Tuesday, December 16, 2008

Dropship Marketing and Affiliate Marketing Integration

When you decide to create an internet marketing business as a reseller, there will be many risks as well as positives that you will come across. You should look at both the pros and cons to figure out if this type of business is right for you, or if you should try a different way to run a work at home business. Affiliate Marketing Business or Dropship Marketing Business, or Integration.

What is Dropship Marketing?



Drop shipment or drop shipping is a type of retailing where the retailer does not keep goods in stock, but instead passes the customer's order and shipment details to the wholesaler, who then dispatches the goods to the customer directly. The retailer makes their profit on the difference between the wholesale and retail price.

So, Dropship Marketing means you can resell any products from dropship supplies service provider like Shopster, Doba, WorldwideBrands, Simplx, Liquidation, Esources, GoWholesale, etc. And gain profits on the difference between the wholesale price and retail price.


Pros and Cons of Dropship Marketing


Pros of Dropship Marketing


Drop shipping can be a very simple and effective way to get started in ecommerce. Many online merchants find dropshipping strategies are good way of minimizing stock holding, decreasing overall shipping costs and cutting down on delivery times to customers.

No need to hold stock

Drop shipping allows web site owners to send single or low quantity unit orders gathered on their web sites to manufacturers, or wholesale warehouses, who in turn ship the items directly to the customers of the web site owner. Typically you take care of the promotion and collect the payment, and the drop shipper looks after order fulfillment.

You buy at a low wholesale price

Drop shippers can buy in huge volumes this means they will be able to offer you the best prices on products and shipping, usually wholesale.

No money up front to buy stock

There's no capital investment, no need to invest in stock and no danger of you suddenly having large stocks you are unable to sell.

You can sell a wider product range without buying stock

Using drop shipping allows you great flexibility in terms of product range. Promote as much or as little as you wish.

No need to worry about inventory and delivery

You can focus on listening to the market and discovering the products your visitors want to buy.


Cons of dropship marketing


price

Don't accept that the first drop shipper you come across will give you the best deal you should shop around.

Dropship fees and charges

It's important to know all the costs involved so you can calculate your profit margins accurately. Any wholesale company that wants to charge you a regular "participation" fee should be avoided - the only time you should have to pay a dropship company anything is in connection with a specific order.

Shopping

Is the drop shipper using a reputable shipping company o deliver the goods? Where will they ship to?

Accounts

Will the drop shipping company automatically debit your credit card on each order you submit, or can you get monthly payment terms?

Support, returns and refunds

The last thing you'll want is to be caught up in a nasty situation where you have a number of returns - and have to foot the bill. Ask the dropshipping company about their returns policy, what kind of support they'll offer you for their products and about any guarantees associated with their products - and get it in writing.

Credibility

How long have the drop shippers been around for? Do they respond to your requests for information rapidly and professionally? Young dropship companies and wholesalers have the habit of going bust quickly, or growing too rapidly and as a consequence basic good customer service suffers.


What is Affiliate Marketing?


Affiliate marketing
is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts.

Affiliate marketing is also the name of the industry where a number of different types of companies and individuals are performing this form of Internet marketing, including affiliate networks, affiliate management companies, and in-house affiliate managers, specialized third party vendors, and various types of affiliates/publishers who promote the products and services of their partners.

Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization, paid search engine marketing, e-mail marketing, and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.

Affiliate marketing—using one website to drive traffic to another—is a form of online marketing, which is frequently overlooked by advertisers. While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.

From: wikipedia


Common and Defference between Affiliate Marketing and Dropship Marketing


Commons


1、They are both different with Traditional Marketing, No need to hold stock and no capital investment for stock. They are all suitable for small e-commerce business.

2、They have a great flexibility in terms of product range.

3、Both of them suitable for internet marketing, you don't need a physical store to sell, but you must be proffesional in your niches, and before you start, you must doing enough researching in your niches.

4、You don't worry about the delivery, and not be limited with location of your customer, you can sell anything to any country at home.

Difference

1、Ways to Profit: Dropship Marketing depended on the wholesale price and retail price, you gain profit on the defference of them. And we receive payment directly from customers, we pay to wholesaler or supplies [we are boss];Instead, Affiliate Marketing based on the referral commssion of mechant from affiliate network, They are completely control the money [they are boss].

2、Who provide custmer service:We must provide customer service with dropship marketing, Mechants provide custer service with affiliate marketing, that's the reason of why most of affiliates like this marketing technique.

3、The Long Tail:Why internet marketing? Just for long term profits. Custermer is the target, but with affiliate marketing you can not keep details of your customer stay in your database. But you can easy storage every customer details in your web database with dropship marketing, you can understand what are your customer's needs, and sell any others to them in the future. Even, do you want to any other affiliates to promote your own products? If you are, build your own dropship web store now, and install your own affiliate program, that's all your needs.

4、As an affiliate, do you meet same situation like this: when you want to tracking your google adwords campaigns, you need paste tracking code to mechant's website, but they deny your requst, so you can't tracking which keywords of you ad campaign are making money and whichs are losing money. But if you have a dropship e-commerce site for resell something, you can tracking anything you want.

Now you have been known the pros and cons between Dropship Marketing and Affiliate Marketing, they are Each has specialized skills! In next article we will show you how to integrate them and build your own e-commerce web store.


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