Dropshipping vs Drop Servicing! Which Is The Best Business Model?

Dropshipping vs Drop Servicing! Which Is The Best Business Model

Are you having second thoughts if you’ll choose to start a dropshipping business or not? Perhaps you are considering drop service as another option? Let this dropshipping vs drop servicing article be your guide on what business model to choose! 

Starting a business can be daunting. Usually, people are more cautious in terms of taking risks on a business model they have no idea of. At this point in time, it is ideal to start an online business, but with tons of opportunities out there, which could be the best option?

The reality is, every business has its advantages and drawbacks. There is no such thing as a perfect business. Along the way, you’ll eventually find yourself struggling but that’s a natural part of being an entrepreneur. 

It is evident that there are a lot of accessible ways for those hoping to benefit from making money online, it’s critical to pick the ones that we are at least familiar with or are keen on learning. 

Dropshipping vs Dropservicing

Dropshipping is a business model known to many. This is an online business model that allows an individual to sell products without even handling the inventory. All you need to do is create an account on any dropshipping platform like Shopify or eBay.

Then you’ll offer the products from your chosen supplier. Once a customer makes an order, you don’t need to worry about shipping and let the supplier handle it for you.

What a drop shipper needs to do is have potential customers purchase and ensure a successful sale. On top of that, they are free from worrying about the packaging of the products and having them delivered at the doorstep of their customers.

Obviously, dropshipping involves physical products. Now, you can offer online services without having to do the job with drop servicing.

Drop servicing is not far from dropshipping. What you’ll do with this business model is to offer online services to potential clients. Keep in mind that you don’t need to be an expert on any of the services you choose to provide. Since you are not the one to do the projects, you’ll have to find individuals who will do it for you. These people are called Freelancers.

Let’s say you’re offering graphic designs, content writing, or web development… these are the jobs that can be done by the freelancers you hired. Your clients do not have to know that you are outsourcing the tasks they want you to do. 

With drop servicing, all you need is to market these services and land deals with the client.

If drop shipping makes it possible for you to mark up the items you are selling. This is no different from having a drop service business.

To earn profits in this business model, you must know how much a freelancer charges for his or her services. Then, you can have an idea of how much cost you’ll add for every job your client wants to be done. The profits you earn is the difference between how much a freelancer charged you and the price your client has paid.

Which Business Model Is Better?

I’d have to say that this depends on you. The opportunity of earning up to 7 digits is possible with dropshipping and drop service. Both of them are great businesses that can help you reach financial stability. 

These are some of the best online businesses of today! Keep in mind that you can pick the ones that you believe will best work for you. 

For anyone who is just starting in pursuing an online business, you might want to consider drop service. What you need is great skills in marketing and knowledge on the backend of a business. Communication skills are definitely a requirement because you’ll be negotiating with freelancers and clients.

Although drop shipping may be a little complicated, if you are up for the challenge, you must be ready to learn.

In spite of the fact that handling of items or the administration of services is done by means of a third party, there will situations when clients are searching for a brief explanation regarding their inquiries. If any problem occurs, we must know how to respond to the demands of our clients and resolve the issue at hand. This can only be possible when we are completely aware of what we have to offer. It is a must whatever business model you prefer.

Whatever you choose, take note that being an entrepreneur is not for the faint-hearted. Expect hurdles and struggles along the way. Always be open to learning and improving your business strategies!

Pros And Cons of Drop Servicing

drop service

Be mindful that every business model has its pros and cons. 

Pros

1. Easy to start

What’s great with drop servicing is that you don’t need a degree for any service you want to offer. Expertise is not a requirement. Although you might want to learn about anything that you will provide.

Being knowledgeable about any of the services you choose is a must. This can help you in terms of closing a deal with a client or in any case a problem with the delivery of the services occurs

2. A Safer Business Model

With dropshipping, you have to worry about a client demanding for refund. Since you don’t handle the items, you don’t get to see whether it is damaged or is not packaged well. Plus, you can not be sure whether the item is delivered in good condition or not. It is kind of risky, especially when there are possibilities that customers may have unrealistic demands when receiving physical products.

Cons

1. Possibility of Delayed Services

There is a huge chance that freelancers may not be able to deliver the services on time. This is something that you have no control of. Problems like this are inevitable. Chances are, there could be unforeseen situations on the end of the freelancer.

It can cause a toll on your relationship with the client that is expecting to have the service delivered on the scheduled date. What you can do about this is when a freelancer told you the span of time they need to complete the project, give an additional 2 days to the client.

When the freelancer finishes the task on or before the agreed date, pass it to the client as soon as possible. This will surprise them that you have completed the job even before the deadline, leaving them a great impression of you.

