Ghost commerce isn’t as spooky as it sounds. This business venture enables you to generate revenue by promoting products on digital channels without owning inventory or fulfillment. Kind of like running a business without needing to develop or store any products.
Ghost commerce’s most popular models, like affiliate marketing and dropshipping, continue to thrive. The dropshipping industry is worth $557.9 billion and is expected to more than double to $1253 billion by 2030. Given these numbers, it’s only natural that more sellers want a piece of the e-commerce pie.
The low barrier to entry means high competition, but don’t let that spook you. With the right strategies, you can build a profitable and sustainable business that’s less fear and more fortune.
Ghost commerce vs. dropshipping
Ghost commerce means selling products through digital channels without owning product inventory or fulfillment. It’s an umbrella term for various sales models, and the most popular are:
- Affiliate marketing: Partner with a brand, promote their products to your audience, and earn a commission on every sale made through your unique affiliate link.
- Print-on-demand: With print-on-demand, you design everything from quirky T-shirts to personalized phone cases. When a customer places an order, your design is printed and shipped directly to them.
- Dropshipping: You create an online store and list products from suppliers. When a customer places an order, you fulfill it by placing the order with the supplier—so you never hold the inventory. Then, the supplier handles packaging and shipping while you focus on other tasks like marketing and customer service.
Ghost sellers earn revenue through sales or commissions. Whereas models like affiliate marketing require a very minimal approach to tasks like customer service and managing storefronts, the dropshipping model is more hands-on. Although dropshippers don’t hold inventory, they still need to manage customer service, order fulfillment, marketing, pricing control, and more.
Comparison of popular ghost commerce models
| Feature | Dropshipping | Affiliate marketing | Print-on-demand |
| Inventory | No inventory required | No inventory required | No inventory required |
| Fulfillment | Outsourced to a third-party supplier | Outsourced to the merchant/client | Outsourced to a print-on-demand provider |
| Product Sourcing | You select products from various suppliers | You promote products from various clients | You create or design custom products |
| Profit Margins | Can vary depending on product sourcing and pricing strategies | Typically lower, based on commission rates | Can be higher, depending on product pricing and production costs |
| Control over Branding | Limited control over product branding and packaging | No control over product branding and packaging | More control over product branding and design |
| Customer Interaction | Highly involved, helping build customer trust and great online reviews | Minimal customer interaction | Can vary depending on the seller’s approach |
| Scalability | Highly scalable, especially with the use of automated platforms | Scalability can be limited by contractual and client requirements | Scalability can be limited by production and shipping times |
| Examples | Selling products from an eBay store fulfilled by Amazon suppliers | Promoting products on social media and earning a commission on each sale | Selling custom-designed T-shirts through a platform like Printful |
If you’re the type of seller who wants to remain as hands-off as possible, maybe an affiliate marketing model is best for you. However, dropshipping appeals to those who want greater control over their earning potential, scalability, and business success. For example, staying in control of tasks like customer service reviews, product copy, and storefront design means you can optimize operations to suit your target audience and ensure your business stands out from the crowd. In contrast, with affiliate marketing, you’re relying on the client to put in their share of the work.
Why ghost commerce is the right move for you
If you’re unfamiliar with ghost commerce business models, here are some key advantages that make this hustle compelling.
1. Lower overhead and upfront costs
In ghost commerce, you are free from every task that requires upfront investment and planning, such as purchasing inventory and managing warehouse picking and packing. Without any significant upfront costs or personnel required, the barrier to entry is lower, meaning you can more easily set up and start running your ghost commerce business.
2. More flexibility to adapt
Because you don’t have to purchase any inventory, there’s less money at stake. You’re also not tied to contracts with warehousing and distribution partners, which all have financial, logistical, and legal implications. There’s complete flexibility to capitalize on market trends, pivot to sell a new product category, or expand your existing range.
3. Unlimited working locations
Who doesn’t want to make money while lying on the beach? Ghost commerce’s appeal is that you can run your dropshipping, affiliate marketing, or print-on-demand business from anywhere—you just need an internet connection. This flexibility is great for digital nomads.
