Drop Shipping vs Drop Servicing: All that You Need to Know

Author Alex Zhang 18.7.2020. | 17:46

Both drop-shipping and drop servicing have democratized businesses by bringing about a paradigm shift and making trade easy for budding entrepreneurs.

 

You may have not understood what they mean over the years, but you have definitely bumped into these latest, fancy jargon during each of those virtual store visits. Just like valet parking is an obvious availability at most restaurants, most retail brands today adhere to drop shipping and drop service norms.

Considering the fact that these terms are bound to be in your face for many more months or even years to come, let us try delving deep for a better insight of drop shipping and drop servicing, their many benefits and flaws.

If you are a budding entrepreneur, looking to foray into the retail business, it is really important to understand which of these are better. Scroll down to know more about dropshipping vs drop servicing.

 

Drop-Shipping

Dropshipping Explained

You’ve heard the term probably a thousand times now and are probably wondering what the term means. This article attempts to decrypt the word for you.

Dropshipping simply means selling products to customers without the need to buy them or having them stored in an inventory, which was the traditional approach. This popular business buzzword has given retailers the advantage of indulging in trade with merely a laptop and a good internet connection at their disposal and nothing else.

So, you must consider yourself fortunate for living in an era where dropshipping is the order of the day, as far as retail businesses are concerned. Most importantly, it eliminates the need to invest heavily in machinery, which is a big advantage you have as an entrepreneur as compared to aspirants even a couple of decades ago.

Let us try understanding the model even better with an example. What are some of the biggest brands in the e-commerce realm you could recall? Probably Amazon, eBay, or Target? Well, these are multi-billion enterprises equipped with spacious warehouses and logistic infrastructure that a newbie like you can’t probably even imagine investing. Yet, you have an opportunity to enter the e-commerce realm and earn huge dividends.

All you need to do is become an affiliate of one of these big brands and promote the products available in their stock and get them sold, either through your own website or social media accounts.

 

Benefits

· Drop Shipping has definitely made businesses a lot more democratic since it has created an environment where even an individual with no huge capital at his disposal can start a business.

·  A few decades ago being a product seller or a retail brand meant investment in a warehouse and a massive investment. The risk involved in such an exorbitant spend even before making yourself heard among people belonging to your customer segment is that you could probably find no takers for many of the products you have bought from a supplier.

· Marketing the products you plan to sell also requires almost no machinery or infrastructure since you could use social media platforms to the best of your advantage.

· Adopting the dropshipping approach and virtual platforms completely helps rule out the possibility of incurring losses caused due to investments.

 

How to Go About Drop Shipping

Okay, now that you have a vague idea of drop shipping and how beneficial it really is, you might wonder what exactly needs to be done to leverage the benefits of this unique shopping model. Before starting your endeavor it is crucial to use a tool such as ‘Opportunity Finder’ to find a few products that have a high demand yet you would have very few competitors selling it. Here are a few general steps to be followed to start your dropshipping business within a short period, and this approach is common among most retail brands that offer aspirants to collaborate for trade.

· Conduct research of the various dropshipping websites and zero-in on the one you are convinced by the most.

· Register on the site by creating a seller account. At the time of the registration, the portal might ask you to opt between ‘Professional’ and ‘Individual’.

· The next step is to check for the option called ‘Inventory’ on your home page. Later, find ‘Add Product’, and click on ‘Create a new product listing’ to choose from the range of items available on the site and add to your inventory.

You could probably even try terms such as Amazon dropshipping, drop-ship direct, best dropshipping products, or eBay dropshipping during online research. The search engine results would definitely lead you to several links that could shed better light on what dropshipping has to offer and how to harness the benefits of the model.  

 

Chinavasion’s Exclusive Drop Shipping:

This section should hopefully be a huge sigh of relief for many of you who are considering drop shipping and yet are alien to the mode of business. Chinavasion has opened its doors for aspiring businessmen to collaborate with the brand and reap huge dividends. If you think some of the electronic products being sold by Chinavasion are quite interesting and could find many takers, here’s your chance at laughing all the way to the bank.  

