If you have decided to run your web shop partly or completely on the basis of DropShipping, then a basic concept with many clear advantages is available to you. However, DropShipping is also associated with one or the other limitation that you should definitely compensate for if you are interested in long-term success. In most cases, higher sales can help you manage the few disadvantages of DropShipping. The following guide will tell you which sales boosters are suitable for DropShipper.
Especially for DropShippers it depends on continuous optimization
There are very good reasons why you have decided to deal with the topic of DropShipping and to build your shop on the basis of this innovative and successful trading model. Compared to your classic competitors, you had almost no need for start-up capital, you benefit from low running costs, you can manage your Internet business all by yourself if you wish, and you enjoy a comparatively low workload.
But before you assume that you have discovered the patent recipe for effortless prosperity, you should also consider the less beneficial aspects of DropShipping. These are neither too serious nor insoluble. However, there is no doubt that they exist and should be actively managed.
A crucial factor in this context is the fact that in most cases you will buy more expensive than those of your competitors who do not work on the basis of DropShipping. Why is that? Well, the classic online retailer is forced to raise a lot of capital to buy a basic stock of goods from his suppliers. The associated high order volume within just one purchase transaction naturally means that wholesalers and manufacturers are willing to grant significant discounts on the purchase price.
As a DropShipper, on the other hand, you always purchase your products individually and also require your suppliers to ship them to your end customers on your behalf. In a word: Your negotiating position in purchasing is a little worse than that of your competitors.
Three methods to compensate for drop shipping deficits
You can only balance this out in three different ways. First, you could pass on the price disadvantage to your customers. This would inevitably lead to a slump in your sales, as you would simply no longer be cheap enough. Secondly, you could put the pistol on the chest of your suppliers and negotiate better prices with particularly hard bandages.
Especially as a newcomer to online trading, you don’t have a very good hand in this respect. And thirdly, you can simply increase your sales significantly and in this way ensure better sales and a decent profit. And it is precisely behind this strategy that the best solution lies.
Higher sales in your business simply mean more orders to generate. And since it’s your suppliers who are in charge of the workload for additional orders in drop shipping, you don’t have to worry about putting on too much work yourself.
By the way, this way you increase your turnover with every single supplier. And you can use this as an important argument for significantly better purchasing conditions in the second fiscal year at the latest. So you benefit twice from a clear sales booster at this point and should therefore not hesitate any longer to really ignite it now.
Strategic Tuning: Optimization makes the difference
If you want higher sales, then you have to change something in relation to your shop. A revenue booster always consists of an additional measure, a change in behaviour or another adjustment. As a DropShipper, you can choose from a wide range of different methods.
In the following, we present you with some of the best optimization options with which you can significantly increase sales in your DropShipping shop within a very short time and without a great deal of effort. Discover six independent strategies that you can use either individually or in combination to significantly increase your shop’s sales. Work through the individual concepts carefully one after the other.
The attached tips offer you valuable hints for the immediate implementation of what you have learned in your own shop. Now simply select the strategies that you particularly like and invest a little bit of work to realize them in your DropShipping shop. You will notice the effect very quickly and will certainly come back to the not yet implemented strategies on your own in order to implement them as well. We wish you every success in this respect.
Strategy 1: Active assortment management
A stationary store that displays the same products in its shop window for weeks, months and years will be able to generate less and less sales over time. The situation is no different in online trading. Here, too, it is important to keep the assortment alive and to change it again and again. On the one hand, this way regular customers always have something new to discover and on the other hand, you make sure that your assortment is not outdated and always contains a certain proportion of innovative and new products.
In addition, by regularly working on the delivery program, you have the opportunity to constantly optimize the articles in your offer with regard to their sales frequency and their susceptibility to returns. Especially for DropShipping dealers it is very important to keep the number of returns as low as possible.
Our tip for you: Use your DropShipping suppliers not only as partners for product procurement and logistics. Let the manufacturers and suppliers also advise you on new and interesting products for your assortment. After all, the partners are experts in their respective product areas. And you should not miss this expertise.
Strategy 2: Exciting content
An online shop lives from the fact that customers and regular customers always find good reasons to stay as often and as long as possible on the shop pages and survive by the fact that the visitors and prospective customers seize confidence to the offerer and thereby do not hesitate to make orders. Both goals can be achieved quickly, efficiently and convincingly with a single measure. This speech is about the use of high-quality content on your web pages. Interesting, exciting and relevant content makes your shop attractive on the one hand and offers convincing reasons for long shopping sessions and regular revisits on the other.
And on the other hand, professional content creates trust because it identifies you as an expert and focuses on your competence. A high-quality content is therefore absolutely irreplaceable at DropShipping-Shops today and the work on the content must not be neglected under any circumstances.
