Since Covid-19 has come, everything from transactions to delivery is done online in just one click. Whether it is food delivery, buying clothes sitting at home, or sending money to someone. Starting your own online Business is a good option.
The best thing is that, like a traditional business, there is neither the need to buy land nor stock goods or products.
Online Business is such a business that can be started at a meagre cost. But, now the question arises of what kind of Business can be started. E-Commerce, Affiliate Marketing, or Dropshipping. After all, what is the difference between affiliate marketing, dropshipping, and E-Commerce (Affiliate marketing vs E-commerce)?
Also Read: What is the Future of E-Commerce?
Today here in this article, we will learn about the difference between affiliate marketing and e-commerce, what are E-Commerce and affiliate marketing, and their pros and cons.
What is E-Commerce?
Before understanding e-commerce, you must know what it is commerce.
I will explain this in very simple language. See, whenever you buy or sell any item, thing, or service, you get money. Then this whole process is called commerce.
But, at the same time when this entire process is done online, i.e. through the internet. Then it is called e-commerce.
The full name of e-commerce is “Electronic-Commerce”. It is also known as internet-commerce or online commerce. Amazon, Flipkart, Myntra, eBay etc., are e-commerce websites.
List of Best E-Commerce Platforms
If you want to design an e-commerce website, I am sharing some platforms that will help you.
- Shopify
- WooCommerce
- Magento
- BigCommerce
- Wix
- Squarespace
Types of E-Commerce Business Models
1. Business to Business Model (B2B Model)
2. Business to Consumer Model (B2C Model)
3. Consumer to Consumer Model (C2C Model)
4. Consumer to Business Model (C2B Model)
What is the Business to Business Model?
Two or more big organizations trade among themselves for goods or services. It is called B2B Model.
What is the Business to Consumer Model (B2C Model)?
When there is an exchange of products or services between a company and a consumer, then that Model is called the Business to Consumer Model—for example- buying toothpaste of any company or buying washing powder or buying clothes or eating in a restaurant or meeting a doctor. All of this comes under the B2C Model.
What is Consumer to Consumer Model (C2C Model)?
We understand this Model with an example. You must have heard the name OLX. It’s an app. If a person wants to sell any of his products. Then he can use this app. In this, consumer 1 registers his product X on OLX. Any user who likes Product X. buys it through the OLX app. So the product that was exchanged in this was consumer to consumer.
I think you must have understood this.
What is the Consumer to Business Model?
This Model is the opposite of the Business to consumer model. In this, the consumer sells his product and services to a business. Like- logo designing, copywriting, website designing, software making etc., for a company.
Advantages of E-Commerce
- Nowadays, everyone’s life has become so hectic that people want to see and buy more and more things in less time. And E-Commerce has made this work very easy. You can shop with just one click, and the order will be delivered to your home.
- The second advantage is that you can see and compare many brands or products in one place.
- You can do shopping using e-commerce websites whenever you want.
- You can buy your product by reading reviews of old customers.
- This is such a business that can be started at a meagre cost. For this, you do not need to buy any store or shop.
- Another advantage of an E-commerce business is that you can attract worldwide customers along with only local customers.
- You can collect customer data. Like when customers buy which product, when the demand for which product is high. Because of this, you do not need to stock the products.
Disadvantages of E-Commerce
- E-commerce is a potent tool for buying and selling any product. But, there are some disadvantages as well. Let’s know
- If suddenly your server is down, or the customer lives in a place where the internet connection is not very strong. In such a situation, you can lose your precious customers.
- Your e-commerce website should be mobile and desktop friendly. For branding of your e-commerce website and to attract customers, it is necessary that you run an ad campaign on Google, on social media.
- Security and privacy is a very important factor for E-commerce websites.
What is Affiliate Marketing?
In Affiliate marketing, you do not need to create your own product. All you need is the product. That product can also be of any other company.
When you promote someone else’s products, and the customer buys that product from your link. Then, on the product’s sale, the affiliate marketer gets some commission. This whole process is called affiliate marketing.
By the way, many companies do an affiliate marketing of their products. Like-Amazon, Flipkart, E-bay, Shopify etc.
Benefits of Affiliate Marketing
- You can start Affiliate marketing with a very low budget. You only need a little money for this. , you need some platform to promote an affiliate product. You can also promote the product by creating Youtube, Instagram, Facebook, and your own website.
- You do not need any skills to do affiliate marketing. You can learn it even while doing your work and studying. To do this Business, you do not need to leave your job etc.
- The best thing about Affiliate Marketing is that you can promote more than one product on your website, Instagram page or YouTube.
- In Affiliate marketing, you can work hard to build a relationship with the customer. You only have to focus on sales and commission.
- Second, the good thing about this Business is that you can do this Business whenever and wherever you want. For this, you need a laptop and internet.
Drawback Of Affiliate Marketing
Affiliate Marketing offers us many benefits, but it also comes with many disadvantages. If you want to know the cons of this program, then you must read the following important points properly.
(1) Can’t Control Affiliate Marketing Programs
You will never own affiliate marketing programs, so you must use existing ones. In this way, you depend on the rules of the merchant & also respect their conditions. Sometimes, a program looks appealing, but after that, it becomes less & less competitive, and you will not be able to adjust the terms and conditions according to your requirements.
