Is that true?
Week 3 Jan 25, 2020
This has been a fun week of learning. I am working to figure out whether a drop shipping shipping or an affiliate business would be better for our pretend people.
The things I have learned. I have experienced where you create a listing for an item that you don't really have, but you have an understanding with a company that does have the item that if you sell it, they will ship it to your buyer for a small fee. This seems like a low stress, no storage of inventory, but also low income way to run a business. Because the company you work with owns the product, there is some responsibility to ship it safely, which is positive.
Also, there are companies that will ship your product for you for a fee if you send it to them and do all the advertising etc. This is another kind of drop ship company. The challenge is this kind of company only takes responsibility to have the product delivered. Their reputation is at stake, but they don't really care about your product or your customer.
There are also two kind of affiliate businesses. One is for people who really selling a certain product. On their website they advertise the products. When a customer clicks on the "buy button", they are directed to another web site where the customer actually buys from. Income is paid for each customer that completes a sale. No inventory for the advertiser is required.
The other kind of affiliate business is for people who have blogs, or other websites. They let an affiliate company have a link to their website from the blog/vlog. Their is no inventory, not customer relations. Some time making sure their blog/vlog is updated each week is required.
The second kind of business seems like a happy dream, but there are people making money doing that kind of business. Kind of crazy.
This has been a fun week of learning. I am working to figure out whether a drop shipping shipping or an affiliate business would be better for our pretend people.
The things I have learned. I have experienced where you create a listing for an item that you don't really have, but you have an understanding with a company that does have the item that if you sell it, they will ship it to your buyer for a small fee. This seems like a low stress, no storage of inventory, but also low income way to run a business. Because the company you work with owns the product, there is some responsibility to ship it safely, which is positive.
Also, there are companies that will ship your product for you for a fee if you send it to them and do all the advertising etc. This is another kind of drop ship company. The challenge is this kind of company only takes responsibility to have the product delivered. Their reputation is at stake, but they don't really care about your product or your customer.
There are also two kind of affiliate businesses. One is for people who really selling a certain product. On their website they advertise the products. When a customer clicks on the "buy button", they are directed to another web site where the customer actually buys from. Income is paid for each customer that completes a sale. No inventory for the advertiser is required.
The other kind of affiliate business is for people who have blogs, or other websites. They let an affiliate company have a link to their website from the blog/vlog. Their is no inventory, not customer relations. Some time making sure their blog/vlog is updated each week is required.
The second kind of business seems like a happy dream, but there are people making money doing that kind of business. Kind of crazy.
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