I’m sure many of you have heard of dropshipping, an ecommerce fulfillment method where you’re acting as a middleman between the retail customer and a supplier of goods.
Have you heard of the new thing on the block though? It’s called Dropservicing, and it’s very similar to dropshipping, except you’re working on a service arbitrage model, or more commonly known as outsourcing.
How does dropservicing work?
It’s not a new concept or business model by any stretch of the imagination, simply something people have done for ages, reimagined and rebranded for the 2020s.
So, how does it work exactly?
It’s simple.
- Design a website selling your services
- Drive targeted traffic to your website
- When someone converts on your site, you head over to a freelance marketplace like Fiverr, and procure the same services at a lower price
- Profit the markup!
The way I see it, you’re essentially helping to drown out the crowd of the supply, and bridging customers who have a certain need, and matching it with the services of a trusted and vetted supplier.
And it is of utmost importance that in both dropshipping and dropservicing that you work with a trusted supplier, otherwise you will definitely face customer satisfaction and customer service issues further down the line, which is definitely not worth the hassle of a few more percentage point profit, especially if you’re looking to scale up the business.
What are some services you can dropservice for?
To be honest, there is no shortage of services you can provide for when it comes to dropservicing. Here are some common ones:
- Web design or general design services (posters, cards etc)
- Copywriting (Articles and books)
- Logo design
- Digital marketing services
- SEO audits
- Video creation and editing
- Voiceover recordings
Physical dropservicing
Another idea is that a lot of people who provide specialised services such as plumbing and locksmith services may not be very digitally saavy. They may not know how to create a website to promote their services.
You can create a website and aggregate these folks, and help with lead generation efforts. Even getting online quotes and payments, and pay them directly, instead of requiring the customer to have the cash on hand to pay them when they arrive at the house to provide those services. For a touch of professionalism, give your suppliers branded t-shirts to reinforce the brand for your website. They get a free t-shirt, you get branding reinforced. It’s a win-win!
Let me know in the comments if this is something you find interesting, and if so, what services do you think will be a nice, profitable one?