Last Updated on August 22, 2020
Is there any particular reason as for why most of us are into drop shipping business?
Without thinking much, the answer is to earn a robust income for sure with the help if e-commerce business.
On the drop shipping business, the formula for calculating profit is not the same. Actually, it is the difference between two prices, one is what you are showing in the store, and the other is what you are getting from the seller.
Very simple, the more the price, the merrier will be the profit, right?
Well, it is not likely the same.
To work and deliver a high ranging drop shipping strategy, you must know some of the potential tips, and we are here to help you to gain an immense amount of profit.
Start working on the costing feature
It is something everyone knows about.
It doesn’t make sense to keep your expenses higher and going down with your profits. Therefore, take a look at the expenses that need your conscious.
- The product price that you are paying to the seller – the mandatory element
- The cost of shipping – begin with selecting the shipping modes in which both you and your customers are suitable. Here we are trying to say, look for the alternatives. You can decide on free shipping as well as ePacket delivery. Generally, every seller will ask you for shipping price, so don’t forget to add it to the price of shipping.
- Don’t ignore branding costs – with this, we would like to connote you with promotions. If you read the Amazon seller guidance structure, they say, pack the product with branding. It is very simple; you just have to pay a meagre amount to the seller to work on branding. You can include promotional leaflets, branded sticker, envelope, discount coupon, and so on. It is being done for establishing the reputation and image. On the whole, you must think about the costing here very wisely.
Spend the time of research
Sit down and take a look at what your competitors are doing; this is the coolest way, through which you can finalise the pricing.
- Search for the competitors who are working in the similar niche. Suppose your target area is narrow and the audience is limited, then the pricing and strategy of your fellow competitors will be a support. On the contrary, if you are looking for a comprehensive market, then this strategy will not be fruitful. It will give you a simple idea of what is going on in the market.
- Which market section is ready to offer you with excellent potential? Unable to understand the point? For example, you are dealing with a phone case which is costing 10$ in the USA, but in Canada, its pricing is 35$. Here your focal point should be on the areas where the prices can be increased.
Keep on increasing the drop shipping prices
Making an increase in the drop shipping products is healthy, and here it is why you should do it.
- People out in the market to whom you are going to target will be price-conscious. Therefore, if your intention is to keep the pricing low, then it won’t rally round. Customers have a tendency to look for CHEAP PRODUCTS, but there will be no profit, and even the pricing will be unsuitable. It might result in impulse purchase, but targeting the customers might not work.
- If you are keeping the pricing low, then there is less chance to get the trust in the offers. The products with lower rates are mostly considered suspicious in terms of quality, and you might not be able to build a reputation from the same.
- If you are dealing with the price that is high in quality, then there is no need to lessen its rates. Offer it with the price that it really deserves.Sometimes a small group that easy to manage and control will offer you with a good range of profit. This group is made up together with top-selling products. It is you who has to notice the price that is offering you with high demand and slowly the price can be duly optimised.
- All the drop shippers who are experienced in this section are able to play with the price increase from time to time. In one the cases, it was observed with the rise in the price of the cases; the demand also took a sweep high. It would be great trying this strategy; it might work for you as well.
Don’t ignore your customers.
While you are raising the bar of the products on your drop shipping store, you must think about the expectations of the customers too.
By the time, you understand, what your customer are willing to purchase, then it would be easy to plan the pricing.
It is the customers who value the offers that you start; but why?
Because you are giving them accessibility and availability
The exclusiveness and rareness of the products
By the time, you will make your start appealing for the target audience; you can work on modifying the pricing in order to build more sales.
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Create exciting offers.
There is no magic at all- people can be lured through offers and deals. Increase the number of offers and customers will reach you very soon.
It is the first step behind making a high-end pricing strategy for your drop shipping store. In the meanwhile, you can introduce a sale, and plan a discount for many numbers of products. On the other side, you can work along like Kingpin known to provide tonnes of large scale product coupons.
Try Alidropship mark-up formula.
Imagine you are having around 20 products on your drop shipping store, then it won’t take long in changing the prices manually.
It might ask you to spend time on it, but with delivering some patience, the reverts will be meaningful.
With 20 products, you will feel like it as an easy task, but with 100 or more, things can become complicated.
Let your customer act immediately
The offer is going to end now
It is the end of super sale
The only product in the stock
The sale is only for 3 hours
You definitely saw this for the first time, right?
Trying these ideas will generate instant fancy purchases, and many drop shippers are gaining from it too. Customers will not waste time on thinking when they come to know that the offer is going to rush. It will lead to adding a product on the cart and then paying right at the moment.
Here is a spoiler –The customers are likely to act likewise.
Think of involving psychological pricing tricks.
Many analyst and researchers have given their perception of this through many papers.
The two renowned concepts
- It is only about the psychology that people look for the pricing that ends with an odd number like 7 or 7. Here they are not at all concerned about any precise part suppose 2.99$ instead of 2.00$.
- While picking expensive products, customers look for round numbers. So, if you are dealing with the products that are of high range, then set pricing like 25.00$ and not 25.99$.
It won’t be wrong in trying these methods, as one might work of you other for someone else. While it is known to be working until now!
Have you ever turned the pages of books on drop shipping, one similar thing that will pass by is taking the initial steps.
Modify the sale offers
Validate the pricing on the whole
Opt for a discount for a new range of products
Keep a look at the stats of your drop shipping store and see what changes you can make.
These were the simplest 9 strategies that can lend you with outstanding profits. Thus, don’t look back and start trying them all.