What are the differences between dropshipping and affiliate marketing?

Dropshipping and affiliate marketing are two popular methods of making money online, but they differ in several key aspects:

1. **Business Model**:
   - **Dropshipping**: In dropshipping, you act as a middleman between the customer and the supplier. You create an online store, market products, and when a customer places an order, you purchase the product from a third-party supplier who then ships it directly to the customer. You never handle the product physically.
   - **Affiliate Marketing**: With affiliate marketing, you promote other companies' products or services through your website, blog, or social media platforms. When someone makes a purchase through your unique affiliate link, you earn a commission.

2. **Inventory Management**:
   - **Dropshipping**: You don't need to hold any inventory. The supplier handles inventory management, packaging, and shipping.
   - **Affiliate Marketing**: You also don't need to hold inventory. The product ownership and management are entirely handled by the merchant.

3. **Customer Service**:
   - **Dropshipping**: While you're responsible for customer service related to the sale (such as order tracking and handling returns), the supplier typically handles issues related to product quality, defects, or shipping delays.
   - **Affiliate Marketing**: You generally don't handle customer service directly related to the product. Any issues with the product or service are typically handled by the merchant.

4. **Profit Margins**:
   - **Dropshipping**: Profit margins in dropshipping can vary widely. Since you're buying products at wholesale prices and selling them at retail prices, your profit margin is the difference between the two, minus any expenses such as marketing and website maintenance.
   - **Affiliate Marketing**: Your earnings in affiliate marketing are usually in the form of commissions, which are a percentage of the sale price. Commission rates can vary depending on the merchant and the product, but they're often lower than the profit margins in dropshipping.

5. **Control**:
   - **Dropshipping**: You have more control over the pricing, branding, and customer experience since you're running your own store. However, you have less control over the product quality and shipping times, which are managed by the supplier.
   - **Affiliate Marketing**: You have less control over the product, pricing, and customer experience since you're promoting someone else's product. However, you have the freedom to choose which products or services to promote and how to market them.

Both dropshipping and affiliate marketing can be lucrative business models, but they require different approaches and strategies. Some people even combine elements of both models to create a hybrid approach that suits their needs and preferences.