How Do Dropshippers Compete With Amazon Sellers?

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One of the most common questions people ask us is ‘How can my dropshipping store compete with giants?’

We are sensitive to their concerns. Indeed, if you own just a tiny store with 50-100 products, how can you win over market titans like Amazon? They are unbeatable with hundreds of thousands of products, global recognition, positive reputation, and premium marketing.

There are at least three reasons your store could be better than Amazon. These factors can help you forget about your competitors and make a solid income with dropshipping.

Amazon vs. your dropshipping shop

What is the reason people order from Amazon?

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shopify dropshipping store set up

They think it’s more affordable.

However, Amazon products aren’t as cheap as people think. Let’s look at the next example.

Most people will remember the World of Harry store. We talked about it when we discussed how to create AdWords campaigns with huge ROI. Also, we used it as an example of how to use a successful Facebook promotion strategy.

This store has been our partner since the beginning. We are familiar with the niche. We were therefore surprised to see that one of these niche items was listed on Amazon at a very high price.

Attention: The Amazon item costs $19.49 plus $4.99 delivery. This purchase will cost $24.48.

We don’t know if this necklace can really turn back time. Seriously? There is no other rational explanation for why the seller would charge such a high price.

This offer is identical to one found on AliExpress.

The exact same niche, the same product, and even the same image. The price is $1.12 and there is a free shipping option. This item is more than 20 times cheaper than its Amazon counterpart!

What does it signify?

Dropshippers can make great profits by partnering with AliExpress sellers. We purchase their products, add them into our stores, and set a nice markup. The overall price is 2 times lower than that from Amazon. Have a look at these:

Here’s a screenshot taken from World of Harry showing exactly the same item. As you can see, the product photo is identical. We have set the price at $9.99 and offer free shipping.

This means that we have increased our initial product price by more than 8 times (8800%) but this isn’t a problem for customers. They get the exact same product for half the Amazon price and free shipping. We, on the other hand, reap the benefits of our profits. Everyone is happy!

You may say, “Okay, but that’s a niche product and not a common product.” It’s also a fan merchandise so Amazon’s prices are higher.

Nope.

This is not true.

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shopify dropshipping store set up

Amazon products are more expensive than other items, and this is true for all niches.

Let’s look at another example: a piece or jewelry. What about common items that aren’t exclusive, like pendants?

Amazon has this cat-shaped pearl pendant for $26.99

AliExpress also offers a similar cat-shaped pearl pendant for $6.00

Conclusion

If you set your prices right, buyers will prefer YOUR ecommerce store to Amazon. When setting your pricing strategy, remember that your prices are your competitive advantage.

You can increase the AliExpress price by reasonable amounts to get the item priced at:

  • It is lower than Amazon’s price for the same item.
  • It is fine and appropriate for your customers.
  • It is enough to make you a nice profit.

Niche dropshipping store vs Amazon: specialize

We have already discussed why niche stores are more appealing to customers than huge marketplaces. We want to discuss this again as it is crucial for the growth of your dropshipping company.

People often get lost when browsing large online marketplaces. They take a long time to find what they want and verify that every seller is trustworthy. It is easy to lose track of the reason you came here and leave the site without purchasing anything.

This can’t happen in a store that is focused on a specific narrow niche. If an Internet user is only interested in socks, he or she won’t be distracted by other items like shower curtains or phone cases. The chances of completing a purchase are higher.

A person who visits a shop that sells socks expects to find some rare and exclusive socks. Not just generic socks you can buy elsewhere. Naturally, this is why you need to pay careful attention to the choice of products you add to your dropship store.

Plus, visiting a dedicated niche store, customers expect to deal with professionals who specialize on this narrow subject. Customers expect to be able to ask questions about the materials used, their origins, and the peculiarities of the use. For EVERY product available.

This means your ultimate goal should be to create a welcoming atmosphere in your store. Your professionalism and knowledge should be evident when an Internet user visits your website. Even our own clients recommend working with a niche you are passionate about.