2. Keeping Both Freelancers and Clients Satisfied

Dropshipping vs drop servicing customer satisfaction

It is crucial that your relationship with the freelancers and the clients are both in good terms. A freelancer that is paid accordingly and on time would be pleased to keep doing the job for you. This would also inspire them to do more and better. Haggling them is not going to make them do better and faster. Make sure that you are communicating with how you want the tasks to be done so that they can comply.

Building rapport is not just for customers, it is also a must with anyone you employ. If you want employees to do well, you should also treat them well. This will result in productivity and will help them produce better content or graphic design, or whatever the project is.

A client that is satisfied with the outcome of the services, won’t be having any problems with paying you easily. Or, you might even get paid more than you are expecting.

Checklist to Start Your Drop Servicing Business

Are you ready to offer online services? Here’s how you can get started with drop servicing!

how to start with drop servicing

1. Choose A Niche

It is entirely up to you whether or not you’ll offer a variety or pick a specific service. 

These are some of a few online services you can offer:

  • Content Writing
  • Social Media Management
  • Search Engine Optimization
  • Facebook or Google Ads
  • Copywriting
  • Graphic Designing
  • Web Development

Pick the ones that are in demand or what you believe people need these days.

It is recommended to offer services that you have the knowledge or at least a background with. Avoid choosing the ones that you have no idea of. Your goal is to provide customer satisfaction. It will only cause you problems for providing services that are too complex for you to understand.

If you don’t have a background on web development or search engine optimization, refrain from selecting these as your services.

2. Build Your Team

Dropshipping vs drop servicing build a team

How can you find freelancers willing to do the job for an affordable price?

Sign up as an employer at any of these freelancing platforms:

You have the power to screen applicants and choose the best fit to do the job. Just make sure that they have experience in the field. Look for people who meet the qualification for the job and those that meet your standards.

3.Create a Website

If dropshipping has Shopify or eBay, what you need is a business website.

It is ideal to have a platform designated for your business. Building a website should not be a question! Having one for your drop servicing helps to establish your credibility instead of just relying on a social media account!

A Facebook page should be where you promote your services. Let your website showcase your business as a whole. Include every important detail that a client needs to see. 

dropshipping vs drop servicing

Setting up a website requires an investment. If you can afford to hire a web developer to do it for you, then you are free to do so. There are platforms that will let you create your own website easily without costing you a lot.

Wix and GoDaddy are some of them. It is absolutely free to choose a template and edit your website as to how you want it. To get your site live, you must pay for the domain and the hosting. Domains can cost you at least $15 a year. You can get it for free when you sign up on monthly plans from any of the platforms you choose. These can cost you for as low as $12-$24. Choose a plan that fits your needs.

4. Look for Clients

When looking for clients, you must know what their pain points are. This is necessary so you can identify what solution you can offer.

For instance, a brand is having difficulties with its website that keeps having a problem with their hosting or server. It constantly shuts down which results in limiting customers to access their website. This highly affects their sales but they have no clue of the source of the problem. That is when you come in.

These pain points are different with every client. It could be a marketing strategy problem. Perhaps they are looking for another way to retain customers and you can introduce email marketing to help them achieve their goals.

I have mentioned that it is not entirely necessary to have expertise in the service you are providing. But, being knowledgeable can assist you to identify a client’s pain points and figure out how to resolve it.

5. Marketing

When you have your website and you’re planning on promoting your business, you must be aware of the importance of Search Engine Optimization (SEO). It’s not too difficult to learn but hiring an expert to do it for you may cost you a lot. The price you will pay may depend on the scope of the project. 

I suggest you learn the basics of SEO from neilpatel.com. You can have access to unlimited information for free! 

You’ll be spending a lot of time promoting your drop service business. On top of that, allocating a budget for advertisements must be kept in mind. It is not a requirement to spend lavishly.

When creating campaigns on Facebook, you are free to set the budget you want for it to stay running! It starts at $0.50 to $2.00.

Final Thoughts

Whatever business you choose to start, do not forget to do your research, and keep learning. Today’s trends are constantly changing, and keeping up with them is one of the few jobs of an online entrepreneur.

This is a long time commitment, and you just can’t drop out of the business after falling at the first hurdle! Expect that it’s not always bliss, but every hard work you put into it is all going to be worth it.

Learn about my journey to success as an entrepreneur at Hustle and Motivate Podcast on iTunes.

Stay updated with the tips and tricks for entrepreneurs at Hustle and Motivate Youtube Channel! 

If you want to learn more about how to start your dropshipping business, check out my article on eBay Dropshipping. Here’s a free spreadsheet template, to help you manage your sales and inventory for dropshipping.

You can schedule a consultation with me to leverage your eBay dropshipping business right here at HustleandMotivate.com!

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