First of all, there’s a very low entry barrier, and basically, anyone can open an e-commerce business based on dropshipping.
Also, it’s quite hard to make a dropshipping e-commerce shop profitable. There always will be at least one competitor who’s going to sell a product at the lowest price possible, which might impact your profit margins as well.
So, is there a way out of this vicious circle? What can you do to boost sales for your dropshipping e-commerce store?
You could try cross-selling, which is the practice of offering an additional product to a particular buyer. If done right, cross-selling can bring you generous profits and also earn more loyal customers.
So, what does it take to use cross-selling the right way?
Let’s take a look.
1. Pay Attention to Customer SegmentationSince cross-selling is about offering one more product on top of what the customer is already buying, this offer should be very personalized. In this case, customer segmentation is essential because it allows you to improve your marketing focus according to customer behaviors and purchase patterns.
There are several criteria, according to which you can segment your customers. Here are just a few examples:
- level of education
- language spoken
- previous purchase behaviors
Here’s how it works. For instance, one of your customers runs an English-learning podcast and has purchased a microphone for this purpose. Once they placed their order, you can target them with an email offering additional equipment they might need for their podcast – cameras, ring lights, sound mixers, etc.
To make sure that your offer doesn’t look like a hard-sell, you can provide some feedback from customers who bought offered products in bundles and enjoyed this purchase. Just keep in mind that the products you’re trying to cross-sell should not be at a higher price than those a customer has bought.
2. Offer Products that Complete the PurchaseAnother way you can use cross-selling to boost profits for your dropshipping store is through additional product offers that could make a customer’s final purchase more complete.
To provide you with a bit more context, let’s take a look at the following example. ASOS, a marketplace for dropshipping suppliers, cross-sells additional clothing items offering a customer to complete the look. Under the main product description, customers can find the BUY THE LOOK section with additional product offers in it:
ASOS uses such an approach because the majority of its customers usually buy complete looks there. As a result, the brand not just cross-sells a product to boost profits but creates an entire customer experience. And, a better customer experience means loyalty and higher sales.
Another cross-selling idea you can use to level up your dropshipping business is creating a section of products your customer might also like.
Essentially, you study your customer purchase behaviors to select and categorize the products they frequently bought together with the one that a specific customer is viewing right now. Here’s an example of what this strategy looks like from Inspire Uplift, a dropshipping store on Shopify:
If you take a closer look at this example, you will see that all the products offered for cross-selling are at a discount price, much like the main product on the page. If the price of the additional product is higher than the price of the main product, it’s more about upselling, and it is a completely different strategy.
3. Give Product Recommendations at the Checkout
One more way how you can involve cross-selling in your dropshipping e-commerce store is by targeting your customers with product offers at the checkout.
Here’s why this strategy deserves your attention. According to the statistics, shoppers that clicked on product recommendations are 4.5 times more likely to add these items to the cart and complete the purchase. And, if they see these product recommendations right before placing the order, the chances are higher they might consider adding them to the cart as well.
Take a look at how Walmart places product recommendations at the checkout. In the example below, we’ve placed an order for a pregnancy pillow. According to the category of our product, we got more pregnancy-related items right before placing the order:
So, the idea is simple – you just need to include an additional product section on the checkout page. As a result, your customers will be more prompted to reconsider their order and will also be more likely to add them to the cart.
The nature of cross-selling is about offering something additional but not essential. It’s more about providing an attractive offer and letting the customer make their own choice. That’s why this strategy works well for e-commerce stores, and dropshippers can benefit from it too.
You can use dropshipping in a variety of ways – offer products to complete a purchase, give recommendations based on what other customers buy, or suggest certain items at the checkout. Whichever strategy you choose, make sure your offers are highly personalized and are tailored to what your customers are looking for.
About the author
Ryan is a passionate blogger and writer who likes sharing his thoughts and. Now he works as a content editor and internet researcher, you can check his website here. He likes to travel and explore new countries.