Hi, there I’m Praneeth.
In this blog, you will learn what are the differences and similarities between affiliate marketing and Dropshipping, and instead of choosing one between both,
Is combining Drop shipping and Affiliate Marketing a good idea and the reasons you should combine both for better results are explained in detail.
Without further ado let’s get started.
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What is Affiliate Marketing?
Affiliate marketing is a digital marketing strategy Where you sell products of other companies using special links called affiliate links which track your sales and clicks,
And if somebody clicks on your affiliate link and buys the product That’s connected with the link Within a specific period (based on the cookie life of that affiliate program),
You will get a Commission of the sale from the affiliate program you have joined.
Benefits of affiliate marketing.
Let’s see the benefits of affiliate marketing in detail.
- Free to get started.
- It is a passive income source.
- You don’t deal with customer service or product shipping.
- There is no limit to earning money.
- You can work from anywhere in the world.
Check the pros and cons of affiliate marketing explained in detail.
Now let’s learn Dropshipping.
What is Dropshipping?
Dropshipping is a business model of selling the products of retailers in online stores and earning a commission or cut from each sale of the product from the retailer or supplier of the product.
Here the one who owns the online store(seller) does not own the products or their inventory, but the job of the seller is to checking, advertising the online store, and to see people can stick and buy products from the online store.
Seller will take care of sales, customer service whereas, a retailer of the product will do the shipping and delivery of the product to the customer.
Here is a graphic image of the Dropshipping business model.
Benefits of Dropshipping.
Let’s see the benefits of Dropshipping in detail.
- It is a low-risk high returns and highly scalable business model.
- You can work from anywhere in the world.
- You decide the product price.
- You can build a brand selling products without dealing with either inventory of products or shipping and delivery of the products.
- You own the customer’s list.
Check the pros and cons of Dropshipping explained in detail.
Difference between affiliate marketing & Dropshipping.
Here is a quick table of the difference between the affiliate marketing and Dropshipping strategies in detail.
|You have to deal with customer service.|
You do not have to deal with customer service
|You can control the price of the product that you sell.|
You do not control the price of the product you sell.
|You have the customer contact information and data Because they buy the product right on your website and the transaction happens on your website only.|
You do not have the customer contact information because the transaction of money and the product order does not happen on your website.
You can drive multiple sales from a single client and still earn money, you can have people who already bought the product keep coming back and buy the product again.
To earn money you have to constantly drive new sales and the new clients or customers, not the ones who already,
made the purchase, even people who once bought the product from you will not buy it through you again.
It is harder to earn money initially as it takes more time compared to affiliate marketing,
You can not do Dropshipping without an established online store and traffic.
It is easier to earn money initially Compared to drop shipping,
because the product you are selling already has some value and trust along with the brand and people buy the product on the official company website,
not yours and you don’t need a website always to earn money from affiliate marketing, you can do it through social media as well, it is all based on affiliate links opposite to Dropshipping.
Now that you know the differences between both,
Here is a list of the similarities between the two.
Similarities between Dropshipping and affiliate marketing.
There are some similarities between affiliate marketing and dropshipping let’s understand them in detail.
- You are selling products of others in both fields.
- You are not involved in shipping and delivery of the product to the customer in both.
- Both of them are relatively low-risk business Ideas.
- You need a website and online presence and audience first to make money in both.
- Both can be great passive income sources for people.
- Both are low investment and highly scalable business models.
- Because the barrier to entry is low Both fields are highly competitive.
- You require similar skills to be successful in both Industries which are marketing and the art of selling.
- Both fields offer you flexibility in life, you can work from anywhere in the world as long as you are connected with the audience or your partner online.
- There are so many products, companies, and networks that you can join in the world in both fields.
Now that you know the similarities between the two,
Let’s see the main question.
Combining Drop shipping and affiliate marketing.
Yes, Both are greater passive income sources that look the opposite to each other when they are used together, it can be a wonderful strategy for your online business.
It is absolutely a brilliant idea to consider both strategies in your online business, you can earn more money and increase revenue from your business using both strategies instead of choosing one between both,
Here are 3 reasons you should consider combining both rather than choosing one among the two so let’s learn them.
3 reasons to combine both.
Here are 3 benefits and reasons to use and combine both strategies in your online business strategy and scale your business faster than depending only on a single source.
Here is a quick overview of the benefits.
- You can use your customer’s list in Dropshipping for affiliate marketing purposes.
- Use free targeted SEO traffic from affiliate marketing blogs to redirect traffic to Dropshipping store.
- You don’t have any inventory issues to deal with in affiliate marketing and income is diversified combining affiliate with Dropshipping.
Let’s learn the benefits of combining both Dropshipping with affiliate marketing in detail.
You can use your customer’s list in Dropshipping for affiliate marketing purposes.
The biggest benefit of choosing both ideas in your business strategy other than one is,
In affiliate marketing you don’t have the information of your customers, you neither have their contact details or email address,
Whereas in Dropshipping, because the transaction of the product order and money exchange happens on your website only.
