How to boost marginal profit from import?
If you are wondering about tips and ways to increase your marginal profits, then you found the right article. In this article, we will share with you the best tips to attract your clients and increase your sales volumes.
But before all of that, let’s think about why most people are beginning the dropshipping or integrating its model to the traditional business? This might be a question every newbie asks. It is impossible to answer this question in one sentence. There are too many advantages of this modern model of business.
- No need for warehouse
- Less capital investment
- Easy to start
- Easy to scale
These are the positive sides of dropshipping. But in another relatively old model of business, e-commerce entrepreneurs should consider these duties, below.
- Product design
- Stock management
- Warehouse management
- Cargo management
People that don’t want to manage all the responsibilities above, prefer to run dropshipping business. In this business, you can deliver goods to your consumers through the manufacturer or supplier. Most businessmen prefer this model of business because they don’t need to worry about the management of warehouses, shipment, and inventory.
But you should find the most suitable for your niche factory. China is the biggest exporter in the world, so it may seem like it is easy to find a real manufacturer. However, it is harder than you may think. Beginners may face too many pitfalls at the beginning of their business.
You shouldn’t make mistakes in the selection of your sourcing company. Our company consists of experienced workers and specialists. They can help you to avoid different mistakes and unforeseen pitfalls.
Increase your profits.
1. Shipping in big volumes
Shipping plays a significant role not only in dropshipping or online business but in traditional businesses, too. This stage of importing charges a lot, so most big companies try to optimize the shipping fees. Besides them, you may have other several problems in this stage of sales. The most common issues are:
- Paying for shipment by yourself, however, you are offering free shipment for your customer
- Manufacturers also can make mistakes and don’t fulfill the orders correctly. As a result, some of your orders can be late.
- Drop shopping requires you to pay for the logistics, packaging, and shipping. It means the costs will increase with the volumes of your sales.
To optimize the cost of shipping, you can ship more items in one package. It will help you to cut the cost. However, our company has relations with leading shipping organizations and they do discounts for our clients. So, our customers always save not only on the price of the product but also on the shipment.
2. Private label your products.
In simple words, private labeling the product is to purchase it from one company and selling it under another company’s brand. This is a win-win technique for both, manufacturer and the seller. Manufacturers get different markets to sell their products, but sellers diverse products which can’t be sold by others. So, this technique helps both sides to increase their marginal profits.
There are several ways of labeling the products. If you have a limited budget you can spend your money only on the packaging. Of course, you should consider the quality of products that your clients will get and understand the key role of packaging.
Because of that, you should be careful with the selection of your manufacturer. Compare manufacturers and test their products. You can use quality inspection services to avoid defective goods. Know your market, the target audience, and your competitors so that you can choose a manufacturer that will boost initial investment. Also, you can find experts that can negotiate for you. Because the language and culture of Chinese people are different.
3. Up-selling and cross-selling
Learn to pay attention to details in your own job. Most businessmen dream to increase their marginal profit but even don’t know about upselling and cross-selling methods. The difference between the two methods is not big, they always go hand-in-hand.
Upselling is understanding the needs of your customers. You should upgrade the goods and sell them at higher costs. This will increase your profits without acquiring new clients. You should experiment with this and understand your clients.
However, cross-selling is combining several products and selling products of different types. This helps to increase the total profit by increasing the sales of various goods. This tactic is becoming popular among most Amazon sellers.
4. Be in trend
The online market is very volatile and fast-changing. You should understand what is happening and what to wait for from the industry. Market tracking is one of the key aspects of running an online business. This helps to make the right decisions while selecting the product and niche. Besides that, it helps to find goods to avoid in the future.
Most wholesalers buy from manufacturers and then sell to others. As a result, the real price can be lower than you can imagine. So, try to find the best manufacturer and try to make long-term agreements with one factory. Because they make discounts for their customers and you also will know you are not working with a scammer.
Choose the right agency.
After reading this article you should understand basic methods of increasing your marginal profit. You can use several of them or combine all of them, it depends on you and your business.
But if you are a beginner then it can be very difficult to make the first steps. In this situation, you can find agencies that can help you to find the best factory with the right costs. Import Secrets can be the best example to demonstrate you. Our experts have more than 10 years of experience in this field. They can help you not only to find the supplier but to deliver your product, too.
Our services are not only for beginners but for experienced importers, too. Our company has relations with hundreds of factories. We can find any kind of product with our relations and help to take significant discounts.
Don’t hesitate and contact us for further information