You may have been running your dropshipping business successfully on significant e-commerce market places. This is, after all, the best business model for small businesses and start-ups wanting to leverage the ever-growing popularity of e-commerce. You don't need a large inventory, huge capital investment or maintain large warehouses. Based on the demand for the products you trade on, you will always have a decent margin to play with. But all said and done; this model starts showing diminishing returns as you go along. While your sale figures might increase, you will always be at the mercy of demand and supply in the market for your business to flourish.
The ever increasing competition in the e-commerce space always makes your business vulnerable. Price and logistic capabilities are, after all, the only differentiating factor in this business model. If a competitor betters you on these two fronts, you can be out of the business sooner than you realize. When you don't have exclusive products to offer your customers, there is little that you can pin on to earn their loyalty. For instance, if you are selling generic tools, a customer isn't likely to shop your product if it is priced higher than your competitor. A new player in the market can easily outsmart you with better pricing and logistics. This explains the high attrition rate among dropshipping businesses from e-commerce marketplaces.
Turn Into a Branded Ecommerce Company
If you have started noticing the first signs of stagnation or fall in sales, it is time for you to make the transition from dropshipping to a branded e-commerce company. Irrespective of whether you are producing the products in-house or get them custom built from a third-party manufacturer, having your branding on it allows you to establish a firm footing in the market. Though this transition would demand higher capital outlay and hands-on business management, it is worth all the effort as you will have more command over the supply, pricing and, of course, ownership of the brand. It is this exclusivity that fosters higher growth and brand recognition and makes you a trusted e-commerce operator.
Using Business Data for Market Research
As a company that has spent years in dropshipping, you'd have garnered years of data into customer needs, seasonal demands and what helps in earning customer loyalty. It is time for you to put this market research to good use. If you hire a team of experts to help you with branding and marketing, you will also probably come across a new set of target audience whom you had missed out on in your first run as an e-commerce operator. You must carry out a detailed competitive analysis that will help you become surefooted on demand, supply and the logistical challenges in this business. Thorough market research enables you to understand your competitors' strengths and take steps in the right direction to make your products gain an edge over the competition.
Branding is Vital for Growth and Sustainability
You should set your eyes on growth and sustainability when it comes to becoming a branded e-commerce operator. Along with the market research and knowledge of the market demands, you will also have to focus on brand building. This is easier said than done in a market that is boiling with the competition. The pandemic has enforced many changes in the way customers shop for their needs, which has increased the competition in e-commerce marketplaces. Your products should be identifiable and distinguishable in a crowded market to succeed.
Brand Building Ideas for E-commerce
Ecommerce isn't merely about technical innovations such as building a great website/app or offering a great user-experience to the customers. At the heart of it are the basic business principles such as quality, customer satisfaction and brand building. How do you build a brand in this competitive market? How do you take on your bigger competitors? Let's walk you through some of the primary brand-building ideas that can turn your business into one of the most trusted e-commerce operators in the market -
- Define Your Market
You can't serve every customer equally with the same products. Customer aspirations vary, and this is where it becomes crucial for you to identify your set of customers and target them exclusively. Once you have defined the market, you need to speak to your audience in a manner that resonates with them. For instance, if you target customers who seek value for money, the message would be different from those who don't mind paying the exclusivity price. Without defining your market, your campaign is destined to fail.
- Customers First Approach
Businesses are profit-driven, but your profits shouldn't be at the cost of customer satisfaction. When you are launching your products into the market, you should always focus on offering the best quality, features and after-sales experience to your customers. Depending on the product you are selling, you are likely to face competition from established brands in the market, some of which you may have dropped shipped earlier! As a branded e-commerce company, your sole attention should be to serve your customers' needs and earn their loyalty.
- Try Storytelling
In this marketing, rat-race storytelling has emerged as one of the success formulas. Customers don't only wish to buy products from a brand these days as they are looking to be part of a larger group of brand loyalists. And there is no better way to earn this loyalty than focus on storytelling. Tell your audience why you are in business, what you wish to achieve and what separates you from your competitors. If you are involved in giving back to society, let your customers know about the same.
- Be the Change
Are you planning to play safe and merely be part of the demand-supply trap? You aren't unlikely to survive in this disruptive market. As a branded e-commerce company, you should constantly focus on innovating and introducing new products. You won't make killer profits with each one of them, and many of your products are likely to meet unceremonious ends. But this approach does offer you vantage points in the fast-changing market.
To sum up, its time you make the transition from being a mere retailer in the fast-growing e-commerce space. Make the switch to a fully branded e-commerce company and enjoy endless growth.
Branded Ecommerce Company | Ecommerce Operator | Online Brand Store Company