Dropshipping business revolutionalizes the e-commerce business, where you facilitate the sale by using your platform. But you don’t have to maintain the inventory cost, factory overheads, and other fixed and variable costs. In the dropshipping business, you display the products’ catalog of suppliers, when customers place orders; you transfer the order to the suppliers and get the product delivered to the customers’ address.
Dropshipping is for tangible products. However, creative businessmen and entrepreneurs realized that they can use the same model in the service industry as well. Drop servicing is not a new thing; many entrepreneurs are doing it successfully.
Today, we’ll discuss the concept of drop servicing business in detail. Here it follows;
What is Drop Servicing Business?
Drop servicing also goes by the name of service arbitrage or sub-contracting. Drop servicing is the dropshipping business of digital services like SEO, Facebook Ads, Digital Marketing, content writing, graphic design, logos, etc. It’s a very profitable business and many entrepreneurs are joining this industry.
Drop service starts with entrepreneurs finding the clients that require a certain service, you take the project and outsource the work and deliver it to the client. If you think that you don’t have any skill and you won’t be able to do drop servicing business. Good news for you that you don’t need to be perfect in the skill, you just have to find the right skilled person at a fair price and earn your cut from it.
Technology and the internet have made it easier. Nowadays, there’re many freelancing platforms that you can use to find and hire different kinds of professionals to outsource your work. Your clients don’t need to know that you’re outsourcing their work. All they want is the finished final product. la
Drop Servicing Vs Drop Shipping
Dropshipping is the process of selling tangible products online, and drop servicing is when you sell digital products/services online that aren’t yours. Dropshipping and drop servicing platform would serve as the online retail store, where you would display the product/service of your suppliers and attract clients.
What Can You Drop Service?
Having discussed earlier that you don’t need to be an expert in a certain skill to sell it, you can sell anything even though you don’t have the skill set. All you need is to communicate well with the clients and getting the service delivered to them at the right price. Here is the list of services that you can sell online;
- Web development
- Guest Post/Blog Post
- Graphic Designing
- Social media marketing
- Video editing and animation
- Content writing
- Voice over
There are many services that you can sell online other than the abovementioned list.
Is Drop Service Profitable
Before starting the drop service business or any other business venture, it is important to know whether it is a profitable business or not. Yes, it’s a very profitable business because you are just managing the platform and communicating with the clients, and you aren’t incurring any expenses. Whatever you earn, even a little percentage of commission, it would be your profit without any expenses.
How to Start Drop Service?
As a drop service provider, you should use google trends to find out what services are in demand, then you should offer those services to the concerned market. However, there are no specific tools that you can use to find the services in demand or clients. Therefore, you should use all the platforms available to do your research.
Google trend would give you the statistic of searches per month if more people are searching for a particular service over a period of time. It means that a particular service is in demand. The next thing you have to do is to find an expert freelancer at a lower price.
Where You can Find the Drop Services
There are many freelancing platforms where freelancers have created their accounts and profiles for the potential buyers and clients to see. Whenever buyers post projects in different categories, then relevant experts and freelancers bid on the project to show their interests. Here are some of the main freelancing platforms;
- People Per Hour
- Pro blogger
If you have some project, post it there in any of the abovementioned platforms and interested freelancers would bid on it. You can visit their profile, check out reviews and previous work records, and contact them if you find their work interesting.
Pros of Drop Service Business
Simple and Easy
The most interesting thing about drop servicing business is that it’s very simple and easy to initiate. You don’t have to buy the domain and hosting for your business. You just have to find clients, and then create an account on different freelancing platforms and start your business. Even you can find clients from freelancing platforms as well.
No capital to Start
Just like dropshipping and other e-commerce business, you need a huge investment to kick things off. If it’s not huge, then you’d need a reasonable amount of money in the form of buying membership, domain and hosting fees, inventory cost, suppliers’ cut, and other fixed and variable costs. Drop servicing doesn’t require any of the above-mentioned costs and expenses.
When you don’t have to invest any capital and resources, all you spend is your time. That’s why drop servicing business is the least risky business. If things don’t work out the way you want, then all you lose is your time and you would learn something out of it. Your personal assets would be safe. If the drop service business works out as planned, then it would earn a lot of profit.
Cons of Drops Service Business
Manage Delivery Time
One of the common problems you would face in the drop service business is managing the delivery time because it’s not you who is doing the job. In fact, you’ve hired a freelancer to do your work. It’s highly probable that the freelancer is busy finishing up other tasks as well, and the project gets delayed in some cases. Therefore, you have to get the maximum possible time from the client, so that you can manage it easily.
If you’re unable to satisfy your client, then he would leave bad reviews and fewer stars. It would lower the ranking of your profile. Therefore, it’s important to pay heed on the details of the clients’ requirements and deliver the complete project as requested by the client.
Since the starting of drop service business is less risky and it needs less investment to launch, these characteristics have attracted the attention of many young entrepreneurs. That’s why more and more people are jumping into this field, and the crowd has made this drop servicing business very competitive. Therefore, it has become very difficult to find clients and get a foot in this industry nowadays.
After discussing the whole article, we have concluded that drop servicing is a very profitable business compared to dropshipping and other e-commerce businesses. We have also studied that there are different freelancing platforms that you can use either to find clients or to hire freelancers to complete the project. However, the crowd has made this industry very competitive. But it doesn’t mean that it would be impossible to enter and compete. If you have the right technology, the right tools, and the right mindset, then you can do it.