Our tip for you: Get inspiration in terms of new and interesting content for your shop quietly from other shops. You don’t have to reinvent the wheel in content marketing, but can calmly provide fresh impulses and suggestions by taking a few looks to the right and left. This is not a matter of illegally copying third-party content. They should only help your own creativity a little bit on the jumps.
Strategy 3: Fresh design
Where do you personally prefer to shop, in a dusty shop that is already clearly outdated and in which no one cares about an appealing look or in a modern store where you can clearly see the lovingly designed hand of the owner and where new visual stimuli are set regularly? The answer is probably clear and you can rely on the fact that your customers and visitors will not be any different in this respect.
The customers of DropShipping shops also want a modern and contemporary shopping experience and determine by the visual characteristics of the shop whether they are dealing with a well-groomed, appealing and attractive offer or rather with a dusty supplier. For you as a DropShipper, there is no way around regularly dealing with the visuals of your presence on the Internet and adapting them again and again to the taste of the times and customer expectations.
Our tip for you: With regard to the concrete design of your shop, why not focus a little more on seasonal effects? Be inspired, for example, by the seasons or by certain holidays and festivities during the year. Even large sports events or similar events provide good ideas for refreshing the shop design. However, always concentrate on thematic aspects that are well suited to your product range.
Strategy 4: Optimized user guidance
Many online merchants, at this point the DropShippers are really no exception, are not even aware of where and why they lose a significant part of their turnover. This is because gaps, errors and mishaps in the user guidance are very often responsible here and against this background, dealing with this so-called usability is really one of the most important things that one can and should deal with as a DropShipping dealer. The high art in this context actually consists in not disturbing the customer with his purchase if possible.
If incomprehensible processes, irritating statements, seemingly strange elements or impairments of the basis of trust cause a break in the shopping experience, then the result in most cases is an interruption of the process. A customer who has been lost in this way will, by the way, continue to avoid your shop in the future. To deal with user guidance is therefore also an important investment in the future.
Our tip for you: With regard to the user guidance in the shop, you and your employees will unfortunately become operationally blind in the course of time. Unfortunately, you no longer notice even smaller barriers and stumbling blocks, while your customers get stuck and often simply cancel a purchase because the user guidance is flawed. A good way to avoid this is to observe uninvolved test persons from time to time as you shop in your shop. In this way, you will quickly become aware of things that can be optimized.
Strategy 5: Active sales promotion
As a DropShipping retailer, you really have a decisive advantage over your classic competitors. Since you do not have to deal with the complex and small-step processing of all incoming orders yourself, you have a lot of time left over that you can use to deal with important things. However, you should also do this if you want to give your DropShipping shop the ultimate revenue booster.
The key word in this context is marketing. Whether you draw your customers’ and visitors’ attention to yourself and your offers through an appealing newsletter, exciting and interesting content, a lively activity on the social networks, attractive discount and bonus campaigns or through activities in the field of customer loyalty is ultimately up to you. Doing nothing and just enjoying all the free time is not a good option if you want to work successfully.
Our tip for you: Which concrete forms of marketing and sales promotion work best for your customers depends above all on the concrete composition of your target group. Therefore, the planning of a marketing campaign should always begin with a careful definition of the target group. Find out what the most important characteristics of your target customers are and, over time, develop a reliable sense of which methods work best for your customers.
Strategy 6: Conscious profit optimization
If as a DropShipping retailer you can say one day that you are a millionaire, you might think you have made it. In reality, however, the significance of this statement is very poor. It is quite possible that the turnover millionaire will have a high loss at the end of the day. Ultimately, it is always about the profit that you achieve as a result of your entrepreneurial work, and it is precisely this profit that you as the responsible entrepreneur should permanently optimise. There are several ways to do this.
On the one hand, you should try to keep all costs in the company as low as possible, especially the purchase costs of your products. On the other hand, it is important that you concentrate on selling items that can be used to make the best possible profits. And last but not least, it is also important for drop shipping dealers to remain disciplined with regard to spending and to make use of economical corporate management as a whole.
Our tip for you: Since it is ultimately not the turnover but the profit of your shop that counts, an essential basis of your work as an entrepreneur is to know at all times which factors in the company have an effect on profit and in what concrete way. To do this, analyze all operational processes and clearly visualize which aspects determine the profit and in what form. Being well informed will make it much easier for you to make the right decisions.
You now know some of the best revenue boosters for DropShipping. To keep your business on a firm and secure footing, you should also be familiar with the most important legal regulations. As for example with the new basic Regulation on data protection, that’s important to DropShipper.