DropShipping vs Drop Servicing: How you can make 10x by selling web development services. 100% 14
There is a rise in online businesses in the past few years. People are earning tons of money working from the comfort of their homes.
Blogging, e-store, YouTube, selling things online are some of the most common ways people are making good money.
Some people drop shipping and drop servicing are the most attractive models to make 6-7 figures online. But before you take one model and start earning, you must understand how one model is different from another.
Dropshipping is a way to sell physical things online, while drop servicing is selling virtual services online. Another difference between the two is that in dropshipping, the seller doesn’t have to carry the goods. The customer will directly get the product. While in drop servicing, the service must be accepted from a 3rd party and deliver it to the customer.
Now, you know the basic difference between the two, let’s dive in to understand more about these two business models. Whether you are starting out or willing to have some second stream of income, you can pick one model and start earning.
What are Drop Servicing & Dropshipping?
In drop shipping, you sell services like logo designing, social media marketing, article writing, translation services. You don’t directly do the service; you outsource it and earn some commission over it.
In dropshipping model, the method is identical, but you are selling actual products. The products are stored at the retailer. When a client orders a product, you ship it directly from the retailer to the customer.
Drop Servicing: The Basics
Drop servicing is a simple business model that can help you earn a good sum of money.
To begin with, you need to pick a skill that you can easily outsource and is in demand. Choose a service from this list. You can either pick one or multiple services.
- Logo designing
- Blogging
- Copywriting
- Proofreading
- Website development
- Mobile App development
- Social Media Marketing
- Video editing
- Data entry
- Virtual Assistant
Pick which service you are willing to offer. And moving on you have two ways to move forward.
The first way is to develop a website around the whole service. For instance, when you create a logo designing a website on the HWD Platform, people can see your work and the clients that you’ve served.
Moreover, you need to set up a way to get payments once the service is offered.
Once the website is created, you can run Google Ads to bring traffic to your website.
When a client orders a service, you go to a freelancing platform like Fiverr or UpWork and search for freelancers offering the service.
Place an order, deliver the order to the customer, and get your commission.
The second way is simpler. The profit margin might be low, but the method is easier than the first way.
Register yourself as a seller on Fiverr or any other freelancing website. Create an account on any of these websites:
- SEOClerks
- CodeClerks
- ListingDock
- PixelClerks
- WordClerks
These websites offer services that are cheaper than Fiverr.
So, you get the order on Fiverr and outsource it on these websites, you’ll be able to get the job done at a cheaper rate.
Dropshipping: the Basics
Dropshipping can be complex than drop servicing, but the profit margin is higher too.
If done correctly, you can earn a lot by doing little effort. People begin their dropshipping from Shopify, AliExpress, or Alibaba.
When the customer purchases a product, you will ship it directly from an international platform like AliExpress or Amazon.
You can get traffic from paid advertising via Facebook or Instagram.
The thin with dropshipping is that you need to do it carefully. Because one mistake can ruin your reputation or even the wrong selection of product can cost you a fortune.
Pros and Cons of Drop servicing
Pros
Drop servicing is easy and simple.
- You don’t need a special skill to begin the business.
- No investment is needed to initiate the business.
- The risk is low compared to dropshipping because there is no stress of refund or returns.
Cons
- The delivery time can vary because of the late delivery from the freelancer. To reduce this, you need to add two extra days to your pitch.
- You need to answer and satisfy the customer from your end.
- The customer will be rating you based upon the work done by someone else.
Pros and Cons of Dropshipping
Pros
- Dropshipping is more profitable than drop servicing.
- Web apps like Oberlo and Ezusy can help you automate dropshipping business and rest while you make money.
- You don’t have to maintain an inventory to create a store.
Cons
- It is a lot riskier than drop servicing. The wrong selection of products will give you less return.
- The delivery can take more than a month which can make customers unhappy.
- Mostly, Chinese products don’t guarantee quality.
- The refund and returns can become a headache.
Which one is better?
Both of these businesses are authentic businesses that you can begin online and earn good money with it.
As you have seen that both of the businesses have their pros and cons. If you are starting, then drop servicing can be a good business model. But once you gain some experience on how to run the business, you can switch to dropshipping model.
Drop servicing has not many courses on it. But, with dropshipping, there are tons of courses that will help you learn the business from scratch.
With drop servicing, you don’t have to deal with customer returns, refunds, and customer complaints.
Dropshipping, on the other hand, is a highly profitable business. You can even make more than 7-figures out of it. But this doesn’t indicate that cannot make good money with drop servicing. If you pick a high-ticket service, you can convert it into a billion-dollar business.
Whether you are starting r looking for a second stream of income, both business models can help you earn a good amount of money.
