Anyone with even a moderate level of online retail experience is likely already familiar with the most common promotional techniques. Phrases such as buy-one-get-one, VIP rewards, and loyalty points have already entered into the lexicon of digital sales. However, we always need to keep in mind that this world is constantly evolving. New methods are emerging on a regular basis and these should be incorporated into your existing strategy. One perfect example of this trend can be seen in a process known as drop shipping. What are the mechanics behind drop shipping and why might this technique represent one of the most popular promotional tools at your disposal? Let’s define this subject before moving on to list its associated advantages.
Drop Shipping: The Middleman Who is On Your Side
We often hear middlemen being described in derogatory terms when speaking of sales. This arises from the fact that they can be associated with high commissions and similar logistical concerns. However, the exact opposite is true in regards to drop shipping. Drop shipping involves the use of a third-party provider who stocks and ships products to the end user (your customer). In the event that a sale is made, the drop shipping firm will take care of all shipping and inventory concerns. There are several notable advantages directly attributable to this approach. These include:
- There is no need to physically store inventory.
- Expenses such as storage facilities are therefore removed from the equation.
- Shipping rates are calculated within seconds.
- You can return your focus to other core areas of your business model.
It should also be mentioned that major suppliers such as Oberle offer thousands of products to choose from. This selection tends to rotate on a regular basis in line with trending retail products as well as those which have been shown to provide the highest return on investment (ROI). So, it should now be clear why a growing number of sellers have adopted this unique logistical approach. We still need to examine some of the reasons why drop shipping can also represent a massive promotional tool from the point of view of the end user.
All About Efficiency
We live in an on-demand society. Modern technology has enabled us to remain somewhat privileged in this sense. If we think about it for a moment, this observation is absolutely true. During the early days of the Internet, we were perfectly content with speeds defined in kilobytes per second. This made perfect sense, as it was status quo at the time.
However, we are now accustomed to speeds measured in the tens of gigabytes. The same holds true for online sales and shipping. Why choose a specific provider is a competitor who is offering the same product is associated with lightning-fast shipping speeds? Clients know what they are looking for and anything less than efficient will quickly detract from the reputation of a company. Drop shipping boasts extremely fast shipping rates; a quality certainly not lost on the customer.
This is even more important if your business has experienced a significant amount of growth during 2018. It can sometimes be challenging to handle larger orders and bulk shipments if you do not possess the proper in-house resources. Thankfully, drop shipping has taken care of this understandable concern.
The Most Popular Products
Drop shipping providers have performed a great deal of market research in order to determine which products will resonate best with your audience base. From remote control drones to smartphone cases and everything in between, little is left to the imagination in terms of your sales options. This is also great if you have been looking to add a bit of variety to your existing stock.
Drop shipped items can be offered directly alongside your other products; adding an extra sense of depth to your e-commerce platform.
Beating the Competition
A final reason why drop shipping will represent a powerful promotional tool in 2019 involves the ability to acquire and offer many products at or below the manufacturer’s suggested retail value (MSRP). Assuming that all other things are equal, this attribute could be all that is required to transform a potential customer into a solid sale. This is particularly the case if you are accustomed to dealing with bulk orders. Even a price change of a few dollars will have a profound impact on how your enterprise is perceived as well as the size of your target audience.
To be sure, drop shipping should represent one of many promotional tools at your disposal. When used in direct synergy with other sales tactics, there is no doubt that 2019 will prove to be a profitable year. It is best to stick with larger providers such as Oberle, as they can offer a kaleidoscope of different items to choose from.