Wednesday, August 11, 2010

Drop Shipping - Setting the Basket of Success in Drop Shipping



Customers indeed love to pay low price for any item they buy. As you go along with the drop shipping industry, you will find out that it's not always who has the lowest price. Time will come and you will realize that it is even hard to sell very low priced merchandise.

Shipping or freight charge, is one of the major factors why your customer would change their minds in buying a very cheap product. They would turn the gear to reverse and go to the next online store who can provide a better shipping cost if not a better offer in totality.

Ground shipping, motor, air freight, shipping insurance charge, residential delivery surcharge, signature release charge are the bane of online retailing business. Literally they will change everything.

Normally, internet customers understand shipping charges and most of the time it is never an issue. But let me provide you a simple scenario why customers suddenly change their minds when purchasing low cost items.

You are an owner of an online store that primary sells mobile phones. As a businessman you thought that it would be good for you business to sell mobile phone accessories since you have a source from China that can supply you at a very low price. One day, a customer visited your website to purchase a clear casing for his mobile phone for $2.50. Customer was so eager to get it since you offer it at a very low price. But when the order processing was about to end, he realized that it would cost him $3.50 for the shipping, which leads him to change his mind.

Customers would think that it is not practical to pay $6.00 for a $2.50 accessory. Will you deprive your customer of the mobile phone accessory that usually comes along with your primary product, and with the possibility of loosing that customer for good? There is a way around for this dilemma. There are lots of things that may happen to a clear case of a mobile phone. It could crack or totally break when the mobile phone it protects fell. Some will think ahead and buy extra casing, but most will not. Thus, same customers who prefer using clear casing would call and place another order.

What you can you can do for them and for your business is to create a basket or set for a certain accessory. Instead, you will offer 1 set of clear casing (3 pieces per set) for $10.00 which includes the $3.50 shipping cost. Think about the convenience that your deal offers to your customers and make them realize. Next time his phone accidentally fell, he has that extra casing (he got at a very low price) to use without the hassle of placing another order.

Creating a basket or grouping your products into "Sets" can be done to almost every product not necessarily accessories. It is ideal to start it with your products which have a very low price.

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