Since the start of the 21st century, online businesses are growing instrumentally where more and more people are making money from the comfort of their homes.
While some will be making a steady income stream via eCommerce stores, others may find app development as their forte.
With a variety of options available these days, it is important to pick the right business model. However, this can be fairly intimidating for beginners.
Today, two businesses models that can result in a six-figure income stream are drop-shipping or drop services for carding.
But, before any of these business model interests you – it is important to understand the difference between the two. To make it easier for you, here’s a vis a vis comparison between drop services of process and dropshipping so that you can make an informed decision.
What is Drop Servicing and Dropshipping?
When we talk about the business model, drop servicing and dropshipping are almost similar with primary differences regarding what’s being offered to the potential customers.
In simpler terms, dropshipping businesses deal in selling goods to customers without worrying about the inventory. On the contrary, drop servicing model is all about providing digital services to the intended audience.
In both models, business owners only have to worry about providing goods and services via a website. Moreover, they are responsible for advertising and marketing their offerings. The ‘actual’ service or product fulfilment is outsourced to another party.
So, now the question here arises – which one is better?
Dropshipping vs. Drop Servicing – Which is Better?
Those who are weighing their options should focus on a business model that reaps the maximum benefits. However, when considering the two business models, there are a variety of factors one need to consider if they want to get the most out of it.
Let’s have a look at the pros and cons of both models.
|Extremely profitable if you choose the right product||Wrong product means loss or less profit|
|No need to hold inventory or pay for storage units||Technical skills required to start the business|
|Easy to build and set up business model||Dependent on the supplier/seller responsible for pick, pack, and ship|
|Initial investment is more than a drop servicing business|
|No technical skills required to start||Basic understanding of the niche or particular service to succeed|
|Less risky than dropshipping||Dependent on freelancers or agency(ies) to fulfill order requirement|
|Very little initial investment required to set up a business||Ensuring both customers and freelancers/agency(ies) are happy|
You might also be wondering one option may be better and more profitable than the other one.
To clarify, this is not the case. Even though both business models are (more or less) same; it also comes down to your preference, understanding, experience, and free time at hand. Ask yourself if this is something you are planning to pursue full-time from the very beginning or do you plan to work and manage the business.
Before starting, it is important to perform your research to have a market understanding and see where your knowledge lies. But, then what’s the point of reading this guide, right?
ONE BIG advantage that drop servicing of process has over dropshipping is you do not have to deal with constant customer complaints, returns, and feedback.
When you are dealing in products, there is a higher probability that your customer may not find the product similar to what you’ve shown on the website. Or, maybe the customer is not happy with the quality.
Also, dropshipping is more time consuming as you have to manage all orders even though you are not responsible for pick, pack, and ship. As a dropshipper, your reputation and credibility lie in the hands of supplier / seller.
The only reason why people think drop servicing ‘may’ not be as profitable is because it is a fairly new model in this money-making space. We have seen many people start and manage a highly profitable dropshipping business.
But the same is applicable for drop services for carding as well.
If you do your research and choose the right services, you are bound to build a seven-figure business in no time.
Hence in a nutshell, drop servicing has become one of the most profitable business models in the past four to five years. In this blog, we have tried our best to help you understand the difference between both business models, so you can make an informed decision.
Remember, as we mentioned – it’s not about which model is better. For some, dropshipping would work better while others may succeed as a drop servicing business. We recommend you do your due diligence before you finalize your decision.