Categories: Insights

What Is Drop Servicing?

Drop servicing is one of the best business models which helps increasing sales volume effectively. Business owners or companies can utilize this technique to accept a project from their client and then they will hire a third person or outsource to work on the entire project. Certainly, the origin client was not aware of it. In short, the businesses actually act as a middle man who buys products from another service provider and sells services to your clients. 

How To Manage Drop Servicing?

Drop servicing business is run like agency servicing. The companies have to create this service with teams of professionals with knowledge proficiency. These teams will take the responsibility to increase client’s volume as well as freelance employee’s volume.  If businesses have obtained knowledge proficiency about the backend business, this model is ideal for them. Since they can easily approach customers and hire outsource employees.

Yet, it is important that businesses with this model can face some considerable problems. To illustrate, in some common cases, the client only accepts to pay a certain amount of money while the outsource employee will ask for pricey wages. Hence, businesses should carefully negotiate with both parties to avoid loss of profit. 

Before planning to go for this service, one should know what is drop servicing and its benefits!

Dropservicing Model

How To Start A Drop Servicing Business?

If you want to start a drop servicing business, you have to determine which services you are going to offer whether you will offer SEO service, Website design, development service, or Digital marketing service. Then you need to build a website for promoting products or services online. Via this channel, you will be able to increase the customer volume and as a result, gain more projects. A trade license is also a must to start a business like a drop servicing. 

What Are The Differences Between Dropshipping And Drop Servicing?

Dropshipping is a process where a store will buy products from a third party and ship that items to the customer, once they receive the order. Hence, the sellers don’t need to keep items in stock. 

Whereas, drop service is a model that the businesses have to receive projects, give them to a third party and submit it to your client after they are finished. And you will pay a certain amount for outsourcing the project and the rest will be your profit.  


Drop servicing can be adopted in any field like Marketing SEO, Digital marketing, content writing, graphic design, etc. It’s not a new concept but an old concept with modern views.

With a drop servicing model, businesses just need to manage the project and follow contractors during the process while your customers will pay for web design, development, SEO, SMM, digital marketing, etc. 

Follow us for more information about business and eCommerce.

ConnectPOS is the retail pos system in the ecosystem. ConnectPOS gladly presents a comprehensive training guide ebook tailor-made for cashiers in the retail business.
Lani B.

Lani B. is a content marketing intern at ConnectPOS. Taking interests in the e-commerce retail business, she has been updating with new technology solutions that empower retailers to thrive in this competitive market.

Recent Posts

What Causes Out Of Stock And How To Prevent It?

For many retailers and manufacturers, out of stock is the worst-case scenario, because it can…

18 hours ago

7 Tips You May Miss To Do Market Research

Market research is a process of evaluating the demand for new products and services in…

1 day ago

Top 4 Wholesale POS System Options

Wholesalers provide goods in large quantities and at low prices. With such a distinctive and…

1 day ago

What You Need To Know About Magento Product Attributes

Magento allows users to create product attributes as the materials to build their product characteristics…

2 days ago

Principal Differences Between Inventory And Warehouse Managements

The two terms warehouse and inventory management are used popularly in the context of manufacturing…

2 days ago

Shopify Statistics You Should Know

In the last decade, we have witnessed a tremendous rise in e-commerce. It is forecasted…

2 days ago
Start your Free Trial Now !