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Drop Servicing Vs Dropshipping

The first difference is that Dropshipping is selling physical products but drop servicing is about selling online services. The second difference is when dropshipping, the business owner doesn’t handle the goods and delivers them directly to the customer. However, in drop servicing, the business owner gets services from the seller and delivers them to the client.

Now everything is going online via the internet without any problem and we can make much money even with a single sale online.

Time has changed!

The world has changed, and these changes, such as doing digital, profitable online business, can provide you everything according to your comfort, even your job.

Let’s get started!

Related Article: Your FREE GuideTo Start Drop Servicing

Working from home in your own comfort was like a dream of many people. But technology has turned it into reality. Take, for example, the drop servicing vs dropshipping business model or process.

One is about selling a service while the other is selling a product.

By drop servicing or dropshipping, you can work as you want to work. There is no need to find a job and go to your office at a specific time. Sit and start working with the ease of home.

Good to hear? 

So let’s get started and talk about the ways and what service you can offer by which you can earn as much as you want in the comfort of your sofa and scale a profitable business!

There are two most popular online businesses:

  • Drop servicing
  • Dropshipping

You might know about the drop servicing and dropshipping service and might not know. Drop servicing vs dropshipping are the two business models with many differences.

Well if you don’t know about them, no need to worry, I am here to tell you everything about drop servicing vs dropshipping to make dollars 🙂

Let’s get started!

1. Drop servicing

What is Drop servicing?

Drop servicing is actually a business model industry where you can sell services. But you will not have to work to provide a service. All you have to do is just find some service at a low cost. After that, start selling services in the market.

Drop servicing business model
Drop servicing business model

2. Dropshipping

What is Dropshipping?

Dropshipping business is a process of selling products, instead of a service, from a third party or industry. You can do dropshipping business by buying a product from a supplier at a less price and then ship the same product to your customer at a greater price.

Dropshipping business model
Dropshipping business model

Related: 11 Reasons why Dropshipping fails

So, dropshipping business is pretty simple!

Pro-Tip

You do not need to keep goods with you but you will have to make sure that the person who supplies you the product has goods that your customer is demanding.

Now, you have learned about the drop servicing and dropshipping business model.

If you want to start any one type of business model that is also profitable for you, then you must know the difference between them.

Dropshipping Statistics

  • Dropshipping business model stats
dropshipping google trends
Source: Google Trends
  • Asia Pacific Dropshipping market size 2015 to 2025 (USD Billion)
Source: grandviewresearch

Let’s compare the drop servicing vs dropshipping business model or service to find out which one is best for you.

3. Drop servicing vs dropshipping: Which One Is better?

Difference between dropservicing and drop shipping

A drop servicing business model and dropshipping business models look similar but there are some differences which you need to know if you want to get the most benefits of both drop servicing vs dropshipping.

Source: Google Trends

Who to do Drop servicing?

Starting a drop servicing business is easy. If you are interested in providing services online like writing, designing, speaking, logo design, etc, drop servicing is a business model you should go with. Social Media is also a great way to find customers for your drop servicing business to provide them your service.

Who to do Dropshipping?

If you have deep knowledge about affiliate marketing and selling products then dropshipping business model will be a good choice for you. To do this, explore social media and other online niche-related communities to find customers. In dropshipping, you sell a product rather than a service.

So let’s talk about dropshipping in the description. 

4# Drop servicing options – How to do Drop servicing

Those people who are interested in making money online by promoting and selling their services or service have a lot of options to scale a profitable business with low risk.

I. Build a Website

One of those options to provide service is drop servicing in which you can build websites using WordPress or any other software for the different features and do optimization to sell your services.

Start a blog and then focus on SEO; there are a lot of online SEO services which can help your business grow.

You can also hire our experts ([email protected]) for SEO or to take help in your drop shipping or dropservicing business.

Consultation is free.

Your websites should provide a clear explanation of your services and skills and should be secure for others to use.

Though you will have to pay for building a website and service page, so if you don’t want to go for this then you have another option to get an order.

You can find free hosting service providers for your personal business.

