What's Better Becoming An Amazon Affiliate or Teaming Up With Dropship Wholesaler

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What's Better Becoming An Amazon Affiliate or Teaming Up With Dropship Wholesaler

I have heard of horror stories going with drop ship wholesalers, that is why i am considering just becoming an affiliate for amazon products, so if you were just getting started with ecommerce and having the experience you have what would you start with a a drop ship wholesaler or become a amazon affiliate and why ?
#affiliate #amazon #dropship #teaming #wholesaler
  • Profile picture of the author elCapitan
    Personally, I would go with the drop shipping route. With drop shipping you can leverage it up and create your own ecommerce stores using systems like shopify or woocomerce.

    I would suggest research and find a few niches that you believe can make money, and start contacting the manufacturers.
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  • Profile picture of the author kurtbai
    both ways can make you money, with Amazon, you won't be bothered with customer care, packaging and shipping, just bring them the traffic, but you only get 4% to 7% commission. with dropshipping, you must manage your store and take care of your customers, but you have higher profit margin, so it's all about which model you prefer.

    there is risk involved in working with dropshippers, but there are lots of top-notch suppliers, too, you just need to find them
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  • Profile picture of the author TheInfoMarket
    Those are two very different business models.

    Dropshipping will require a lot more time and money investment. Without very thorough research and planning, dropshipping will only lead to a loss. Though if you can find the right supplier and products and negotiate a good deal, it can be very profitable.

    Being an Amazon affiliate is less about online retail, and more to do with advertising. If you can setup a site on a particular niche with lots of high quality & original content, then Amazon affiliate products would be one good way of monetising the site.
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    • Profile picture of the author Mat Gunnufson
      I'm not a big believer in amazon affiliate program. I've been doing affiliate marketing for years and found that what matters is high end commissions. Amazon only pays 4 to 6%. Those are tiny, weeny, little commissions.


      Here is what you need to be successful online. You need traffic and you need a landing page, and a way to follow up.



      The best method for selling is having multiple opportunities to show amazon products to your prospects.


      So say you sell pregnancy pillows with amazon's affiliate program. I use this example because I actually did make a little money selling pregnancy pillows through amazon. When I say a little, I mean around $5. Not even enough money for amazon to cut loose with the money and send me a check. They require $10 or more.



      Of course you could create reviews of certain pregnancy pillows and post them on google, ezine articles, youtube, or squidoo.



      If all your prospects did was see your review they would say,"thanks" and leave your page and never return. Sad truth, I know.



      So you need a landing page and a way to follow up. Very important. Without this you'll end up with cold prospects who got the info they wanted and left your page. They don't come back either.


      So you may have spent hours posting and sharing and SEO but without follow up you might as well say goodbye to amazon affiliate commissions.



      But following up by itself is not enough. Your prospects needs a reason to "opt in" to your offer. Reason being the keyword.


      So if you had a little e-book with the title "10 Secrets Of Buying A Pregnancy Pillow", then your prospect would most likely buy from you instead of buying from someone else.


      Why you ask? Who presented to them the most opportunities to buy the pregnancy pillow you were offering? Who did they get to know and trust before buying?


      Of course You. If you did your job well, then you engaged, informed and entertained your prospects. They warmed up to you and were left with a good feeling inside, knowing they are better informed.


      They will want to thank you for feeling better. They do this by paying you or buying from you. Does that make sense?

      Sure you can get traffic selling amazon products, but how much money will you make if you sold thousands of items at a 4% commission? By the way selling 1000 items with amazon commissions takes a lot of traffic. I mean a lot.When I got started selling as an amazon affiliate, I made a 50 page website focused on pregnancy pillows.



      On the left and right were ads provided by Amazon with my link on the sides. That was a ton of work. Like I mentioned, I made $5 from that after almost 1 year of making quality pages.



      Then I found something much better then amazon affiliate commissions. Something that could pay me 100% commissions and I could make anywhere from $25 to $5000 per sale. That's a lot better then 4%. I immediately switched because I knew there was no way I could make money that easily with Amazon.


      Even if I stayed on the path for 5 years with my pillow site, I may have made enough to cover the cost of hosting.
      Signature

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  • Profile picture of the author pavv
    I agree that 4-7% is just too low. For the amount of sales you have to generate to make a decent living you might as well be running your own stores.

    Lets do some quick figures....(lets assume a realistic 10-30% drop ship profit)

    $100,000 in Sales
    Amazon - $4,000 to $7,000
    Drop Shipping - $10,000 to $30,000

    $500,000 in Sales
    Amazon - $20,000 to $35,000
    Drop Shipping - $50,000 to $150,000

    $1,000,000 in Sales
    Amazon - $40,000 to $70,000
    Drop Shipping - $100,000 to $300,000
    Signature
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    New to eCommerce? Please take a look at my product which teaches you how to find and research a product/niche, then how to build your own store.
    [WSO]I Made $70,689.71 Sales In The Last 31 Days, Let Me Show You How To Do It Too
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    • Profile picture of the author Julia Russo
      "Dropshipping will require a lot more time and money investment. Without very thorough research and planning, dropshipping will only lead to a loss."
      *To quote from InfoMarket*

      I am astonished you said that. More time and money investment than being an affiliate?? There is NO money investment in EITHER platform. One is an email the other is a link. But there is a difference in the profit margins, most certainly. A 4% commission or a 30-50% or more profit from drop ship--no brainer.

