Using Dropshipping To Test New Product Offerings in Your Retail Store
Are you interested in expanding your product offerings, but really cannot afford to risk buying up inventory you are not certain you will be able to sell? Dropshipping can be an effective way to do just that, without risking any any of your own capital. Call it a retail science experiment if you like.
Dropshipping, if you have never really explored the issue, includes someone else taking care of the orders for you. You do the selling, they do the shipping. Since you’re not doing the shipping yourself, you don’t need to hold a large inventory of product on site, or worry too much about the logistics of how the product should be shipped. Thus, it opens a whole new world of possibilities, including the chance to offer new products with minimal risk.
Here are some tips for launching your first, potentially lucrative, dropshipping product experiment:
Choose Your Product
When choosing a dropshipper take a look at the products they offer and find something that is new, but still aligns with the overall theme of your store. Determine what you can offer to your existing customer base that’s new and different bit won’t seem hugely off brand for you? For example, if you sell t-shirts, why not try selling prints?
Consider Seasonal Products
Seasonal products can be good fodder for a new product dropshipping experiment as well. And we don’t just mean for the obvious holidays like Christmas or Easter. Mother’s Day, Father’s Day, ‘wedding season’ ‘graduation season’ and ‘smaller’ occasions like St. Patrick’s Day can all offer you opportunities to try adding something new at a time when people are actively shopping based around these events.
Listen to Customer Desires and Requests
If you have been in business for a while, the chances are good that you have received a few customer requests in terms of products they’d like to see you sell. How about trying it out via a dropshipping experiment ? If one person has asked for it, there are quite likely to be more than a few more people who would be interested too, but dropshipping will let you find out without a big risk to your bottom line.
Ask For Feedback
Before you start your dropshipping experiment, start a conversation with your customers about what they would think of certain products if you were to offer them. Social media is the obvious venue for this, but you could also ask via a post purchase survey, or via an emailed poll.
Tracking the Results of Your Dropshipping Experiment
Once you’ve picked a product to experiment with, and you’re all set up with the dropshipper of your choice, it’s time to start running the sale! But how do you measure your experiment’s success, and what should you do once the ‘results’ are in?
Sales volume is the obvious indicator of a hit, but if you are an established business the test products are not likely to overtake your current bestsellers in a week, or even a month.
Watch sales for a determined amount of time. If things go well, and the new product is popular you may want to consider stocking it full time, or extending the experiment to include other similar products. And if the product does not sell? You can remove it from your inventory and not have to worry about staging overstock or liquidation sales or bing left with unsold product on your hands.
Ready to experiment ? Learn more about Koehler Decor’s dropshipping program here.Koehler Home Decor is a wholesaler of home decor accessories and unique gifts. Source quality wholesale merchandise at KoehlerHomeDecor.com and find tips for promoting your business on our blog.