Trying to choose between affiliate marketing and dropshipping? Learn the pros, cons, and key differences so you can start the right online business today.
Introduction
If you're looking to start an online business but have limited capital and experience, two models often stand out: affiliate marketing and dropshipping. Both offer low startup costs and the potential for real income, without the need for owning physical inventory. But which one is right for you?
In this post, we’ll break down the strengths, weaknesses, and startup steps for each, so by the end, you’ll know exactly where to begin.
What is Affiliate Marketing?
Affiliate marketing involves promoting other people’s or companies’ products using a unique tracking link. You earn a commission each time someone buys through your link.
Example: You join Amazon’s affiliate program and promote a product on your blog. When someone clicks your link and makes a purchase, you earn a commission (usually 1-10%).
How to Start:
-
Join affiliate networks like Amazon Associates, ShareASale, or Impact
-
Choose a niche (tech gadgets, fashion, fitness, etc.)
-
Promote links through blogs, YouTube, or social media
Pros:
-
No customer service needed
-
No inventory or shipping
-
Can be 100% passive income
Cons:
-
Lower profit per sale (usually 3-10%)
-
You don’t control the product or pricing
-
You rely heavily on the platform and affiliate terms
Earnings Potential:
-
Beginners: $100 - $500/month
-
Intermediate to pro: $1,000 - $10,000+/month
What is Dropshipping?
Dropshipping is a retail fulfillment method where you sell physical products without handling inventory. When someone orders from your store, you purchase the item from a third-party supplier who ships it directly to the customer.
Example: You set up a Shopify store selling pet products. When someone orders a $30 dog leash, your supplier ships it for $15, and you keep the $15 profit margin.
How to Start:
-
Choose a niche and set up an online store (Shopify, WooCommerce, etc.)
-
Find reliable suppliers on AliExpress, Spocket, or CJ Dropshipping
-
Market your store using social media or paid ads
Pros:
-
You set your own prices and control the brand
-
Higher profit margins per sale
-
Scalable with the right marketing
Cons:
-
You handle customer service and returns
-
Quality and delivery depend on your supplier
-
Paid ads can be expensive
Earnings Potential:
-
Beginners: $200 - $1,000/month
-
Scaling: $5,000+/month with ads and optimization
Head-to-Head Comparison
| Factor | Affiliate Marketing | Dropshipping |
|---|---|---|
| Startup Cost | Very Low (Free to start) | Low to Medium ($50-$300) |
| Inventory Required | No | No |
| Customer Support | Not required | Yes, must handle support |
| Profit per Sale | Low ($1–$10 typically) | Higher ($10–$50+ per sale) |
| Control Over Product | None | Full control |
| Learning Curve | Low to Medium | Medium to High |
| Passive Income | Yes (after setup) | Not truly passive |
Which One Should You Choose?
Choose Affiliate Marketing if:
-
You enjoy content creation (writing, videos)
-
You want passive income
-
You don’t want to deal with customers or logistics
Choose Dropshipping if:
-
You want to build your own brand
-
You're ready to learn about e-commerce and marketing
-
You don’t mind handling customer issues
In fact, some entrepreneurs combine both. For example, you can run a blog that earns through affiliate marketing while testing your own dropshipping store.
Final Thoughts
Affiliate marketing and dropshipping are both excellent ways to start making money online. Your best choice depends on your skills, goals, and how much time you can commit. Start small, test the waters, and don’t be afraid to pivot if needed.
"7 Profitable Side Hustles You Can Start This Weekend"
Learn more from Shopify's beginner guide to dropshipping here.
Whether you choose affiliate marketing or dropshipping, the key is to get started today and learn as you go.
Written for GlobalWealthRout.site