Dumb people learn from their mistakes and smart people learn from the mistakes of others. So let's be smart and break down the mistakes you shouldn't make in the commodity business, including dropshipping, and talk about how to avoid them. Read about it in a new blog post from StepLink.
Failure to analyse products before launching sales
The first mistake is not to analyse the products before you start selling them. Before you start selling a new product, find out who your competitors are selling it, where they are selling it and how they are selling it. Analyse their pricing policies and promotional material. All this information is available from spy services.
Create an expensive website
Imagine creating a cool website to test a product. But developing such an online resource can take a long time. After a month, you will forget that you wanted to test this product. Even worse, the site and product you launched will not sell. Test products quickly. As soon as you have an idea - quickly create loans on available platforms.
Buying an item without trying it
You've ordered an item from China or another country, it's delivered, and then you start testing it in the shop. The problem is that this product may turn out to be of no use to anyone. So remember: test the product first, if there is demand for it, then buy it.
Don't compare purchase prices
New entrepreneurs often work with one or two suppliers from whom they buy all the goods for their shop. This is wrong. You need to compare the purchase prices of different suppliers and look for opportunities to buy cheaper goods. It is necessary to find out the purchase prices everywhere. It is important, however, that the cheaper item is not of lower quality than the item you are already selling.
Lack of pre-sales
To have a positive financial balance and earn more, you need to use pre-sales techniques from the start: up-selling, cross-selling, downselling. For example, offer to buy a mobile phone case or a car holder. As many as 30% of customers will accept. This will increase your average cheque.
Test just one product
Many newbies give up after trying to sell one product and failing. They decide that the product business doesn't work or that they're not cut out for it. But you need to try more than one, two or even three products. Sooner or later you will find a product that will make you a profit.
Lack of advertising analysis
You need to understand why your advertising is not selling your product. Maybe it is targeting too narrow an audience. Maybe your creative has generated a lot of negative comments. You should be looking for the reasons why your advertising is not working. Then you'll know what to fix so that your adverts start bringing in sales.
Do it all yourself
It is a good thing to know all the processes when you start a business. But over time, if you don't delegate, for example, shipping goods or processing an application, you'll become hostage to your business. You won't be able to go on holiday because your income depends on it, and if you fall ill, your business will stop altogether. Hire workers or use outsourcing companies.
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