you’ll understand the pros and cons of both Dropshipping and Affiliate Marketing.
I’m going to give you my honest opinion and data-driven answers to determine what’s better: dropshipping versus affiliate marketing.
Dropshipping vs Affiliate Marketing: What is Dropshipping?
Drop shipping is the process of getting deliveries from suppliers straight to the company, instead of having suppliers send your company the products before you to send them to your customers
Dropshipping is a business model that has received a lot of attention and flack over the recent few years.
It involves outsourcing the production and manufacturing of products to a wholesaler. They handle creating the products and shipping them to customers.
Your job is to simply drive traffic and generate sales. You would then send the customer information to the wholesaler so they can fulfill the order.
Dropshipping vs Affiliate Marketing: The benefits of Dropshipping
1. No physical presence required:
The greatest advantage that dropshipping offers is that there is no need to set up a brick and mortar store. You can create your own virtual shop and that’d be all the investment required for starting up your business.
2. Lower risk:
Dropshipping involves negligible risk. If you selected a niche for your store and it doesn’t work, all you need to do is find a better goods for you.
You are not buying and storing the products in bulk. Therefore, there would be no inventory loss to consider even if things go haywire for your new establishment.
3. Products diversification:
Dropshipping offers you diversity in products. You will not stick to a single product or a few products. It is possible to sell a variety of products that work well for you and extend your business anytime with Woodropship.
Dropshipping saves your cost as well as your time. It is the most suitable form of business for those who have less time or funds to invest.
Dropshipping allows you to experiment. If you feel that a particular product will work for you, all you need to do is to display it on your dropshipping store.
Dropshipping vs Affiliate Marketing: Disadvantages of Dropshipping
Sudden stock shortages are one of the most common problems sellers have with drop shippers. If customers suddenly rush for a particular product, the drop shipper may sell out, leaving you in a situation where you have orders to fill but no products.
2.Increased Customer Service Issues
Although drop shipping saves your company time by removing the responsibility of shipping, it also takes a big part of the customer experience out of your control. Unless you know when your product is being shipped out, the tracking information, and the arrival time, there’s no way for you to guarantee that a product has arrived as described and on-time. Additionally, when a customer calls you to complain or ask questions about their shipments, the resolution process is much slower as you do not often have the necessary information on hand.
3.Higher Fulfillment Costs
The drop shipping process requires that you pay the real cost of stocking, picking, packing, and shipping, as well as a large mark-up. This means that drop shipping costs rise as your sales grow. However, if you stock merchandise yourself, you have more control over these costs.Dropshipping Vs Affiliate Marketing 2020
Dropshipping vs Affiliate Marketing: How profitable is Dropshipping?
The biggest factor that plays into the earning potential of a dropshipping business is the niche.
Sure, you can sell 1,000 kitty mugs with $5 profit margins every month or you could sell 100 products with $50 margins.
What do you think is better? The answer is obvious.
Dropshipping can be insanely profitable at both small and large scales.
Here’s a recent case study on someone taking a Shopify store from $0-100k in 25 days to prove my point:
Dropshipping vs Affiliate Marketing: What is Affiliate Marketing?
In simple words, Affiliate marketing is the type of marketing where you get paid for selling other people’s products. Let’s just say, if the seller earns a customer from your marketing skills, they will pay a fixed amount to you.
It is performance-based marketing in which you are paid a fair amount by the business owner after the sale goes through from your own unique affiliate link. If you’re a marketing person, affiliate marketing may be of interest to you.
Dropshipping vs Affiliate Marketing: Why Affiliate Marketing is not the right choice for you?
1. More competition:
People consider affiliate marketing to be an easy way to make money. Therefore, it involves a lot of competition. There are many people who follow this path to make quick bucks increasing the list of competitors.
2. Slower growing Time Taking:
In affiliate marketing, there are not many chances for growth. It is not a well-established business that you can expect to grow with time. Thereby, you should be looking for other options which I’ll be discussing in the later section of this post.
3.Own Business – Sole Proprietorship
As an affiliate partner, you usually work as a freelancer and have to establish your business activity. The best part of it are the costs, such as laptops and mobile phones, which can be claimed as tax write-offs.
Dropshipping Vs Affiliate Marketing 2020
4. Commission Is low:
The commission on each sale is very low. So, you need a lot of targeted traffic to earn enough amount. If you’re a beginner with low traffic, Affiliate is not the right path for you.
Dropshipping vs Affiliate Marketing: Disadvantages of Affiliate Marketing
1. You Don’t Control Your Competition
Competition varies depending on the industry. As there are strong benefits of joining affiliate business, such as low costs of investments, high-profit opportunities and no expertise needed, a lot of people try their hand at affiliate marketing. Practically anyone can join and be successful.
2. Freelance Jobs are not for Everyone
It takes a particular personality to feel comfortable with such a working style. In some circumstances, it can result in feeling blue like loneliness or stagnation. But there are ways to minimize and overcome such a mental condition.Just don’t close yourself away from people at your home. Find your working space somewhere outside and go there every day.
3. Quantity Approach
Affiliate marketing is sometimes associated with spammy marketing campaigns, and there is some truth to that Some short sighted affiliate marketers produce spammy and misleading content everywhere and expect quick and small wins.
Beware, once you step into black hat affiliate marketing methods and false advertising, your days are numbered.By entering this shady path, you’ll eventually lose the credibility, and even worse, you’ll put your merchant’s reputation at risk.
Dropshipping vs Affiliate Marketing: Both are Good as per your Need 🙂
By now, you might already know which is the most profitable path for your business in this Dropshipping vs Affiliate Marketing debate. Though, affiliate marketing is quite an easy method to earn money, setting up a dropshipping store will be far more beneficial in the long run.
Dropshipping vs Affiliate Marketing: In a nutshell
Dropshipping and Affiliate Marketing, both are great choices to make more money in lesser time. However, if you must choose, Dropshipping is the right way to go. This trending business platform is here to stay and you’ll benefit from it with lesser investments.
When should you start your own dropshipping business? The earlier, the better.