MemberMarch 17, 2020 at 8:27 am
I am wondering if this is worth our time since we already sell on other dropshipping websites. I would like to grow our b2c retail website sales since the profit margin is so high and we only do about two sales a week. We are a wholesaler so we have never focused on our retail website for our products. Do you have any strategies for us that could help grow our sales even though 90% of our products are on the other websites? Thanks!
qverbGuestMarch 17, 2020 at 8:27 am
Ask yourself this question – what will you be glad you did for your business 5 years from now, especially if your only sales outlets at the present have complete control over your account, including the ability to shut you down and lock your funds?
To me the answer is to *always* put your own site first, especially if you care about branding your company in any way (which should be important to all of us if we care about longterm sales). The good thing is that as long as you have the manpower to keep up with all those sales channels, you can sell on *all* of them – including your own site – and not take too much of a hit when a marketplace decides for whatever reason to restrict your account – it happens.
>90% of our products are on the other websites
It sounds to me like this is the case specifically because you do not have any focus on your own brand or site, and take no steps to retain customers and refer them back to that site. Once you begin this process you will start to see those numbers go up, and in the longterm this can only be good!
cutemanGuestMarch 17, 2020 at 8:27 am
I’d definitely focus on your own site as a primary tactic but it sounds like you’ve been successful doing wholesale as well so I would continue but I wouldn’t make that the priority. But you may want to start looking into MAP type rules so one or two heavily stocked retailers don’t dump your product and depress the retail price.
Profit margins are obviously much higher on your direct site and you have the advantage of recording data such as client emails to add to your pool and tracking pixel hits that allow you to retarget for higher ROI users.
That being said your increased profit margin will be eroded by a higher CPA, at least in the early days, because your site/user acquisition won’t convert as well as these larger retailers you sell to for wholesale. ie, you make more selling direct than to Amazon, but a certain percentage of your increased margin will now have to go to digital marketing, etc. which will be higher than on Amazon’s platform.