Analysis of successful dropshipping business shows that your own interest towards the store niche is a key to commercial success. This helps you convince potential buyers that your knowledge is real. Your customers will know that they can count on you to provide prompt and professional service and high-quality products.

Amazon vs dropship store: go global

You can only place an order internationally through Amazon if you are located in a supported country. There is a list of countries, mostly European ones, where Amazon most often operates. Amazon can still be competitive if you are focused on the same country as Amazon, with a lower price for your products and a better customer service.

What about the rest?

Technically, Amazon can deliver items to other countries. These countries have higher shipping costs and take longer delivery times. Amazon does not ship to 5 countries around the world. Amazon shipping may be restricted in certain countries, including 30 additional countries. Delivery terms can vary from seller to seller. Customers must ensure that they verify the authenticity of each seller on Amazon before ordering these items. It is a major inconvenience for buyers.

Dropshipping is a different way to go. Dropshipping is a business that allows you to ship any item anywhere in the world and make people happy.

All you need to do is choose suitable items on AliExpress and add them on your website. AliExpress ships products around the world, so make sure the seller offers a free delivery option or an ePacket delivery option. These options are more appealing to buyers than standard delivery.

It is incorrect to believe that Amazon is a formidable competitor that cannot be defeated. No matter how small or young your store is, it has many advantages. Learn them carefully, use them, and reap rewards from your ever-growing dropshipping business.

Here are some ways you can compete against an Amazon Dropshipper

Shipment arrangements should be nail-in

You will often be competing with sellers from other countries, which can lead to longer shipping times.

It’s amazing how many customers will pay more for faster delivery. Late or untracked shipping can lead to negative feedback and claims. It is important to expedite orders and ensure on-time delivery.

Tracking orders have 60% fewer defects and 40% lower contact rates than those without tracking. You can be eligible for premium shipping options by providing valid tracking numbers.

Fulfillment by Amazon is a possibility

Amazon FBA allows you to access vast logistical expertise. However, it comes with a cost. Amazon charges premium rates. If stock isn’t sold, it can be very expensive.

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shopify dropshipping store set up

FBA makes it easy to ship your order. Amazon handles the packaging, picking & packing, and shipping.

It assumes the best customer metrics, which allows it to generate more sales. FBA can improve customer satisfaction and speed up delivery.

Excel at Customer Support

You can respond quickly to customer inquiries by handling all aspects of your sales process.

Speed is a key ingredient of great customer service. You can build strong relationships with your customers by quickly answering their questions and turning queries into sales.

A comprehensive support strategy that rewards and retains customers is vital. This will give you an edge over your competitors. It will bring you more positive feedback, new customers, and more repeat business.

Improve your Feedback Scores

Most buyers will review feedback from sellers before purchasing. You can set a high standard for feedback and you will be a step ahead the Amazon dropshipper.

Reviews are crucial for influencing buyers. They also increase your chances of winning a Buy Box. According to research, 82% of Amazon’s sales go through the Buy Box. Strong feedback is a prerequisite for more sales.

One in ten Amazon customers leave feedback. Yet, Amazon shoppers are open to getting messages that thank them and encourage them to leave feedback.

Get the best price and win the Buy Box

The key is to get in front of as many people as possible by winning the Buy Box. To remain competitive, you must respond immediately to any price changes

Repricing tools allow you to compete with all other sellers. You can avoid losses by setting your prices within a certain range. This allows you to take advantage of every selling opportunity and make a profit every single time. It saves you valuable time comparing prices with other competitors.

You can set rules to compete against Amazon dropshippers by using superior customer metrics. FBA allows you to set prices that are higher than the Amazon dropshipper while still winning the Buy Box.

Software repricing is a proven method to increase sales, save money and time, and make more. xSellco products can help you sell smarter and faster, as well as improve your reputation.

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