Dropshipping vs Affiliate Marketing: Pros, Cons, and Profit Potential

Dropshipping is a way to run an online store without keeping products in stock. When someone buys something from your store, you send the order to a supplier, who then sends the product directly to the customer for you.

This means you don’t have to worry about storing products or spending money on them before you sell them. It’s a good choice for people who want to start an online business with less risk. Your main job is to promote your store, get people to visit it, and find customers.

Example: Imagine you set up a Shopify store and partner with BrandsGateway to dropship luxury clothing. When a customer buys a designer jacket, you forward the order to BrandsGateway, which handles shipping and inventory. You keep the difference between your retail price and the supplier’s cost.

Check out: How to start a dropshipping clothing business?

Affiliate marketing is a way to make money by promoting other people’s products or services. You get a special link to share when you join an affiliate program. You earn a part of the sale if someone buys something using your link. 

This method means you don’t have to deal with storing products, shipping them, or helping customers with problems. Instead, you just need to bring people to the product and encourage them to buy.

Example: Let’s say you run a fashion blog. You join an affiliate program for a brand that sells luxury shoes. You write a post titled ’Top 10 designer heels for 2025’’ and include affiliate links. Every time someone clicks on the link and buys, you earn a commission.

Now that you understand what dropshipping and affiliate marketing are, it’s time to compare the two. While both offer ways to make money online, they differ in how much control you have, how you earn revenue, and the level of effort required. 

Let’s break down the key differences between dropshipping vs. affiliate marketing to help you decide which one aligns better with your goals.

Dropshipping gives you more control in running your business. You choose the prices, pick the products to sell, and manage customer interactions. In affiliate marketing, you depend on other companies and their commission rules.

With dropshipping, your earnings come from the difference between the product cost and the price you set. The bigger the difference, the more you make. Affiliate marketing pays you a set amount for each sale, decided by the program you join.

Dropshipping means you handle customer support, returns, and questions. Affiliate marketing doesn’t involve this, as customers deal directly with the product seller.

Dropshipping requires a little investment to start an online shop and pay for products and marketing. On the other hand, affiliate marketing can start with little to no cost, especially if you already have a blog or good social media following.

Dropshipping can lead to bigger profit margins since you decide how much to charge. Affiliate marketing gives you smaller earnings per sale, but it’s easier to manage.

When it comes to profitability, the winner ultimately depends on your approach, skills, and resources. Both dropshipping and affiliate marketing have unique income potential, but the way you achieve success differs.

As mentioned above, dropshipping can lead to bigger profits, especially if you pick products with good profit margins and spend money on ads that reach the right people. Since you decide the prices, your profit depends on how much you mark up the products. 

For example, selling high-end clothes through a reliable dropshipping supplier like BrandsGateway lets you sell premium items at good prices while still making a decent profit. 

By focusing on the right customers with paid ads, social media, or working with influencers, you can make steady money and grow your business over time.

Check out: Is dropshipping worth it?

Affiliate marketing is more about earning passive income. To succeed, you need to create content that does well in search results or gets popular on social media. 

For example, content that stays relevant for a long time, like articles or videos about ’’Luxury watches for men’’ or ’’Top shoes in 2025’’, can keep bringing in money for months or even years after you post it.

Although the earnings per sale are usually smaller than with dropshipping, affiliate marketing doesn’t need as much work. You don’t need to deal with storing products, dealing with customer problems, or shipping items. Instead, your job is to bring in visitors and offer helpful content.

If you like creating brands, handling products, and having an advertising budget, dropshipping could be a good option. It gives you more control and the chance to make more money. 

On the other hand, if you enjoy making content and want a simple, low-risk way to earn, affiliate marketing might be better for you.

Yes, you can mix dropshipping and affiliate marketing to have a more varied way of making money. 

For example, you can have a dropshipping store and also promote affiliate products for things you can’t get yourself. Let’s say you sell handbags in your store, but you also use affiliate links to promote expensive jewelry brands. 

If you have a blog or social media, you can share affiliate products and at the same time bring people to your dropshipping store. 

By using both methods, you lower the risk and increase your income, making sure you don’t depend only on one way of making money.

Both models have their advantages, but they require different approaches and resources. Let’s explore these key aspects to help you determine which one aligns best with your current situation and future aspirations.

Dropshipping needs some initial money to start a store and run its marketing. Affiliate marketing costs less to begin, but making a good income may take more time.

If you’re good at helping customers, finding products, and managing online stores, dropshipping is a good choice. If you’re skilled at writing, improving website visibility, or creating content, affiliate marketing suits you better.

Dropshipping takes more time because of orders, suppliers, and custom questions. Affiliate marketing lets you concentrate on making content and getting visitors without dealing with orders.

Dropshipping helps you create a business and brand, which you can sell later. Affiliate marketing gives you passive income but doesn’t let you own a long-term business.

Both dropshipping and affiliate marketing have good potential, but they also have their own challenges. 

Here’s a look at the challenges for each and how to handle them successfully.

• Unreliable suppliers: Working with suppliers you can’t trust may result in low-quality items or late deliveries.
• Shipping delays: Since you don’t manage the shipping yourself, delays can happen, which can upset customers.

Solution: Work with trustworthy dropshipping suppliers with good reviews like BrandsGateway.

• Low traffic: If you don’t have many people visiting your site, it’s hard to get enough clicks to make money from commissions. 
• Low commissions: Some affiliate programs pay very little, which means you can’t make much money.

If you want to create your store and enjoy hands-on work, dropshipping can be a good option. But if you enjoy making content and want a more passive income, affiliate marketing might be better for you.

If you’re interested in dropshipping and you want your niche to be luxury apparel, BrandsGateway offers excellent tools for selling high-end clothes online. Whether you’re just starting or looking to try new things, working with trusted suppliers will help you succeed.

In conclusion, the best approach is the one that matches your goals and keeps you excited to keep improving.