Dropshipping is winning over more and more of our retail customers thanks to a simple promise: never lose a sale because a product is out of stock. But it's important to get it right to maximise results.
What is virtuous dropshipping?
For those unfamiliar with the term, dropshipping is the practice of sending a product directly from the wholesaler to the end customer, without the customer having to go through the seller. It's a win-win situation for both the shop and the supplier, as the service generates additional sales that benefit both parties.
However, dropshipping doesn't get much press these days. Indeed, the most widespread image is that of the online shop, hastily put together, serving as an intermediary for sites like Ali Baba or Amazon without providing any real added value. The impression is negative because these salespeople are often nothing more than hacks, with little knowledge of the products they are selling and disastrous after-sales service.
In contrast, this is 'virtuous' dropshipping, because the shops that use it do more than simply place an order for the customer. They guide them through their purchase and are there to help if a problem arises.
Tip 1: Don't charge the customer for shipping costs
There's no miracle about it: it costs the supplier more to send one copy of a product to a private individual. This is reflected in the seller's invoice, which raises a legitimate question: "Should I pass on this cost in the final price of the product? The short answer is: probably not.
When the customer cannot find the product they want, the situation is not to the seller's advantage. The aim is to save the sale, not maximise the margin. In this weakened position, offering home delivery and charging transport costs is an additional risk of seeing the customer leave, probably for the Internet. This is all the more true given that the public is increasingly used to free delivery.
Feedback from our partner customers shows that absorbing this cost is the most profitable strategy in the medium term. For products with low margins, another solution is to include part of the extra cost in the price of the product. A classic example: the customer wants an accessory for a phone that is not widely used, or in a colour that is not very common. In this case, you can announce a higher price and justify yourself, if necessary, by indicating that the price is a little higher for this model or colour.
Tip 2: Choose words that highlight local businesses
As far as point-of-sale advertising is concerned, it's important to remember that we're always talking about local businesses.
When offering to deliver a product to the customer's door, there are certain key words to avoid. As we've seen, it's best not to mention "delivery charges".ons", for example. As for the supplier, it too must remain invisible. Mentioning it could break the magic and, above all, give the impression that what is happening is a kind of e-commerce in disguise.
Rather than saying "I'm out of stock but my supplier can send it to you", be vague with a sentence like "I don't have this model in stock in the shop but you can have it in your letterbox in two days". For a more curious customer, you could mention that space is often in short supply in boutiques, and that sending from your warehouse is a practical solution to this problem that everyone is familiar with. This is especially true in the telephony sector, where the number of references is higher than elsewhere.
Obviously, it's important that the supplier plays the game and provides a totally transparent service. In the case of Tech Tablet, for example, a small letter is added at the time of dispatch, containing a thank-you message on behalf of the shop and taking the opportunity to remind the customer of its address.
The message we want to get across is that even if the product is sent by post, we're still doing business locally.
Tip 3: Don't go completely dropshipping
There's no substitute for a well-presented shelf
With thousands of items accessible without having to manage stock, some might be tempted to go further and make dropshipping their main sales channel. While understandable, this would unfortunately be counter-productive and even self-destructive for shops that specialise in telephony. In fact, reducing or eliminating your stock too much could lead customers to believe that you are merely an intermediary between them and the Internet.
A shop can convert more easily by allowing the customer to see and touch the products. They will also be more reassured about the quality, making the sales process even smoother. A well-stocked shelf, with products that are accessible, colourful and well displayed, will always work better than a photo on a screen. This is just as true for corner shops with a small floor space. Dropshipping is a powerful tool for this type of shop, but the sales assistant's job will be much easier with a kiosk showing the products.
Dropshipping is a complement to your sales offer, not a replacement. It will enable you to regain ground against the internet by offering the best of both worlds: the advantages of a physical shop and the depth of stock of an internet offering.