Drop Servicing Vs DropShipping? Which One’s Better?

Online businesses have been booming since the 21st century and more people are making money right from their homes.

Blogging, eCommerce, Youtube, Software Products, etc are some of the business in which people are in-to.

Drop Servicing and dropshipping are both 2 other online business models where people have made 6 to 7 figure income online. So, What’s the difference between the two?

Let’s Find out

What is Drop Servicing and Dropshipping?

Drop servicing is a business model where you sell services like logo designs, social media management, Translation, article writing etc for some money. But, you do not do it yourself rather outsource it to other freelancers for lesser money. So, the difference between the two becomes your profit.

Related Article – What is Drop Servicing? Your Best FREE Drop Servicing Tutorial

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Dropshipping is almost the same. But, instead of services, we use actual products. Here, we sell products from our website but the actual product is stored somewhere else. And when a customer buys the product, we ship it to their destination directly using other websites like AliExpress.

So How are Drop servicing and Dropshipping Different from One another?

Dropshipping is used to sell physical products while drop servicing is the method of selling online services.There is also another slight difference. When dropshipping, the retailer does not handle the goods at all and is delivered directly to the customer. However, in drop servicing, the retailer needs to accept the service from an outsourced freelancer and then finally deliver it to the client.

Related Article – Drop Servicing Vs Affiliate Marketing: Which One Should You Go For?

Drop Servicing: How It Works?

Drop Servicing is really easy to understand and implement.

The first thing to do before starting this business is to select a service that is both profitable and evergreen. It can be anything like:-

It can be anything from the list above or some other services that people are really into right now.

Once you select a service, there are literally 2 ways in which you can start this business.

Related Article – 10 Best (HOT!) Drop Servicing Niches in 2020!

First Way

Here, you need to build an entire website based on the service that you provide. You can hire someone to build it for you or you could just start a small WordPress site yourself.

You will need to buy a domain and a hosting platform for your website. You can buy both from Bluehost at just $3.95/Month.

P.S – Want a little more discount on Bluehost? Do the following – 1. When you reach the checkout page after selecting your plan, allow the page to load. 2. Then move your cursor to top (over the chrome tabs). 3. A popup would appear that gives you a little more discount. Click on Claim savings and you could then buy it.

Also, set up a payment gateway with PayPal or wave accounting so that you can accept payments from customers.

After your website is complete, you need to set up Google Ads so that people may land on your page and buy the service.

When a customer buys your service, you just need to go to fiverr.com and find a freelancer who does this service for a way lower price. Order the service from them and when it’s finished, you just deliver the same to your client for bigger money.

Related Article – 12 Easy Fiverr Gigs Anyone can do to Make Money

Second Way

The second way is the best way to start this business if you are a broke beginner. The profit will be low but it can be a lot easier when compared with the first method.

There are other freelancing websites like Fiverr. Some of them are

The best thing about these websites is that they provide services for way cheaper prices than Fiverr does.

So, that means you can register as a seller on Fiverr and start selling services on their platform. when you receive an order, you could just outsource it to the other freelancers on the above-mentioned websites for a cheaper price.

So, Yeah! It’s that simple!

Related Article – Drop Servicing With Shopify – The Complete Guide!

Dropshipping: How it Works?

Dropshipping is a bit complicated when compared with drop servicing but can be more profitable when done the right way.

People usually start dropshipping with Shopify and AliExpress combined. Shopify is an eCommerce platform which helps you showcase your products and sell them online.

Once a customer buys a product, you ship the product directly to them using an international eCommerce platform like AliExpress.

The traffic usually comes from paid advertising through Instagram, Facebook, etc.

Dropshipping has to be done carefully. One wrong choice of product and you may end up losing some money.

Related Article – Are Shopify Stores Profitable? Can You Still Make Money in 2020?

Pros and Cons of Drop servicing

Pros

  • Drop servicing is pretty much easier and straight forward. You do not need any skills or anything to start.
  • You also do not need any money to start this business if you select the second strategy.
  • Drop servicing is a lot less risky than dropshipping because you won’t need to worry about returns, refund, and product legitness.

Cons

  • Delivery time can change. Not all freelancers can deliver in time. Sometimes, due to emergencies or because of high demand, the delivery can be late. To minimise this, you could add at least 2 days to the freelancers delivery time.
  • You will have to deal with customer satisfaction here. Always outsource your service to good, reputed freelancers who have a lot of good ratings.

Related Article – How to Start Dropshipping Without Shopify (The Ultimate Guide)

Pros and Cons of Dropshipping

Pros

  • Dropshipping is really profitable. People have built six and seven-figure businesses online with dropshipping.
  • Webapps like Oberlo and Ezusy helps you automates your dropshipping business for you and makes it a lot simpler.
  • No inventory needed. You don’t need to store your physical products.

Cons

  • Dropshipping is a bit riskier. The product that you promote directly depends on your profit. The wrong choice of product can lead to a heavy loss. To minimise this, it’s always good to start a general store instead of a niche-specific store.
  • The shipping time of AliExpress to some places takes more than a month. This can be a big problem for some customers.
  • Since most of the products are from China, the quality can not be guaranteed.
  • Refund, Return and Customer satisfaction can be a headache.

Which One’s Better? And Which One Should You Choose?

Drop servicing and Dropshipping are legit businesses that you can start online. These 2 are some of the best businesses to start online.

Both these business models have their own pros and cons. However, Drop servicing might be good for beginners while dropshipping may slightly be good for the experienced ones.

Drop servicing is kind of new to this money-making space and doesn’t have any courses or training as of now. But, dropshipping, on the other hand, has lots of courses and training from great entrepreneurs and professionals.

The main advantage of choosing Drop servicing over dropshipping would be that you wouldn’t need to deal with refunds and returns. Seriously, that’s a great relief!

It’s true that dropshipping is really profitable and people have built 7-figure businesses. But, that doesn’t mean that you can’t make the same amount from drop servicing. If you provide high-ticket services, drop servicing can too become a multi-million dollar business.

Hope I have helped you choose between Dropshipping and drop servicing. If there are any queries, please don’t hesitate to comment down below.

Peace!