At Dropified, we’re constantly evaluating what works, when it comes to creating e-commerce success stories by increased drop shop revenue. In this article, our team will discuss three big ideas to increase drop ship revenue in your drop shipping business. Let’s dive in.
Increasing the Number of Online Retail Sales Transactions
Consumers love to shop online, and one of the areas that e-commerce retailers can utilize to increase the number of transactions, is to spend time developing re-marketing tactics. Remember, after you have invested in recruiting a new customer, your conversion costs are lower, if that customer buys again.
You want your sales approach to not be a ‘one-time thing’, and stores that establish a positive relationship with their customers, not only get repeat transactions, they get the Holy Grail of e-commerce ROI… the customer refers friends and family.
Here is the math: if you increase your purchase transaction rates by 10%, you will increase your sales and profit margin by the same percentage. We like those numbers.
WHAT ARE SOME OF THE THINGS THAT YOU COULD DO, TO GET YOUR CUSTOMERS TO BUY MORE FROM YOU, AND RETURN TO PURCHASE ADDITIONAL MERCHANDISE?
Offer coupons (no seriously, consumers still love them).
Offer a Free + Shipping product (or more than one).
Create a loyalty program. Give them a reason to repeat buy.
Offer limited time discounts. FOMO? You bet.
Offer product bundles that provide a turn-key purchase to fulfill a need for all items within a specific function or merchandise class.
Offer a subscription benefit or incentive.
Optimize Your Customer Contact Points and Opportunities
Successful customer management means investing time in cultivating the relationship you have established, after a customer has purchased a product. Don’t be a relationship phobe; customers never want to feel like their transaction was a ‘one-night stand’. Aim for the friend-zone instead.
Email your customer list. If you have a general store with variable product categories, segment your list by products ordered, and customize your emails to that niche. The guy that bought the fishing gear from your store, doesn’t want to hear about a sale on yoga swings.
Email coupons and new product announcements ahead of seasonal holiday shopping peaks. People are already shopping for gifts 8-12 weeks before major holidays.
Use retargeting not only to reduce ‘abandoned cart syndrome’ but to engage your customers through omni-channel advertising on social and Google AdWords.
Drive blog subscriptions by keeping your content lifestyle focused. General stores have a bit of an uphill climb on this one, but stores that are narrowly focused on a specific niche, blog obsessively to share proprietary store content on social. Utilize your existing email contact list, to invite new customers to your Facebook page. This will also allow you to leverage advertising opportunities through Facebook Messenger.
Strategies to Increase the Value of Customer Purchases
Bigger sales = bigger profit margins for e-commerce business owners. You should always be looking for new ways to up-sell each customer in the purchase journey, from browsing to order confirmation. Suggest an upsell as part of your sales strategy, but avoid hammering your customers with too many messages, that can disorient them and contribute to a frustrated buyer, and an empty cart.
a) Adding Suggested Products and Incentives
The product, check-out and add-to-cart pages are a secret weapon for power selling.
Add discounts eligible when the customer buys more than one product.
Offer different product variations of the one they purchased (maybe they want one for a gift or in another color or size?)
Offer related items that compliment the product(s) they have purchased. e., fishing rod + multitool for cutting fishing line. Solve the problem they didn’t know they had, with convenient suggestions.
Offer an attractive discount for cart orders over a minimum purchase value.
Thank You Page
It’s polite and good business practice, to thank your customer for their order, right? But if you are cringing at the idea of suggesting additional products on the purchase confirmation, don’t. If they are interested, they’ll click and investigate. If they are not, they’ll simply ignore it, so you have nothing to lose by creating a 1-click upsell opportunity for your customer.
Improving Customer Conversion Rates
In a room full of sales sharks, there is always a handful of new business owners, who like to start by sharing that they have hundreds of thousands to millions of unique and repeat website visitors every month. But when you ask them about their conversion rate, or how many of those online visits actually translate into what we get excited about (sales) they can get a little quiet.
The first drive of e-commerce business owners is to find, and attract website visits; they can’t buy, if they don’t find you. But if your website is generating tons of traffic, but your sales are stagnating (or declining), it’s time to take a focused look at your conversion rates and develop a new strategy. Don’t wait either; seriously, jump on it right away if purchase conversion is an issue.
If you can increase your conversion rate from 1 out of 10, to 2 out of 10, you can double your sales and profits. Like the sound of that? Keep reading.
Look at every key result area in your sales process and seek ways to improve wherever and whenever you can, to make it easier for visitors to become customers.
Critically evaluate your landing page (or have someone tell you the truth about it). Your landing page is your most valuable web asset, that convinces visitors to drill-down into your product assortment. Underwhelming your customer with a boring landing page? Expect them to bounce to another site. You have less than ten seconds to intrigue them with your branding.
Feed potential customers with CTA (call to action) opportunities that are hard to ignore. They should be able to find your blog, and subscribe to your email marketing list easily, on mobile or desktop.
Optimize your reporting to better understand what’s really going on with your customer conversion rate. We spend a lot of time helping our members grow, and we evaluate third-party applications to recommend the ones that work.
(Disclosure: we do earn a commission from some of these third-party SaaS providers and apps within Dropified, but we’ve done the hard work by finding the ones we think are the best, and work seamlessly within our suite of member tools).
Instantly boost your sales with the most customer friendly Upsell & Bundle app on Shopify.
Our global team at Dropified, includes talented individuals who have been exactly where you are; trying to figure out how to drive increased revenues to their drop-ship businesses. Our experience with successful retail business centers means we were (and always are) down in the trenches with other entrepreneurs and business owners, grinding strategies that work for building the only real metric that matters; profit.
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