Dropshipping vs Affiliate Marketing: Which Should Be In Your Shopify Starter Pack?

Starting your very first Shopify store is exciting. Like, “I’m finally doing this!” exciting. But let’s be honest, it’s also confusing. There are a million ways to sell online, and if you pick the wrong business model, you could waste weeks of effort and a bunch of cash.

In this post, we’re going to cut through the noise. You’ll get a clear, no-fluff breakdown of dropshipping vs affiliate marketing—the pros, the cons, and which one fits your goals. 

Plus, GemPages will show you how to launch fast using our page-builder solutions so you can get your store live without pulling your hair out. By the end, you’ll know exactly which path to take and how to start turning your Shopify store into a money-making machine.

Understanding the Models: Dropshipping vs. Affiliate Marketing

Both dropshipping and affiliate marketing are great options to kick off your eCommerce journey. However, they’re completely different beasts. Before you dive in, it’s crucial to understand how each model operates, what it requires, and which one fits your goals. 

Dropshipping Demystified: Sell Without Ever Touching a Product

The idea of dropshipping is simple. You run an online store without warehouses, stockpiles, or messy shipping. At its core, dropshipping is an e-commerce model where you sell products without ever holding them in your possession. 

You don’t buy inventory up front. You don’t deal with packaging. You don’t ship a single box. Instead, you partner with a supplier who handles all of that for you. When a customer orders, the supplier ships the product directly to them, often without them even knowing you weren’t the one packing the box.

Dropshipping is one of the most popular strategies used by modern eCommerce businesses.

How Dropshipping Works on Shopify

Setting up a dropshipping store in Shopify is surprisingly simple. You start by creating an online store using a theme or page builder. GemPages is the crowd favorite page builder for beginners because it’s flexible and easy to use. Then, you select products from suppliers on platforms like AliExpress, Spocket, or Oberlo to be listed on your store, complete with your images, descriptions, and pricing.

When a customer buys something, you collect their payment first. Then, you place the order with your supplier, paying the wholesale cost. Your profit? The difference between what the customer paid and what you paid your supplier. Simple math, simple profit.

A Real-life Example

Let’s say you notice smart home gadgets are trending—like LED motion sensor lights. You list them in your Shopify store at $29.99 each, sourcing them from an AliExpress supplier for $8.50 a unit. A customer orders one, pays $29.99, and you forward the order to your supplier, paying them $8.50. The supplier ships the product directly to the customer. Your profit? $21.49. And here’s the kicker: you never touched the product yourself!

Affiliate Marketing: Make Money Without Owning Products

In a nutshell, affiliate marketing is an eCommerce model that earns you commission by recommending products you love. It’s the same as dropshipping in the way you don’t have to handle inventory, shipping, or customer service. Every time someone buys through your special tracking link, you make money.  It’s the “set it and forget it” version of eCommerce.

How Affiliate Marketing Works on Shopify

Affiliate marketing on Shopify is all about content. The more traffic you manage to gather, the better your chance of making an affiliated sale. The go-to method? Product reviews, buying guides, or how-to posts. These provide valuable information for audiences.  

Sprinkle affiliate links from programs like Amazon Associates, ShareASale, or brand-specific networks into the content, and you’re golden. When a visitor clicks your link and makes a purchase, the sale is tracked automatically, and your commission lands in your account. 

A Real-Life Example

Say your Shopify site is all about home coffee brewing. You write a post called “Top 5 Espresso Machines for Beginners” and include Amazon affiliate links. A reader decides to buy a $299 espresso machine through your link—you pocket around $18 in commission. And the best part? You didn’t lift a finger to pack or ship the machine.

Dropshipping vs. Affiliate Marketing: The Battle of Two Popular Business Models

Affiliate marketing and dropshipping are both low-risk business models, but there are several key differences between the two:

Startup Costs & Setup Speed

Getting started is exciting, but how much time and money do you need? Let’s break it down.

For affiliate marketing, it’s hard to beat if you’re strapped for cash. A Shopify subscription is the main upfront cost, plus a domain name and maybe a premium theme. That’s pretty much everything. No inventory, no warehouse, no shipping worries. That means you can start generating traffic almost immediately. According to Statista, affiliate marketing spending worldwide is projected to reach $48 billion in 2027, proof that this low-cost, low-risk model is booming.

Dropshipping is also low-cost compared to traditional retail. Yet, there’s more prep. You need to source suppliers, upload product listings, configure shipping, and integrate payment systems. The upside? You own the store and have full control over your brand from day one.

Control Over Branding & Profit Margins

Branding matters, especially in eCommerce. How customers perceive your brand can make or break your long-term growth. The same can be said for pricing control and profit margins. 

Maintaining a healthy profit margin is the best way to sustain your business in the long term.

