The Dos and Don’ts of Dropshipping
If you have an online store, it is critical that you know about dropshipping. Dropshipping is a business model that allows you to run your store without having to hold any inventory. Instead, once you make a sale, your suppliers take care of the shipping from their warehouses. So, you are left with less to worry about. Here are all the dos and don’ts you need to know about dropshipping.
Reasons to Dropship
Dropshipping has many advantages. Here are some of the best reasons to consider dropshipping for your online business:
- It is a low-risk way to do business.
- It is inexpensive.
- It is easy to start.
- It is fully automated.
Here are some strategies for successful dropshipping:
Have Memorable Offers
Customers remember how they were treated as much as, if not more than, the items they buy. So, make a statement by offering something special like free shipping, automatic refunds or spontaneous customer appreciation deals that will make your customers’ shopping experience memorable.
Provide Excellent Customer Service
When you implement dropshipping, you have no direct physical interaction with your customers. So, you have to rely on technology for all your customer service efforts. But, that does not mean that providing excellent customer service is impossible. Some great ways to ensure your customers have an excellent experience include efforts like offering live online chats and personal phone assistance.
Specialize in a Niche
Narrow your business down to one particular niche to get the most out of your dropshipping efforts. Specializing in one specific category of products allows you to target the right customer base and allows you to expand the business as you become more successful.
Embrace Online Marketing
Promoting your business online is essential for any business, and you need to go beyond simply having a website. Expand your efforts to include social media outlets like Facebook and Twitter.
Cash in on Seasonal Merchandise
Selling seasonal merchandise can help to boost your business when you dropship. Other retailers often carry low stock on many seasonal items to avoid having too much stock when a season is over. For retailers in brick and mortar locations, having too much out-of-season merchandise results in having a warehouse full of stock that cannot be sold, and it takes up space the new stock needs. So, they only order small amounts of these items. You can pick up their slack by keeping lots of seasonal items in stock. Consumers will come to you in droves to get the seasonal items they need.
Here is what to avoid for successful dropshipping:
Do not Overlook Long-Term Goals
It takes time to build a successful business. Although you do need to set short-term goals to keep you on track, you always need to keep your long-term goals in mind. As long as you continue to work toward your long-term goals, you will see success.
Do not get Caught in Small Details
Dropshipping is fast-paced. So, there is not enough time to let yourself get mired down in every tiny detail. In many instances, details are important, but you need to be able to determine which details will add value to your business and which will not. Spend time focusing on your customers and their needs, and the rest will work out.
Do not Under Price Your Products
Resist the urge to lower your prices to beat the competition, and keep the prices of your products fair. The price of doing business can get expensive, and it is okay to pass that cost on to your customers.
Do not Overlook Your Website
Your website will give customers their first impression of your business. So, it needs to be eye-catching and user-friendly. Always keep your website updated, easily accessible and uncluttered.
Do not Compete on Price Alone
Of course, you want to beat your competition on the price whenever possible. But, that should not be your only measuring stick. If all that differentiates you from your competition is the price tag on your goods, then you will never be fully successful. Instead of trying to undercut your competition, find ways to justify your higher prices, such as your expert product knowledge, superior customer service, packaged deals or free shipping.
Do not Sell What Everyone Else is Selling
Avoid the lure of the trendy product that consumers can get anywhere. When too many businesses sell the same products, the price of them plummet and the only businesses that can possibly make money on it are the ones that get large discounts for buying incredibly large amounts of the items.
Give your business a boost by implementing dropshipping. But, make sure you do it the right way. For more information on the dos and don’ts of dropshipping, contact us today.