Drop servicing is a business model in which you provide a service to a client and outsource the actual work to another provider. You act as a middleman, handling the marketing and sales of the service and then hiring someone else to complete the work for a fee. This can be a way for you to offer a service without actually having to do the work yourself, allowing you to expand the range of services you offer without having to invest in additional resources or expertise. Drop servicing can be applied to a wide range of industries, including marketing, design, web development, and more.
check also: Dropshipping VS Print On Demand
Why dropservicing is getting popular?
Drop servicing has become an increasingly popular business model recently, particularly for those looking to start their own business without a lot of upfront investment or expertise. One of the main advantages of drop servicing is that it can be relatively easy to set up and run. You don’t need to have any physical products to sell or invest in inventory, as you are simply acting as a middleman connecting clients with service providers. This makes it a potentially low-risk way to start a business.
Difference between Dropshipping and drop servicing
Drop servicing is similar to dropshipping in that both models involve outsourcing the fulfillment of orders. With dropshipping, you sell physical products that are manufactured and shipped by a third party, while with drop servicing, you sell services that are provided by another company or individual.
Both models allow you to offer a wide range of products or services without having to handle the work yourself, making them potentially convenient options for those looking to start their own business. However, it’s important to carefully consider the pros and cons of each model before making a decision, as they both have their own unique challenges and opportunities.
| Challenges | Dropshipping | Dropservicing |
|---|---|---|
| Easy to start | Yes | Yes |
| Hard To Scale | No | harder than dropshipping |
| Type of clients | individuals | mainly businesses |
| Shipping | need to deal with long shipping times at first | no shipping required, but need to respect deadlines you promised your clients |
| Dealing with clients | you have minimal interaction with clients, particularly when it comes to low-priced products. | you will need to understand your clients’ specific needs and preferences in order to effectively outsource the work to a service provider. It is also important to stay in touch with clients throughout the process to ensure that the final product meets their expectations. |
| recurring income | not a popular option | popular option with dropservicing especially with services like marketing |
| Supplier | you can work with one supplier and there is many platforms that help automate the business for you | as you scale you might need to work and manage multiple freelancers and service providers |
which one to choose?
When considering whether to pursue dropservicing or dropshipping, it is important to consider your own skills and comfort level. Dropservicing typically involves interacting with clients to understand their needs, placing and fulfilling orders, and ensuring customer satisfaction. You will also need to manage freelancers and ensure that they deliver high quality work. It may be beneficial to select a dropservicing service that you have a good understanding of.
Dropshipping, on the other hand, involves different challenges such as finding reliable suppliers, managing inventory, dealing with returns and customer service, and marketing the products.
If you’re trying to decide between dropshipping and dropservicing, it can be helpful to experiment with both and see how others have succeeded or struggled with each model. There are many examples and case studies available online that can provide insight into the potential challenges you may face.
However, the most important thing is to just start. Both dropshipping and dropservicing can be launched with low cost by simply transferring products from one marketplace to another, such as from Fiverr to Upwork, or from AliExpress to eBay. This can help you gain a better understanding of the challenges involved in each approach.
check also: Why Do So Many People Fail at Dropshipping?