With affiliate marketing, the reality is that you’re selling someone else’s product. That means: No control over product quality. If the merchant screws up shipping, your reputation takes a hit. Discounts or bundles are also out of the question. According to Shopify, commission for a sale can be anywhere between 5 and 50%. Even if you generate thousands in sales, your per-sale earnings are capped.

Meanwhile, dropshipping offers a little more control. You own the store, the branding, and the customer experience. You can customize product descriptions, photography, and page layouts. Profit margins are often between 10-30%, and you can raise prices for premium packaging or value-added services.

Operational Demands

Every business has moving parts.

In affiliate marketing, your main job is to pump out content and generate traffic. Produce blog posts, reviews, how-to guides, and videos, or any type that can get clicks. For example, you write a blog on fitness gear. You spend a few hours creating a “Top 5 Yoga Mats” post. That post has affiliate links to certain products and can keep generating commissions for months without her lifting a finger.

Your role in dropshipping is more multifaceted. You wear multiple hats: customer service, quality control, and marketing optimization. It’s more hands-on than affiliate marketing, but the potential upside is higher. 

Speed to Monetisation

How quickly can you see actual revenue in your account?

Affiliate marketing takes a long time. First, you need traffic and credibility. SEO or social media traffic can take weeks to materialize. If you manage to make a sale, commissions typically arrive 30–60 days after. It’s slow and steady, but completely passive once you’re accelerated. 

Dropshipping earns faster, perhaps right after your store is live. Customers pay upfront, and you see cash flow immediately.  

Scalability & Long-Term Growth

Which model can grow bigger, faster, and more sustainably?

For affiliate marketing, you scale by building your authority or adding more content. SEO and social media channels can help, but it’s not guaranteed since a lot can change overnight. The upside is that if your content ranks well, it can generate passive income for years. However, earnings are often capped by fixed commissions.

Dropshipping allows more flexibility. You control the product catalogue. Freely add new products or seasonal collections to boost conversion. Paid ads, upsells, cross-sells, and promotions are among the many viable strategies you can try as well. In the long run, you’re more likely to keep your store afloat. That is, if you can source more winning products. 

The Pros and Cons of Dropshipping and Affiliate Marketing

Both dropshipping and affiliate marketing can make you money, but they do so very differently. Each has its risks and potential rewards. Here’s a quick rundown of what you can expect.

Dropshipping

Imagine this: You spot a trend. Let’s say you can see Labubu exploding in popularity before it happens. You throw a few on your Shopify store, set your price, and let your supplier handle the rest. Sounds perfect, right? Well, almost. The catch? You may face an army of competitors who have the same big idea. 

What are the other obstacles coming your way? Let’s find out. 

Pros:

• No inventory headaches: You don’t need a warehouse or storage space. Your supplier keeps stock and ships directly to your customers. This is a massive relief if you’re starting small or testing multiple products.

• High control over your brand: You decide your product descriptions, pricing, and even images. This means you can make offerings seem different from the competition’s.  

• Scalability: Adding 50 more products? No problem. You won’t need more storage or staff, as long as your suppliers can keep up.

Cons:

• Thin profit margins: Since you’re paying the supplier for each order, your earnings are the markup between wholesale and retail. In a competitive market, dropping prices to stay attractive can shrink that margin even further.

• Shipping and supplier dependence: Your business relies entirely on your suppliers. They control the product quality, shipping, and more. However, if something goes south with the shipment, it’s your store that takes the hit—not the supplier. One negative review can bring the whole store down. 

• Customer service overload: Returns, complaints, or refund requests always land in your inbox. Even if the supplier dropped the ball, you’re the one juggling frustrated customers at midnight.

Affiliate Marketing

Now, picture a different scenario: You create a blog post on your site to round up the best tools to have in a kitchen with an affiliate link attached to each item. The blog catches on. Readers come, find the information useful, click the link, and purchase. Boom! You just earn a commission. Of course, there are limitations. 

Affiliate marketing is a great way to earn money passively, even while you’re sleeping.

Pros:

• No inventory: The big advantage of affiliate marketing is that you don’t have to worry about logistics. Your job is simple—drive visitors to click those links. Let partnered vendors or brands take care of the rest.

• Low startup costs: Affiliate marketing is a model that requires no investment. You don’t hold an inventory. As long as you can bring in traffic, you’re all set to go. 

• Passive income potential: Content can take time to ramp up. Once it’s at full speed (or you go viral), you can earn commissions for months, or even years, without breaking a sweat.

Cons:

• Limited control over sales: When it comes to checkout and shipping, you’re at the mercy of the affiliated brands. A slow site or poor service can tank your conversions.

• Tiny commissions: Most programs only offer a slice of the sale. You might need hundreds of clicks before the cash starts adding up.