      Okay so you want to make the argument that having customer service is an investment. The drop shipper makes the delivery--if your customer has a problem with the order, you put it in the lap of the drop shipper to make it right. The chances are very slim that even happens. It did happen to me (as the drop shipper) once--I sent my retailer's customer the wrong item. So I corrected it, sent the correct order express, and ate the sale. Did my retailer suffer or lose any money? NO--I did. His customer thought he had handled it quite well (and did not even return the other item--so I ate that one,too). My retailer got paid, I lost the cost of the item. But that goes with the territory.

      Make more profit margins with drop shipping. Make less in commissions by just referring someone to another site. If there is an "investment" here, make it gladly....
      Signature
      Wholesale/drop ship tutorials--LEARN HOW and where to get drop shippers
      http://www.storkandveil.com/wholesale-drop-ship-info/
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      • Profile picture of the author vne5
        @Julia She is right! There should never be a charge for the "privilege" of selling someone else's goods. Drop-shipping is wonderful for all parties involved. I personally handle all of the customer service for my company myself and the affiliates do nothing but drive traffic. Works well for all when it's done right.
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      • Profile picture of the author ralph010
        Originally Posted by Julia Russo View Post

        "Dropshipping will require a lot more time and money investment. Without very thorough research and planning, dropshipping will only lead to a loss."
        *To quote from InfoMarket*

        I am astonished you said that. More time and money investment than being an affiliate?? There is NO money investment in EITHER platform. One is an email the other is a link. But there is a difference in the profit margins, most certainly. A 4% commission or a 30-50% or more profit from drop ship--no brainer.

        Okay so you want to make the argument that having customer service is an investment. The drop shipper makes the delivery--if your customer has a problem with the order, you put it in the lap of the drop shipper to make it right. The chances are very slim that even happens. It did happen to me (as the drop shipper) once--I sent my retailer's customer the wrong item. So I corrected it, sent the correct order express, and ate the sale. Did my retailer suffer or lose any money? NO--I did. His customer thought he had handled it quite well (and did not even return the other item--so I ate that one,too). My retailer got paid, I lost the cost of the item. But that goes with the territory.

        Make more profit margins with drop shipping. Make less in commissions by just referring someone to another site. If there is an "investment" here, make it gladly....
        HI Julia, What product are you in ? Might be good for the research to see how you set up your shop, which techniques you used ... etc.

        I wonder if there are still niches that have "online space" for dropshipping.
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      • Profile picture of the author onpointinfo
        Julia ...thanks for your feedback, my daughter has an interest in cakes, and baby items etcc for a online store especially cakes ...how does it work with cakes because I think she rather focus on cakes, but what are the issues , laws etc with shipping cakes and just curious are people making money online selling cakes and what are the pros and cons to focusing just on cakes alone ?
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  • Profile picture of the author onpointinfo
    Thanks everyone for the great feedback...sounds like drop shipping is the way to go will start researching this option !
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  • Profile picture of the author redlegrich
    Selling cakes online. Interesting. Can't see a problem with that (sarcasm button). Seriously, the after sale customer support issues could be huge, damaged in delivery, spoiled food and sick customer, well now legal trouble. Yikes, you want your ecommerce business to make money and provide a civilized lifestyle, not major headaches.
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  • Profile picture of the author onpointinfo
    Hi Red...

    Gave me food for thought hummm maybe I misunderstood something on her site about shipping cakes, yea sounds like trouble as you said ...ummm
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    • Profile picture of the author Julia Russo
      Anytime you deal with food items you have to deal with the health department. Without a commercial kitchen and a commercial license, food is not a great idea. Nor do cakes ship well.

      Now, "cake decorating ideas" is a hugely visited keyword phrase. We get most of our visits to our baby shower site to the pages with baby shower cakes.
      People are looking for ideas and instructions so while you make cook at home, you can sell the access to instructions for baking and decorating. There are some big cake decorating blogs out there!
      Now if she wants to sell DIAPER cakes, contact me! I drop ship! :-)

      PS to ralph010---pm me for more on the subject.
      Signature
      Wholesale/drop ship tutorials--LEARN HOW and where to get drop shippers
      http://www.storkandveil.com/wholesale-drop-ship-info/
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  • Profile picture of the author redlegrich
    Julia, I was going to say something like that but got lazy and stopped typing.
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