Yes, you're getting a lot of sales. But, are you really getting the highest potential income from your store?
At the end of the day, it’s not about how many sales you generate, but how much money is left in your bank account.
If you want to know how to get your store to its highest potential, then listen to this episode of our eCommerce Lifestyle podcast.
This podcast is also available in video form. Click ‘Play’ below to start watching. Make sure to subscribe to our YouTube Channel for weekly updates and insights!
Hey, what's up everybody? Anton Kraly here, from eCommerceLifestyle.com and welcome back to the podcast. In today's episode, I want to share some high margin dropshipping trends with you, and these are different things that you can use to make sure your bottom line is growing. What I mean by that is, it's great to have a whole bunch of sales and a big gross revenue number, but at the end of the day, what really matters, right? It's how much money is left in the bank. So, let's talk about some trends that we use, and that you can use, to make sure that that amount of money is growing and continues to grow over time. So to make this simple, what I did is break this down into two sections. We have different methods you can use to increase your revenue, get that top line up, and then we have methods you can use to decrease your costs, so that more money stays in the bank.
Now to increase revenue, the first method that we use, that I highly recommend you use, is called product options. And we actually use an app from a company called Bold for this, it's called Bold Product Options. It's in the Shopify app store. But what this allows you to do is, set up your product pages so that as customers are literally on your product page, they can either upgrade or downgrade their order, they can add things onto it, and what that does is allow them to spend more.
So an example I would give is, if you're selling stand-up paddleboards, what would make sense to have as an option on that product page? A paddle, right? Somebody buying the board, give them a simple way they can click a button or choose from a dropdown menu, "Yes, add this paddle for an extra $99," whatever it may be. Now something else you could do are things like carrying cases, any other different items you sell that you know are related to what your customer is actually purchasing, and instead of having to make them go to a different product page, and find the thing, and edit, you can use product options and allow them to select it straight from the product page.
Now, the second thing that I recommend here is comparison charts. So, if you go on Amazon or any huge eCommerce website, and you go to a product page for an item that comes in different variations, what you'll see is a comparison chart in the description. And what that does is, tell you the difference between the model you're looking at and other, similar models.
So for example, let's say you were looking at a coffee machine and you were on a product page for the coffee machine that makes eight cups of coffee. Well, it'll have to the right of it, maybe the option that makes 10 cups of coffee, and maybe to the left it'll have one that makes four cups, right? But it's showing different related items that people can then select from. If I'm on the eight cup one, for example, and I think, "You know what, I really want 10," I can just easily from there, click a button, go to that product page, spend more money because I'm buying something more expensive.
Now, if you don't have these on your website, again only where they make sense, but if you don't have them, then the consumer, the person shopping might have no idea that a 10-cup option is even available. So they'll buy the eight cup and maybe you'll lose out on an extra 20, 30 bucks in profit. So make sure, if you're selling items where there's related variations, you're using comparison charts on your product pages, to make the consumer aware. It will benefit you in the long run. It'll lead to people spending more money with you.
Now the next thing that I recommend is promoting affiliate offers to your customers. So when you're selling a specific product type, you're going to notice you have a specific type of buyer that's interested in something unique to them, right?
An example would be if you're in the health and fitness space, and your website sells exercise bikes, well, the people that are shopping with you probably are interested in losing weight and getting fit. So it would make sense is after they bought, you can promote to them different offers for things like weight loss shakes, or meal delivery, or exercise videos at home, things where you're promoting other people's products, and if they're bought from you, you earn a commission on each sale. Again, it's going to increase your top line revenue and not only that, but it's going to fall also into your bottom line because that's coming in as pure profit on top of the sale.
