I'm a relatively new internet marketer (started last year) and only have experience in offline marketing. However, recently I've became interested in amazon's associates program and researched (from keyword research to reading success stories) as much as I can about it. Although I haven't tried my hand at affiliate marketing yet I'm a bit discouraged by Amazon's 4% commissions (I do realize that there is some potential for sales to compound but that still isn't appealing to me).
Just recently my ex-girlfriend from India (she lives in Ft. Lauderdale now) introduced me to drop shipping. She told me how she earned on average $4-8,000/month. I believe she would wholesale purchase from a supplier and list the price 5-10% higher on amazon or something (she was vague and didn't explain it clearly).
A. Is dropshipping essentially 'enhanced affiliate marketing'? Where I make a website, list the products, forward all of the customer orders to the supplier (they would then ship directly to the customer), and finally, collect a commision (30-50% perhaps)?
B. Does it involve wholesale purchasing from the supplier?
I really hope it's 'A' since it would be a whole lot easier and there wouldn't be any upfront cost (except for domain purchase and monthly web hosting). The only problem I see associated with this system is dealing with customers. But then can I just hire a virtual assistant to handle customer service or forward customer calls to the supplier?
P.S.: From my understanding this sounds way better than affiliate marketing.