You do have your customers’ email addresses and contact details which you can use in a good way to market that customers list over and over again.
Here is the process of how you can leverage your customer’s email addresses list and earn money through combining Dropshipping with affiliate marketing together.
Now that you have the email addresses of your potential customers who have already bought the product from you(Dropshipping business),
After having a good list of customers, you can join any affiliate program like Amazon and Shareasale, research relevant products that your audience have purchased from you and,
After a couple of days or a week later of purchase of the product by your customer, you can either notify your customers about any affiliate product or email them about any affiliate product,
Which you think they would get additional value from considering the product they have already bought from you.
Your customers would find it helpful, value-adding as you owner of the business reaching out to them to help them, they would take the offer and buy the product which you recommended.
You should be careful with emails that you are sending here,
when you are pitching affiliate products offers to your customers, rather than spamming them in their inbox with your emails,
Focus on adding value to their lives and focus on how buying the product could add value to their lives, when you do that, you will both gain trust and connection with your customers.
This way you get your affiliate Commission just by pitching offers of affiliate products to your established customers related to what they have already purchased previously.
It is like upselling the audience with more products that add more value to your customer’s lives.
Of course, they would visit your online store to buy the product again from you, and with word of mouth marketing, you would get more customers to your business from your existing customers base.
Use free targeted SEO traffic from affiliate marketing blogs to redirect traffic to Dropshipping store.
Another benefit of combining both affiliate marketing and Dropshipping is,
You can drive traffic for free to your Dropshipping store from affiliate blogs that you can publish on your website, you don’t have to invest a single dollar to get the highly targeted quality traffic from SEO.
With publishing blogs on your website,
- You can drive traffic from SEO.
- People can stay on your website and trust your website.
- You can get more brand awareness, the authority on a niche, and scale your business.
Here is a detailed explanation of the problem with Dropshipping and the benefit of combining Dropshipping with affiliate marketing.
The most common problem between both affiliate marketing and Dropshipping is to do the marketing and drive traffic to your website.
In such a case,
If you are only using Dropshipping let’s say,
You would have to invest a lot of money in running digital marketing campaigns like,
It would take a lot of time, money, and effort to build that trust and traffic to your website or dropship store amid such a highly competitive market which Dropshipping has become.
Instead of going in one way, if you also consider leveraging, affiliate marketing and blogging on your website.
Let’s say you are selling Dropshipping products around a product or niche like electronic appliances like fans, speakers, stuff.
In such case, the benefit of combining both Dropshipping with affiliate marketing is,
You can write blogs on that niche of electronic appliances and drive targeted traffic to your website from SEO where you can interlink your blogs with your Dropshipping products page,
You can redirect highly targeted free traffic from SEO to your product pages and you can write online reviews of products related to the same niche and insert affiliate links and earn money through affiliate marketing as well.
Here is the third good thing about combining both affiliate marketing and Dropshipping.
You don’t have any inventory issues to deal with in affiliate marketing & income is diversified.
The good thing about this combination strategy is,
You don’t need to worry about an inventory of the product.
In Dropshipping, you will be in partnership with retailers and small businesses, if their products inventory is empty then you can’t earn money even if you have customers or traffic to your website.
Whereas in these affiliate marketing, there are big businesses in the game with no shortage of inventory of products so you can still earn money through affiliate marketing, or,
Because of the more options, you have in affiliate marketing,
You can promote any other product, with those SEO traffic and affiliate blogs that you have published on your website even if you don’t earn money through Dropshipping due to inventory issues.
This way you are not dependent on a single source of income rather you have diversified your revenue and you can still pay your bills and expenses.
How should you start?
Now that you know you should combine both strategies instead of going with one, you should also know that,
Which strategy you should use first,
It is not a good idea to start both at once as you will not exceed in any of it,
I would recommend you to start with affiliate marketing, the reason is,
When you are getting started with affiliate marketing,
You are publishing blog posts on a niche on your website related to the affiliate products like reviews and information articles within your niche.
Because SEO takes time for new websites, it is estimated that it takes at least a year for the new website to get some decent traffic from SEO.
In such case, write and publish a bunch of blogs on your website,
After you start getting some traffic from SEO and earnings in affiliate marketing, you are good to go with Dropshipping.
You now have some established traffic and money with you.
You can use the money for running digital marketing campaigns for your dropship store.
In that case, it will be a great deal with existing SEO traffic and traffic from the digital campaigns you run.
You can double down the revenue.
Hence, if you are looking forward to combining both strategies, first start with affiliate marketing then combine it with Dropshipping.
With that said let’s conclude the blog.
There you go I have answered everything related to combining Dropshipping with affiliate marketing in detail.
Do comment down what do you think about both strategies in the comments section below.
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I will catch you next time till then,
Keep learning and keep growing.
Hi, I am Praneeth Kumar [19 years aged guy] founder and owner of this blog, I am a blogger and an online entrepreneur by passion and a college student in the Arts Education branch, You can learn my story from a college student to a blogger on the about me page.