Ever Heard About ‘Dropshipping Of Services’? It’s Called Dropservicing And This Is How It Works

If we have product-based businesses, we also have service-based ones. Let’s talk about dropshipping and dropservicing for today’s article and find out what’s the buzz around them these days. 

The problem mostly encountered by people who want to start a business lies on the offer itself. They would argue that they are not creative enough to think of a product to sell. On the other hand, some would also reason out that offering services would consume a lot of their time. 

Their points are well-taken. That’s why dropshipping and dropservicing are the most convenient business models for most.

Dropshipping is a business method whereby the store does not keep an inventory of the products that it offers. Rather, the store would market the products, solicit orders, purchase it from suppliers (third party), then ship it to the customers. The biggest advantage of dropshipping is the lack of warehouse maintenance because the store does not keep the products. 

It’s a spinoff of dropshipping. Instead of selling products, dropservicing markets and sells services which you would outsource to a third party to fulfill. The third party is usually a freelancer, or an agency if the project is big enough for an individual freelancer. Your main focus is only on the marketing and selling.

This is a huge plus for those who want to earn but do not want to get involved in the fulfillment of the service or project. You are going to be the middleman between the customer and the service provider. To earn profit, you will charge an additional percentage on top of the cost of the service. 

Here are some examples of dropservicing: 

• A client wants to self-publish a book he has written. He comes to you and asks for help to create a book cover. Instead of doing it yourself, you hire a freelancer to take charge of the graphic design of the book.

• A client hires you to do videography and photography shots of his new product offers to be put on his website. In turn, you outsource a creative agency to do the product shots. 

In dropshipping, customers who are not satisfied with the products would return to you and ask for a refund. Aside from marketing, you are in-charge of receiving customer complaints regarding the quality of the products you offer. In dropservicing, the freelancers or agencies rarely fail on the services they provide. It is already their expertise to begin with.

In terms of profit margins, dropshipping has low profits for a single sale as compared to dropshipping. The cost of a service widely varies depending on the quality and the customization that the customer requires. Whereas in dropshipping, prices of a product can be easily compared on the internet. You cannot just put a high price tag without losing customers.

The best thing about dropshipping and dropservicing is the fact that the dropshipper can focus on marketing the products and services. There is no huge investment involved but only efforts to reach a wider audience and get them to purchase the offers. Both dropservicing and dropshipping are best business models to produce regular income.