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Successful Dropshipping Techniques: Upselling, Cross-Selling and Bundling

As a drop shipping business owner it’s important to look at ways to maximise your sales and increase profits. For many dropshippers, this can be achieved by trying to get customer to keep coming back, time and again. However, when you drop ship products like log cabins and garden buildings, this is not going to happen; a garden building can last 20 years, even longer, so it’s important to make the most from each sale opportunity you have.

In this article we discuss three simple but very effective sales strategies used by many retailers which are ideal for maximising profits for one off sales.

Up Selling

Up Selling is the technique of persuading customers to purchase a more expensive item than the one they initially intended to buy. For example, if you were selling a car, you could upsell by trying to get customers to buy a more expensive car or by persuading them to buy additional, premium features like leather upholstery, alloy wheels or air conditioning.

With Timber World products, you can concentrate on selling the higher spec, non-standard models, larger buildings or even persuade customers that they need to design their own, bespoke log cabin. The way you achieve this online is to make sure that each product page has a photograph and a link to a more expensive model. When selling premium features, always discuss each feature separately and explain how buying this feature would benefit the owners.

Quite often, you will find that if people being to look at one model on your website, if you show them two more expensive models, they will either decide to go for the middle priced one, or buy the cheapest but with a few premium add-ons. In this way you will have upsold.

Remember this when you design the product pages on your dropshipping website as it can be an effective sales technique to boost profits.

Cross Selling

In essence, cross selling means getting your customer to buy what they came for and something else in addition. For example, if a customer came looking for a log cabin, it would be great for business if they also went away with some decking, paving and fencing as well.

Many supermarkets and DIY stores have a technique for doing this when you are in store. You go in and pick up the product you want to buy and then, as you make your way to the checkout, you are forced to pass the section where all the deals are. By putting the deals on the way to the checkout they are tempting you with a bargain as you go to leave. Many people fall for the temptation and leave with an additional purchase that they had no intention of buying when they entered the store.

This can also be achieved with a website. The way to do this is to have a bargain section built into your checkout process. The customer adds their product to their shopping cart and clicks on checkout. When they press the confirm button, before the payment is taken a new page comes up with one or two targeted special offers, just for them. So, if they have bought a log cabin offer them something that would look nice inside the cabin as a bargain price. Let them know that only people who buy the log cabin can get the product at this special price and if they come back later they would have to pay full price for it. As a sales technique it really works.

Bundling

Bundling is where you group items together and sell them as one product. So for example you could put a mop, bucket, sweeping brush and a dustpan and brush together and sell them as a cleaning kit.  Bundling is a fantastic way to sell more products, but you have to get your calculations right for it to be effective.  The advantage for you is that you sell more products and make more money and the advantage for the customer is that they get more for less.

The difficulty is in working out the pricing, because what you are doing is selling some products at a lower price than normal. If we take a look at our cleaning kit above, we have 4 products:  mop, bucket, sweeping brush and dustpan and brush. Let’s imagine that we buy these for 40p each and sell them at £1 each. If we bundle all 4 together we can reduce the price from £4 to £3.40. In this way, we offer the customer a 15% saving.  From a profit point of view it looks like we are actually selling one of the products for 40p and not making any money on it. However, the advantage is this: most people only ever buy one product at a time, but here, by selling one at no profit, we have managed to make full profit on three products. Our turnover has risen from £1 to £3.40 and our profits have increased from 60p to £1.80.

With log cabins there is the potential to add a variety of products as part of a bundle or package. For example you could create a winter kit for log cabins, selling a heater, draught excluders, underlay, and rugs. This could be added to your website as a separate product to your log cabins and sold not only as a bundle but also as a cross-sell as people are at the checkout!

Hopefully, these three methods will give you helpful ideas how to improve sales for your dropshipping company.

If you are considering selling log cabins, why not find out more about Timber World’s fantastic log cabins and our excellent dropshipping service for retailers. Click here to find out more.