II. Freelancing

You can sign in to different freelance platforms and can offer your services. Once you get an order, you can hire another freelancer at a reduced price to complete that order. That freelancer will do the work and you will get the commission as an advantage.

Example

if you get an order of $15 then you can have the same done in $6 or $10.

So, the remaining $5-$9 will be your profit.

You can offer your services on the following freelance platforms:

You can use other service platforms too but try to work effectively to get more orders.

While taking orders, you need to make sure that you don’t make freelance buyer mistakes.

5# Pros of drop servicing

Pros AND CONS of drop servicing

There are a lot of advantages of drop service.

Let’s discuss drop servicing pros one by one. 

Easy to setup

  • You have no need to make a proper office for this.
  • You can set up your business and start marketing your services in any part of the world. You don’t need to ship.
  • All you need to have is just a comfortable place to sit, mobile, laptop and a good internet connection. 

No experience and skills required

  • Another benefit of dropservicing business is you have no need to be skilled and experienced.
  • Actually, you will have to do nothing in this business. The freelancers you hire will do everything for you.
  • You can also outsource someone to talk to the clients. So, it would be enough to have a little knowledge of some basics.

Pro-Tip

When you get an order you have no knowledge about, watch a handful of YouTube videos to see what the project is about.

High profit

The best thing about drop servicing is you can earn a high profit, even one sale can make you $1500 or more profits if your work or service is of high quality and provided on time. 

While in the case of dropshipping, you will have to sell hundreds of goods to make this much profit. 

Recurring income

A drop servicing business offers you to make money on a weekly or monthly basis without any additional cost.

If you provide the work according to your client’s expectations then they will hire you over and over again.

In this way, you can earn a lot just by hiring a freelancer for doing the same work over and over again.

Less risky

Drop servicing business service is less risky than dropshipping as there are no physical products to take care about.

You will not have to handle anything about the shipping of goods compared to dropshipping.

All you have to do is just to make sure that you have a freelancer to do the work which you are taking from your clients. 

You can also outsource someone to make sure that things are going the right way.

What else you want..man? 

Little money to start

This one might be the best benefit of the drop servicing business service compared to dropshipping.

If you don’t have a lot of money to invest in your business then drop servicing will be the best choice to create a good figure business. 

You can start this service with a little investment and without any investment too.

6# Cons of drop servicing

Yeah, it’s not a bed of roses!

Along with a lot of advantages, drop servicing has some disadvantages too. You must take care of them to be successful.

Relying on freelancers

As you know that this business is all about hiring someone else for your work (outsourced work) to be done to scale a significant figure business.

So, you will have to rely on outsourcing and online freelancers to earn money.

Before hiring a freelancer, you should go through inside 9 secret tips to hire a freelancer.

But what if your freelancer has too much work from other clients and can’t support you at the very last moment? What if they failed to deliver your work on time and the situation reaches till refunds? 

So to avoid this, make sure that you have more than one freelancer for one service. Make sure that the freelancer which you are hiring is experienced in the work which you want him/her to do.

Pro-Tip

If you want to stay at the top, start working immediately on the work you outsourced to fix it if things go wrong.

Pro-active approach

Recommended: Make money on Medium

Drop servicing business requires a proactive approach to make sure that both clients and freelancers are happy.

If your client will be happy with your work he will hire you again and if your freelancer will be happy with your pricing then he/she will do your work in the best way even in exchange for less money!

7# Dropshipping options – How to do Dropshipping?

If you want to promote the sales of physical products then you need an eCommerce website. If you want to start a dropshipping business, like Amazon dropshipping, then you should make sure that your provider is reliable, and can provide the products you want on time.

Shopify is the best place to start dropshipping.

Where to find cheaper products for Dropshipping?

When it comes to selling physical products then Shopify and AliExpress are the most popular platforms. Let’s discuss the pros cons of drop servicing vs dropshipping business model. 

8# Pros of dropshipping

Pros and cons of drop shipping

If you want to know the potential of dropshipping then you must dig deeper.

Let’s move on!

Easy to start

You will not have to put a lot of effort to start a dropshipping business. You can start it just by making an online store, find a supplier and choose the products which you want to sell, and do the delivery when you find a customer. 

