Dropshipping vs Affiliate Marketing – Which is Better?

You’ve never tried to earn money online
and now consider two opportunities: Dropshipping and Affiliate Marketing. Which one is better to start with? Let me help you make a decision! Hi there! That’s Anna from Dropship Club. Before I start talking about our new topic, I’d like to announce that our website dropship.club is ready and waiting for its new subscribers! I want to invite you to take a look at our
great knowledge base about dropshipping! Join our “Dropship Club” community to
become a successful dropshipping business owner! However, our today’s topic is two popular
ways to earn money online. They are perfect for beginners and I personally
believe that, before starting, it’s better to fully understand how they work. So, let’s discuss what is affiliate marketing and what is drop shipping business and why you should choose one over another. Please note that today we are going to view the affiliate marketing as a product affiliate marketing only by this, I mean promoting goods from Amazon and AliExpress on the Internet and getting paid for that. Both AliExpress and Amazon have their affiliate
programs. If you join any of them, the merchant manages
the inventory and ships the products. You promote the products, but you don’t
set the prices and only receive a commission after someone buys a product following your
affiliate link. This link contains your affiliate code and
helps tracking your sales. In a nutshell, you get paid for selling other
people’s products. This is how you can promote these products:
Create your own website that can redirect the visitor to the source site while processing
the purchase. Promote products on your blog. Post affiliate links on your own social media
pages, other people’s social media pages, in comments, on various forum pages and anywhere
over the Internet. Create ads and pay for them. What are the advantages of this way to earn
money online? It is easy to start. You don’t spend much on launching such a
business, and you don’t need to be officially registered; It lets you work anywhere and anytime without going to the office. It provides you with a source of passive income
It gives you the opportunity to create several sites that are easy to manage as you don’t
carry inventory and manage refunds for delayed shipping for example. What about the disadvantages? The program’s terms and conditions are quite
complicated and can be suddenly changed. And you should be careful with your links, if they are not formatted correctly, the purchases simply won’t get tracked – that
means no money You have to create a huge traffic to get enough
sales or be wise with ads placement The profit is relatively small – only few % from the final price, and it might change depending on the customer’s country and
the product type. The money is paid to you 60 days after a purchase
is made by your link on Amazon. For AliExpress, the gap is 35 days. What is dropshipping? It is a way of selling other people’s products
as well. The merchant still handles inventory and shipping. The difference is that you can set prices
yourself and get higher profit margins. In short, you buy stuff from your vendor and
resell it to your clients, but contrary to the traditional e-commerce, you don’t store
your products. Check our previous video to learn more about
this business model. How to promote products in dropshipping? You will promote your own online store and
products the same way as any e-commerce site. To increase your store trustability, create
social media accounts for your store. You will also need to create Facebook Ad account
and set up Google accounts to start your ads and promote your online store. Dropshipping business has its own advantages
too. It lets you run a business without product
manufacturing And you don’t need a warehouse and don’t
handle goods, shipping and delivery You decide how much your products cost and
get higher profit margins What is even more important, your money is
always within an easy reach. You don’t need to wait for it for months
– you get it into your account right after a purchase is made. Here are some disadvantages. You will have to learn how to promote your
business and attract customers You will deal with a longer shipping time
AliExpress has improved shipping greatly for the last years, now it takes less time to
deliver to the most of the countries, even with AliExpress standard shipping. Many clients are fine with long waits if you
don’t charge extra for shipping. Anyway, we strongly recommend using ePacket
shipping option that takes only 5-14 days to deliver Transferring the orders to the relevant original
sellers is your responsibility. Both of these methods allow you to start earning
online without holding inventory and enable an easier business launch in comparison to
other models The main problem with affiliate marketing
is quite a low profit. Furthermore, it’s better to check out the
terms and regulations of Affiliate program as there might be lots of restrictions and
pitfalls. As for dropshipping, its’ biggest challenge
is customer acquisition. Which way to go? Let’s see what is important before making
your decision. What do you aim for right now? Do you want to test yourself for being able
to earn online or start an online business? The more efforts you put in – the more results
you get. Dropshipping can become your future self-employment
and the instant income source. AliExpress or Dropshipping affiliate programs? I’m not sure about that. Affiliate marketing is a really good way to
get additional profit if you already have a stable traffic source, for example, if you
have your own popular blog. Your loyal audience might react very enthusiastically
to your recommendations and bring you some sales. If you are just a beginner and you don’t
have an opportunity to develop your own blog, it’s better to create a store. Moreover the knowledge you’ll get while
learning dropshipping, marketing and customer service can be really useful in real life. When you take part in someone else’s affiliate
or monetization program, you accept their requirements. At the same time, when you do drop shipping,
you fully own your venture. That’s your own website with your own style
and design, with your unique product descriptions, and with your own price markup. Affiliate programs won’t give you as much
freedom as drop shipping store can. That’s my point! Like this video and subscribe if you found
it useful. Write any comment if you have something to
say! Bye!


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