Dropshipping: How to Beat Competition When Selling the Same Products

Dropshipping is a quick and easy way to set up a new ecommerce business with limited overhead and low initial investment. As such, its popularity is booming, and more and more sellers are entering the marketplace. The dropshipping industry is estimated to be worth $557.9 billion ​​by 2025.

However the low barrier to entry does have a downside. Multiple dropshippers can all sell the same product, and that increases competition in an already competitive market.

As a dropshipper, how do you avoid being undercut by the competition and losing sales? Or avoid slashing your profit margin to remain relevant? In this post, we’ll explore ways that dropshippers can outperform rivals and come out on top.

It’s 2021 — is dropshipping worth it?

About a third of all online sales are fulfilled by dropshippers, including sales made on Amazon. Dropshipping builds bridges between online stores and manufacturers and suppliers. Store owners don’t have to worry about handling inventory, shipping, or returns. And suppliers can tap into new markets and sell at higher margins by cutting out bulk buyers.

In case you haven’t guessed, at BuySafe we love dropshipping! Dropshipping has helped to take the ecommerce industry in exciting new directions. But that doesn’t mean all dropshippers will be successful. To take your online store to the next level, you have to stand out from the pack.

Ways to make your business stand out

Building a successful dropshipping store is all about breaking the mold. There are many ways you can make your ecommerce storefront stand out. Here we present some of the best, tried and tested ways of building a successful dropshipping site.

Know your audience

The most important thing when building a dropshipping site is to know your audience. Choose a niche and focus tightly on your ideal customers, even if your products have universal appeal. Trying to cater to everybody usually results in a site that caters to nobody. So define your audience, consider their needs and concerns, and build your dropshipping site to speak directly to them. It might seem strange to turn away potential customers, but finding a niche is a proven business strategy that really works.

Tap into social proof


Social proof is also vital for dropshippers. As a consumer, you want to know that the site you are buying from is trustworthy. This is especially true if you want to purchase a specific product, but find several sites selling it. While many customers will rank price high in their consideration of which store to buy from, that isn’t the only factor. You want to be sure that your money is safe, the product you order will arrive, and that it will match your expectations based on the listing you viewed.

Social proof helps build brand trust by sharing the experience of other buyers. This demonstrates to first-time purchases that the store is legitimate and the products are authentic. That’s invaluable for a dropshipper looking to get ahead of the competition. Encourage your buyers to leave honest reviews, including photos and video of the products they received.

Other social proof examples to include on your website:

  • Influencer endorsements
  • User testimonials
  • Sales statistics
  • “People also bought” product links
  • Bestseller lists
  • Trust badges

The key to outperforming competitors is in social proof. The more evidence you have to show your store is legitimate, the more buyers will trust you. Successful stores use social proof to avoid the race to the bottom. This protects your profit margins because you don't have to slash prices to make sales.

RELATED: Why Social Proof is Important for Ecommerce Brands in 2021 and Beyond

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