 

The Difference

Chinavasion is currently one of the nation’s leading drop-shippers and there are several factors that are responsible for the brand’s success.

(a) You could buy products from the brand in small quantities too at discounted prices as compared to the traditional wholesalers from whom you have probably been buying in bulk to gain a subsidy. The advantage of the small number-discount offer of Chinavasion is that you don’t incur the traditional loss caused by procuring a heavy inventory which has very few takers. The prices being offered are easily the lowest you could probably find on the internet today.

(b) The products being sold by Chinavasion are exposed to a lot of scrutiny and measures such as supplier review, arrival inspection, and after-sales feedback monitoring. They are also tested to align with strict quality control standards. So, the products being sold by the brand strike that high quality-low price balance which most resellers or partners are looking for.

(c) There are no clauses or special criteria to be met to become a business collaborator of Chinavasion if you are wondering that the attractive offers come at a price of terms that aren’t feasible for you. There are no contracts or complicated agreements to deter new entrepreneurs from joining hands with the brand, unlike several popular virtual brands you know. What could be a better business opportunity to amass a lot of profit?  

(d) Most importantly, you’ll have to pay Chinavasion only when an order is placed and the product is being shipped. And even if you are non-Chinese, the brand’s customer support team can answer all your queries in English, which implies you don’t have to fret over not being a native.

 

How to Collaborate?

Now that you have made up your mind and are pretty convinced about Chinavasion’s drop shipping facility, these are the few steps to be followed.

· Visit Chinavasion and get yourself registered, it is absolutely free.

· Browse through the brand’s list of products to decide on items that you think would sell and include those on your website or any platform that you rely on to get products sold.  

· You can even download relevant product information from the Chinavasion Data Feed, to help your potential buyers learn more about the products and even grab their attention.

· For a deeper insight on how the Chinavasion drop shipping model works, click here.

 

Drop Servicing

Drop Servicing Business

Dropservicing is the same as ‘service arbitrage’, probably a term many of you are more familiar with today. Several successful entrepreneurs opine that drop servicing is a wiser business model for new entrants into any business to adopt.

So, what exactly is drop servicing? Let’s deconstruct the term, and simplify the model so that many of you who are keen on learning about it know what it means and its many benefits. Simply put, drop servicing is a way where a few clients seek your services without being aware that you are in turn outsourcing the task to a third-party vendor. It is vital to retain the impression among customers that all the services being offered are a result of the relentless efforts of your workforce and there’s no foreign involvement.

Confused? Here’s another example that could help you understand how drop servicing works.

Let’s consider a scenario where you own an agency that helps a traditional retailer create a better online footprint by marketing its products and services better across virtual platforms as well as enhance its value. The retail brand entrusts your organization with this task in a handsome deal. However, the client is probably not aware that you are assigning the job to a few freelance marketing experts. You can accomplish the task through these individuals for a really cheap cost, since there is no dearth of freelancers today, and pay them a small margin of what you earn from your clients.

 

Benefits

As mentioned earlier, if you are a person taking baby steps into the world of entrepreneurship, dropservicing is the safest and wisest way to accomplish jobs effectively, which is a unanimous opinion of many business experts.

Considering the fact that the world is still reeling under the adversities of the COVID-19 pandemic, several individuals are moving over regular jobs and shifting to virtual businesses to earn a few bucks. If you happen to be one of these individuals trying luck with such online trade, drop servicing is the easiest bet. These are some of the merits in a nutshell which would help you understand why it is preferred by many novices, who have tasted a lot of success.

(a) Any sort of investment in logistics or even man-power could prove to be suicidal if at all you are a beginner. By adopting the drop servicing approach, you don’t have to work and outsource the job to a foreign source by negotiating a deal. This approach is far more profitable as compared to hiring permanent staff whom you’ll have to pay on a regular basis irrespective of whether there’s an inflow of client orders or not.

