You might be wondering right now, which is the overall winner in the battle of Affiliate Marketing vs eCommerce?
Two of the most popular online business opportunities to make money online today are Affiliate Marketing and eCommerce.
- But which of the two will fetch you better results?
- As a complete beginner, which business is better for you to get started with?
- What are the advantages and disadvantages of Affiliate Marketing and eCommerce respectively?
I will provide the answers to these questions and more in this Affiliate Marketing vs eCommerce article.
In addition to a number of similarities such a both business models require the Internet, you need to build your brand and drive leads to your site...
There are key differences between Affiliate Marketing and eCommerce that you should know about before you dip your toe on either of them.
The most crucial things to consider when starting an Affiliate Marketing or eCommerce business are the following:
- How the business model work
- Business ownership
- The cost to get started
- Possible issues and challenges
- Where will your income come from
To help you make an educated decision on whether you should start an Affiliate Marketing business or an eCommerce business, below are the side by side comparison of the two.
Let's get started.
Affiliate Marketing vs eCommerce Business Models
I'm thinking you probably already know this, but just in case a complete beginner is reading this, there is a key difference between the two.
In Affiliate Marketing, you will not have to own any products to sell. You just have to create your website (which will act as your business platform) and promote your affiliate products.
Meanwhile, in an eCommerce business, you may or may not need to buy the products that you want to sell depending on the eCommerce platform that you are using.
Sounds a little confusing? Allow me to elaborate.
#1 Affiliate Marketing vs Amazon FBA
There are a variety of platforms for you to choose from whenever you want to start your own eCommerce business, Amazon is the most popular one.
But the best plus point when running an Amazon FBA business is you will not have to worry (too much) about generating traffic to your products.
Millions and millions of people regularly visit the Amazon marketplace on their own which will give your products great exposure.
Another excellent feature of having an Amazon FBA business is that you will not have to worry about product inventory and shipping. With the FBA, Amazon will handle your inventory storage, product packing, and shipping for you.
However, unlike starting your own Affiliate Marketing business, you will need a large amount of money to get started with this business.
To learn more on how to start an eCommerce business with Amazon FBA, click here.
#2 Affiliate Marketing vs Shopify
Another giant name in the eCommerce industry is Shopify. Shopify will provide you with a suite of eCommerce tools specifically designed to help you build and promote your own online store.
Shopify, unlike Amazon FBA, does not offer extra services such as keeping your inventory nor fulfilling order placements.
And since you are creating a new online store, you will have to start from scratch and build your name, drive traffic to your site to expose your products and promote your business.
Shopify makes up big time on its innovative suite of tools and systems that will make it very easy for you to run your business.
Shopify also supports plenty of different payment options and gateways and gives you 100% control of your business.
Do you want to know whether Amazon or Shopify is the better choice for your eCommerce business?
#3 Affiliate Marketing vs Dropshipping
Dropshipping is an eCommerce business where you as a store owner does not need to own or keep any of the products that you sell.
Instead, whenever a customer purchases something from your online store, you will order the item from a third party. The third party (probably the product wholesaler or manufacturer) will then ship the ordered item directly to the customer.
As a result, you never see or handles the product, but you keep all the profits.
Dropshipping is much like Amazon FBA...
In the sense that you do not have to keep an inventory of your products.
However, the key takeaway here is that you do not need to invest a considerable sum of money in ordering the products that you will be selling.
But unlike Affiliate Marketing, where you simply promote and guide people on which products you think are best suited for their needs, you are still a store owner on dropshipping.
Meaning, you will display the products that you sell in your online store, you get to choose your pricing, and you will handle customer complaints.
So there you have it, the key differences between Affiliate Marketing vs eCommerce in different platforms.
Now let's take a look at the next thing to consider in choosing between the two.
Both Affiliate Marketing and eCommerce allow you to control 100% of your business.
In Affiliate Marketing
You create a website where you will promote the products that you want to earn commissions from.
You create an online store where you display the products that you sell.
One key difference is that when you sell products online, you can choose the amount of your potential profits in each product.
Cost to Get Started
Affiliate Marketing and Dropshipping do not require much to get started.
