Dropshipping vs Affiliate Marketing and The Super winner
The internet has made the act of making money easier for people, and now running a business from home has become easier than ever. Over the internet, people can run and advertise their business at the same time, and they can also administrate it by checking the income coming in far more effective than buying several account books as there are software’s and online services available for accounting.
While there are several methods people can use to earn a living, two easy to set up businesses available are drop shipping and affiliate marketing.
At first glance, they do seem similar, but they are both different.
Read through the article to find out what’s the difference between them and which one got the best home-based business in 2019 Badge.
Drop shipping is simply running an online store without needing to store an inventory to ship the product. Setting it up is easy; you just set up the store online as you would in the real world, collecting the money like a regular store.
But the beautiful thing is instead of having your products cluttering up your home, interfering with your family life and having to find and pack an order when you receive it from a customer, you simply send an identical order to the distributor at a wholesale price, and they will take care of the packing and the shipping of the product to the customer for you.
Essentially, as a drop shipper, you have become a middleman by selling the products on your website. The profit is made by increasing the price along the way.
The good news about drop shipping is you can set it up through your own storefront, or from Amazon or eBay, or from other established online marketplaces, though you will need to check to make sure it is allowed since time changes the rules for all online marketplaces and they may not allow drop shipping.
The bad news with this business model is when you come to set up the infrastructure. You don’t just need to make product listings, setting up the website either on your own or by using established marketplaces, making them attractive for your customers so they will buy them. Another hard part is looking more attractive than your competitors. The risk there is you make less of a profit per item while you try to beat your competitors by selling sheer volume.
You also need to contact your suppliers and make deals with them. It’s straight forward enough with some products. The suppliers aren’t interested with the mess of dealing with the marketing or sales sides, so they make it easier for you by setting up drop shipping programs to allow anyone to join in and help them make a profit.
Others are harder to contact, requiring a phone call to be passed through to the right department.
Granted, these could be more lucrative, since they keep out the low-level drop shippers who want to make money quickly but can’t be bothered making the effort. It also takes time to set up a successful business in this way.
One plus side to this model is it is quite cheap to set up. You only need to set up your contacts and spend a little on the cost of the website – if you are selling on a website you’ve set up from scratch you will need to think about the cost of web hosting. The business is all online, and it’s independent of your own personal life. It can also be scaled up, so you have a better living. But make sure you have enough money to cover returns.
Above through the discussion What I found from Dropship