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Successful Dropshipping Techniques: Adding Value

When you set up an online dropshipping business and have chosen the niche you want to concentrate on and the channels in which you are going to sell, one of the next steps is to identify the ways your business can add value for your customers. The reason for this is quite simple: companies who add value are far more successful than companies that don’t.

What is adding value?

To fully understand ‘adding value’ think about this scenario. Twenty online businesses are selling the same log cabin. They all get the same amount of web traffic and they all sell the product at the same price. As the product is dropshipped, there is no difference in delivery cost and all the delivery times are the same. Yet, 90% of customers buy from one particular website. Why?

Because something that company does ‘adds value’ for the customer.

A good online retailer doesn’t just sell a product. Above and beyond that they sell a solution, offer expertise and give useful advice.

In a nutshell, ‘adding value’ is solving problems for your customers.

How do you add value for a customer?

The best way for us to illustrate how to add value is to show you how we do it. Here at Timber World we see adding value as a key element of our business and it helps us to be very successful. As a manufacturer and wholesaler, our job is to solve problems for our retailers – so how do we do this? Here’s a list of 9 ways we solve problems and add value:

  1. We help our retailers develop their website by providing them with everything they need to sell our products (images, descriptions and specifications).
  2. We white label all our products so retailers can create their own brand.
  3. We insist on a Minimum Asking Price (MAP) to prevent price wars between our retailers and to give them all a guaranteed margin.
  4. To help our retailer’s cash flow we don’t require payment until the final customer has paid them.
  5. We’ll happily provide bespoke and customised log cabins and garden buildings for when a customer requires something different. We’ll even create the 3D plans for them.
  6. We take care of the entire fulfilment process, including arranging and undertaking the delivery so our retailers don’t have to. Our retailers don’t need to warehouse and insure stock.
  7. We provide the after sales service so that is there is a problem we take care of it, not the retailer.
  8. If a customer requires installation we can provide the retailer with local installers from our nationwide register of approved fitters.
  9. We offer the quickest log cabin delivery times in the UK.

If you notice, none of these are about our actual products. Instead, they are about the things we do to make buying from us valuable to our retailers. Of course, our log cabins have to be excellent too.

So what can you do to add value to your dropshipping business?

Here are some examples:

  1. Be a one stop shop. If you sell our log cabins, sell accessories to go with it; perhaps furniture or decorations, wood preservatives and paints.
  2. Show your expertise and write articles on your website about how to look after log cabins or how to make them look good inside and out. A series of blog posts on stunning log cabin interiors would keep visitors coming back again and again and would establish you as an expert in that field.
  3. Take advantage of the value added by your dropshipper by passing on the offers of quick delivery, excellent customer service, installation, low deposits, product customisation, free delivery, etc.
  4. Where products are customisable, write articles giving advice on the customisations available and the benefits of having them. Car manufacturers do this superbly.
  5. With products like log cabins which people might struggle with building, put together articles or videos explaining how to construct them. This goes for any product that needs assembling at home.
  6. Provide highly detailed product specifications and descriptions so that customers feel your company understands the product better and really cares about informing its customers.
  7. Create a brand and a website that makes customers feel they are buying into classier lifestyle. If you are selling expensive products which your dropshipper can deliver as white label, like we do at Timber World, this can attract the type of customer who is willing to pay more for a brand that makes them feel good.  Why do people shop at one supermarket when they can get exactly the same produce for much less at another?  Because it makes them feel good to show people they can afford to pay more. Use this to your advantage.

As you can see, sharing your expertise is a key component in adding value. By solving problems for your customers you make yourself valuable to them. You become the expert, you become trusted, you are building relationships and this means you are building a serious business. Customers like that – and buy from you.

We’re doing it right now – by sharing our expertise of dropshipping to help you develop your business.  We want you to know, that if you sell our log cabins, we’ll provide the solutions to make you successful.

Next Steps

So, if you are considering setting up an online business selling drop shipped products, think carefully about how you can add value for your customers and, in doing so, compete far more effectively with your competitors.

If you are thinking about selling log cabins and other garden buildings online, then Timber World can add considerable value for you and help you add value for your customers. If you want to find more check out our dropshipping service.