Can Dropshippers Add Value To Customers?

[Penguin]

(Forgive me if this is not in the right area of the forum)


For current dropshippers (Please don't state your niche that is not what I want to know) have you been able to add value in your niche/field you are in (what kind of value)? Or do you simple just do what everyone else does? Is this a business you can truly add value in?

 

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[Late Bloomer]

I'm not a dropshipper but I can ask a question in return.

Is there any retail store ever, either brick & mortar or online, that consistently makes a profit by selling stuff for higher prices than somewhere else?

If so, what do they do to add that extra perceived value?

If there's a McDonald's in town, how does the steakhouse get to stay in business?

 

[MJ DeMarco]

IMO, no -- other than better marketing and customer communication.

If a customer finds YOU first (the dropshipper), they will be more apt to pay a higher price because they don't know a cheaper price (with less middlemen) exists. I feel it's just an arbitrage game taking advantage of market imbalances that will soon balance out.

 

[IGP]

Absolutely they can... but as with all things it depends on how you do it.

Example 1: Source products that no one else is selling. This was a huge part of how I built and sold my 7 figure pet business. I scoured the internet and found high quality accessories that no one else had and developed relationships with these people (mostly mom and pop businesses) and brought their products to the masses. Not as easy today as when I did it almost 8 years ago, but I imagine it's still possible.

Example 2: If you sell MAP products, then there is no price war as everything sells for the same price. In this case, you have to add external value. Again for my pet business, I sold a ton of electronics (training, tracking, containment) etc. - the value add was better tutorials, better videos, better content, better service etc. that made the customers DIY job easier.

 

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[motivatedesign]

You can always add value.

But it ultimately depends on the perception of the customer if they believe there's value added. Often times, you need to spell this out for people, which is why you see "$10 Value for FREE" or something of the like. Often times value is created just by saying there's value, regardless if there's actually "value".

For example, I got myself a screen protector from Amazon and when it showed up it came with a bunch of other little things (small screw driver, screen wipe, etc) that wern't disclosed in the description. To me that was value, but the seller didn't include this in the description. They should have - because small little details like that can go a long way when people are weighing their options to buy.

 

[Penguin]

I'm not a dropshipper but I can ask a question in return.

Is there any retail store ever, either brick & mortar or online, that consistently makes a profit by selling stuff for higher prices than somewhere else?

If so, what do they do to add that extra perceived value?

If there's a McDonald's in town, how does the steakhouse get to stay in business?

That makes sense. Thanks for the input

IMO, no -- other than better marketing and customer communication.

If a customer finds YOU first (the dropshipper), they will be more apt to pay a higher price because they don't know a cheaper price (with less middlemen) exists. I feel it's just an arbitrage game taking advantage of market imbalances that will soon balance out.

Thanks for the perspective!

Absolutely they can... but as with all things it depends on how you do it.

Example 1: Source products that no one else is selling. This was a huge part of how I built and sold my 7 figure pet business. I scoured the internet and found high quality accessories that no one else had and developed relationships with these people (mostly mom and pop businesses) and brought their products to the masses. Not as easy today as when I did it almost 8 years ago, but I imagine it's still possible.

Example 2: If you sell MAP products, then there is no price war as everything sells for the same price. In this case, you have to add external value. Again for my pet business, I sold a ton of electronics (training, tracking, containment) etc. - the value add was better tutorials, better videos, better content, better service etc. that made the customers DIY job easier.

Thank you for this response your examples help a lot.

 

[Merging Left]

I think dropshippers can add considerable value in the form of information, when the niche is severely lacking.

I'm not talking about dropshipping from AliExpress to eBay here, but much more niche and usually higher end. For example, you could dropship power tools and compete with Amazon by offering really detailed how-to guides, build plans, etc.

Warranties/guarantees can also be a form of value, but you better be damn confident in your source's quality.

 

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[Penguin]

I think dropshippers can add considerable value in the form of information, when the niche is severely lacking.

I'm not talking about dropshipping from AliExpress to eBay here, but much more niche and usually higher end. For example, you could dropship power tools and compete with Amazon by offering really detailed how-to guides, build plans, etc.

Warranties/guarantees can also be a form of value, but you better be damn confident in your source's quality.

Thanks for taking the time to answer, that is actually a great example for dropshipping!

 

[Beast Of Ecom]

Dropshipping basic things from Aliexpress doesn't really add much value. I've been doing it for years and done millions in Rev. However some of the products do in fact add value to the customer such as those that that help a specific issue or a gadget for example.

Plus you are shipping worldwide sometimes to countries where that specific product isn't available. Now if you are white labelling then that's different