Tuesday, December 9, 2014

Affiliate Marketing or Dropshipping?



Many people fall into opposite extremes when it comes to their online business goals. Some people want to go out import their goods from Asia for maximum profit while other people want to start an online store as a side business using the “passive”ways.
The prospect of making money passively without requiring much work is extremely attractive.

The old says “No pains no gains.” What the most people want is “No pains still some gains.”They don’t want to have to carry inventory or do product fulfillment. So now you guys have two options Affiliating or dropshipping.

It’s still confusing for some people. Here is a question you may asked yourself.
Why would I run an online dropshipping store, when I could do affiliate marketing and not have to worry about anything?
First we need to know what is exactly Dropshipping and Affiliate Marketing.

What Is Dropshipping?
Dropshipping is a way to run an online store where you don’t have to invest inventory and you don’t have to ship product. The way it works is that you set up your own store and collect money just like a regular store. But instead of having to pack and ship the product by yourself, you simply place an dropshipping order with us at a low price and the Tmart Dropshipping takes care of shipping the product to the end customer for you. The amount of profit you make is your selling price minus the wholesale price.

The main advantage of dropshipping of course is that you don’t have to manage inventory or product fulfillment. However, since you are selling the product under your own store name, the customer support is very important. The price is indeed important, but the service is more important.

What Is Affiliate Marketing?
Affiliate marketing is when you refer a customer to another business and take a commission if the customer makes a purchase. In effect, your website acts like a marketing and referral engine and you don’t actually sell any product. In addition, you don’t directly collect any money either. Once a sale has been made, the affiliate business is responsible for paying you your commission which usually occurs on a monthly basis.

How does the affiliate business know that it was you who referred the customer? A tracking cookie is placed on the customer’s computer whenever they click on a link on your site that takes you to their business. If the customer makes a purchase and has the cookie installed on their computer, then you get credit for the sale.

Advantages Of Affiliate Marketing
The main advantage of affiliate marketing is that the entire sales process is completely hands off. Once you refer a customer to a business and the customer makes a purchase, your job is done. You don’t have to worry about product fulfillment. The difference is you also don’t have to provide customer service.

With a dropshipped online store, you are responsible for the after-sales problem. That’s why it is important to find a trustworthy dropshipper to work with. It’s about your own reputation.

In addition, with a dropshipped store you have to setup a complete storefront that accepts credit cards and other forms of payment as opposed to affiliate marketing where all you have to do is drop a link. 

Make More Money with Drosphipping
The key is, you decide the amount of profit which could be much higher than affiliate marketing. You got your right to fix the price. And we provide a low Price. The commission earned from being an affiliate marketer of physical goods is typically much less.

In a word,you are not running a business, when you act as an affiliate. You are just a referrer of business. As a result, when a customer makes a purchase using your affiliate link, you don’t get any long term benefits for the sale.It’s just a one off transaction. That’s actually the only sale you are ever going to make from that one customer. Whereas with an online store, you could establish a reputation for your business.

But I gotta tell you guys. Opening an online store takes more effort and is less “passive” but the difference is that you are building a true business. The old saying“No pains no gains”still works here. Though it's not that painful with dropshipping lol.


If you want to try our dropshipping service. Please visit us here TmartDropshipping


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