In response to a recent inquiry, I was compelled to write a piece about the differences between dropshipping and affiliate marketing.

One of the most popular videos on the Dropshipping Lifestyle Channel on YouTube is on dropshipping on Amazon, which has received a lot of positive feedback.

And because of this, I want to share with you what is my thought about this topic:

So, what is Affiliate Marketing and how does it work?

Consider the following example: I published a review for just a specific pen and mentioned how the pen is what I use all day to write. This is a simple way to convey what I mean.

“Hey, by the way, here’s a link for you all to go then buy that pen!” I’d remark at the end of the assessment, after sharing a link with the reader.

Similar to drop shipping, affiliate marketing entails promoting other’s products on your website. One of the major advantages of affiliate marketing, and one of the main reasons why people are drawn to it, is that you do not have to deal with customer service or order fulfillment.

Taking Orders as An Affiliate Marketer

Because you are only providing referrals for visitors to visit someone else’s internet store, you will not be taking orders yourself. You will not be required to charge the credit card, and their money will not be sent straight into your bank account as well. A potential consumer calling you and stating, “Hey, my card is not functioning” is no longer a problem for you. That does not occur because affiliate marketing does not include the processing of orders, leaving it one of the most significant advantages.

Customer Support as An Affiliate Marketer

Another significant advantage of affiliate marketing is that you will not be responsible for customer service. If I send somebody to a retailer’s site for them to purchase the pen, then they will purchase the pen. This is not my responsibility if the package arrives at their residence with the ink having erupted during transportation.

The consumer would not call me to get a replacement pen for the one that burst on him. Instead, they will contact the corporation and inform them that “the ink exploded”, “I’m looking for a new pen.” Not having to deal with customer service is a significant advantage in affiliate marketing.

Let’s imagine you are pushing something extremely technological that you don’t know everything about, something that is quite specialized…

In this case, having an affiliate network could be extremely advantageous for individuals interested in affiliate marketing.

It may be a new form of technological device or something along those lines. If you advertise it through an affiliate program, answering these queries or dealing with intricate customer service issues is not something you have to worry about.

It is possible that not having to deal with customer service will be a major advantage if you market or produce things in a niche like that.

Making Money as An Affiliate Marketer

In order to generate money as an affiliate, you must first push a sale made by your audience to receive a commission or to be compensated.

Here’s a brief refresher about what affiliate advertising is before we get into what dropshipping is all about:

  • Promote the products of other people
  • Orders are not processed by you
  • You are not in charge of customer service
  • You are compensated based on sales or conversions

So, what is Dropshipping and how does it work?

Those unfamiliar with the term “dropshipping” should realize that it refers to the marketing of the product in which products are not kept in stock.

Instead of warehousing your inventory, you partner with such a dropshipping provider who does it on your behalf.

Customers’ orders and shipment information are transferred to the suppliers, who then send the order straight to the client.

There are certain similarities and distinctions between dropshipping and affiliate marketing, as well as between the two. Let’s have a look at them:

Processing Orders in Dropshipping

First and foremost, you are still advertising or selling other people’s products, which is understandable.

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Let’s take the pen as an example once more.

I would still be advertising someone else’s pen, but it would be through my store rather than their website.

That implies I would have to process orders, customers would enter their credit card details into my website, and I would also have to deal with customer care issues.

Customer Service in Dropshipping

If somebody has a query before ordering this pen, or someone received defective goods, they would come to the dropshipping firm for assistance and assistance would be provided.

Making Money in Dropshipping

Making money using dropshipping entails earning a profit on each sale you complete, which means, if someone purchases a ballpen from you for $3 and it costs you $1 to fulfill the transaction, you should be able to earn two dollars. But then, I have to figure in my expenses – which include things like hosting, advertising or marketing expenses for traffic, and outsourced customer support.

Dropshipping does not provide you with a guaranteed quantity of money to make. Ultimately, how you price the products and manage your expenses is what determines your success.

The amount of money you make through dropshipping may fluctuate greatly, but this means that you will have greater control.

Instead of earning a 10 percent fee on every affiliate sale, you may earn much more based on how you monetize your website, how many sales you make, and how many clients you have.

To summarize, keep in mind that drop shipping is defined as follows: You promote other people’s products.

  • You are in charge of processing orders
  • You’re in charge of customer service
  • Profits are generated from each sale

Dropshipping vs. Affiliate marketing: Which is better?

To illustrate the distinctions between dropshipping and affiliate marketing, let’s look at an example that I always use since I believe it will help to highlight the contrasts between both. The funny thing is that I’ve been mentioning the paddleboard example almost continuously since I began Drop Ship Lifestyles in 2013!

Consider the following scenario: you’ve decided to create a YouTube video regarding paddle boarding. You’ve received a large number of views, and now you’re thinking, “What a great product. I want people to buy the paddleboards from us. I’m looking to earn some money out of this.”

So you’ll begin to establish an audience that is interested in paddleboards at that point. You may now compare and contrast these two alternatives.

It is possible to make a 10% commission on each sale if you advertise anyone as an affiliate, which means you refer your traffic or audience to someone else’s store. So, if a paddleboard costs $1,000, you would earn $100 for each time someone utilized your link to purchase a paddleboard of his or her own.

In contrast, when it comes to dropshipping some paddleboards, these statistics can differ as well. However, if you set up your business effectively, you may intend to achieve a net profit of approximately 25% on each sale. This implies that instead of sending someone to the website you recommend them to, you direct them to your website to purchase the $1,000 paddleboard you are offering. As a result, instead of earning $100, you may make a net profit of $250.

At this point, a lot of individuals are undoubtedly wondering whether or not this is worthwhile to have a firm that is “hands-off” in exchange for 15 percent of possible profit. When I say “hands-off,” most people assume that I am referring to the fact that you will be not processing orders or providing customer care. And I  don’t want you to hold that view since the matter is far more complicated than that. It’s not quite that straightforward.

Conclusion

There is no better than the other because if you would ask me, it ultimately just depends on what is much more convenient to you.

For example, if you are willing to cater to the customer support aspect of your business or not, you would know what is best for you.

For me, no. I’ve done that and it’s very frustrating over time especially when customers are freaks. Unless you can find someone that can do this for you effectively then you’re good to go. And I never want to deal with customer support or anything about payroll or so, which is why I am sticking on affiliate marketing or monetizing my websites based on as little to no manpower and no customer interaction.

However, when you are determined and dedicated to succeed with dropshipper mindset, there is really a possibility to expand beyond the limits of what affiliate programs can only offer for marketers. Actually, with having your own brand as a business, the sky’s the limit especially if you are a person with high hopes in managing expanded businesses.

Dropshipping vs Affiliate Marketing: Which is the best for you, related video:

Dropshipping vs. Affiliate Marketin...
Dropshipping vs. Affiliate Marketing: Which is the best for you?