So Affiliate Marketing is done in both ways i.e. physical products as well as digital products.
Today, I will explain the difference between physical and digital products to understand it better.
First understand the meaning of Physical and a Digital Product
Physical Product :
A Physical product is product which can be shipped to customer after selling it.
Some of the examples of a physical products includes books, clothes, laptop, mobile, etc which is manufactured for sale.
Digital Product :
A Digital product is something which creates value for users and are available online.
Some of the examples of digital products includes software, ebooks, online courses etc.
Affiliate marketing facts for Physical products
- Shipping and handling fees: With physical products it includes physical delivery. That means packaging cost, postage costs and handling fees.
- More overheads: Physical products require more storage, staff to manage and track them.
- Harder to scale: Scaling a physical product is much slower than scaling a digital product.
- Time consuming: Digital products and services can be managed and delivered with a few clicks. But not with physical products. Managing inventory, staff and orders is a time consuming.
Affiliate marketing facts for Digital products
- No inventory: Digital products are low risk, because there is no need to store the product.
- High commission: By promoting a digital product, you can get high commissions. Commission rates depends on the company. (Highest Commission is between 70% – 85%).
- Instant ‘free’ delivery: One of the biggest benefits of selling digital products online is that delivery is free and instant as it can be viewed digitally online.
Choosing the right affiliate product type
With the above facts, hope you have got the clarity of physical products and digital products.
As Ecommerce is booming, physical products dominate the market and make up the bulk of online sales whereas digital products have their place too and are hugely popular and high in demand in this digital world.
Conclusion: Digital vs Physical Products
As mentioned in the above article, digital products are far better than physical products in terms of manufacturing cost, commission rates, delivery, etc.
Digital products are more profitable as they offer digital products such as eBooks, courses software, etc to their readers.
Digital products are more convenient to purchase a digital file and is instantly delivered.
You can choose any one of the affiliate product type upon your interests.