Dropshipping is an e-commerce trend that offers huge profits with fewer efforts. While It seems so easy, it may not have positive outcomes always if you don’t determine your dropshipping pricing policy efficiently. Dropshipping pricing policies need to be determined perfectly.
The only source of revenue earned by you in dropshipping is the difference in the prices set by the supplier and the pricing rules modified and set by you. That difference means a lot to you. After all, it is what goes into your pocket. Therefore, you really need to be careful when it comes to dropshipping pricing.
You need to follow certain guidelines while determining the dropshipping prices in order to stay two-steps ahead of the competition.
Dropshipping pricing guidelines: Pricing strategy to set the right prices for your dropshipping store
Avoid cheap products on your web store
Going after cheap products may not render huge returns. You need to maintain particular standards for yourself and your dropshipping store if you wish to excel in the long run. Pricing your products at cheap costs may make your customers feel that your web store offers low-quality products.
Further, the customers may not buy anything from your store. Don’t form a conception that low prices always attract customers. Because it may not prove beneficial when it comes to dropshipping pricing.
Who doesn’t like or get tempted to discounts, special offers, sales etc?
The best strategy is to keep your prices high in the beginning and once you feel that you are no more a first-time entrepreneur and you have started running a really great business, you can offer coupons, discounts and some special deals to your customers.
Thus, varying your prices a bit may attract a great population to your online store and can prove to be a great dropshipping pricing technique.
Zero or negligible shipping costs
Always try to go for the products with no shipping cost as that would be preferred by your customers as well. You can mark your product at the cost price as you feel suitable. Shipping costs always tend to reduce the profit margin so what’s the use of doing so much for a little revenue?
This infographic also says that customers would buy more if they are provided with free shipping.
Explore- It’s necessary
Sticking to the same old stuff may not benefit you in the long run. Diversification, exploration is must in terms of your product line. Once your customers start liking the products on your web store, they would surely visit it regularly.
However, make sure that you provide them a good variety. Keeping the old would not always be helpful. Once you make your customers happy with the quality of your products, they would be ready to pay even more later.
Handling your returns
Profits are always welcomed happily. But, getting products returned.
That is really depressing for a supplier or a dropshipper. But, you know managing your returns well can be a blessing in disguise, just try to help out your customers. Strange, isn’t it?
You need to make your customers happy. Don’t get stressed. Focus on the solution rather than the problem. If your customers are happy, they are going to be regular in their dealings with you and pay you good prices. Thus, it determines your dropshipping pricing.
Changes are always good to have. It’s necessary to ‘change your products’, ‘change your prices’ and ‘change your strategies’. Your business should be flexible enough.
Assess your approach to pricing often. Sometimes, you may need to make adjustments more frequently when it comes to certain marketplaces. Always keep a keen eye on your closest competitors to stay ahead of them at all times.
There may be millions of customers who can’t resist the products that appeal to them. You must add the most trendy and easily acceptable products to your web store and your customers would surely be ready to pay you good enough provided you have good quality products and the prices are suitable enough to the appeal and quality of your products.
Best customer services
An online store offers less expensive products but provides very poor customer services and your store offers the same products at a little higher price but with excellent customer services. You always pay heed to the needs, demands, and complaints of your customers.
Won’t that make a difference? A great one, I would say.
Your customers would be ready to pay a bit more if they can trust you regarding your services and if they are sure enough that you might not run away leaving them in some sort of problem.
Strike the psychological aspect
It is a common psychology of your customers that they would prefer the products ending with odd numbers. Mark the price of your product as $7.99 and your customers would round it off as $7 and not $8. It’s a bit strange but that is a common observation.
So, you may try out this strategy for your business as well and see how well it works for you and your dropshipping store.
Dropshipping pricing guidelines: A quick round up
Apply these dropshipping pricing guidelines and strategies to your dropshipping business and wait for the best returns.
Let us know how these dropshipping pricing strategies worked for you.
Till next time. Happy Dropshipping!