Complete Guide to choose between Drop Shipping and Affiliate Marketing

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affiliate marketing guide

Drop Shipping and Affiliate Marketing Guide

In many minds it is going throughout the same idea: I want to set up an online store. Being able to live on the internet, making money from the home computer is something that is very attractive, but not all those who consider this idea take the step due to the doubts that arise in the process.

We will try to clarify the most relevant aspects of the drop shipping vs. affiliate marketing e-commerce model and try to solve the doubts of the most undecided.

Why set up an online store?

One of the prevailing popular opinions is that e-commerce does not need any effort. A web page will open and money starts to arrive. Therefore, in recent times many people have set up online stores with the idea of ​​making a lot of money without hardly bothering. That is not at all; it depends on the type of online store that we created. In today’s article, we will study two types of online stores options that are characterized by their simple operation.

Mounting e-commerce involves a lot of work before its launch, market studies on the available niches, determine the business model or choose suppliers and negotiate their conditions. Once the portal we opened, the sales do not arrive by magic. You have to invest work in it to receive in return.

What is an online drop shipping model store?

In an online store drop shipping model the person who assembles the e-commerce acts as an intermediary between the customer and a wholesale supplier, also called drop shipper. It is, therefore, to sell a product of a third party, which is not physically available.

The process of sale in this type of store begins when a customer purchases the drop shipping online store, the retailer passes the order to the drop shipping provider who is in charge of sending it to the customer regarding form and time stipulated previously with the retailer. Since the merchant is not the one in the cost of shipping the product, it is advisable to make some final satisfaction control to know how the shopping experience has been in the store or if it is necessary to change the supplier.

Critical aspects of the success of an online drop shipping store

The success of this type of stores depends in no small extent on the choice of the niche that is made; it is advisable to look for one that has a need that is insufficiently satisfied to have a stable product demand. In this sense, the degree of competition must was taken into account; it will be ideal not to suffocate when setting up the drop shipping online store.

The choice of the drop shipping provider is also vital. The importance of this aspect is that it is responsible for the order and its correct arrival to the customer. It must be committed and severe that it complies with the agreed conditions.

Usually this includes short delivery times, a specific packaging that, generally, or bears the trademark and mark of the retailer or does not carry anything and that is professional, this refers to that you must commit not to use the client’s data in your own benefit, offering you directly better prices to skip the figure of the retailer in the sales process. It is useful to have at least two drop shipping providers to diversify risks in the case of incidents such as stock-outs or bankruptcy.

The visibility of the drop shipping shop in search engines will be essential for the number of orders received. It is necessary to work on the positioning of the business in the search engines with SEO strategies to boost natural positioning and, even, it is advisable to start with an SEM campaign, paid advertising to give an initial boost while not see the effects of SEO. Content marketing is perfect to support both campaigns, a blog with content using keywords, email marketing campaigns and social networking. It’s about providing value to people with the content, not merely to show a catalog.

Advantages of an online drop shipping store

✅  The initial investment required by this type of e-commerce is scarce, as it does not have to deal with storage costs, distribution of the product among others, so it is a cheap online store form.

✅  As there is no stock of the product sold, it is not necessary to have a warehouse. That entails not having to hire personnel for its management.

✅  There are no concerns about the aspects of the preparation and distribution of orders, as the drop shipper assumes these.

✅  The catalog of the drop shipping online store can be extensive if you have different suppliers.

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What is an online affiliate store?

The affiliate online store model has an operation similar to the one we have seen in the drop shipping type. Customers of an online affiliate store also purchase third-party products. The catalog of other companies it made displayed on a merchant’s e-commerce platform. Another variant is that within a blog or a personal website make recommendations or suggestions with links to individual articles; the mechanics are the same. Through affiliate links placed in the online store are redirected to the site of the company to formalize the purchase, it is at this time when the commission is received.

If the situation arises that the potential client we was not decided at the time of the visit to the online affiliate store, we have the extra help provided by the cookies, which leave some files with information that makes the sale count equally. To the commission agent if you purchase within a specified period after the purchase.

Critical aspects of the success of an online affiliate store

Even though a simple operation characterizes the affiliate online store model, certain vital aspects enhance sales and optimize the profitability of the affiliate store.

Affiliation companies tend not to be selective when choosing affiliates since it benefits them. The careful selection must be on the part of the commission agent, guided by the association with severe and committed companies, that pay the stipulated in the defined term. It does not have to be necessary that it is only a company that configures the catalog, you can work with several to have a more varied inventory and distribute the collection of commissions in case there are incidents.

The website we should periodically review with maintenance work, the images optimized so that they do not harm the loading speed, the texts of the description of the products must be original and not copied from the website of the company. This website will also have to have the marketing and communication strategies that were discussed in the drop shipping online store since internet positioning is essential for any e-commerce.

Another critical aspect is to renew the catalog periodically and updating the range of products offered. A particular study of the most and least sold products should be carried out to get to know the tastes of the target audience and thus adjusting the product offer to be entirely successful and obtain more conversions in the online affiliate store.

By adjusting the catalog that we offered in an online affiliation store, you can choose the products for which you receive the highest commission. Knowing which are the products with more output. You can select those that leave a higher profit margin, thus having the possibility of increasing our income.

Advantages of an online affiliate store

✅  Almost no costs are assumed, so the risk assumed with the online affiliate store is non-existent.

✅  This type of store dramatically simplifies the purchase process by not having a payment gateway, calls are not attended and does not imply completion or management of shipments.

✅ No payments we were given to the suppliers or third parties; only the commission received.

✅  It is not subject to the seasonality of the product, since, not having it physically, we were removed from the catalog, and another one we are placed that interests more without having to bear any cost for not selling it that season or for storage.

Online drop shipping store or online affiliate store?

As we have seen, the differences between one and the other are scarce. The big difference is that in the drop shipping online store the retailer must have a payment gateway to manage the payment to the client and deal with paying the drop-shipper provider. In the online affiliate store does not close any sale, so you do not need a payment gateway, your task is to redirect the customer to the website of the company in question to formalize the deal.

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The mechanics are so similar that many companies dedicated to offering affiliate products end up deriving their activity in an online store’s drop shipping model, the advantages of those that were already enjoyed are maintained but, also, the income is increased by having profit margins over the products higher than in the affiliate store.

When deciding on one, you must assess the time available for the business. Although the two must update their catalogs of products or services on a regular basis, the drop shipping shop requires more time to manage the order with the wholesaler and even, to be concerned about the shopping experience and the degree of customer satisfaction a Once the process is completed.

To opt for 1 or the other, you must also assess the expected income attainment, since the drop shipping online store provides greater profits to the owner of the e-commerce portal than the affiliate store, which only feeds on product commissions. We can say then, that, like everything, when more work involves the store, more profits will be described. These are two of the simplest models of online stores, but there are others that keep the management of the sales process completely intact for themselves and handle significant amounts of money.

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