This week I learned a lot about drop shipping vs. affiliates. A few years ago I ordered from a company, and they called to let me know that they didn’t have any of that model in stock, but their supplier could drop ship me one if that was okay. Honestly, I never knew what that meant and I regretted not asking for the details of the process. I think drop shipping is a great way to have access to more inventory without physically storing it or having to pay for it before you need it.
While drop shipping does have some great advantages, I think the affiliate model is a better choice for me. I have been trying to decide what kind of business I will be starting for this class, and I’m leaning heavily toward using the affiliate model. I may not end up using the affiliate model exclusively, but I do think there are some advantages that make it worth looking into. Some companies allow you to get a commission on the whole order placed by the customer, not just the product you advertised for, which gives you a bigger profit. You can advertise for more products than you could if you had to physically have the inventory in your possession. I think overall the affiliate model is a better fit than drop shipping for my future company. I enjoyed learning more about the differences between the two business models this week.