Two different business models, two different sources of income – one is direct sales, the other is commissions. This article is for those debating dropshipping vs affiliate marketing. The answer comes down to whether you want to sell or you want to promote.
With dropshipping, you sell another company's products in your own online store and set the retail price. With affiliate marketing, you promote other companies' products and earn a commission through an affiliate link instead.
Both are low-risk business models rooted in digital marketing and content marketing, where search engine optimization and paid advertising power your marketing efforts. As the affiliate marketing industry grows and more people sell products online instead of through traditional retail, market trends favor both.
What is dropshipping?
Dropshipping is an eCommerce business model where you sell ready-made products from a third-party supplier without buying stock yourself. You set up an online store, list the supplier's items, and set your own prices. When an order comes in, the supplier ships the product as-is, straight to the customer, and handles inventory management along the way.
That's why dropshipping is a popular first online business – you focus on marketing and supplier relationships.
How does dropshipping work?
A typical dropshipping business model looks like this:
- You partner with a supplier and list their generic products, such as blank or pre-printed hoodies, in your eCommerce store.
- A customer buys a hoodie from your store at your chosen retail price.
- You forward the order details to your supplier.
- The supplier ships the hoodie directly to the customer, and you keep the difference between your retail price and the wholesale cost.
Since many stores sell the same products, dropshipping profit margins are often thin, and price wars are common. A quality online store and reliable suppliers help, but you can't change the product itself.
Pros and cons of dropshipping
Pros | Cons |
|---|---|
Low startup costs – You only pay for a product after a customer buys it | High competition in popular niches, like pet lovers, fitness, and gaming |
Set your own prices and keep higher profit margins | Lower profit margins if you compete mainly on price |
No inventory upfront, no warehousing, no equipment | Less control over production and shipping timelines |
Wide range of products to test without extra cost | Customer service responsibilities fall entirely on you |
Work from anywhere, run operations remotely | Supplier errors can affect your customer experience |
Easy to scale by adding new products or niches | Limited branding with generic suppliers, unlike Print on Demand |
Good to know: Some marketplaces restrict dropshipping. Etsy, for example, doesn't allow sellers to list mass-produced items made by someone else with no creative input.
If you want to explore this route, our guide to starting a dropshipping business covers picking a niche, finding reliable suppliers, and setting up your first dropshipping store.
Want more control? Try Print on Demand
Print on Demand is an alternative to dropshipping, not a type of it. Instead of reselling generic stock, you upload your own designs onto blank products like hoodies, hats, mugs, and phone cases. Each item is printed and shipped only after it sells, so there's no inventory upfront, and nothing is made in excess.
Because your designs are unique, you don't compete on price alone. That leaves room for higher profit margins and a brand people remember. See how Printify compares to dropshipping and why so many sellers make the switch.
Real-life example: From dropshipping to Print on Demand
April Duplantis
After closing two struggling boutiques, April tried online dropshipping – and lost that business overnight over a copyright issue. She switched to Print on Demand with Printify and built a TikTok Shop business that now brings in around $100,000 a month, entirely from home, with no warehouse or production staff. Read April's full story.
What makes this business great?
- No inventory, no overhead. Printify's Print Providers make and ship every order, so April never handles stock or packaging.
- Smart use of affiliates. Instead of filming every video herself, she lets TikTok creators promote her products and earn a commission.
- Personalization. Each design feels made for one specific person.
What is affiliate marketing?
Affiliate marketing is an online business model built around promotion. You promote products from other brands and earn a commission when someone buys through your affiliate link. The company handles the product, shipping, payment processing, and support.
Affiliate marketing requires consistent content creation and a bit of patience. In return, affiliate marketing boasts low overhead and real passive income potential once your content is live.
How does affiliate marketing work?
Most affiliate programs follow a similar structure:
- You join an affiliate program and receive a unique affiliate link.
- You share it on your own website, blog, or social media – for example, in a review or a roundup of favorite hoodie brands.
- A visitor clicks your affiliate link and lands on the company's site.
- The visitor makes a purchase, and the sale is tracked back to you.
- The company pays you a commission based on your agreement, often a percentage of the retail price.
That's how affiliate marketing works in a nutshell. Affiliate networks like Awin, Rakuten Advertising, and CJ connect affiliate marketers with brands, so you can find affiliate programs in your niche without pitching every company yourself. If you'd rather take the affiliate marketing route and skip managing customer service, this is its biggest appeal.
