How to compete with an Amazon dropshipper
More than likely you’ve come across an Amazon dropshipper selling a similar product to yours. Dropshippers don’t keep inventory in stock. Instead, they transfer customer orders and shipment details to a manufacturer or wholesaler, who handles fulfillment and inventory issues.
Dropshipping is a convenient option for sellers who either can’t or don’t want to invest large sums in starting an online business.
Goods that are popular with Amazon dropshippers attract a lot of competition which can drive prices down. It doesn’t take much investment to get started so dropshippers can appear in large numbers for items in popular categories.
Here’s how you can compete with an Amazon Dropshipper;
1. Nail your Shipping Arrangements
Many times you will be competing against a seller from outside your country, which means that shipping time will be much longer.
You’d be surprised how many customers are willing to pay a little bit more to get their product delivered quickly. Not only that, late and untracked shipments result in negative feedback and claims. It’s important to process orders quickly and guarantee on-time delivery.
Orders with tracking have 60 percent less defects and 40 percent lower contact rates than untracked orders. Providing valid tracking numbers protects you from claims, improves feedback and can qualify you for Premium Shipping Options.
2. Consider Fulfilment by Amazon
Using Amazon FBA you can access massive logistical expertise. It comes at a price though. Amazon charge premium rates. It can be expensive if stock doesn’t sell.
Order fulfilment is a headache but FBA gets your product to the customer quicker. Amazon do the storage, packaging, pick & pack and shipping.
Because it assumes perfect customer metrics it can generate more sales by helping to win the Buy Box. FBA can also improve the customer experience, faster delivery leads to greater satisfaction.
3. Excel at Customer Support
When handling all elements of your sales process, you have the ability to respond quickly and accurately to customer contact.
One of the cornerstones of terrific customer service is speed. By quickly addressing your customers’ questions, you create strong connections with buyers and turn queries into sales.
A comprehensive support strategy that rewards and retains customers is vital. It will steal you a march on the competition. You’ll bag more positive feedback, win new customers and get more repeat business.
4. Improve your Feedback Scores
The majority of buyers will check a seller’s feedback before buying. If you can keep your feedback to a high standard then you’re a step ahead of the Amazon dropshipper.
Not only are reviews crucial in influencing buyers, they improve your chances of winning the Buy Box. Research tells us that 82% of sales on Amazon go through the Buy Box. Strong feedback and more sales go hand in hand.
As few as one in ten Amazon buyers leave feedback. Yet, Amazon shoppers are open to getting messages that thank them and encourage them to leave feedback.
5. Achieve the Best Price and Win the Buy Box
The key is to get in front of as many people as possible by winning the Buy Box. You must react instantly to price changes to make sure you remain competitive.
A repricing tool makes sure you compete against all other sellers. It avoids losses by keeping your prices within a range you set. It helps you take every opportunity to sell and also achieve a profit every time. You don’t have to spend valuable time tracking competitors’ prices.
Set rules to compete with the Amazon dropshipper by taking advantage of superior customer metrics and feedback scores. If you use FBA set rules to price above the Amazon dropshipper and still win the Buy Box.
Repricing software is a proven way to increase sales, save time & resources and make more money. XSellco products help you sell smarter, respond faster and enhance your reputation.
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