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Drop Shipping Vs Drop Services

Drop Shipping

First let’s talk about drop shipping and its pros & cons.

What is drop shipping?

Drop shipping is an option for order fulfillment that enables online retailers to contract with a third party, usually a supplier, to obtain, store, and distribute their products.

If further explained, drop shipping is a business model where you don’t purchase, manufacture any product.

Advantages of drop shipping

Let’s walk through the key ones now, starting with the advantages of drop shipping

  1. Drop-shipping doesn’t require much starting capital.

You won’t need to spend much money hiring employees, stocking inventory, or renting a store if you run a drop shipping firm. All you require is an internet storefront from which you can lead consumers and do business. This online store may be located on your own website or on well-known e-commerce platforms like Squarespace, Amazon, or Shopify.

  1. There are extremely fewer ongoing expenses.

Using just a laptop and some reasonably priced software, you could technically manage the business alone without having to pay for office space or workers. Using just a laptop and some reasonably priced software, you could technically manage the business alone without having to pay for office space or workers.

  1. You can manage your business from anywhere.

As mentioned above, all you need for this is just a laptop. That’s mean you can run your drop shipping business from anywhere as long as you have access to the Internet and a computer.

Disadvantages of drop shipping

you may think that drop shipping be a very attractive business model. But remember, there are some drawbacks of drop shipping.

Let’s talk about them now.

  1. The profit margins can be low.

Drop shipping is a low-cost business. Therefore, the barriers to the entry are low. Due to this more entrepreneurs will enter drop shipping business and it create a competition. Then it makes your profit margins low.

  1. Providing customers, a better service is sometimes difficult.

In drop shipping everything is fine if customer satisfied with the ordered thing. But what if he doesn’t? what if the customer wants to return the good? That become bit difficult. So, it leads a long wait for a customer. I hope it clear why I said providing customer a better service is bit difficult.

  1. Shipping cost may be high.

This varies on where your customer from.

Eg: Most of drop shipping good are supplied from China and your customers are from UK. Then you or they have to pay high amount as shipping cost.

Drop servicing.

Now it’s the time to talk about drop servicing.

What is drop servicing?

Drop servicing is a business strategy where a company offers services to customers. This is one of recent trending business models.

What are some drop services?

You can drop service a wide range of services, just as you can dropship a large selection of physical goods.

  • Video creation
  • Video editing
  • Content creation
  • Graphic design

Advantages

There are many advantages on drop services and let’s talk about few of them

  1. No Shipping of Products: since your business is totally digital you don’t need to worry about shipping costs.
  2. Mobile Business: it’s simple. You just need a laptop and a stable internet connection.
  3. Low starting capital is required.

Drawbacks

  1. Sometimes it’s hard to find freelancers.
  2. It’s difficult to find clients: Finding customers at first can be challenging for new drop service business owners. This may be due to the fact that some customers prefer their usual service providers to new ones.

Conclusion

Finally, in order to draw a conclusion, let’s compare these two.

Both drop shipping and drop servicing are cost-effective. Both of them are mobile business. Both have pros and cons.

You know one of the biggest mistakes brand-new drop shippers or drop servicers make is assuming one is better than to the other. The reality is that both business models have benefits and drawbacks, and both will pose problems when they expand.

By Dewmi Liyara

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