A lot of people have confused themselves about what the drop servicing business model is all about and often times when I mention the term, people tend to mistake it for dropshipping.
I’ve thought of a better platform to share this clarification for anyone who might be considering an online business.
A lot of business ideas have surfaced on the internet and while some come and go, some are permanent. Dropshipping and drop servicing are those permanent ones you can think of.
When it comes to dropshipping, it is very difficult to scale your profits to maximum potentials especially when you’re just starting with a tight budget.
However, drop servicing has always provided a stress-free, capital-less business opportunity for everyone to start a real-time business they can boast of.
When sharing the two businesses, people tend to mistake the two to be the same thing and that’s why in this post we’re going to tell you everything you need to know about drop servicing business in Nigeria and how it’s different from the dropshipping model.
And before we do that, I’m going to walk you through their various meaning so it will give you an idea of what I’m talking about.
What is Dropshipping?
Just like every other e-commerce business model, dropshipping is the act of selling products you do not own. Dropshipping is also outsourcing supplier’s products to your customers.
In simple terms, it involves you advertising your supplier’s inventories to your desired customers and when the customer places an order in your store, you forward the order to your supplier while your supplier delivers it to your customer.
For any product you sell in dropshipping business, you don’t necessarily have to see or feel it physically but can sell to your customers and decide which amount to sell it.
A popular dropshipping suppliers platform is Aliexpress.com where thousands of China manufacturers list their inventories.
It will be cool to account that you need a store, an eCommerce store where you can list your products and allow customers to checkout using their credit cards or PayPal.
What is Drop Servicing?
Drop Servicing is the act of outsourcing a client’s projects to other professionals who are capable of doing the job. This begins to make sense if you look at the two definitions I gave very carefully.
In dropshipping, I outsource my customer’s orders to my supplier’s let’s say a customer bought $50 worth of tech toy from my store and my supplier is selling it to me at $25.
if I sell it, I’d be making $25 as my share of the transaction and if $15 could cover shipping and advertisements, then I’m making $10 profits.
In drop servicing, I outsource my clients/customer’s (service) orders to freelancers and able professionals who can deliver the job.
Again, in dropshipping, we are dealing with physical goods while in drop servicing, we’re rendering services such as website design, digital marketing, tech skills, etc.
Above all, dropshipping requires heavy overhead while drop servicing is totally requires fewer efforts and less overhead.
In dropshipping, you need huge startup capital to build an eCommerce store, pay for advertisements and still pay freelancers.
In drop servicing, you require little to no startup capital as everything is not done by you but you can rely on 100% free traffic methods to make more sales before venturing into paid advertising.
Both businesses require no skill as can be done without technical skill or experiences
In all judgment, dropshipping is a good business model most especially when combined with the Mini Importation business which creates more opportunity to earn more.
When I say combine, I simply mean, on your dropshipping store, you can make it a local dropshipping business whereby you only drop ship to your country and while you’re advertising your dropshipping products you can as well import some of the products to your country and when received orders, sometimes, you fulfill with imported products and some, you simply dropship.
However, with the fact that drop servicing is completely free to start, since you do not require skill, since it’s a business you can do anytime you’re broke and make faster income, and it has 100% free traffic methods, then I recommend it 100%.