It might be difficult for you to handle it in starting but after some time, it will be an apple pie for you.

Little Money to start

Just like the drop servicing business, the dropshipping business also requires little money to start. If you want to start an e-commerce business then you will need to have a place to put your products for delivery.

While in dropshipping, you will have no need to worry about storage and stock, just find a supplier and start selling and product delivery!

Analyze the sales

In a drop shipping business, you can easily analyze which product is performing well in the market and which product is not.

So, when you will have this information then it would be easy to expand your business. 

You would be able to easily test and scale the products. 

Testing and scaling of products help you to find out which product is trending in the market. And when you find those products then you can increase sales.

A lot of products to sell

When it comes to choosing the products in a dropshipping business then the sky is your limit. You can sell every kind of product which your supplier can provide. 

You can also have more than one supplier if you want to sell a large variety of products. But you should be careful in choosing products for delivery, don’t choose products which are not trending in the market.

Work remotely

Just like drop servicing, the dropshipping business also provides you the comfort of your home. You have no need to set up a proper workplace to deal with your customer. 

Everything can be done online. In this way, it will save the cost of making a place for work.

9# Cons of dropshipping

Just like every other business, drop shipping also has some disadvantages. You should know these cons of dropshipping before getting started. 

A lot of competition

Dropshipping has low-profit margins just because of high competition. As it is an easy way to earn, so many people get attracted which causes strict competition.

If you want to beat your competitors then you must have something which they don’t have.

Product quality

You will have no control over the quality of your product. Your customer will get whatever your supplier will deliver.

If your supplier delivers bad quality products or if he doesn’t deliver on time then you will be blamed for this as you are the one dealing with your supplier. 

That’s why I’m repeating to look for a reliable supplier for the service or product. 

Low profit

As we have already discussed the competition in this field.

So, because of that competition, you will have to sell your product at less price to attract the customer. As a result of this, you will gain less. Difficulty in finding customers is one of the cons of dropshipping.

So that’s it on the difference between drop servicing and dropshipping. Now it’s up to you which one you choose because you know the pros and cons of both. 

10. Which Should I Choose to Make the Most Money? Drop Servicing vs Dropshipping Businesses

Both dropshipping and drop servicing have their own benefits and use. No matter which business model you want to go with, proper market research is mandatory. Although a third party is involved in drop servicing vs dropshipping, you need to complete information about the product you are offering to satisfy your customers.

On top of it, you need to know the product and its cost you’re selling accurately. Although the product will belong to a third party, you are the one who’s selling to customers. For this reason, it’s better that you know your niche and stuff.

However, when it comes to drop servicing vs dropshipping, the choice is all yours. Better to look for recent trends and niches in which you can sell the most before deciding on dropshipping or drop servicing.

Also, read some delivery job apps.

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How to sell clothes on eBay, post a gig on Fiverr, or increase impressions by writing SEO titles.

11. Drop servicing/DropShipping Courses

There are many courses available on Udemy and other online teaching platforms where you can learn dropshipping and drop servicing businesses techniques, how to find potential customers, do marketing, and get sales. Although experience is what sets one drop shipper apart from the other, taking courses can help you find the best practices you can apply to make a good figure business.

If you search on Google for the best drop servicing/dropshipping courses, you will find courses with thousands of reviews and advertising.

So, let us know which one do you like and why? Are you ready to start selling or will do in the future? What did you choose between drop servicing vs dropshipping for success? Are you ready to take the risk?

Do effective advertising and make sure, your customer is happy with the orders you delivered.

If you have questions about drop servicing vs dropshipping businesses, leave them in the comment box and we will respond to every single question here.

12. Earning: Drop servicing VS. Dropshipping

How much dropshippers earn?

How much in drop servicing earn?

Read more about click funnels for affiliate marketing, work-from-home customer service jobs, ways to promote Fiverr gigs.

Read more reviews like WordPress vs Blogger.

Keep visiting onlinemoneyline.com to read our more recent posts.

Author: Adila Z.

Google & Hubspot certified professional copywriter with a specialization in blogging and copywriting writing. Being the owner of 6 websites and 1 digital marketing agency, her expertise in online entrepreneurship is second to none.

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