Because these two models do not require you to purchase and own any products at all, you can get started today even with just a hundred bucks in your wallet.
Starting an Amazon FBA and Shopify business will require a few thousand dollars at least because you have to order the products that you will sell.
To learn more about Amazon FBA and Shopify, click here.
Affiliate Marketing and eCommerce Challenges
For Affiliate Marketing, the hardest challenge to overcome is how to generate traffic into your website. You can do this thru paid traffic and organic traffic.
Since your income will only come from people buying your affiliate products using your affiliate links, you must learn how to bring people to your site and convert them to sales.
In eCommerce, the challenges you will face depends on the platform that you use.
For Amazon FBA, you will need to learn how to create your brand.
For Dropshipping and Shopify, you must learn how to market and drive traffic to your business, similar to Affiliate Marketing.
Source Of Income
The two business models might have a lot of similarities but one thing that is different is how you earn money on each of them.
In Affiliate Marketing
Your income which is called commissions will happen whenever people who visit your website, blog, landing pages decided to purchase your affiliate product's thru your affiliate link.
In an eCommerce business, Shopify, Amazon FBA or Dropshipping, your income will be from the profits you make from each product that you sell.
The difference here is that in eCommerce, you have the freedom to set your preferred profits on each product (make them higher or lower depending on the supply and demand)...
While your commissions in Affiliate Marketing are fixed per each product.
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Is Affiliate Marketing For You?
If you love the idea of not having to invest any amount in selling any products and not handle any customer services whatsoever but make decent profits, then Affiliate Marketing is probably for you.
However, to become successful in Affiliate Marketing is very possible but will not be easy.
Affiliate Marketing is not a Get-Rich-Quick scheme where you merely create a website, pick a niche and choose your affiliate products.
No, I'm afraid not.
How to Succeed with Affiliate Marketing?
To become a successful affiliate marketer, you must learn to create your brand, establish your rapport, provide value and gain the trust of the people that visit your website.
Most of all, you also need a good Affiliate Marketing training program that will teach you the basic ins and outs of this business and provide you the jump start that you need.
If you are eager to start your own Affiliate Marketing business, this program will teach you how to earn a 6-figure monthly income thru Affiliate Marketing possibly.
Don't worry; you will get a free trial period!
Meanwhile, if you think that you prefer to manage and own a proper online store and create a stable income from selling products online, then continue reading the next section.
Is eCommerce For You?
There are plenty of people today that are also making 6-figure monthly income (or more) with their online stores.
But just like Affiliate Marketing, it will require skills, knowledge, insane patience and time.
How to Succeed with eCommerce?
Amazon is currently the number one Internet company in the world today when it comes to revenue. This means that you can tap into the platforms popularity and global presence and use it to maximize your sales.
Meanwhile, Shopify is also a giant name in the eCommerce industry. The platform provides a range of sophisticated tools and system. The platform also allows little more versatility and flexibility to your eCommerce business compared to Amazon FBA.
There are plenty of fantastic eCommerce training courses today but if you want to learn how to create a successful Amazon FBA business...
I think this excellent FBA training course will get you there.
On the other hand, if you are on the fence on whether you should start your business with Amazon or Shopify, this article can give you the answer that you are looking for.
My Two Cents
Since starting an online business has become a norm today, many people (including you) wants to try their luck in the industry.
However, to become a successful Internet marketer, whether in Affiliate Marketing or eCommerce, is less about luck.
Your success on any of this business model will require your passion, knowledge, skills, determination and hard work.
So which do you think is better in the end in the ongoing battle of Affiliate Marketing vs eCommerce?
Please share your thoughts and ideas in the Comment Section below.
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Thank you for taking the time to read this article on Affiliate Marketing vs eCommerce. I sincerely hope that you found the answers that you were looking for.
If this article has been useful to you, kindly share this to the other people you know so they too could benefit from this kind of information.
It is never too late to start your own Affiliate Marketing or eCommerce business today.
But no matter which of the two you choose, make sure that it is the one you indeed are passionate about. It will also not hurt to have a success formula to guide your way.
Until here and I wish you all the best in the future.
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