People wants to know whether Drop Shipping is better than Affiliate Marketing or vice versa. Although, both are online platforms that helps in selling products. This article contains all the difference between both. So relax and read on the know more about them.
What Is Drop Shipping
Drop Shipping is online business model that help you to sell products without keeping them in stock. In Drop Shipping, it is not restricted however, everyone can run ecommerce business on this model. Also, entrepreneurs works as intermediators, that is they don’t have to buy any items in advance. Hence, you sell the products on your own ecommerce store.
Drop Shipping Pros
- It doesn’t requires storing
- Higher profit margins
- You won’t have to pay any subscription
- Low startup costs
- Product price can be changed
Drop Shipping Cons
- Required customer service
- Entrepreneurs have to process each order
- No control over the quality of the product
- Providers need payment before shipping the products
Read Also; How To Write A Business Loan Letter
What Is Affiliate Marketing?
Affiliate marketing is business model that helps you to earn money from online by promoting other peoples product and services to your readers. After recommendation, there is a commission which is usually paid out after 30 days.
Affiliate Marketing Pros
- Anywhere in the world, your business can be operated.
- Low start-up cost
- No need to provide any customer support
Affiliate Marketing Cons
- Commission rates can be change without warning
- Not all companies pay high commissions
- There are a lot of competition
Which One Is The Best?
Both Drop shipping and Affiliate Marketing are business model that helps by selling other people’s products.
In Affiliate Marketing, you have no control over the price but in Drop shipping, it may enable you to get higher profit margins as you set your own price.
Also, In Drop shipping, your payment will be available as soon as the transaction is made whiles in affiliate marketing, you will receive your commission within 1-3 months.