Don’t Get Discouraged: The Real Reason Other Sellers Have Lower Prices Points
WHY ARE SOME WHOLESALE PRICES HIGHER THAN OTHERS SELLING ON EBAY OR AMAZON?
Sometimes new Wholesale2B members cancel their plan before they have had the chance to really begin. Why? Because they see the same products, and maybe even the same brand of products, sold by other sellers for much less than our low wholesale prices. While we understand that this can be discouraging, we urge you to hang in there—because there is more than meets the eye.
First let me begin that stating that our dropship suppliers are just like any other wholesaler, and so some items might be cheaper and some might not. This is normal. Most new sellers will think that they have to have the cheaper price than anyone else in order to make sales, but this is simply not true.
5 REASONS WHY ANOTHER SELLER MIGHT HAVE A LOWER SELLING PRICE
There are a multitude of reasons that a seller might have lower selling price than you. When you browse through Amazon and eBay, seeing sellers with super low prices might leave you wondering why someone would pay your higher price point? Here are 5 reasons why you should hang in there anyway.
1. The Brand May Be Different—Just because someone is selling, for example, lavender essential oil for a lower price point—they may be selling a lesser quality brand than you. Don’t underestimate a buyer’s willingness to pay more for a brand they know and love.
2. They May Only Be Selling A Small Quantity—There will be times when every dropshipper (even you) will be able to offer prices that are extraordinarily low. This could be because they were able to buy products in bulk from a liquidator, or because they only have a few to sell.
3. They Could Be Selling Used, Refurbished, Or Gifted Items—Sometimes sellers resell their used, refurbished, or gifted items online, meaning that they are able to sell super cheap because they are not brand new, or were a gift that they didn’t pay for in the first place. And they are not always honest about a product being used.
4. The Items Are Knockoffs—Many sellers sell brand name knockoffs made overseas. For example, a seller may say they are selling authentic Sony product—and their products might even work well—but their products could be a knock off. Buyers can usually spot someone who sells knockoffs, because their prices are too low. Buyers who want quality, know they may have to pay a bit more, even if they are hoping for a lower online price point than found in-stores. What you will find is that a large majority of the super cheap products take 4 to 6 weeks to arrive. This is a Red Flag that these products are knock offs, and buyers know this.
5. They Charge Excessive Shipping Fees—Some sellers have learned that buyers don’t factor in shipping prices. So, they sell their products for super cheap, and charge excessive shipping fees to make up the difference.
MY BEST ADVICE
Be patient. Go ahead and post the products you want to sell in your online store. Avoid the temptation to assume that people will not buy from you because your prices are not the lowest. Also keep in mind that the super low products often sell out quickly, so you may not have the cheapest price today—but may be highly competitive tomorrow.
Also have faith in buyers. Regular online shoppers know that prices that are too low are a Red Flag. They also look at seller reviews before they buy. Sellers who sell knockoffs often have poor reviews, or reviews that say things like, “I’m not sure if this really is a Sony product, but it works.”
Instead, focus on providing excellent customer service, building your reviews, and remain confident that you are selling authentic and high-quality wholesale products. To help boost your standing, reach out to a few friends and family members to make small purchases—and make sure they leave both product and seller reviews.
Although pricing is surely a driving force in generating sales, it is not the only one. Buyers won’t mind paying more for items that are shipped from the USA instead of foreign countries. A good reputation, good reviews and great customer service are all good selling points that will help you stand out from the crowd. The majority of buyers don’t take hours to compare prices for the best deals and there is no shortage of reasons as to why a buyer will pay a little more when compared to other sellers.
WHAT ARE MAP PRICES?
Minimum advertised price (MAP) is an agreement between suppliers and retailers for the minimum price they agree to advertise and/or sell a product for. There are a few reasonable exceptions to this rule. For example, an item might go on clearance, or have a major markdown when a store is going out of business. For example, some eBay and Amazon sellers stock up on post-holiday sale items—and are able to sell items for super low prices.
DON’T JUST LOOK AT THE LOWEST PRICE POINT, BUT ALSO THE AVERAGE PRICE POINT
Both eBay and Amazon show you the “average” selling price for all items. Don’t focus too much on the outliers, because buyers are also leery of them. Instead, focus your attention on the average price point, and try to remain competitive within that arena.
TIPS TO HELP YOU SPREAD THE WORKD ABOUT YOUR BRAND
Instead of investing your energy stressing about every product with a lower selling point, invest your energy spreading the word about your new online store! Here are a few tips to help you get started:
• Create social media business pages for your website or online store. Post consistently, post some of your best-selling products, or some of the seasonal products you sell. Also consider paid social media advertising, which starts as low as $5 per day.
• Don’t count out Google Plus. Even though you may not be a “local” business, Google tends to reward businesses who have a fair amount of Google reviews and followers. Start with your friends and family, and you will be off to a great start.
• Add a link to your online store in your email signature. This is something you can do once, and is a highly effective method of advertising.
• Fill out your eBay About Me or Profile section. This will help you connect and engage with buyers. As an added bonus, eBay allows you to add links within your profile—which you can use to create backlinks to Amazon. Your About section even links directly to some of your current products.
• Register your website with a Google web tool, to help index and build quality backlinks.
• Get active in relevant online forums that allow you to add a link back to your store when you post. Just make sure your contributions are helpful, and not too sales oriented.
• Add a blog to your website, post weekly, and promote your posts with paid advertising. The wholesale2b website plan already includes a blog that let’s you add as many articles as you want directly from your website admin dashboard.
• Set up your automatic emails in Amazon, so that clients will be reminded to leave reviews, and maybe even to place a new order.
WE HAVE MADE THE PROCESS AS SIMPLE AS POSSIBLE
Launching an e-commerce website is a mix of excitement and concern. Concern that you will be able to learn how to successfully operate your business, and excitement for the potential! At Wholesale2B we have made this process as simple as possible. We have removed the bulk of your work, by identifying quality and reliable dropship wholesalers. We created a back-of-house system that automatically loads the dropship products you want to sell directly to your website, eBay, Amazon, or other outside sales site. Dropshipping even eliminates the need to warehouse your products.
Don’t stop before you take the opportunity to begin. Select your niche, set up your sales site, begin to spread the word—and odds are the sales will begin trickling in!
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