Many people want to make money online but don’t know which business model to choose. Two popular ways to earn money online are dropshipping and affiliate marketing. Both have advantages and disadvantages, but the most important question is: Which one is more profitable?
This article will explain both business models in simple terms, compare their profit potential, and discuss how video editing can improve success in both.
What is Dropshipping?
Dropshipping is an eCommerce business where you sell products without keeping them in stock. Instead of storing products in a warehouse, you work with a supplier who ships items directly to your customers.
How Does Dropshipping Work?
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You create an online store (on Shopify, WooCommerce, or another platform).
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You add products from a supplier to your store.
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A customer buys a product from your store.
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You forward the order to the supplier.
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The supplier ships the product directly to the customer.
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You keep the profit (the difference between what the customer pays and what the supplier charges you).
Pros of Dropshipping
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Low startup cost – You don’t need to buy products upfront.
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No inventory management – No need for storage space.
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Wide product selection – You can sell any trending product.
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Scalability – With good marketing, you can sell thousands of products.
Cons of Dropshipping
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Low-profit margins – You only keep a small percentage of each sale.
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High competition – Many stores sell the same products.
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Customer service responsibilities – If something goes wrong, you handle refunds and complaints.
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Shipping delays – Suppliers (especially from China) may take weeks to deliver.
What is Affiliate Marketing?
Affiliate marketing is a business model where you earn money by promoting products made by other companies. Instead of selling a product, you share a special link (called an affiliate link). If someone clicks the link and buys, you get a commission.
How Does Affiliate Marketing Work?
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You sign up for an affiliate program (Amazon Associates, ClickBank, ShareASale, etc.).
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You receive special links for products.
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You promote the products on a blog, social media, or YouTube.
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When someone clicks your link and buys, you earn a commission.
Pros of Affiliate Marketing
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No inventory, no shipping – You don’t deal with physical products.
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Passive income – A well-written blog post or YouTube video can generate income for months.
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Low startup cost – You can start with just a website or social media account.
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Scalability – The more traffic you drive, the more you earn.
Cons of Affiliate Marketing
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Takes time to grow – You need a lot of traffic to make good money.
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Dependent on other companies – If a company changes its commission rates, your earnings drop.
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Highly competitive – Many people promote the same products.
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No control over pricing or products – You don’t own the product, so you can’t change prices or features.
Which One Makes More Money?
Both dropshipping and affiliate marketing can be profitable, but which one is better?
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Revenue Potential
In Dropshipping, you make money from each sale, but profits are small due to costs like product price, shipping, and advertising. However, in affiliate marketing, you earn a commission, which can be high or low depending on the product. Digital products (like online courses) often have higher commissions than physical products.
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Startup Investment
Dropshipping requires money for website setup and ads. However, you can start affiliate marketing for free with a blog, YouTube channel, or social media.
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Effort & Time Required
Dropshipping requires active management (customer service, order fulfillment, handling complaints). Whereas, Affiliate Marketing requires time to build traffic but can become passive income once established.
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Risk Factors
In dropshipping, you might encounter risk of refunds, supplier issues, and advertising costs. While in affiliate marketing, there is a risk of commission changes and platform bans.
Verdict:
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If you want quick sales and are okay with managing orders, go for dropshipping.
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If you want long-term passive income, choose affiliate marketing.
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Best Strategy? Combine both! Sell products and promote affiliate offers together.
The Role of Video Editing in Dropshipping & Affiliate Marketing
Videos are one of the most powerful tools for selling online. Whether you are doing dropshipping or affiliate marketing, using videos can help you attract more customers and increase sales.
Why Videos Are Important?
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Engages more people – Video content gets more attention than text. You can also use auto captions to make it more accessible and engage more people.
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Increases conversions – People trust videos more than images.
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Boosts SEO rankings – YouTube videos and video ads get more clicks.
How to Add Auto Captions to Your Videos?
Here’s how you can add auto captions using the CapCut desktop video editor to your videos to make them more engaging.
Step 1: Upload Video
Open the software on your computer. Click “Import” and select the video you want to edit.
Step 2: Add Auto Captions
Then, go to the “Captions” tab on the top panel. Click on “Auto Captions.” Choose the language spoken in the video. Click “Generate” and wait for the software to automatically generate subtitles.
Step 3: Export Video
Click “Export” in the top-right corner. Choose your desired resolution, format, and file name. Click “Export” to save your video with auto captions.
How Video Editing Helps in Dropshipping
Video editing software can help you with dropshipping by:
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Creating product demonstration videos that will show how a product works.
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Making eye-catching ads for Facebook, Instagram, and TikTok.
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Using before-and-after clips to prove product effectiveness.
How Video Editing Helps in Affiliate Marketing
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Make product review videos – Show why the product is useful. Here you can also use text to voice to make your video more engaging and accessible.
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Create comparison videos – Compare two products to help customers decide.
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Add call-to-action (CTA) buttons to get more clicks.
Conclusion: Which One Should You Choose?
Both dropshipping and affiliate marketing have advantages and disadvantages. The best choice depends on your skills, budget, and goals.
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If you enjoy running an online store, go for dropshipping.
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If you prefer creating content, try affiliate marketing.
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If you want to maximize profits, combine both!
