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Believe it or not, this is a most common question I get from people who are new to internet business. I’ve tried both ways, talked to a lot of people, and come to some conclusions with this question, so it’s not going to be an easy “yes or no” answer. However, most of the time I will answer this question: No, it is generally not a good idea to combine affiliate products on a drop shipping site. Mainly because the profits from affiliate products are very low compared to the money you can earn by selling a provider’s product.
Reasons not to:
* Earning potential: You can earn more money by selling a vendor’s product.
* Shopping cart confusion: What happens when someone finishes adding part of your product (that you dropship) that is integrated into the shopping cart and wants to add the product that is an affiliate? It could cause some major shopping cart headaches for users and confuse them, and they will probably end up going somewhere else.
* Devalue your site: There are a lot of smart shoppers these days who know what ads and affiliates are. If they feel that you are trying to do more than just sell your “core” products, they may be wondering about the validity of your site. You don’t want to scare people.
* Navigate people away from your site: Let’s say you have an Amazon affiliate product on your site that you’re earning 3-5% on, and the item that was clicked on (which drives them off his site) was just a $5 item. Is it worth losing the client for a few cents of commission?
Reasons why you might:
* Can’t find a product provider – If you’ve searched high and low and can’t find a provider, but the affiliate product matches perfectly with other things you’re selling, then it might be a good idea to have it on your site.
* Amazon Product Review Pages – People are always looking for product reviews and lots of other users from the sites they are familiar with. You can create pages within Amazon that display reviews of the affiliate products you are selling and link to them. This provides great information, but can also lead people to the places that end up making money: your affiliate pages!
* Ease and Simplicity – I’ve seen enough people try to build websites and use shopping carts to know that not everyone is on the same playing field. Sometimes using a system that Amazon has to sell affiliate products is easier than building a shopping cart website from scratch that can sell both regular and affiliate products. The “why you might” reasons (to me) aren’t always that compelling, and I usually don’t end up selling affiliate products on the same site that I sell regular direct-shipped products on.
Again, for me it has generally turned out unfavorable and I try to stay away from it, but I understand certain situations where it could be beneficial. You just have to assess the situation and ask yourself if it adds value to your customer, or if it will lose you money, and drive people away from your site (before you make any real money for them).