Why is Drop Shipping Business Better Than Affiliate Marketing?
There are currently two popular ways one can start making money online- there’s affiliate marketing, and there’s the dropshipping business.
Entrepreneurs can choose if they want to have complete control over the product they’re selling, or if they want some kind of control and focus on the ways they market the product to their audiences. Let’s take a look at what affiliate marketing and online store dropshipping is all about, and see why the dropshipping business is better than affiliate marketing.
The Basics of Dropshipping
In simple terms, dropshipping is when you run an online e-commerce shop without having the actual goods with you. Entrepreneurs set up online shops, or a virtual storefront and open it up to interested buyers.
You won’t have to do the work of packing the product and having it shipped off when a customer buys; instead, all you need to do is to place a similar wholesale order with the involved distributor and have the goods shipped directly to the customer.
In terms of profit, what you gain is the amount minus the overall price of the goods obtained with the manufacturer. Dropshipping is like running an e-shop without the hassles of managing inventory or following up with the merchandise fulfillment. The only thing you have to do is to market the product and take care of aftersales support, if any.
The Basics of Affiliate Marketing
Affiliate marketing is the practice of marketing a particular product to a target audience. If successful, you can have your visitor purchase the goods at the business website. A successful sale leads to a percentage of the commission. All you need is an engaging website that will serve as a referral and marketing engine. You won’t need to sell or take care of anything else for that matter.
The affiliate business will be responsible for paying your commission when a referral is completed. A tracing cookie is installed on the buyer’s computer whenever they click the link at the end of the marketing pitch. The business will then see that the sale came from your website, and will pay you out on a monthly basis. Check here Our blog post about Affiliate Marketing For Beginners
Similarities Between Dropshipping and Affiliate Marketing
These two online business ventures will allow you to start selling products without having to ship the goods or stock them as physical inventory. This is the key to what makes them appealing; they’re both low-risk ventures anyone can get into! Moreover, each business model has the potential to earn big money, and you only need a website to get started.
Digging in, you’ll need to brush up on and learn about the latest online marketing strategies. The more important things to focus on is the ability to drive traffic to your landing page, crafting compelling and engaging content, and having a sales funnel to ensure the curious visitor will have the chance to become a customer.
Why You Should Choose Dropshipping Business
Let’s take a look at why drop shipping is better model than affiliate marketing.
We mentioned that both affiliate marketing and dropshipping have low entry costs, but the dropshipping business has an even lower risk than affiliate marketing in many aspects. Drop shipping won’t require you to stock up on goods or manually ship them to the buying customer.
What makes drop shipping better than the affiliate model is that the funds are renewed each week, as compared to affiliate marketing that may require you to reach a certain quota or meet certain requirements before it gets paid out to your bank account. There are some restrictions as well- for example, you can only receive Amazon gift checks or gift cards if you happen to be living outside the U.S. Most affiliate businesses pay out only when you reach $100 in sales, but drop shipping puts some money into your bank each week, no matter how much or how little you’ve made.
One unique advantage that drop shipping has is that it allows you to get higher margins. The main difference between the two models happens to be the deal breaker if you’re having trouble deciding. Having a higher margin means you get to earn much, much more with dropshipping than affiliate marketing. The commissions alone are significantly higher in the dropshipping business than most affiliate models.
Let’s put this in perspective. Say you’re a dropshipping for AliExpress. You choose a product that sells for $5, and list the price on your storefront for $30. When a customer buys that product, you earn $25 after all the marketing expenses. Affiliate marketing takes off percentages in the total product price. When you add in marketing expenses and other factors, the profit will be much lower.
Then, there’s the brand perspective. While dropshipping goods under your e-commerce name, you are building up your own brand. You are the master of your own e-shop website. Plus, you get to control other important marketing aspects such as investing in traffic, in ads and in other sales techniques.
You will have the option to sell off your built-up brand if you decide to move on to another niche. You will have a hand in the optimization of your website, your product copy, the landing pages, and more. If you find an especially effective marketing tactic, you will have free rein to use them in a dropshipping business.
Dropshipping Advantages in a Nutshell
– You can set the price of certain goods.
– Dropshippers earn more money over affiliate marketers.
– You will have a better chance of creating a successful ad campaign that’s far more long-lasting than affiliate marketing ads.
– Affiliates will be the one to send traffic to your virtual store.
– Customers are more likely to return and try other goods if they are satisfied with their purchase.
– The low cost of goods allow you greater financial flexibility.
– The workload is lighter than affiliate marketing.
– You can check reviews and demand in order to determine whether a merchandise is likely to sell or not.
Ready To Start Your Dropshipping Business?
Venturing online via dropshipping is easier than ever. You can CLICK HERE to get started. The advantages that the dropshipping business has over affiliate marketing is decidedly better if you’re looking to start making huge profits off the web. Don’t limit yourself with small commissions- the virtual world can be yours with a well-made e-commerce shop, complete with your own list of goods that you priced yourself!
December 11, 2018