Now the next thing that we do, and that I recommend, is offering different shipping options when people are buying from you. So, by default I recommend offering free shipping. That's what we do on all of our stores, because our competitors do it. It's what customers expect, but once customers get to their cart, you can have other shipping options available, things that can expedite their order. Maybe you have something called fast shipping, or maybe you have something that instead of three to five business days, takes one to three business days. And when you do that, you can set whatever price you want, so you can mark it up extra money and let's just say it's an extra $20, and your actual cost is an extra $10, or maybe your extra cost is $0 dollars, because all you have to do is process the order faster. That's extra money to your top line revenue, and again, that's going to be net profit because it's on top of what you're already making.
Now another thing that we've done for a long time, and I recommend you look into as well, is offering extended warranties. Now with extended warranty is, you're going to be working with your suppliers to see if they can offer this to you at a price. So, let's just say your supplier ABC's warranty is one year. You can say to them, "Hey, can we offer two year warranty is what would the cost be for that?" And maybe they say, "Yeah, it's an extra $20," again, this is hypothetical, but let's say they say that you could say, "Okay, great, thank you." Now you can offer that to your customer for an extra $50. Every time somebody buys it, they get the benefit of having the extended warranty. You make an extra, in this case $30 net profit. Again, it increases your top line revenue, but from a pure profit perspective.
Now some other things that, I won't go into detail here because I'm probably going to do a future podcast on them, but some ways just to increase your revenue overall are through using advanced email automations. Again, I do think I'm going to do a podcast on that one soon, if you want me to let me know in the comments, but that definitely helps getting your numbers up in a big way and then also [advance three 00:05:50] marketing. I'll do another podcast on that too, but not just the simple re-marketing campaign for five days or so. Now, let's move over here and talk about the decreased costs, right? How can you get the money that comes out of your business down? Well, the biggest way that we found to do it is to negotiate with your suppliers. So, when you're approved with different brands and you're dropshipping, you're going to get your price list, right. And your price list should have a great margin already built in. But there is nothing wrong with asking your suppliers for better pricing. Some of them might just give it to you right away. Some of them might give it to you as you start to prove yourself to them, meaning get more and more sales, prove you're actually valuable to their business. But it's an easy way to cut 10, 20% off your purchase orders and really increase your net profit, simply by asking. So do not be afraid to ask, especially as you prove yourself more and more valuable to that brand by bringing them more and more sales.
Now another way we've really been able to minimize and decreased our costs is by automating our operations. And what I mean by that is, things that we used to have humans do, we now have software do, we now have tools do. A lot of the tools we use are just in the Shopify app store, but most of them are actually custom automations that we've built ourselves. If you're listening to this and you're a member of Drop Ship Lifestyle, you could find our best ones in module seven of the dropship blueprint. I think I share 13 different automations there that will save you a ton of money and a ton of time. If you're not a member of Drop Ship Lifestyle yet, just go to dropshipwebinar.com, you can learn more about what I'm talking about here.
Now, the final thing I'll give you under decreasing your costs are increasing your repeat purchases. So what's great about this, is that when you do this correctly, and you're remarketing to people that have already bought from you and you're getting them to spend more money with you, you don't have the ad cost anymore. So let's just say originally you sold a product for $1,000 and it cost you $100 in traffic to acquire that customer. Well, if you get them to buy another thousand-dollar product from you over the next year, your ad costs are now zero for that repeat purchase. Okay? So that lowers your ad costs, it increases your return on ad spend, and it makes your business a lot more profitable.
So, hope you found this valuable, guys. These are some of the trends that we've been seeing and that we've really been capitalizing on to increase our net profit margin. I would highly recommend you use all of these, and remember, if you're a member of Drop Ship Lifestyle, I teach you how to do all of this throughout the blueprint. And as far as the automations go, specifically in module seven, if you're brand new, you want to learn how to get started, be sure to go to dropshipwebinar.com for my free training. And as always, if you got value from this podcast, I would really appreciate it if you can go over to Apple podcast and leave a review. And with that being said, guys, I will talk to you in the next episode of the eCommerce Lifestyle Podcast. See ya.
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