Making a seven-figure income working at home is the ultimate dream for a long time. Dropshipping and drop servicing ideas made easy the dream come true. This article Dropshipping Vs drop servicing – final Comparison is all about that.
To get the maximum output from each business model, you need to know the differences. Drop servicing is considerably an innovative concept of drop shipping. This is why we also detailed here how to start a drop servicing business in 2024.
DropShipping Vs Drop Servicing | Final Comparison
In short, dropshipping is a way of selling third-party products without maintaining inventory. Also, no concern about shipping and delivery to the end-users as typically manufacturers or suppliers handle all these formalities.
On the other hand, drop servicing also called drop surfing comes with the same approach, however, instead of physical products. Drop servicing involves selling digital services that you might not fulfill yourself.
Some people like you might get interested and successful with drop shipping, while others with drop servicing. But two business models are certainly tempting particularly for freelancers who want to make money from home.
What Is Drop Shipping?
Simply put, in drop shipping business, you tied up with a supplier/manufacturer to sell their product from their stock that you both agreed on. They will keep inventory, fulfill and deliver the product to the customers. And most cases with warranty or return offers.
Since the 1960s, when it was initially started – dropshipping is one of the most popular business models globally. Over the decades, it expanded and improved its popularity. Dropshipping now become a trendy business model that is widely used everywhere in the world.
How Dropshipping Work?
There are multiple ways of working, however, not complicated. And, of course, the choice is yours. Find the option that fits best with you;
Initial Option
Firstly, find reliable suppliers or manufacturers and tie up with them to sell their products.
Secondly, build a website with proper customization to attract visitors showcasing the products you want to sell. (Mention product price which is obviously more than the price supplier offering you.)
Then, visitors will select, pay and ask to deliver the product via your site.
Finally, you place the order with the supplier and they will send it straight to the customer’s end.
Simple Option
It is also known as the most logical way that dropshipping works, simply find yourself with Shopify. In this eCommerce platform, you can open a dropshipping store. Shopify also allows you to customize your store according to your requirements.
Remember, you need to pay fees to Shopify for every product that sold out from your store.
Intelligent Option
You can even use your pre-existing WordPress website for drop shipping business. You may change the old theme and go for a fresh one depending on how you want to see your dropshipping business. However, WordPress never costs you any transaction.
DropShipping Pros
- No inventory is required.
- More profitable if find the winning products.
- Mostly software-based and automated.
- No worries about product shipping as suppliers do the job.
- You don’t need to have products in hand.
- Most suppliers offer return and repair warranties.
- Less investment.
Dropshipping Cons
- Huge competition.
- Finding a reliable supplier is a bit challenging.
- Chances of losing customers due to high shipping time.
- All suppliers do not provide repair or return warranties.
- Product quality could make sense as you are not directly Evaluating it.
What Is Drop Servicing?
Drop servicing is also known as white labelling or service arbitrage. It is the right way to gain maximum profit without fulfilling the client’s job yourself. You need to hire less expensive freelancers or agencies to complete the task that you have to do.
As a drop servicer, you are selling digital services while your hired freelancers or agency working for you behind the scenes. You simply act as a liaison as the preliminary point of contact for people who need digital services.
You may disclose your drop services to your client that there is some other person or team working for you to complete the job. However, most of the drop servicers find it safe to keep it secret.
How Does Drop Servicing Work?
The working way of drop servicing is pretty simple. It involved just 5 steps as below;
Step 1
You won a content writing company and provided versatile content.
Step 2
The client fined you and paid $400 to write content.
Step 3
You pay a freelancer or agency $300 to do the writing job.
Step 4
Your nominated person or agency provides you with the content.
Step 5
You check it properly, give it a final touch- if needed, and finally deliver it to your client. And, keep $100 in your wallet! Isn’t it so easy!!!!
Drop Servicing Pros
- Easy to start.
- Doesn’t need much money to start.
- Flexible.
- Doesn’t need vast skill or experience, however, it is always better to have some related background.
- Not too complicated.
- You got the control of setting the service price you provide.
- Very easy to cope with WordPress and Shopify.
Drop Servicing Cons
- Communication issues might make difference.
- Meeting deadlines could be an obstacle as the job is done by a third party.
- Chances of less customer satisfaction.
- A bit of high competition.
Drop Shipping Vs Drop Servicing | Final Comparison
DropShipping
- Deal with visible product
- Niche selection can make a difference
- Good for an experienced person
- Warranty can rise/down business
- Shipping time does matter
- High competition with a bit less profit
- Required investment
- High chances of return or refund
- Popular and many training courses available
- Helps to earn 7-figure staying at home
Drop Servicing
- Deal with service
- Your expertise on a specific subject helps you a lot
- Good for beginner
- Revision makes sense
- Quality fact
- High competition with a bit high profit
- Less investment needed
- Fewer chances of a return or refund
- A bit less popular and not so many courses available on it
- Helps to earn 7-figure staying at home
How to Start Drop Servicing Business In 2024 | Step By Step Guideline
Find a Profitable Niche
Your creativity may limit you. This is why you will find a niche that is profitable. There are plenty of options but not all come with the same profitability. To find a profitable niche try to figure out the reply to the below questions;
- What is/are the idea(s) that you are skilled in or have knowledge of?
- If there aren’t any, then find an idea that seems most realistic and fascinating for you.
