Dropshipping is one of the best strategies for selling more products online. Instead of relying on your e-commerce site for sales, Dropshipping will allow you to market your collection across hundreds of online stores. As more and more suppliers are recognizing the benefits, the market is becoming more competitive.
Looking to start an online dropshipping business? Here is the 101 on Dropshipping.
There are lot of articles out there discussing best practices for retailers (here is a great one), but suppliers are in need of some tips as well. How do you become a coveted Dropshipping brand? What will ensure a long term partnership with your online retailers? Here are my simple tips for standing apart from the crowd.
#1 HAVE GREAT PRODUCT IMAGES
This sounds like an obvious one but you would be surprised how many suppliers shoot their products poorly. This is not the time for a palm tree back splash. Shoot your products on a clean, white background and be sure to show multiple angles. Always have high resolution images available for those stores with powerful zoom tools.
Remember that the retailers are never going to see your product so the only impression they have is from the photos you provide. It is worth the investment to hire professionals and have a proper photo shoot. These images can be used on your own website as well so I highly recommend spending the time and money to produce great images.
#2 SHIP BLIND
The online stores you are working with are looking to build a brand just like you. They want to provide a memorable experience for their customers so they return to buy more. While you might think it is in your best interest to slip in a coupon, pamphlet or website address in the package so the customer can buy directly from you next time, this will immediately sever your relationship with the online store. Why risk hundreds of sales for one potential purchase at full price?
Respect the retailer and refrain from including promotional material in your package. Many stores are willing to include a co-branded receipt which is a much better option for both of you.
#3 HAVE CONSISTENT PRICING
Typically, when you offer your collection for Dropshipping, the commission is based on the retail value of the item. You should therefore be offering your products for Dropshipping at the same price that you are selling them for on your own site. The retailer reserves the right to adjust the MSRP but as the supplier, you should never be listing your items for less than the price at which you offered them.
For example, if you offer an item for dropshipping at $50 MSRP, you should list that item at $50 on your website. If you decide to offer it for dropship at $60 in hopes of making a little more money, this will just piss off the retailer. You should never undercut your vendors. Remember, if the retailer decides to sell it for less than $50, you will still be owed the commission based on $50 so it cuts into their margin, not yours.
Don’t be greedy, be fair and consistent with your prices and you will be rewarded.
#4 HAVE GREAT PRODUCT DESCRIPTIONS
As with images, the copy associated with the product is incredibly important when trying to sell your product. In fact, a recent study shows that 95% of those surveyed say product information is important when making a purchase decision. If you are missing information such as dimension, the retailer will either not add that text (which may hurt sales) or have to ask you for it which wastes time.
Another benefit of great product description is SEO. By using keywords you will position yourself to rank higher in searches and drive more traffic. Take a look at this great article on how to write great product descriptions.
If you are a Modalyst supplier, the information is being transferred automatically to the retailer’s store through our Shopify App so it is crucial that you take the time properly input the data. For example, don’t add the description in all caps!
#5 UPDATE YOUR INVENTORY
If you are Dropshipping your products across hundreds of stores, it is crucial that you are communicating stock levels regularly. The worst scenario is for a retailer to sell an item that is out of stock!
Modalyst will automatically sync your inventory count with the stores selling your products so that makes life easier.
A great tool to manage your inventory is Stitch Labs.
As Dropshipping continues to gain popularity, suppliers will need to stay competitive by following these simple best practices.
Interested in Dropshipping your products? Try our 14 day free trial