On the road to building your store? Pick up and use these five tips to guarantee a boost in your sales and conversions — when the time comes.
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Dropshipping is ever-evolving…
What was the best strategy a year ago is just considered a ‘little tactic’ today.
That is why being a student of dropshipping is key to long-lasting success and staying ahead of the game (for years to come).
…And with these six proven tips I’m about to share with you, you’ll speed up your chances of earning your first (or next) sale, while significantly boosting your conversion rates.
Whether you are a newbie with dropshipping, or an experienced store owner, these tips are just as effective in increasing your sales and conversions.
Tip #1: Use Scarcity to Stop Customers from Price Checking & Buy from YOU
One of the most common questions we get asked here at Wholesale Ted is this:
“Why doesn’t the customer just go to Aliexpress and buy from there cheaper? Why would they buy the same item from you for a more expensive price?”
Good question, right? And while the idea of buying from a more expensive store may seem a little backwards, there’s two reasons for this.
The first is because most people don’t know what Aliexpress is.
Yep, think about it. If you are reading this blog, I take it you’re interested in Dropshipping. And knowing this, I assume you’ve also heard of Aliexpress too.
But you’ve only heard of Aliexpress because you are part of social group associated with it.
…But not everybody is you. So not everybody has heard of Aliexpress.
Your biggest competition is probably people dropshipping it on Amazon.com (oftentimes for a loss), but this is as close to ‘competition’ as it gets.
And this competition doesn’t even matter to dropshippers for this reason: If you use scarcity to create the illusion in your advertising copy and your product page copy that they are getting a limited-time offer, you can encourage people to buy from you without price-checking your product price.
The “secret” to dropshipping is using the power of sales psychology and copywriting to play on the emotional chords of the customer and urge them to buy what you are selling.
This is used throughout the whole funnel. With advertising, using words ‘FREE’ and ‘Just Pay Shipping’ are powerful and proven way to increase the click-through-rate, sales, and conversion rate of any ad.
Or words like ‘Not sold in stores’ and ‘Free shipping,’ or using apps like a stopwatch timer in your product description to help build the illusion that customers are getting a one-of-a-kind offer.
Tip #2: Sell What Other People are Interested In
This tip comes from Adrian Morrison. When most people start dropshipping, they try to focus on niches that they are interested in. However, the niche that you are interested in is not what makes the most money. You need to research and find what products have demand.
If you find products that people want, then marketing is easy, because all you need to do is place it in front of them – no fancy advertising required.
This requires you to keep a ‘laser eye’ out for hot selling products, which requires continuous research and testing.
Don’t be fooled here though. Always be on the look hot selling products, but never rely on one.
Hot selling products always have an end date — a point where they reach a ‘plateau’ and become saturated by other advertisers who’ve caught onto the trend.
To avoid a dramatic drop in sales (which usually happens when a product is near to reaching its plateau), you need to have other proven and tested successful products in your store.
With these products, you can replace and run ads to them to drive traffic to your store knowing you will still be generating a steady stream of sales.
(Most dropshipping stores fail because they solely rely on a single successful product, instead of focusing on finding multiple hot sellingproducts)
Once you learn and apply this KEY “secret” you will ensure long-term success with dropshipping, and your store will never lose its ‘legs’ if a product becomes too saturated.
Tip #3: Pick the Right Supplier Based on Their Feedback
On Aliexpress you will notice that there are multiple sellers selling the exact same item. So a question we are often asked is this:
“How do I choose between Aliexpress merchants selling the exact same item?”
A good way to do that is to pick a supplier based on feedback. When you look at a supplier, you’ll see that they will have feedback icons. There are three types of icons: medals, diamonds and crowns. They indicate how much feedback each supplier has.
A good rule of thumb when selecting a supplier to work with is to pick one that has between 3 diamonds to 3 crowns. This is the “sweet spot.” They have enough feedback that they are an established, proven seller. However, because they aren’t in the top-tier of feedback scores, their prices are usually cheaper than suppliers with 4-5 crowns so that they can still compete with them for sales. We recommend staying away from suppliers with medals.
Tip #4: Use Facebook as Your Traffic Source
Facebook is the easiest source of paid traffic: it’s where everybody is, and Facebook has collected an enormous amount of data. It means you can run small ad campaigns ($2-5 ad budgets) promoting products. Sometimes you don’t even need to use keyword targeting because of “Facebook Intelligence” – Facebook’s own internal algorithm that knows how to advertise products for you based on their own internal data.
Tip #5: Negotiate with Suppliers for Lower Prices
When you start making consistent sales (50+ units a week, roughly 7 a day) you can start to negotiate with suppliers for lower product prices. Do not try to negotiate with suppliers until you have consistent sales, otherwise it will be considered rude and you will hurt your relationship with the supplier (reducing the chances that they’ll give you discounts in the future).
In the beginning, you will usually get a discount of between 5-10%. After a while of selling consistently at that price, you can then come and ask for another discount. Doing this you can gradually decrease the cost of the item as you get further discounts, increasing your profit margins.
If the supplier won’t give you a discount, then you can go to another one and ask them to beat the price of your current supplier. You can then go to your preferred supplier you’ve been working with and ask them to beat THAT price. You can go back/forth, getting the merchants into essentially a bidding war.
As a newbie then, don’t just work with a supplier because they have the lowest price. Keep in mind that if you start making consistent sales with a more expensive supplier that has higher feedback, you can then negotiate their price to be competitive with cheaper suppliers.
Tip #6: Use Free + Shipping Method to Create Viral Ads
Everyone loves free stuff. (If you’re a regular at Wholesale Ted, you know I do for sure!)
If you use free + shipping method, then your ads will attract a lot of likes, comments, shares and potentially go viral. This is what you call a ‘winning ad.’
You can then upsell them to higher-priced items to increase your profit margins, and bump your average order value. This is the average total spend per customer who makes a purchase from your store.
The more items you get people to buy — through variations, upsells and cross sales — the bigger you average order value (and the higher your profit margin).
For example: upselling customers to cat spoons that go with a cat mug they initially purchased is a great ‘front-end + upsell’ combination.
Or getting people to buy more than one variation of your product is another powerful strategy to increase your average order value.
Either way, getting people to buy more than one is the key to scaling and building a successful store.
Want to learn the blueprint wildly successful dropship stores follow to make six-figures?
6 Steps to Building a Six-Figure Dropshipping Store
In this eBook, I’ve included:
· How just one “winning item” can earn $10k/month. Yep. A lot of people don’t realize this… but most stores make the majority of their money from just a handful of items!
· The right way to choose AliExpress suppliers. Picking the right AliExpress dropshipper is crucial to drastically reduce things like refunds. Learn how to pick the right suppliers.
· Why long shipping times DON’T matter. A lot of people are scared to start Dropshipping because of “long” shipping times. You’ll learn why this doesn’t matter inside.
· Why six-figure stores take ONLY 2 hours a day to manage. You’ll learn how they utilize apps like Oberlo to make their stores semi-automated, making managing orders super simple!