- Which ideas look like getting the highest demand in the market?
- Are there any ideas that could carry the highest profit for you? If yes, then which one?
- And, which idea seems effortless to create and perform?
There are tons of ways that you can use to choose a profitable niche. However, go for the one that suits the most to you and use that as an establishment.
Build And Train Your Team
It is an important step for your drop-servicing business. You should be keener to select your team of service providers. It looks like very easy but really not. Your built team is going to be the lifeblood of your business.
Follow the checklist below while hiring freelancers or agencies and evaluating whether they will include your drop servicing team or not;
- Will the freelancers or agency be dependable to meet the deadline of the given work?
- What’s their knowledge and practical experience level with the service you are going to provide? You may love to ask for examples.
- Are they needed any orientation or training to cope with your working standard? If so, then how much training will be necessary until they can work to align with your prospects and standards?
- Do they recently live in another region that makes a noteworthy time variation?
- Are there living location and time variations a matter for getting projects done?
- Are the freelancers or agencies easy to be in touch with and work with?
Additionally, you can find freelancers from several freelancing marketplaces including Fiverr, Upwork, FlexJobs, and many more. Once you have made a shortlist of some good freelancers or agencies, give them a test task and see their performance.
Build Your Brand And Bring It To Real Life
Since you have a good business plan and built a strong team, now it is time to build your brand. In case you tend to get clients online, your online presence will be the key order of your drop-servicing business.
Although your website is a vital factor, however, your social media profile also plays a significant role. So you should create and manage your social media profile. There are tons of website creators to pick from, like WordPress, Shopify and so on.
Many of those offer a free trial. As a result, you can start building your website before you make monetary loyalty. Don’t forget to contain the following factors on your website and with other branding matters;
- An attractive logo that represents the tone, personality and quality of your brand.
- A short detail on your brand including what you do, why you do and what stand you out from others.
- A description of the drop services that you are providing.
- What benefits clients will get from your service?
- Price of your services (however, you may keep it secret to reveal on a sales call.)
At the same time, in the event, you want to take the eCommerce method, list down your service prices, first. Then, pick an eCommerce-friendly website planner that allows you to get online payments.
Attract Customers With Proper Marketing
Regardless of type, marketing plays a decisive role in any business. All the things of a beautiful brand and website are worthless if nobody visits it. That said proper promotional ads campaign to attract customers is a must thing do.
Once you build your website reputation, you will have a lot of options including retaining old customers while landing new ones and more. Here is some of the best ways of marketing;
- Referral Marketing
It is probably one of the most lucrative and inexpensive marketing strategies. Simply start a referral campaign that persuades existing clients to refer further clients.
- Social Media Marketing
If your target group is present on social media, social media marketing is a must-do thing for you. Find out which platforms they’re on mostly, first. Then create a special content plan focusing on holding them on those platforms.
- Content Marketing
Another great way to attract clients is content marketing. Invest in multimedia content videos, blogs, emails, eBooks, and graphics, for instance. Eventually, podcasts could be a great way to train, alert, entertain, and build your brand awareness.
Start Selling And Keep Going
The first sales feeling is the best feeling ever for any salesperson either it may come effortlessly or maybe pretty hard. Regardless of the way it worked out, the key factor is to stay enthusiastic, and dedicated and never give up.
You will learn about the things you should and shouldn’t do since you have further dealings and dialogues with possible customers, regularly. Invest deep concentration in what these leads and customers are saying. Then, find the reply;
- Is your service covering all the things it should do?
- Is your service price reasonable?
- Is there anything you missing that clients are expecting from your service?
- Does your competitor have well-built popularity for you to keep up with?
Frequently Asked Questions
Drop Shipping Vs Drop Servicing – Which Is Better?
Both are highly profitable and depending on how you operate both can generate pick profit for you. However, if you are a beginner you probably want to start with drop servicing rather than drop shipping.
Besides, all business comes with some risk factors while offering profit margins. But compared to dropshipping, dropshipping has a lower risk. That’s why it said drop shipping is for slightly experienced people.
What Are The Services You Can Offer in Drop Servicing?
There are plenty of services that you include in your drop servicing business. Some of that is below;
- Content writing.
- Copywriting.
- Re-writing.
- On-page SEO.
- Off-page SEO.
- Graphic design.
- Web design.
- Social media marketing.
- Link building.
- Video creating.
- Video editing.
- Guest posting.
- Keywords research.
- Social media management.
- Data entry.
- Game develops.
- ChatBot develops.
- Virtual assistant.
- Proofreading.
- And, many more.
Is Drop Servicing Profitable?
Of course! Similar to drop shipping, drop servicing can be highly profitable.
How To Make Drop Servicing Profitable?
To get the maximum profit from your drop servicing business you need to select your drop service very carefully. Find a niche that has great demand in the market. Besides, hire reliable freelancers and agencies who meet deadlines with the best quality work. Also, prepare an attractive portfolio and offer a competitive price for your service.
DropShipping VS Drop Servicing | Conclusion
Finding the right business could be challenging and even overwhelming. In this article, dropshipping Vs drop servicing – final comparison, I’m aimed to help you find the right business by detailing drop shipping and drop servicing models.
In addition to that, I also detail how to start a drop servicing business – as there aren’t enough training guides on the internet on drop servicing. I’m pretty sure it is going to help you to pick the right way to generate a 7-figure income while staying home.