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Aspect | Affiliate Marketing | Distributors | Dropshipping |
---|---|---|---|
Business Model | Promote products via affiliate links; earn commission on sales | Buy in bulk from manufacturers; sell to retailers or customers | Sell via own store; supplier ships directly to customer |
Inventory Management | No inventory; handled by merchant | Holds and manages inventory | No inventory held; supplier manages stock |
Control Over Product & Branding | Limited; promote existing products and brands | Moderate; can choose range, branding depends on agreement | High; select products, set prices, brand store |
Customer Relationship | Limited; customer buys from merchant | Full; responsible for service and support | Responsible for customer service and order issues |
Revenue Model | Commission-based; fixed or % of sales | Profit from markup between wholesale and retail | Profit from difference between wholesale and retail price |
Initial Investment | Low; mainly marketing costs | High; inventory and logistics | Moderate; website, marketing, order processing |
Operational Involvement | Low; focus on marketing/content | High; manage inventory, logistics, sales, support | Moderate; manage store, marketing, customer service |
Risk Level | Low; no inventory risk | High; inventory and market risks | Moderate; no inventory risk but responsible for service |
Scalability | Highly scalable; promote many products/merchants | Limited by inventory and reach | Scalable; manage multiple suppliers/logistics |
Profit Potential | Lower per sale; commission rates vary | Potentially high; depends on markup and volume | Higher per sale; set own prices, typical margins 30%+ |
Customer Data Access | Limited; merchant owns data | Full; owns customer data | Full; owns customer data |
Legal Responsibilities | Must disclose affiliate status; no direct liability | Responsible for product quality and compliance | Responsible for consumer protection and service |
Time to Market | Fast; minimal setup | Longer; supplier agreements, inventory setup | Moderate; website and supplier setup |
You have resellers, and they get you orders. They send to your wallet, and you pay them out?
You get clients, they send XMR to our wallet, you send us shipping details, we confirm funds, ship your order, send you profits, and repeat! :)
/u/newbieforever2018
Seems like it's dropshipping with different steps.
This had me burst our laughing lol
newbs and snowbunni my two favorite people