Online Business

Ecommerce or Affiliate Marketing: What’s Better?

If you are interested in earning money by developing your own online business then ecommerce and affiliate marketing are two of the greatest ways. What is ecommerce and what is affiliate marketing? They are both online platforms in generating a good market. But to understand and distinguish both of them is the first step you must consider in your business plan. If you want to make a hefty amount of money, then you must understand its paradigm first. How they are different from one another and which of these suits you best?

What is Ecommerce and Drop Shipping?

Ecommerce or drop shipping is the process of offering products to people via the internet. Some of the biggest and most known ecommerce sites in the world are Amazon, Ebay, Aliexpress, and Alibaba.

With dropshipping, you simply list a product on your site, when a customer makes a purchase, you order that product from the vendor. The vendor will then in turn ship that to the customer. You don’t need to carry any inventory at all. This is why drop shipping is very popular with a lot of entrepreneurs looking to get into a startup business.

These are most certainly the best examples and also the reason why you should want to develop your own ecommerce site. These companies earn millions of dollars each day. However, they are also the reason why you should not build your own ecom since you are participating in a competition of giants. This is not entirely true because many startup websites also earn large amounts with dropshipping even with a small store. This is because they offer products and services outside what big companies do not have.

There are vast ways of making your website rise to the top. The strategy is the key. One of the best ways is offering customers free delivery if the production team is within their locality. Ecommerce is also good for entrepreneurial businesses where their products and services are new, profound and will not have to compete with the big companies.

Setting up your own ecom sites enable you to earn more margin than an affiliate website. This can be good for businesses selling their own products and services that don’t distribute well. You will have stronger control since you completely own what you are offering. The best offer of ecommerce is that you earn really relatively well due to drop shipping. Drop shipping is directly purchasing merchandise from the manufacturer and setting the frontend price of your choice.

What is Affiliate Marketing?

Unlike ecom, affiliate marketing is only a gateway to products and services. Affiliate marketing websites redirect their customers to the product companies’ website and are then given commission. Although this might be more complex and harder to setup, it costs less than ecommerce websites. You will not be required to have large storages and will not have to worry about customer support since you will only be redirecting people to the brand’s website support.

The setup can take quite some time but once it is done, you have taken yourself out of the process – talking about passive earning. This turns advantageous compared to ecommerce in terms of handling clients, storage of items and hassle-free management of offerings. You can also earn on purchased items not being shown on your website. You are accredited for a certain percentage when you successfully redirect a client to their website and thus making more while doing less. The best part of affiliate marketing is working from home with your own personal space and with much comfort. You get to choose which hours and how many hours you get to work. You will be able to work with ease and versatility.

So Which one is Better?

If you like to earn more with the products then you should do ecommerce. If you want to save time and energy you should go for affiliate marketing. To learn more about both models check out Drew’s Review, a site that reviews both of these business models and gives tips as well. If you are a company selling a limited type of items or products limited to a certain locality then go for ecommerce. If you like being comfortable and do not want to worry about deadlines and such, then affiliate marketing is suitable for you.

Ecommerce offers higher margins and more control over the merchandise. Affiliate marketing brings you comfort and eases while being able to earn passively. Both of these two are great platforms in earning, but planning out and contemplate which one is the best for your situation is the key to get the most out of these online businesses.

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