(b) The outsourcing approach is also flexible since you can even choose to work with people who perform the job at a much cheaper cost rather than being locked to a team that suddenly charges you a sky-high amount for the services.

(c) You don’t really have to possess the talent or excel at the service you are selling and spend hours figuring a way to accomplish the job. Explaining the vision to your partner firm or those few freelancer individuals is the key to the reputation of a great service provider. All you need to do is be a good interface between the clients and the service partner firm, meet deadlines, and be reasonable with the money aspect. Cordial equations more than skill plays a vital role in determining the success of virtual businesses while adhering to the drop servicing approach.

Thus, opting for the drop servicing approach slims your chances of witnessing a failure to a very large extent since there aren’t any expenditures involved. All you require is an internet connection, a reasonably fast computer, and a few smart decisions concerning brand value enhancement and the people you want to outsource the services too. Adhering to approach can’t exactly be dubbed the gateway to success you’ve been trying hard to find, but it can definitely prevent you from incurring miserable losses at the onset of your entrepreneurial journey.

How To Start A Drop Servicing Venture?

Like drop shipping, drop servicing too must have seemed to be a convincing business idea to you, but how do you go about executing the plan is probably a thought plaguing your minds right now. Here are a few simple steps that could be followed to venture into drop servicing. It is easier than you had imagined.

· Decide on the team of individuals you would be working with, to carry out the outsourcing part of the business. It is important to find people who are honest, dedicated to the execution of the work being offered to them, and most importantly, cheap. This step is crucial and could make or break your drop servicing endeavor.

· A simple way to find such a talent pool is to scout for freelancers through websites such as fiverr.com and freelancer.com. You would find many insanely talented individuals on such sites who don’t charge much and could make great outsourcing partners. You could also place an advert with your requirements on these sites to get people aligned with your expectations to visit you and place a request.

· You need to create a platform to market yourself as a drop servicing provider and not merely rely on social media pages. You could probably rely on a website such as shopify.com to build an interactive website that could attract several drop servicing providers.  

· Devise a marketing strategy that could help you grab the attention of potential clients. You could probably read or watch testimonial videos of many successful drop servicing experts to learn how they went about the job for initial assistance.

 

 

Which Is A Better Model: Drop Shipping or Drop Servicing?

Drawing conclusions, passing judgments, or suggesting a wiser approach among drop-shipping and drop servicing isn’t justified because it entirely depends on the nature of the business involved. If you are a budding entrepreneur, we suggest that you arrive at a decision regarding whether you would like to sell products or services.

Dropshipping is more suited for businessmen who want to resell products that are already available in the inventories of platforms such as Amazon and eBay. If you choose to be more of a consultant to emerging businesses or help your clients through services, like in the example of a brick-and-mortar retailer shared earlier, drop service is the way forward.

The common advantage of the two, as you must have already deciphered by now, is that you don’t require any sort of investment in inventory, machinery, or staff, which is a challenge for most beginners.  

In the current pandemic-stricken era, a lot of individuals are fretting over the global economy nosedive. Well, the economic crisis seems to have impacted people belonging to the working class who spend 9 hours on a routine basis in their offices, but the online world still seems unperturbed by the jolt. Many freelancers and entrepreneurs who are affiliate partners of various retail giants are amassing huge dividends even at a time when many of their peers are at the receiving end of pink slips.

Be it drop shipping and drop servicing, both have their own advantages, all you need to do is get over the dilemma of whether you would like to sell products or services.

Hopefully, this article on the benefits of drop shipping vs drop servicing has given you a better insight into what these terms mean and their many merits. Considering the transition of most businesses from brick-and-mortar stores to virtual media and the paradigm shift in trade dynamics, it is vital to understand these models better.

As far as Chinavasion’s drop-shipping is concerned, you could gather more details here, if you are willing to collaborate with the brand and reap huge dividends. 

Author Alex Zhang 18.7.2020. | 17:46
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