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Try not to worry about your pricing too much. Pricing is important, but there are other things that are more important. Markup the price of the products as much as you think your customers will pay. Having the lowest prices is not always the best strategy. You don't need to have the lowest price to sell online. There are plenty of reasons why people will pay a little extra. I.e. convenience, high perceived value, trust and credibility, great content, etc…
We understand that pricing is a critical component of a successful retailing experience. Wholesaler Outlet is always working towards obtaining the best possible pricing. Having said this, with over 10,000 products in the warehouse, it is impossible for Wholesaler Outlet to have to the LOWEST pricing on ALL products ALL of the time.
It might also be helpful for you to understand the competitive environment you are in if you compete in electronics. Large web stores such as Bestbuy.com will often times sell certain items at below cost - this is called a loss leader. They use it to drive traffic to their website and then once the person has bought the 'DVD' player at below cost, they up sell the customer on additional higher margin items. In a large single website, they can track their traffic and calculate that a certain percentage will buy the up sell and therefore make the discounting worthwhile. We can not.
There is no guarantee that you as a seller will be able to up sell or even offer the right products to up sell.
Most of our products are very competitive and offer some excellent margins.
If your customers are highly price sensitive and If you feel that some products do not meet these criteria, then it is better that you do not offer them for sale on your site or on eBay as it will affect people's perceptions of your business.
I would also suggest you try products which are a little less susceptible to price comparison sites. Selling on price alone is a very difficult proposition and really a no win situation. What is to stop your competitor from undercutting you by 1%? Then you have to drop your margin...eventually you are down to 0%. The most successful sellers are those who build a brand and a niche. It doesn't have to be an international brand like Nike or the The Gap, but a name that a target group of buyers remembers and values.
An example of this might be partnering with a local amateur sports team.
The team builds a store on its website. You mark up the products a few dollars more than the going rate, but the buyer knows that part of the profit is going to the team. In this type of case the buyer - parents, relatives, friends - donate to the team while still getting something they would otherwise have bought.
Our retailers are telling us the key to being successful is not just building a store, but giving the buyer a 'reason' to buy from you. Do you provide unique content, a worthwhile cause, products which are difficult to find? All of these things matter. There is also one last aspect of selling which is key to your success - timing. 40% of all retail sales in jewelry and department stores take place in the last 3 months of the year. As a retailer you actually work all year long to build awareness of your store so that when the peak shopping season hits, people know who you are.
The long term benefit of a dropshipping program such as ours is that you get to develop a relationship with your customer. Rather than just clicking a one time advertisement on your website, they begin to think of you as a destination to shop at, and year after year they will come back.
We will continue to work on getting you the best possible pricing. Good luck with your store and selling success.
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