Dropshipping is a type of business model wherein it allows you to sell products and goods to your customers without stocking items or keeping an inventory. One of the benefits of keeping an inventory is that it frees up a lot of your time to focus on the more important things like bringing in new customers for your business. Today, there is an estimated 33 percent in the entire e-commerce industry that utilizes Dropshipping as their primary inventory management model.
Without a doubt, Dropshipping is one of the best business models out there in the market. Not only it’s low cost and easy to start, but it offers budding entrepreneurs lower risks as well.
In this article, we’ve put together seven time-tested tips that can amplify your Dropshipping sales in no time.
Use the anchoring effect
According to Linda Sapadin, Ph.D., the anchoring effect is a cognitive bias. It impacts you by relying heavily on the set of information that you receive.
So basically, once an ‘anchor’ is set, there is already a given bias.
The first price of the product or service plays a pivotal role in one’s decision-making process. For instance, if a gadget’s retail price is worth $1,000, it serves as the ‘anchor.’ But then, you manage to get it as a sale price of $950. Naturally, you feel good by saving $50, because you got the item at a bargain.
It’s how anchoring works to boost sales. Make your buyers feel that the products you’re selling to them are a steal. To make the anchor even more appealing, show the first price first and then cross it out. Another strategy is to show the most expensive item in your site first. Doing so anchors the price, making the others look inexpensive by comparison.
Apply the scarcity principle
The rule of scarcity is simple. When people feel that a product or service is only there for a limited amount of time, people give more value to it. For instance, imagine yourself being in a community fair, and you’re craving for a decadent chocolate cake. In booth A, there is a sign saying “last three pieces.”
On the other hand, in booth B, there are about ten pieces left, but it has a rather gloomy, lifeless look in it. Without a doubt, you would choose the cakes in booth A.
People place a higher value for a product that is ‘scarce.’ When combined with a sense of urgency, meaning it’s there for only a limited time, the scarcity principle can be a powerful tool for your boosting e-commerce sales.
Use fear and loss aversion
Another concept that is tied to urgency and scarcity is the fear of loss and aversion. In the e-commerce world, another persuasion technique that is used to boost your e-commerce sales is the fear of loss and aversion. It is cleverly used to persuade customers that buying products online is better than buying it in physical stores.
This concept is not about what customers gain when they buy. Instead, it’s what they’ll lose when they don’t buy from a store. After all, it would hurt more to lose $10 than to gain $10.
Use the reciprocity principle
The reciprocity principle is another powerful technique. You want to give something back when you receive something. It’s because, when you receive a gift, you will feel strongly compelled to give back as not to feel indebted to other people. This principle helps build strong relationships between buyers and sellers.
A great marketing idea that you can put into practice is to offer an incentive without perceiving to expect something in return. It can be in the form of ‘gifts’ such as discounts, bonus points, and coupons. Then, you can show your customer ways how they show their support ‒ how can they say thank you through volunteer opportunities, such as ‘link to us,’ ’email a friend,’ or ‘submit your story’ options.
Don’t offer too many choices
If you’re presented with one choice, you have the option to buy or not to buy. However, make it two options to choose from, and it gets complicated. Instead of focusing on one, your brain focuses on two things simultaneously.
That’s where the paradox of choice comes into play. The more the options to choose from, the less likely you will come up with a decision. It will be too difficult to come into a decision.
So while it’s crucial not to give too many options, you can opt to offer more than one option. That way, it gives your customers a sense of autonomy when purchasing a product.
Show social proof
A lot of marketers use social proof as a strategy to reassure customers that they are making the right decision when purchasing a product.
You can incorporate this strategy in your site by putting review ratings next to your products, or you can put a little pop-up icon informing viewers of the people who are buying your products.
There are also other excellent ways you can use social proof such as reaching out to influencers in your specific niche, showcase the awards you’ve won and displayed the logos of trusted stores that sell your products.
Practice commitment and consistency
You can put this technique into action by letting your site visitors sign on your email list. This simple act alone is practicing a small act of commitment to your customer’s part. Also, social sharing is also advantageous in making a public commitment.
More often than not, people stick or follow through with a specific decision if they are bound publicly. It also helps to link social sharing buttons on your product page.
There is always a psychology behind sales. At the end of the day, you need to understand how people’s brains are wired to do. That way, you can better understand how they can make decisions. Paying close attention to these persuasive techniques and putting them into action can help improve your dropshipping sales.