I decided to write a piece regarding dropshipping vs. affiliate marketing in response to a recent query. One of the most popular videos on our Drop Ship Lifestyle YouTube channel is Amazon dropshipping. However, the query states, “Thanks dude, I am new to internet marketing.”
I’m trying to learn, and I’ve wondered why not just evaluate a product, establish a direct link with a manufacturer, and receive a 10% fee. So, let’s compare affiliate marketing versus drop shipping and why you should prefer one over the other.
Therefore, before you look for automated Amazon dropshipping, let’s know more about this issue.
What Exactly Is Affiliate Marketing?
Take, for example, how I published a review for a specific pen and mentioned how that pen is what I write with all day.
Then, towards the conclusion of the review, I’d post a link and say something like, “Hey, by the way, here’s a link for you to go and purchase that pen!” Thus, in this case, Chilcote is essentially talking to an affiliate marketing connection.
What Exactly Is Dropshipping?
When you’re not familiar with dropshipping and dropship bundles pricing, it’s a retail approach where you don’t maintain things in stock. Rather than storage, you collaborate with a dropshipping supplier who inventories its goods. You send them client orders and shipment data.
Thus, they ship the order straight to the customer. A graph to help you comprehend the dropshipping business model is shown below.
To begin with, you are still marketing other people’s items. Let’s go back to the pen example. I’d still be pushing someone else’s pen, but this time through my store.
That means I’d process orders. Customers would enter their credit card information on my website. And I’d have to manage customer care.
If someone has a query before ordering this pen or received defective goods, they would contact our dropshipping business for assistance.
Trying to make money with dropshipping entails earning a profit on each transaction. Someone buys the pen from me for three dollars, and I have to pay a dollar to execute the transaction.
I make two dollars, right? But then there are the costs of hosting, sponsored traffic, and outsourced customer support to consider. However, you do not know how much money you will make via dropshipping.
It all boils down to how you price your goods and manage your expenditures. The amount of money you make via drop shipping might vary considerably. But this gives you more control.
The Bottom Line
Let’s look at an example that I often use to show the distinctions between dropshipping and affiliate marketing. Assume you’ve chosen to create a YouTube video on paddle boarding. You’ve had a lot of views.
And now you’re thinking, “Wow, I wish people would purchase these paddle boards from me. I’d like to profit from this.” Then you’ll begin to establish an audience interested in paddleboards. You may now compare these two alternatives. It’s because you know much about them.