Why affiliate programs are more profitable than dropshipping

A few years ago, traffic arbitrage was not as popular among newbies as it is today. But everything has changed with the emergence of an army of infobusinesses promising untold riches: they say that you just need to buy the right tools, watch a few training videos, and you can drive traffic to Facebook with fantastic results.

But before that, infogurus massively promoted another scheme – dropshipping, assuring that it was also a way to millions. Was it really true? Let’s find out.

In the article, we will analyze what dropshipping is, whether it is possible to make money on it, what are the pros and cons of this method, and why product affiliates are actually much more effective.

Let’s figure out what dropshipping is and how to make money on it

Imagine a situation: you create an online store, but you don’t buy goods in advance. Instead, you wait until a customer places an order, and only then do you buy the goods from the supplier. This is how dropshipping works.

It sounds simple enough: you create an online store, for example, on the Shopify platform, which is famous for its simplicity and convenience. Then you find a product that is currently in trend, say, a bathroom mat, which costs only $10 from the supplier. In your store, you put a price of $40 on it.

When a customer places an order, you pay for the product from the supplier for $10 – from the money the customer paid. The supplier sends the mat directly to the customer, and you keep the difference of $30.

Thus, you do not spend your money on the purchase of goods in advance, but simply act as an intermediary, earning on each order.

Profits of dropshipping

Like any business model, dropshipping has its pros and cons. But there are a few key points that make it attractive:

1. No need to store goods: You do not need to purchase products in advance or rent a warehouse. All you need to do is transfer the order to your supplier, and he will send the goods to the customer. This saves you from worrying about storage and reduces financial risks.
   
2. Fast assortment expansion: You don’t need to look for new suppliers and purchase goods in advance if you want to add something new to your website. Just connect the product from the supplier’s catalog – and you’re done.

But this is where the advantages often end, and the difficulties faced by entrepreneurs begin.

Cons of dropshipping

To be honest and objective, it is important to mention the disadvantages of dropshipping. Before you rush into this business, it is better to know about the possible pitfalls that may force you to reconsider your decision.

Some of the main problems are:

1. There is no control over product quality: The whole process depends on the supplier. If they send defective goods or do it negligently, you will be the one who will receive the blame. All responsibility for negative customer reviews and complaints will fall on you.
   
2. Problems with payment systems: Money can be stuck in an account for several days or weeks until the goods reach the customer. This is especially true for entrepreneurs from the CIS – they may face account blocking and sanctions, which makes the business less stable.
3. Juridical nuances: To work legally, you will have to register an individual entrepreneur or LLC, which requires additional costs and time for documents.
4. Client disputes: Resolving customer disputes in dropshipping is not easy. If you don’t have convincing evidence (for example, a photo or video of the product), the dispute is likely to be resolved in favor of the buyer.

Why should you choose a product affiliate?

Dropshipping may seem attractive, but in fact, it is full of pitfalls: goods run out of stock, money can hang for an indefinite time, and logistics is a separate headache with eternal delays. And the most unpleasant thing is that if the product is of poor quality or the client decides to return it, all the problems fall on you.

A merchant affiliate is a great alternative that allows you to avoid these problems. It gives you more flexibility and fewer risks, and you can make money with it easier and faster.

Why is a product affiliate better than dropshipping?

Commodity affiliate is an opportunity to earn money without unnecessary headaches. You can focus on promotion and sales without worrying about issues like how to deliver the goods or where to store them. And what is most important – everything is very clear here: you attract customers and earn money, without any unpredictable pitfalls.

Don’t forget: the success of any business depends on the quality of the product, competent marketing, and great service. A product affiliate program helps you to fully concentrate on these tasks without wasting your energy on solving issues with warehouses, delivery, or procurement.

Conclusion

Making millions with Shopify is within reach, but don’t make the mistake of thinking it will happen by itself. To succeed, you will have to invest your time, energy, and finances. It’s important to understand what your customers want and not be afraid to try different approaches in advertising, design, and product selection. Sometimes this can require considerable investment.

Before creating your online store, think about the possibilities of affiliate programs. It can be less costly: you don’t need to develop a website, do accounting, wait for long payments, or register an individual entrepreneur/ LLC and open accounts.

Investing the money that was planned to launch a store in advertising to promote affiliate offers can be a faster and more profitable way. Before deciding on a model of earnings, be sure to study all the options and evaluate your resources to choose what is best for you at this stage.