Many obstacles and fears exist when planning to start a dropshipping business, one being, ‘Won’t People find my Dropshipping products cheaper on Amazon?’
Well, it’s a valid concern for any dropshipping entrepreneur, especially beginners.
Amazon is a big player in the e-commerce industry, a giant marketplace with competitive prices and fast delivery.
One may worry if their dropshipping customers stumble upon it.
Despite Amazon’s efficiency, age in business, and millions of products and suppliers, do not let this halt your entrepreneurial journey and goals to become a successful drop shipper.
Let’s unpack the drop shipping business, understand customer behavior, and discuss how to position your store effectively without worrying about cheap Amazon products intercepting your customers.
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Understanding the Amazon Price Comparison Fear
Amazon’s supplier database and variety of products allow them to offer competitive prices. They are top players with millions of products and suppliers competing for the same customers, but price is only part of the equation.
Customer behaviors suggest they don’t just buy a product; they purchase quality, convenience, experience, and trust.
So, if product price were the only factor customers are after, premium brands like Gucci would never thrive.
So, if you plan to start your dropshipping business, your success lies in offering high-quality product value beyond the product price tag and superb pre-and post-sales support.
Here’s how to change your mind-shift and conversation away from ‘cheapest price wins.’
1. People Don’t Just Buy Products; They Buy Solutions
As a drop shipper, your main goal and objective is to provide a shopping experience for your customers, not just to sell products but to offer products that solve problems or offer solutions.
Customer value:
Curated Product Selection: Unlike the overwhelming product variety on the Amazon marketplace, your dropshipping store can specialize in specific and unique niches. It’s essential to help customers find what they need quickly in your store without browsing through many unnecessary product collections.
Expertise and Trust:
Position your dropshipping brand as an authority in your niche and offer insights, guides, or tutorials besides selling the products. Offer information about the problem your products solve and guide your customers on usage, tips, and tricks.
When your brand helps customers make informed shopping decisions, product price becomes less of a deciding factor during their shopping.
For example, a fitness customer finds it easy to buy a gym starter kit from your store, which is more accessible than buying parts on Amazon to piece the random equipment together later.
2. Customers Value Personalization and Customer Support
Amazon as a marketplace is a transaction-focused platform to provide value to customers; as a drop shipper, you can provide the following:
Personalized Recommendations: Reach out to your customers through customized email newsletters or campaigns and craft engaging quizzes that help customers find the perfect product in your store.
It helps build a relationship between the customer and the brand.
Responsive Support: Amazon’s marketplace struggles to keep up with demand and customer queries.
Your brand will stand out if you focus on what Amazon is doing wrong regarding customer support.
Make sure your brand is responsive to customer queries. When handling customers, be empathetic and understanding and offer solutions. This, in return, will build loyalty.
3. Brand Perception Influences Buying Decisions.
Brand perception influences buying decisions, so perceived value often trumps the actual cost.
You must ensure your brand has a unique identity and focuses on quality and exclusivity, which customers will associate with your products.
Tips to Build a Strong Dropshipping Brand:
Professional Store Design:
Ensure you have a clean, responsive, attractive dropshipping store that builds customer trust. Your product descriptions and images should be professional and highlight all the product features and brands.
Compelling Brand Storytelling
Your About Us page should tell your brand story, who you are, why you started, and the drive and goal that keeps you going regarding the niche or the products.
Share your brand journey, mission, and the team behind it. People love buying from brands that feel connected to them or share history.
Also, showing social proof of customers using the product, reviews, testimonials, or the use of influencers endorsing the brand builds credibility.
4. Focus on Niche and Unique Product Offerings
Amazon is a giant in the retail industry; competing with it in terms of products is not viable. Instead, focus on finding a niche or products and selling them as a bundle, offering unique solutions that Amazon doesn’t have regarding product listings.
For example, instead of a regular yoga mat, you could list a yoga essential bundle with a mat, straps, and a yoga guide that helps with poses and meditation.
Customers will stick to a brand that offers them convenience and everything they need in one place.
5. Understand the Power of Impulse Buying
Most customers make buying decisions based on emotions rather than logic; these decisions are made in seconds and almost instantly.
Now you need to work on the right:
Product descriptions
Your brand should focus on the product benefits and highlight the outcomes rather than just its features. Use bullet points and a human voice to address the problem the project is solving.
Scarcity Techniques
Scarcity creates urgency. Focus on limited-time offers and create inventory alerts that nudge customers to buy now.
Amazon does not use scarcity marketing techniques; you should use these strategies to gain a competitive edge.
What About Price-Matching Shoppers?
A few customers will likely check Amazon prices, but most will not. If your brand has established trust, focuses on a problem-solving niche, and offers a seamless shopping experience, customers will be more than happy to purchase products from your brand even if they can find a cheaper option on Amazon.
Conclusion:
Don’t build a dropshipping brand to compete; focus on being different.
Every drop shippers faced with the fear of customers bumping into cheaper products on Amazon is valid but not a dealbreaker.
As a drop shipper starting a brand, your focus is not to compete with existing brands like Amazon but to offer value through product curation, personalized product recommendations, and a shopping experience.
When you focus on the above, your customers will remain loyal to your brand.
They will also choose your store over Amazon Marketplace, not because you sell cheaper products but because your store best fits their needs and solutions.
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