Four Biggest Mistakes That Many Experienced Dropshippers Make and How to Avoid Them
Updated: Jul 6, 2021
You have been running your store for a while and getting some orders. However, you feel that there are some huddles on your way to further growth. Once you figure out what they are and overcome them, your business would be able to advance much faster. That is why in this blog post, we will discuss the most common mistakes that even experienced dropshippers still make as well as how you can avoid them.
1. Price competition
It is tempting to offer your products at the lowest price because you think consumers always look out for the cheapest alternatives. However, this is not the case. Customers are willing to pay more for other factors such as customer service. Competing on price is not sustainable in the long run because your profit margin will decrease over time. At some point, it might be impossible to sustain your business due to the hidden costs such as website management and fraudulent transactions.
To steer away from this mistake, you can consider selling products that have higher price points, such as consumer electronics. Even better, you can adopt customzation (also known as branded dropshipping). Not only does this help you distinguish your store from others’ but it also allows you to mark up a higher profit margin.
2. Store and product optimisation
This is often ignored by dropshippers because it requires substantial investment of time and money and gives little return in the beginning. However, in the long run, it would save you enormous resources in terms of marketing efforts and provide consistent and organic traffic. You are recommended to optimise not only your website but also as many products as possible to increase their visibility on search engines. Search engine optimization (SEO) includes many elements, but in this article we will only introduce the most important factors for product optimization.
An optimal product page that helps to maximize conversion rate typically comprises the following:
Visually appealing images of the product being taken from multiple angles (and/or internal parts, if applicable)
A well-written description with commonly searched keywords
Reviews from authentic purchases
3. Experimentation and A/B testing
This is a problem for many dropshippers who have immediate success with their first few products because they are less willing to get out of their comfort zones and more prone to failure. As a result, they are afraid of experimenting with a wider range of products and/or advertisements. Many also avoid A/B testing on their ads because of their fear of losing money. However, this is not the case. Although they might lose money in the beginning, the returns are usually to be proved much greater compared to the case where they choose not to experiment. Being conducted wisely, A/B testing will bring you many benefits such as better content engagement, higher conversion rates, and greater sales because it gives you insights about consumer behaviors and preferences.
Dropshipping is among the easiest business models for entrepreneurs, especially for those with no prior experience. However, sustaining a dropshipping business requires a lot of effort, and branding is one of the most crucial factors. Dropshippers often focus too much on sourcing good suppliers and products and forget the fact that they need buyers to grow. Therefore, it is important for them to build brand loyalty and maintain a long-term relationship with your customers. One way to do this is to share your insights and experience in the industry on social media and Facebook groups and subreddit communities. Even better, if you are willing to make larger investments, you can start building your own community on social media. Although this consumes more time and other resources, it is more likely to help you attract a lot more customers and have a higher conversion and retention rate due to your great value-add and credibility in the community. Lastly, you might consider private labeling. If you decide to embark on branded dropshipping, you should partner with a reliable dropshipping agent to better handle your orders.
If you find this article helpful and would like to seek further advice on how you can expand your store, contact us today! With over 30 years of logistics experience, Xianchao Logistics began to branch out to serve the dropshipping industry in 2015. With our experience in logistics fulfilment and close relationships with suppliers, our company has risen to help different dropshippers grow their businesses over these years. We believe that our company’s success and growth will only come with helping our clients grow.
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