Amazon Shipping: 10 Tips for Drop Shipping Success
In just about any endeavor – whether you’re training someone in the intricacies of chess, or in this case, the e-commerce technique of drop shipping for fulfillment – there are time tested tricks that consistently operate if someone is willing to learn. Let’s investigate some of the techniques that support your drop shipping efforts best:
Don’t Attempt to Compete Solely on Price.
The most common beginners’ error in e-commerce is completely only for cost. If the only aspect that sets you apart from other sellers is your price, you will not get much business. When price is the only selling point, the minute someone else beats your low price, you will end up on the losing side of a price war. The only companies that can truly afford to sustain a “lowest price” strategy are the e-commerce monopolies with the buying power of Walmart – able to get the absolute best whole pricing on any particular product simply by purchasing enormous amounts at once.
Does cost matter? Yes. Is it all that matters? Definitely not. If price was the only factor, Walmart would monopolize the entire retail sector. Instead of attempting to offer something for a lesser cost, look for methods to offer more and justify a higher cost. Whether it is a service, expertise, deal, promotion, free shipping, or anything else, there are plenty of approaches to command a higher cost without much risk of losing the sale.
Don’t Sell the Same Items as Everyone Else.
The fastest solution to fail in e-commerce is to attempt selling the same hot products as every other seller – i.e., consumer electronics or name brand clothes. When a high number of businesses and individual sellers attempt to sell the same merchandise, competition drives prices down — often to the point where the only companies making a profit are those who receive steep discounts for buying in tremendous qualities. Even then, the profit margins are incredibly slim.
As you will discover in the following section, picking a niche market is a sustainable strategy, along with developing the wisdom and expertise in that particular market.
Do Focus on Niche Products.
Among the greatest advantages of working with a drop-ship is the freedom it gives you to experiment with selling all sorts of merchandise. In a traditional retail operation where products are bought up front and in bulk to later be inventoried in-house, retailers are not going to risk buying inventory unless they are reasonably certain they will be able to sell it in a brief time period. That’s why you will often have trouble locating truly specialized merchandise on the shelves at Walmart.
What about online seller who drop ship? Because online retailers who work with drop shipping suppliers aren’t purchasing inventor up front and only pay for the products after they sell, they don’t have to worry about that same risk. It’s possible for you to list an automatic shrimp-peeling machine on your e-commerce platform and if it does not sell, the only thing you lose is the little time spent listing it. As a result, online merchant who drop ship are in the unique position to offer all sorts of products that big-box retailers are not attempting to sell because they are too risky.
Do Cash in on Seasonal Objects / Goods.
Seasonal goods can be a significant cash cow for online retailers who dropship because typical retailers do not generally carry enough of it for fear of overstocking. For instance, they do not need to have leftover Christmas items in the summer and valuable money tied up in inventory that is not selling. This means there is a huge opportunity for online retailers who drop ship since they do not have a care in the world about overstocking – they are not carrying inventory in the first place.
Do Offer Merchandise Bundles.
A fundamental merchandising strategy is bundling related products and offering them as a package deal. This especially holds true for drop-ship retailers because bundling can significantly reduce shipping costs if all of the products are coming from the same place. If you see that a specific product is selling well, but you do not} have a great margin on it, look around at what people might need in conjunction with that product.