4 steps to get a ghost commerce business off the ground
Below are some practical steps that will help you get started with your ghost commerce empire. While the steps might vary slightly depending on which ghost commerce model you pursue, this information is essential for every setup agenda.
1. Choose a selling platform
Choosing a selling platform is arguably one of the most crucial decisions you will make for your ghost commerce business. Dropshippers and print-on-demand sellers might choose a marketplace like eBay, which everybody knows and 133 million buyers love. Reputation aside, eBay offers extended capabilities for sellers, including different selling formats, page optimization, and performance tracking. Affiliate marketers might opt for alternative selling platforms that generate similarly high traffic, such as TikTok Shop and Pinterest.
2. Find reliable suppliers
Remember that ghost commerce’s key USP is that you don’t need to handle any inventory yourself. For affiliate marketers, this step is basically a business development exercise—you can reach out to clients (or maybe they’ll reach out to you!), and then you’ll promote their products. If someone places an order using your discount code or link, the order goes directly to your client—you’ll never touch the inventory.
The approach is different for dropshippers and print-on-demand sellers. Dropshippers must find trustworthy suppliers with established protocols. Amazon is a great choice—it offers a range of brands across every possible segment, making it easier to find high-quality products and compare prices to get the best deals. Print-on-demand sellers can replicate this approach, except your supplier will be specific to the print-on-demand model.
3. Identify a niche
It’s a great idea to become a big fish in a little pond, and ghost commerce businesses can achieve this by choosing a niche with high demand and relatively low competition. For example, kitchen tools, sustainable products, and sports equipment are three trends to zone in on. Let’s consider what the “kitchen tools” niche would look like across the three popular ghost commerce models:
- Dropshipping: You could sell a collection of products targeting keywords like “eco-friendly kitchen gadgets.”
- Affiliate marketing: You could post videos of kitchen tool reviews, positioning yourself as an influencer in this space.
- Print-on-demand: You could create a series of eBooks reviewing your top ten picks for the best kitchen tools.
4. Build a trustworthy brand identity
It might seem strange to build a brand identity when the word “ghost” is in the name. Yet, it’s still important for all ghost commerce businesses to establish a trustworthy brand identity on their selling platform of choice—no one will buy from a business or person that looks like a scam.
The last thing you want is for customers to second-guess what your product does or squint at a blurry photo—they’ll simply scroll on to the next best option. Above all else, clarity is key:
- A consistent “look”: Customize your marketplace storefront and social media pages with branded headers, bios, and logos/pictures.
- Focus on benefits, not just features: Don’t just list the product’s specs. Explain how those features translate into real-world benefits for the customer. For example, instead of just saying “this water bottle is made from stainless steel,” say “this stainless steel water bottle will keep your drinks cold for hours, so you can stay hydrated on the go.”
- Keep it concise: Get to the point quickly and use bullet points or headings to break up large chunks of text.
- Highlight unique selling points: What makes your product stand out from the competition? List every compelling feature and include relevant info such as sizing.
Bonus tip for dropshippers: Automate your order fulfillment operations
Ghost commerce models like affiliate marketing are ideal for sellers who want a more laid-back approach while still cashing in. If you want the more hands-on strategy of dropshipping, don’t let the amount of work put you off.
Automating business processes is rule number one for scaling a ghost commerce business effectively while maintaining high standards for customer experience. Automated dropshipping platforms like Yaballe enable you to streamline order fulfillment for Amazon-to-eBay selling.
Yaballe uses pre-managed Amazon buyer accounts and credit lines to automate product ordering, allowing you to scale operations without worrying about logistics constraints. While Yaballe manages the account, you have control: You can track orders and delivery status in real time, easily cancel orders, or generate return labels.
Yaballe’s bulk-listing capability includes alerts for high-risk products and suppliers and a VeRO scanner that identifies disallowed items, helping you comply with marketplace restrictions as you scale.
Get in touch with our friendly team at Yaballe today.