Therefore, it is your responsibility to communicate the requirements for further important adjustments related to the discounts on given important products. After that, you will have to wait for the merchant so you can quickly implement the changes. Before participating in any affiliate marketing program, you must read important terms and conditions related to it.
(2) Competition Level
The level of competition depends on the industry. If you are joining the affiliate business, you will get many advantages like higher profit opportunities and lower cost of investment & it doesn’t require any kind of expertise. Most folks are continually trying their hand at affiliate marketing programs. Therefore, any person will be able to join the affiliate marketing program and will also be successful easily.
There are so many highly talented and experienced affiliate marketers out there from the same niche that are making up a fierce competition that is a danger to the performance & biggest disadvantage. Therefore, if you want to start an affiliate business, you must contact a professional marketer who will give you essential suggestions related to it.
(3) Problem While Establishing Customer Base
The biggest truth is that if any referral is made, then a repeating consumer will never purchase anything from you again. Hence, He will perform it directly to the vendor of the affiliate to repeat the purchase. That is the nature of every affiliate business. You will always commit to driving the new leads again & again.
There are different kinds of SaaS affiliate marketing programs that continually provide recurring licenses & just because of this; you can earn a fixed recurring commission. Different types of affiliate marketing programs give 20% commission monthly. This makes the cooperation completely fair.
(4) No Guarantee Regarding Revenue
Pay-per-performance has become the biggest opportunity, and it comes with risk also. No person promises that working as an affiliate marketer will be easy. It has become one of the biggest challenges that you will have to face. However, it has become one of the most complicated tasks where one must put all the important efforts that will help you maximize opportunity. Sometimes, you will also need help predicting how much money you will make.
(5) Freelance Jobs Aren’t Appropriate For Everyone
Freelance jobs are a bit complicated, and only some people can adjust to these types of jobs and such a working style. These circumstances will also result in feeling blue, like stagnation or loneliness. But there are many important methods to minimize & overcome these kinds of mental conditions. However, you will not have to close away from the people at your house. Make sure that you are finding the right working space somewhere outside & after that, you must go there regularly.
Lastly, coworking spaces are continually getting the hype. If you want to start affiliate marketing, then it is your responsibility to do proper planning. It has become one of the best methods to earn a significant profit in a limited time. You should avoid fake affiliate campaigns that will surely lead to the breakup of cooperation from the side of the vendor.
What is the Difference between E-Commerce and Affiliate Marketing
- To start an e-commerce website, you must create an online store and products and maintain the website. Which costs a lot. On the other hand, in affiliate marketing, you do not need to design any product. Instead, you can promote someone else’s product.
- You do not need to design a website for affiliate marketing. You can also use platforms like Facebook pages, Instagram pages, and YouTube to promote affiliate products. But, at the same time, in an eCommerce business, you will need a website or app to sell your products.
- If you are not selling any third-party product on your e-commerce website, then all profit is your own. But, in affiliate marketing, you only get some commission.
- Affiliate marketing membership can be cancelled at any time, and even the commission rate of the product can be changed at any time. But, in e-commerce, the entire control is in your own hands.
that will surely lead to the breakup of cooperation from the side of the vendor.
Difference Between E-Commerce & Affiliate Marketing
| Characteristics | E-Commerce | Affiliate Marketing |
| Definition | E-commerce refers to a specific business platform that will enable you to buy & sell products & services across the internet. | Affiliate marketing is considered a referral-based marketing strategy business where you need to promote the services and products via affiliate sites. |
| Cost of starting | If you are starting these kinds of businesses, then it involves upfront costs like maintaining the website & running any online store. | It doesn’t need any kind of upfront investment. |
| Involvement Of Risk | The reputation of the brand will never be ruined by other parties unless brands choose to work with them. | This will also ruin the reputation of the brand when affiliates use any kind of fraudulent activities to enhance the sales of the business. |
| Methods Of Payment | The owners of the businesses are getting the full amount whenever they are making a sale. | Affiliate marketers are being paid a specific commission for any sales made. |
| Profit | This can be a profitable business for you if you are doing everything with the planning. It will help you in earning a lot of profit in the future. | It requires the biggest customer base to earn a decent amount of money in a limited amount of time. |
| Planning | It requires proper planning to earn money. Like, you need to run a site that will help you in earning a profit in the future. | It isn’t easy because you need to earn the trust of the customers to run an affiliate program efficiently without any kind of problem. |
The Final Verdict
Lastly, affiliate marketing and eCommerce businesses both are great businesses. If you are starting an affiliate marketing, it will surely refer to the performance-based marketing strategy where businesses are promoting their products & services via affiliate sites. However, E-commerce refers to a specific business platform that enables brands to purchase & sell services and products over the internet.
These are the toughest things that need the proper strategies. However, it can be challenging for business owners to decide on e-commerce and affiliate marketing platforms, factors like money and time available, target audience & the important skills needed to run the business.
These are the two best marketing avenues that will help every single business generate more sales and leads in a limited amount of time. Whether you want to start affiliate marketing or an e-commerce business requires proper planning. If you are doing everything with the right strategies, it will help you earn a decent future profit quickly.
