Posted by Mohammad Izhar
DROPSHIPPING
DROPSHIPPING is termed as the method of chain which includes the management inside which the retailer is not being found to keep goods in stock in fact instead of this transfer of goods is done to its customer’s order & shipment details to the manufacturer, another retailer or a wholesaler who then ships the goods directly to the customer.
Taking it in an example of a business model, it allows anyone to sell their products from suppliers on their own websites. There is no essential requirement to carry out any inventory at all. For instance if any of the customer buys anything from the drop shipper’s website, it is an indication that they have being purchased from or have being placing an order with the supplier. Then further it is a supplier who takes the initiative to pack the goods and ships the product to the customer.
As an initial step taken by the first time E-commerce entrepreneur or for those people who want to see the test results for the test categories of products on their audiences, Drop shipping is being considered the best model for them, as E-commerce entrepreneurs have been knowing the fact already to run their E-commerce stores while studying, or working full time.
PROS
- LOW RISK BUSINESS MODEL
- BUILDING ASSET
- MULTIPLE CHANCES TO OFFER REWARD TO THE CUSTOMERS
- SELLING & TESTING MORE PRODUCTS WITHOUT HAVING MUCH RISK
- FULFILLMENT COSTS (LOW ORDERS)
- LOSS COSTING ON INVENTORY
- LOW COSTING FOR START UP PURPOSES
CONS
- REQUIRES THE MANAGEMENT OF THE CUSTOMER SUPPORT
- CONTROLLING LESS OVER THE ORDERS (FULFILLMENT & LEAD TIMES)
- RELYING ON THE STOCK OF OTHERS
- LESS PROFITABLE
- CUSTOMERS SERVICES GET RUINED, IF BECAMES POOR
AFFILIATE MARKETING
AFFILIATE MARKETING is termed as the marketing arrangement made by an website for holding the traffic or for generating the sale from its referrals, through which an online retailer pays commission to an external website.
An affiliation is done by the merchant who is selling a product, on which an affiliate markets & promotes. For instance we can conclude a celebrity or an artist who is being involved in the promotion by promoting any brand, or it could be any instructor or a fitness freak who is being involved in marketing a merchant’s zone of healthy food products.
This type of marketing is completely based on the commission session. It involves receiving a certain percentage of each sale that is responsible for. It is not categorized it can be high, profitable, or costing low in budgets.
PROS
- THERE IS NO COST REQUIRED IN BEING AN AFFILIATE
- DESCENT SOURCE OF PASSIVE INCOMES
- NO CUSTOMER SUPPORT TO GET WORRIED ABOUT
CONS
- ONLY A PERCENTAGE IS BEING EARNED
- DELAYED PAYMENTS
- AFFILIATION LINK CAN BE REMOVED
- PRONE CONTROLLING ON PRODUCTS & COSTS
SIMILARITIES
- Without any requirement regarding the inventory or shipping goods both the business can be given a start up.
- In terms of comparison both the channels are to be a consideration of low risk business campaigns.
- In terms of profit both the channels have the high earnings potentials.
- In terms of immediate response both the channels can be start up easily.
- In terms of the skills & capabilities required both the channels need same skills for driving the traffic to a landing page.
VANQUISHER
AFFILIATE MARKETING is a great business channel to deal with as one can achieve success in to without spending much of the finances as a start up or initial stage, along with this it has many advantages at the back but we cannot keep aside the disadvantages as well which are quite heavily weighted at the same time in which the biggest one can be concluded as the relying on the other’s businesses and keeping this drawback in mind we can sum up by saying in the comparison of AFFILIATE VS DROPSHIPPING channel , DROSHIPPING will be concluded as a great deal to go with , as it can for sure ensure the proper flow of finances through the business.
By having an online store, more finances can be earned due to the following enlisted reasons :-
- Setting of the own prices can be done, which can be little higher as well if it comes to go with the comparison.
- With the physical goods drop shippers are found to be earning a little more.
- With the help of successful ad campaigning, chances of getting viral are more.
- With the help of good affiliates’, great traffic can be diverged to the online store.
- A positive chance of the comeback of the customers is more likely to be increased direct to the website in terms of Drop shipping.
- Low good cost (margins can be managed accordingly)
- Being a own brand holder more audience can be generated.
With the orientation of high order volume & reviews, selling of the products became an easy task.