Affiliate Marketing vs. Dropshipping: What’s the Difference?
The main difference between Affiliate Marketing and Dropshipping is that in Affiliate Marketing, you earn a commission for promoting other people’s products, while in Dropshipping, you sell products directly to customers.
Before we move to more differences, let’s first understand Affiliate Marketing and Dropshipping:
- Affiliate Marketing: Affiliate marketing is when you help sell someone else’s stuff and earn a reward for it. You share a special link, and when people buy through that link, you get some money in return.
- Dropshipping: Dropshipping is like a middleman job. You sell things in your shop without keeping them in stock. When someone buys from you, you buy it from a supplier who sends it straight to the customer. Easy peasy!
Now, let’s get to Affiliate Marketing vs Dropshipping:
Major differences between Affiliate Marketing and Dropshipping
Affiliate Marketing | Dropshipping |
---|---|
Affiliate marketing involves promoting products for a commission. | Dropshipping involves selling products without holding inventory. |
In affiliate marketing, you earn a commission for each sale you generate. | In dropshipping, you purchase products from a third party and sell them at a markup. |
Affiliate marketing requires no product handling or shipping. | In dropshipping, you are responsible for shipping products to customers. |
Affiliate marketers do not need to deal with customer service or returns. | Dropshippers handle customer inquiries and returns. |
Affiliate marketing allows you to earn passive income from referrals. | Dropshipping involves more hands-on management of orders and inventory. |
So, these are the main differences between the entities.
Also see:
- Low-Context Marketing Strategies vs. High-Context Marketing Strategies
- Appraised Value vs. Market Value
- Enterprise Value vs. Market Capitalization
You can see other “differences between…” posts by clicking here.
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