Among all e-commerce fulfilment modules out there, dropshipping is considered the easiest. As you’re aware by now, dropshipping requires no high maintenance costs as appose to direct shipping. The game is the easiest of them all but requires your key attention at the beginning
Here we will discuss how you can increase your dropshipping profit in 2021.
1. Bulk shipping
There are many cases where you may need to pay for shipping of products, but you may offer free shipping or you may face drop shipping errors. Therefore, higher shipping cost with higher sales may result in your loss.
To minimize such losses, you should prefer to ship in bulk in the same package; this will not only save you money but also increase the value of the cart.
2. Private label products and packaging
You can prefer to sell private label products that will not be feasible to produce, and both the manufacturer and you will benefit.
Select the manufacturer carefully by comparing and testing their products. Get to know your competitors, audience, and market to choose private products and labelling to boost your initial investment.
3. Up-Selling and Cross-Selling
These two techniques with a slight difference can help you increase your sales through drop shipping.
Up-selling is the technique of having your customer buy a premium or upgraded version of a product that they want to own. To do this, you need to understand customer requirements. They are estimated to be 68% more affordable and profitable than acquiring a new customer. Let your customer know more about the difference between the products.
Selling a different product to the customer through the strategy is cross-selling. You can achieve this by combining products of different margins also related to the interest of customers. This tactic contributes around 35% of Amazon’s revenue.
4. Get updated with the list of trending products
Before starting the online store, you must have to find your niche as this market is so volatile that it is unpredictable. So whenever you see potential in any product, make sure to store that product.
Look for the bestseller, and after finding, buy stocks to negotiate a good discounted deal.
5. Avoid backorders
Backorders are so risky that they can even cut all your profits. Sometimes you can deal with them, but sometimes you can’t. This can be due to unpredictable demand for any product, out of stock, over or under the safety stock level, etc. This can leave a bad impression on your store.
To avoid these problems, you should always keep your regular vendor back-up suppliers, maintain a stock of products and regular control of your store inventory.
By following these 5 easy ways you can increase your drop shipping profit in 2021. Be transparent so that you can get positive reviews and comments from your customers.