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:
“People also bought” product links
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.
Use unique product descriptions
If you’re building a large dropshipping store, it’s tempting to rely on the original product descriptions. However this can create problems for your store, and your customers. Search engines penalize duplicate content, so using large amounts of copied content could result in your store being downgraded on search engine results pages. Additionally, it clues customers in that they can find the same product elsewhere, potentially for cheaper.
Taking the time to create unique, compelling product descriptions is a valuable way of boosting your site’s SEO, and making your products more appealing to your customers. Remember it’s best practice to tailor your site to specific buyers. Unique product descriptions are an important way of speaking directly to your target audience and convincing them to make a purchase.
Always provide great customer service
What turned Amazon from a small online bookstore to the retail giant it is today? Exceptional customer service. Consumers know that when they purchase products from Amazon, they’ll have a great experience. Every retailer will have to deal with dissatisfied consumers at some point, but you can turn a negative experience into an opportunity to make a customer for life.
Here’s just a few ways that dropshippers can offer great customer service:
Make it easy for customers to contact you with questions about your products or their orders
Be timely when responding to customers — it’s better to create one point of contact and monitor it regularly than try to be available everywhere
Keep your returns and refunds policy fair and transparent
Don’t sweat the small stuff — a shipping delay might not be your fault, but take it up with the carrier, not the customer
Consider using coupons and store credit as a way to build goodwill and encourage repeat business if a customer has a complaint
"Every retailer will have to deal with dissatisfied consumers at some point, but you can turn a negative experience into an opportunity to make a customer for life."
Dropshipping has grown in popularity over the past five years, and many merchants wonder if dropshipping is still worth it. However, there are many ways to make your business stand out, even against other dropshippers selling the same products. Customer reviews, product images, purchase history, and bestseller lists are all powerful social proof examples that drive sales.
Outperforming the competition doesn’t have to mean slashing profit margins to undercut other sellers at your own expense. Smart dropshippers know that building brand trust through social proof is the best way to grow a business that’s profitable and successful.
BuySafe’s trustmarks provide additional buyer projections, backed by a trusted third party. The BuySafe Guarantee reassure customers that their personal information is protected, their purchase is secured, and they’ll only ever pay the best price for the products they order. It’s the best way to make your business stand out from the pack, and outperform your competition when selling the same products.