Internet Marketing

Affiliate Business vs ECommerce – Which one is better?



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Affiliate links are present in this site that will help me run and maintain this site through the commissions i earn

This a very common question I find people keep comparing which one is better or the best. Is it affiliate marketing business or E Commerce? Which one stands out and which one is more effective So i decided to write an article to help people understand the answer behind the question. In this article i am going to discuss about the pros and cons of using Affiliate Marketing business model and using E commerce business model

 



Affiliate Marketing

What is affiliate marketing.

This is the business model where a website is engage in promoting products. And for every products that the websites promotes and made a sale the website owner earns a commission. The commission will vary from products to products and depending on the targeted niche of the website. The website can either diversify to cover and become multi niche affiliate marketing website.

The pros

  • 1. High commission product
  • 2. No overhead cost for handling and shipping
  • 3. Get to choose more products to sell
  • 4. Low Startup cost and very high high profit return
  • 5. Millions of products to choose from

The Cons

  • 1. Commission can be low depending to the type of products
  • 2. Requires a tons of nonstop blog or content publishing
  • 3. Need to wait a few days for you to receive your commission which will depend to the affiliate program you choose

There are other pros and cons that one can experience using affiliate marketing model

E commerce

What is e commerce

ECommerce is a online business platform that offers a wide array of product selection for customer to buy. Now if talk about eCommerce we can refer also refer to three business models

1 Ecommerce Drop shipping

This is the type of e commerce you will be absolutely required to get a good cash-flow for it to work.

2 Ecommerce Direct

You as the website owner will be the one that will be handling everything from shipping, customer support, warehouse inventory, maintenance, logistics and etc. This require a huge startup cost not to mention the advertising cost and other maintenance that you need to do for your site.

3 Ecommerce Multi Vendor

This is an advance ecommerce business model. Where your site can become a multi vendor platform basically your website will host all the vendors and will be the one to process and distribute the payment commissions, advertising, etc. The vendors on your platform will be the one responsible in shipping and overhead cost etc.

The Pros

  • 1. High revenue
  • 2. Product focus platform
  • 3. More sales
  • 4. More vendors will join for multi vendor ecommerce
  • 5. You control the money

The Cons

  • 1. Expensive maintenance
  • 2. You will handle everything from inventory, support to logistics from direct ecommerce
  • 3. Expensive to a very expensive startup capital
  • 4. Very High Competition
  • 5. High risk, high reward investment

 

There are many more things that you need to know to understand ecommerce this is a quick overview of the topic.

 

Either if you choose Affiliate Marketing Business or Ecommerce Business will entirely depends on you, No one is better than the other what work for one person might not work from the other person or might work both. Tell me about your opinion and leave your comments below

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