• Content-dependent income: Your earnings live and die by your content. SEO, social media, and email marketing aren’t optional—they’re essential weapons in your arsenal.

Which Model Fits Your First Shopify Store?

So you’ve read all the theory, but let’s cut to the chase, what works for your first Shopify store? It all comes down to what kind of entrepreneur you want to be.

Affiliate Marketing: The “Set It and Forget It” Route

Affiliate marketing is perfect for those who want to do eCommerce without ever touching a product. You create content—blogs, reviews, how-to guides—that gets people excited enough to click a link and buy. For your effort, you’re rewarded with a commission, sliding into your account while you brainstorm your next article.

The beauty here is that affiliate marketing is low-stress. No inventory, no shipping nightmares, no angry customer emails at 11 p.m. The biggest catch is that you need a lot of traffic to make this work. You’re also dependent on your partner. One small change in their partnership program can make your dip overnight. 

All in all, affiliate marketing fits best when you: 

• Have a strong platform to promote content. Ideally, build a blog, YouTube channel, or social media presence with an engaged audience first.

• Want nothing to do with logistics. Affiliate marketing allows you to avoid handling shipping, returns, or customer service and focus solely on promotion.

• Set up a passive income stream. Affiliate marketing can generate passive income once your content is live and gaining traction. 

• Start eCommerce on a tight budget. You can earn commissions for sales without dealing with inventory or product creation.

When you’re starting your first Shopify store, consider your goals to choose a suitable business model.

Dropshipping: The “Hands-On Brand Boss” Route

Dropshipping is like being handed the keys to your mini-retail empire. You pick your products, set your prices, create your brand vibe, and deliver a customer experience that people remember. Profits are higher, your brand is fully yours, and you can run creative promotions however you like.

The flipside is that you’re the one fielding complaints, chasing late shipments, and handling returns. One supplier mistake, and it lands squarely on your store. But with solid systems, careful supplier vetting, and clear processes, these aren’t deal-breakers: they’re just part of running a real, scalable business.

That said, dropshipping works best when: 

• You have a credible supplier. As your dropshipping partner, they handle storage, packing, and shipping. Having a competent source will make sure your business delivers quality products consistently. 

• You want to start an eCommerce store without the need for upfront investment in inventory. You can offer a wide range of products without having to stock them. 

• Branding is critical for you. Unlike affiliate marketing, dropshipping lets you create a custom store with your own brand images. It’s great for creating a reputable business. 

So which one should you pick?

Go with an affiliate program if you love content, want low risk, and are excited about building passive income.

Go dropshipping if you crave control, higher margins, and don’t mind rolling up your sleeves to run the show.

Here’s the secret: you don’t have to pick forever. Many store owners start with affiliate marketing to get the ball rolling, then gradually dip their toes into dropshipping once they’re confident with traffic, audience, and branding.

How GemPages Makes Your Shopify Store Actually Sell

The truth is, you need more than simply a pretty store. Well-crafted pages that convince visitors to click, buy, or sign up fast will get you much further. Whether you’re running affiliate links or a dropshipping empire, GemPages makes things a lot easier. 

With GemPages, you can build high-converting product and collection pages without touching a single line of code. Just drag, drop, and voila, you’ve got a page that works. To create urgency, add countdown timers, stock alerts, or product sliders that subtly scream, “Buy me before it’s gone.”

 Building high-converting Shopify storefronts has never been easier with GemPages.

Testing what converts has never been easier. GemPages lets you experiment with pricing and upsell strategies. Work out the best performing bundles, messages, and more to learn what clicks with your audience. Review pages, comparison tables, or fancy product carousels—all easy to set up and even easier to tweak.

And yes, SEO isn’t an afterthought. GemPages lets you structure pages in a search-friendly way, so your reviews and products can show up in Google. More visibility, more clicks, more commissions, and more profits without breaking a sweat. On top of that, GemPages is mobile-optimized. Your pages will load lightning-fast, no matter the screen size. 

Unlock your store’s potential with GemPages today!

Wrapping It Up

So, what’s the final verdict? Both dropshipping and affiliate marketing have their perks, pitfalls, and slightly terrifying learning curves. If you’re all about passive income, minimal stress, and creating killer content that keeps earning while you sleep, affiliate marketing is your jam. If you want control, brand ownership, and the thrill of running a store that’s yours, dropshipping is the way to go.

Here’s the kicker: neither path is “easy money,” but both can be ridiculously rewarding if you play it smart. And with tools like GemPages, you don’t need a coding degree or a magic wand to build pages that convert. You just need a little strategy, some hustle, and the courage to click “Publish.”

Pick your model, embrace the chaos, and start turning that Shopify dream into a living, breathing, profit-making machine. Your future self will thank you, or at least buy you a coffee through your affiliate link.