Dropshipping vs drop servicing-Which one is better

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There was a time when people used to have the dream of working from home and be close to their families. Now, we are living in an era where it’s not only possible to earn an income from home, but it is actually possible to build an online business and have a chance of reaching financial freedom in just 5 years.

Dropshipping, blogging, e-commerce, youtube, and software products are some of the best businesses anyone can start. The internet has allowed people from all over the world to have a genuine chance at creating a life that their parents only dreamed of.

Related: How to leave your 9 to 5 job and start your own business

That being said, people who have tried both dropshipping and drop serving are earning 6-7 figure incomes within a few years.

Now, you must be wondering what is the difference between dropshipping and drop servicing.

Dropshipping is a method of selling physical products while drop servicing is a method of selling online services. Another difference is that in a dropshipping method, the owner doesn’t need to handle the products that are delivered to clients. In drop servicing the owner needs to accept the service from a freelancer and deliver it to the client.

Before we get started, let see the trends for both, shall we?

Dropshipping:

Dropshipping Trends

As you can notice, there is a gradual upward trend for dropshipping. It means that more people are interested to learn about dropshipping.

Now, let’s see the trend for drop servicing:

Here you can notice a sudden upward spike from Nov 2019. This means more people are interested in drop servicing and it can potentially be a very lucrative business model if you choose to start your own drop servicing business.

 

Drop servicing vs Dropshipping 

Drop Servicing

Drop servicing is a business model where you sell services like Social media management, SEO, Logo designs, content writing, etc. In this business model, you hire freelancers to do the job for you and you act as the middleman.

This is how Drop servicing works:

Drop Servicing model

In short:

1.Your customer requests a service from your website. The service can be:

  • Logo design
  • Website design
  • Articles
  • Social media marketing
  • SEO services
  • Video editing etc

2.You hire a freelancer to do the job for you.

3.Once the job is completed, you will go through it to see if everything is as requested.

4.You will then deliver the job to your customer.

 

How to build a Drop Servicing website?

Now, if you want to build a drop service business, the most effective way is to build your own website where you can list all the services that you will provide.

This will allow you to have a strong foundation where you will be able to grow the business over time.

Building a website is really not that complicated. You can either do it yourself or you can hire someone from Fiverr to do it for you.

If you are a DIY person, then head over to this step-by-step guide to help you build your WordPress blog in just 15 minutes. Once your website is completed, you will need to add a payment method so that you can easily accept payments from your clients.

Now you must be wondering where you will find freelancers, right?

Once you have set up your website and got a request from your client, you will need to go to Fiverr and hire a Freelancer to do the job for you.

What if you don’t want to build a website?

Well, you can start your drop servicing business even if you don’t have a website. Here are a few platforms that you can sign in where you can promote your services:

The awesome thing about these platforms is that they offer services that are way cheaper than Fiverr. So, you can create an account on Fiverr and register as a Seller. Whenever you receive an order, you just need to find the services from any of the above companies at a much cheaper price.

In short:

You advertise your services on Fiverr→ You get a request on Fiverr → You head over to one of these above-mentioned platforms and find a Freelancer → The freelancer completes the job and delivers it to you → You pay the Freelancer → Submit the completed task on Fiverr → You get your commission.

It’s really simple. Isn’t it?

Related: 15 Easy Fiverr Gigs Anyone Can Do To Make Money

 

Advantages and Disadvantages of Drop Servicing

Pros:

  • It’s a simple business model where you don’t need to have any special skills.
  • It won’t cost you any money if you choose to start it without a website.
  • It’s a business model that is less risky than dropshipping as you won’t have to deal with returns and refunds from clients.

Cons:

  • Freelancers are not very punctual on delivery for requested services.
  • You will need to vet every final service before you deliver it to the client.
  • You will have to deal with freelancers a few times before they complete the job as requested. This can be a little time-consuming.

 

Dropshipping

Dropshipping is a business model where you sell physical products and not having to worry about shipping or product stock. It’s a business model that can be really profitable if you know how to do it.

As a matter of fact, many people became millionaires just by starting their own dropshipping business.

Here is how dropshipping works:

Dropshipping model

In short:

1.You have an online store where customers buy products that are listed.

2.You forward the order to the supplier.

3.The supplier ships the products to the customer.

Related: Is Shopify Still Profitable- Simple Steps To Get Started

 

How to build a dropshipping website?

Building a dropshipping website is really not that complicated. You can either choose a platform like Shopify or you can build it on your own.

Usually, most people start their dropshipping business on Shopify and use Ali Express. Then they leverage traffic through paid advertising like Facebook ads.

But, you can also build a dropshipping website for Free.

Here is a step-by-step guide to help you build your own dropshipping website for FREE.

 

Advantages and disadvantages of Dropshipping

Pros:

  • Dropshipping is a very profitable business model where you need very little investment. The investment is only a website and paid traffic.
  • There are web apps like Oberlo that can help you automate your dropshipping business and makes things a lot easier.
  • You don’t need to have any product in your stock. Basically, you can sell your listed products anywhere you want without having to worry about shipping.

Cons:

  • There is a lot of competition in the dropshipping business model. You need to do a lot of research before trying to start this business.
  • There can be shipping issues especially if you are dropshipping products from China. For instance, a product can take 1 month to reach a customer.
  • You will have a hard time dealing with refund and return of products.
  • You can become the bottleneck of this business model if you don’t know how to automate everything properly.

 

Final thoughts: Dropshipping Vs Dropservicing-Which one is better?

Both are legit business models that can help you earn a good income.

If you are a beginner, then you can choose the drop servicing business model as it will be a lot easier. Since drop servicing is a new business model, it means that there is less competition. And with enough hard work, you will be able to make it work.

Now, for those who have some experience online, dropshipping will be a better choice. Though it has a lot of competition, the earning potential is really huge.

In short:

  • If you are just testing an online business- Then drop servicing is the right choice.
  • If you want to make a lot of money – Then Drop shipping is the more viable option.

I hope this blog post will help you decide which business model will be better for you.

See you soon!

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