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Differences Reseller, Dropship, and Affiliate, Which Generates Big Income?

By Yama
The difference between reseller, dropship and affiliate

Between Reseller, Dropship, and Affiliate, which is the most profitable online business model? The answer is that all online business models are profitable, because each has advantages and disadvantages.

For those of you who are interested in doing business online with minimal capital, it is very suitable for running Reseller, Dropship, and Affiliate online business models.

You only need to market other people’s products on the marketplace, social media, or on the website. So, you don’t have to think about the production part.

The 2 Biggest Reasons to Start an Online Business

What is the biggest reason people start an online business? Here are the 2 biggest reasons:

1. Minimal Initial Capital

As we know, starting an online business requires only a small amount of initial capital. In contrast to offline businesses, which require a lot of capital to build a place of business and stock a lot of products.

Especially during a pandemic like now, people are also afraid to go out of the house. So, an online business is a very suitable business to run, especially during the current pandemic.

2. Flexible Working Hours

By doing business online, you only use a laptop or smartphone. That means, you are free to sell products anywhere and anytime.

Especially now that people are encouraged to work from home (Work From Home) so that you can use online businesses to earn additional income.

3 Ways to Make Money/Income on the Internet

To make money via the internet, there are 3 online businesses that you can try. The three online businesses are Reseller, Dropship, and Affiliate businesses. The following is a discussion of the three online businesses and the differences between them.

1. Online Reseller Business

A reseller is a person who resells products from a store or supplier to customers, but that person must stock the product first.

The following is the scheme of the online reseller business:

  1. Resellers must first buy the product at the store/supplier
  2. Resellers display/post products for sale
  3. Customers view products and buy products
  4. Resellers send products to customers

Weaknesses of Online Reseller Business:

  • The choice is limited, because the items you can provide depend on the capital you have. If you only have a capital of 1 million, it means you can only buy goods worth 1 million.
  • You have to pack the goods and send the goods to the customer.

2. Dropshipping Online Business

Dropship is a person who sells products from a store/supplier to customers without having to stock up on products.

So, if a dropshipper gets an order, then the order and details of the delivery of the item will be forwarded to the shop/supplier that you sell the item to.

The following is the scheme of the online dropship business:

  1. Dropshipper borrows product photos from a store/supplier to post on the marketplace or social media
  2. Customers see the product and want to buy the product
  3. Dropshipper pays for the product in advance to the store/supplier
  4. The supplier sends the product to the customer using the shipping details from the dropshipper

Based on the scheme above, it can be concluded that the difference between reseller and dropship lies in stocking the product. A reseller must stock the product first, while a dropshipper does not need to stock the product first.

Weaknesses of Dropshipping Online Business:

  • Not all suppliers like the dropship model.
  • If the supplier is naughty, the supplier can send products to customers using the shop name from the supplier, not the shop name from the dropshipper. Therefore, you have to choose a good, professional dropship supplier, and want to do dropshipping.

3. Affiliate Online Business

Affiliate is an online business where someone will get a commission if they successfully promote products from suppliers.

To promote products from suppliers, you must have an affiliate link that you can get after registering with the supplier. That affiliate link is what you have to promote so that you can get a commission if a customer buys a product through your affiliate link.

The following is the scheme of the online affiliate business:

  1. You promote products from shops/suppliers
  2. If there is a customer who wants to buy, the customer does not order through you, but directly visits the website/application of the supplier
  3. Supplier sends product to customer
  4. You will get a commission if a customer buys a product via the affiliate link that you promoted earlier

Weaknesses of Online Affiliate Business:

  • You must first register with the supplier to take an affiliate link so that you can get a commission if a customer buys a product through the affiliate link that you promote.
  • People can remove your affiliate link if they realize that the link listed is an affiliate link, so they will buy products directly to the store / supplier without going through your affiliate link.

Based on the discussion above, it can be concluded that the differences between Reseller, Dropship, and Affiliate are:

  • A reseller must stock the product in advance in order to earn income.
  • A dropshipper does not need to stock products, but only needs to promote images from suppliers.
  • To get a commission from an affiliate business, you don’t need to stock up on goods, but you must promote an affiliate link so that customers buy products through the affiliate link that you promote.

That’s a discussion about online businesses that are popular today, namely online reseller, dropship, and affiliate businesses.

Well, for those of you who intend and want to start an online business, you can register yourself at: https://wa.me/6283874159125. By registering, you can be guided to do business online with small capital but big profits.