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11 Great Tips To Increase Drop Shipping Sales!
Running an online drop shipping business is not an easy undertaking. People tend to overestimate what they love and lose objectivity. It’s well and good if you are passionate about something. But only focusing on that will hurt your sales figures.
We have compiled a list of useful tips to help you increase drop shipping sales. But first, let’s look at the basics of drop shipping.
Drop Shipping - The Business Model!
Drop shipping is perfect for you to test the waters. It’s a business model where you don’t spend money before the customer actually pays you. It has a low capital need for the initial investment and no investment needed for producing or stocking the goods. You just sell and let the suppliers do all the heavy-lifting!
Here is the entire business model in 3 sentences:
- The customer pays you for a product.
- After receiving payment from the customer, you pay the supplier.
- The supplier ships the product to the customer!
How To Boost Sales?
Now comes the big question. Increasing drop shipping sales and lowering costs are the main targets of all businesses. Yet, these are not handed over on a silver platter. You will have to work hard for the increase in sales.
Here are some useful things to look out for when working to increase drop shipping sales:
1. Sell According To Your Customer Needs:
With good market research, you will know what your customers want. A good rule of thumb is to sell unique products or items that are not available. Remember to focus on the customer, rather than the product. If customer’s need change, your product should change too.
2. Sell Products That Have A High Rating:
A drop shipper does not see the products he is selling. So your best bet is to sell goods that have great product rating on big websites like Amazon. As you do not have control over product quality, looking at highly rated products will increase drop shipping sales and promote fewer returns.
3. Use Tempting Pricing:
As a drop shipper, you are free to choose any price you want. But to increase drop shipping sales, you have to get creative with your product listing and pricing. Find the perfect balance where you can sell at a competitive price without compromising your profits too much.
4. Bundle Your Products:
A great way of increasing drop shipping sales is to bundle up products. You can combine products to create a unique item, such as a set of kitchen knives bundled together with a knife sharpener. You are creating a unique bundle and selling the extra knife sharpener on top of it!
5. Offer Free Shipping:
One of the most used strategies to improve sales is to offer free shipping on all your items. It is a no-brainer that customers will prefer products that come with free shipping. Include the shipping cost in the product price and offer free shipping and watch your sales grow!
6. Use Professional Product Images:
High-quality pictures make you appear as a more professional, and trustworthy seller. Use this to your advantage by uploading high resolution and sharp product images.
7. Provide Accurate Description Of Your Product:
If you have managed to attract your customer’s attention with a great photo, they will then look for the product description. However, you will lose sales if you are vague with the description. Be specific with the dimensions or weight of the product.
8. Avoid Fragile Products:
Fragile products will lead to more returns. Dissatisfied customers might leave negative reviews, and this will hurt your sales. Chose products that can withstand the tough journey from the supplier to customer address.
9. Sell Products That Induce Impulse Buying:
The $20 to $70 is the sweet spot in the price range of products that can induce impulse buying by the customers and increase drop shipping sales. It’s enough to make a decent average profit but small enough that most customers won’t need to speak with someone before the sale.
10. Use Trends To Your Advantage:
Remember the fidget spinners?
Trends and fads are great opportunities for drop shippers. Keep an eye out for products that are on the rise and you might make a decent profit out of it. Drop shippers are not bound by the rigid rules of traditional shops. Since you do not carry the inventory, you can switch products and platforms anytime you wish.
11. Boost Your Productivity:
Drop shipping is becoming automated as demand and competition are rising. From order fulfillment to the product listing, almost all aspect of drop shipping has become software-driven. You have to keep up with the latest innovations of drop shipping if you don’t want to get trampled over by your competitors.
Spot N Paste is a great software that can improve your productivity by automating your order fulfillment. This nifty browser extension can copy the customer address from any platform and paste it into any supplier of your choice. You can expand your business and keep up with the drop shipping business model as it evolves without any worry!