By now, you have probably heard of dropshipping.
Dropshipping is a fulfillment method where a store doesn’t keep the products it sells in stock. Instead, the store purchases the item from a third-party supplier and has it shipped directly to the customer. As a result, the seller doesn’t have to handle the product directly.
But you might not have heard of dropservicing. This blog post covers the basics of the dropservicing business model.
- What is Dropservicing?
- How does Dropservicing work?
- What are the benefits of dropservicing?
- What are the cons of dropservicing?
- Should I start dropservicing?
What is Dropservicing?
Dropservicing works on the same principle as dropshipping, but instead of offering Aliexpress products, merchants offer services which are outsourced from party freelancers. These services are usually outsourced from low-quality freelancers on fiverr, Upwork, Toptal and other websites like such.
TLDR: Dropservicing is the same as dropshipping, but for services.
How Does Dropservicing Work?
Dropservicing works by offering services online, and then fulfilling those services from third party freelancers. Because it cannot be automated by Shopify plugins like Oberlo, the fulfillment process becomes a lot more difficult than dropshipping and needs to be done manually. Dropservicing fulfillment can be done through websites like fiverr, Upwork, Toptal and others.
The dropservicing merchant simply acts as a middleman for the exchanged service.
Is Dropservicing Profitable in 2021?
While dropshipping has become very mainstream, dropservicing has yet to become widespread.
Dropservicing can be highly profitable, but it is only recommended for people already familiar with traditional dropshipping. Dropservicing can be very difficult to manage, so it requires a lot of time to learn and set up a functional fulfillment system.
What Are The Cons Of Dropservicing?
- Difficult to Manage: Because the fulfillment cannot be automated through traditional Shopify apps, it is much more difficult to manage a large volume of orders. Each order needs to be fulfilled manually.
- Long Processing Times: Dropservicing processing times vary by service, but they are usually longer than in dropshipping. It is important to find a reliable freelancer, who can consistently deliver a professional service within the required timeframe.
- Poor Service Quality: It can be difficult to find a freelancer with the required expertise for your service. Skilled freelancers usually charge a higher fee for their services. This can make it difficult for dropservicing companies to find a reliable partner. Many freelancers on fiverr are beginners, who are self-taught and lack the required consistency or area of expertise to compete with other service providers.
- No Refunds: Because it is impossible to recoup the time spent on labor, it is impossible to provide refunds for dropservicing.
Examples of Dropservicing Companies
Bandsoffads, Viralecomadz and Waving Pandas are all examples of profitable dropservicing companies. Like Adsellr, they offer a video ads editing service, however, they outsource their videos from third party freelance websites like fiverr.
They outsource their videos from fiverr and simply charge the profit.
All their video ads look identical; They recycle the same preset for every customer. The preset includes low quality, sped-up Aliexpress footage with a simple text-box overlay.
- If you compare dropshipping videos from fiverr to examples shown on Bandsoffads website, you can notice that they are identical and made by freelancers on fiverr.
Should I Start Dropservicing?
Because it is a lot more difficult to manage, dropservicing is recommended for people already familiar with advanced dropshipping. Dropservicing can be profitable, but also very stressful to manage.