Competing with Amazon Dropshippers
There’s a good chance you’ve come across an Amazon dropshipper selling you a similar product. The shipper does not hold inventory. Instead, they transfer customer orders and shipment details to manufacturers or wholesalers, who handle fulfillment and inventory issues.
Dropshipping is a convenient option for sellers who can’t or don’t want to invest a lot of money in an online business.
Items that are popular with Amazon direct sellers attract a lot of competition, which can drive down prices. It doesn’t take much investment to get started, so for popular categories of goods, dropshippers can emerge in large numbers.
You can compete with Amazon Dropshippers by;
1. Nail Your Shipping Arrangements
Many times, you will be competing with sellers from abroad, which means shipping times will be longer.
You’d be surprised how many customers are willing to pay a little more to have their products delivered quickly. Not only that, delayed and untracked shipments can lead to negative feedback and claims. It is important to process orders quickly and ensure on-time delivery.
Orders with tracking have 60% fewer defects and 40% lower contact rates than orders without tracking. Providing a valid tracking number protects you from claims, improves feedback, and can qualify you for premium shipping options.
2. Consider Amazon Logistics
With Amazon FBA, you gain access to a vast amount of logistics expertise. It comes at a price. Amazon charges a premium rate. If the stock is not sold, it can be expensive.
Order fulfillment is a headache, but FBA can get your products to your customers faster. Amazon is responsible for storage, packaging, picking and shipping.
Because it assumes perfect customer metrics, more sales can be generated by winning the "Win Box". Fulfillment by Amazon also improves the customer experience, with faster deliveries leading to higher satisfaction.
3. Excel at Customer Support
When you handle all elements of the sales process, you can respond to customer contacts quickly and accurately.
One of the cornerstones of great customer service is speed. By resolving your customers’ issues quickly, you can build a strong connection with your buyers and convert inquiries into sales.
A comprehensive support strategy that rewards and retains customers is critical. It will steal your competition. You’ll get more positive feedback, gain new customers, and gain more repeat business.
4. Improve your feedback score
Most buyers will check the seller's feedback before buying. If you can keep your feedback to a high standard, you are one step ahead of Amazon dropshippers.
Reviews are not only crucial in influencing buyers, but they also increase your chances of winning the Buy Box. Research tells us that 82% of sales on Amazon occur through the Buy Box. Great feedback and more sales go hand in hand.
Only one in ten Amazon buyers leaves feedback. However, Amazon shoppers appreciate receiving messages thanking them and encouraging them to leave feedback.
5. Get the best price and win the buy box
The key is to win the Buy Box to attract as many people as possible. You must react immediately to price changes to ensure you remain competitive.
Pricing tools ensure you are competitive with all other sellers. By keeping the price within the set range, you can avoid losses. It helps you seize every opportunity to sell and make a profit every time. You don't have to spend your valuable time tracking your competitors' prices.
Set the rules to compete with Amazon direct sellers by leveraging superior customer metrics and feedback ratings. If you use FBA, then set the rule to price higher than the Amazon dropshipper and still win the Buy Box.
Repricing software is a proven way to increase sales, save time and resources, and make more money. xSellco products help you sell smarter, respond faster, and improve your reputation.