Pros and cons of affiliate marketing
Pros | Cons |
|---|---|
No barriers to entry – Anyone can start affiliate marketing | Commission rates are often lower than dropshipping profit margins |
Low startup costs – No inventory, no rent, no employees | High competition in popular niches and affiliate programs |
Passive income once your content and affiliate links are live | No guaranteed income; earnings depend on traffic and conversions |
Freedom to choose which products and brands to promote | Little control over product quality, pricing, or delivery |
No customer service burden – The company handles support | Building an affiliate business takes consistent effort and time |
Our guide on what affiliate marketing is explains how to start affiliate marketing step by step.
Examples of successful affiliate marketing businesses
LTK
LTK turns creators' outfit posts into shoppable links that earn a commission.
What can affiliate marketers learn from this site?
- Niche fit. It's built for visual, product-driven content – exactly where apparel creators already are.
- A built-in audience. Its shopping app puts creators in front of shoppers who are already looking to buy.
The Strategist
The Strategist is New York Magazine's product recommendation site, earning commissions through retailer links.
What can affiliate marketers learn from this site?
- A trusted voice. Editors write like they're recommending things to a friend, which is why readers click through.
- Curated, not exhaustive. They focus on the best options in each category.
Quick tip: Both sites pick one niche and go deep. Use the same approach when you build your own affiliate website.
Become a Printify affiliate marketer
With the Printify Affiliate Program, you earn a 5% commission on every sale your referrals make for 12 months. Unlike some affiliate programs, there's no cap on earnings.
You get a dashboard showing your clicks, conversions, and commissions. Whether you're a blogger, influencer, or educator, it's an easy way to add a new revenue stream.
Here's how it works:
- Join the program. Sign up for free – applications are reviewed within two working days.
- Share a link. Post your affiliate link wherever your audience is – social media, a YouTube description, a newsletter, or a blog post.
- Earn money. Thanks to a 90-day cookie, you earn a commission when someone clicks your link and signs up within that window. Payouts land in your PayPal account monthly.
Dropshipping vs affiliate marketing: Side-by-side comparison
Here's how affiliate marketing vs dropshipping compares on the factors that matter most when choosing a business model.
Feature / Criteria | Dropshipping | Affiliate marketing |
|---|---|---|
How it works | Sell products, like hoodies and more in your own store | Promote products from other brands through an affiliate link |
Startup costs | Low – Mainly your eCommerce store and marketing costs | Very low – Often just a website or social media presence |
Profit margins | Higher – You set your own prices and keep the difference | Lower – You earn a fixed commission per sale |
Time commitment | High – Requires ongoing store management and marketing campaigns | Moderate – Content creation upfront, more passive income later |
Customer service | Managing customer service and inquiries is on you | Handled by the company you're promoting |
Growth potential | High – Scale by adding products, suppliers, or ad spend | High – Scale by growing traffic and joining more affiliate programs |
Which is better: Dropshipping or affiliate marketing?
In the dropshipping vs affiliate marketing choice, the right business model depends on what you want to build.
Choose dropshipping if you want to:
- Run your own dropshipping store and set your own prices without upfront inventory
- Manage customer support and build supplier relationships as you grow
- Test lots of products quickly
Choose affiliate marketing if you want to:
- Earn from an existing audience – a blog, YouTube channel, or social media following
- Promote products without running a store or answering customer inquiries
Start a print-on-demand business with Printify
Want to skip both affiliate marketing and dropshipping and sell something you’ve made yourself? Printify gives you everything you need to build a profitable business around your own designs.
- Beginner-friendly – Sign up for free and get access to an easy-to-use platform, open to everyone.
- No inventory, no hassle – Start your own online business without inventory or warehousing costs.
- A large product catalog – The Printify Catalog offers a wide range of over 2,000 customizable products at competitive prices.
- Free design tool – Create unique designs with the Product Creator.
- No logistical worries – Vetted dropshipping suppliers print, package, and ship directly to your customer's doorstep.
- A global network of Print Providers – Reach customers quickly, wherever they are, through print facilities worldwide.
- Easy integrations – connect your store to platforms like Shopify, Etsy, and WooCommerce through Printify's integrations so every order syncs automatically.
FAQ
Summary
There's no single winner in the dropshipping vs affiliate marketing debate. Dropshipping suits people who want their own store without holding stock, while affiliate marketing suits those who want a lower-effort, more passive income stream. If you want your own brand and designs, Print on Demand is the alternative worth trying. Many successful affiliate marketers even run both affiliate marketing and a store together.
