After 5 years in the boutique industry I transitioned to the drop shipping model and I loved SO much of it! However a month in, I noticed that some of my most loyal shoppers had all but disappeared.
As I thought about it, I realized there are 3 types customers.
There is the Impulse Shopper, the Considerate Shopper and the Bargain Shopper. By understanding the types of customers, you can make strategic decisions in your drop shipping business in order to serve them all and protect your profit margins
After some serious frustration and reflection, I realized that while my Impulse Shoppers were LOVING the constant influx of NEW, NEW, NEW, my Considerate Shoppers had all but disappeared and I wasn't actually making any money working with my bargain shoppers.
In this blog post,I am going to share my "Definitions" of these 3 types of shoppers and ideas on how to serve all of them in a way that benefits your bottom line.
What are the Three Types of Customers?
The Impulse Shopper:
This shopper is always looking for the next best thing! Drop shipping is great for them because it allows you to continuously offer them new things to buy. The downside of this type of customer is that they aren't always loyal as they are continuously in pursuit of the next best thing.
The Considerate Shopper:
This type of shopper is the most common. They need to see products multiple times before making a purchase. They can also be very loyal customers and are willing to pay full price for items that they see the value of. They make up a large portion of the population, making them a market well worth serving.
The Bargain Shopper:
They love a deal! When you carry inventory, their purpose in your business model is clear, they help to clear out the extra. But when you move to drop shipping, how do you keep them engaged until you need them to clear out samples, etc.? Is it possible to serve these customers and profit from their purchases?
How do you best serve them all?
The Impulse Shopper:
This is the easiest type of shopper to serve with drop shipping. They thrive off of hype and the new new new. Shopping is their hobby, so to keep them engaged, you just need to keep fresh inventory in your shop.
The Considerate Shopper:
These shoppers make up the largest portion of the population, however the constant influx of new inventory can overwhelm them. In my own business, these were the customers that I initially "lost" when I moved to drop shipping. But, they WILL come back if you give them the attention that they need.
These are the customers that benefit from follow up marketing, e-mails and most importantly, showing the same product multiple ways. Create outfits or collages that show how different products can be used together. Having samples on hand is super helpful, or you can make collages using apps like Bazaart.
Don't be afraid to tag them or send them messages, as long as its done from a place of service and you genuinely think they will love something. This type of customer loves to feel cared for and connected to you.
The Bargain Shopper:
You WANT to keep these shoppers engaged as they can help you to move samples and the extras of any inventory that you do stock, however the drop shipping model can make it challenging for your business to continue to benefit.
When it comes to running promos and sales with drop shipped products, here are a few of my tips.
- Only run promos from one vendor at a time. You don't want to have your customer pay for $8 in shipping and order 3 low ticket products from 3 different vendors. That is sure to cost you money, not help you make any.
- If you are doing a blanket discount, consider excluding certain collections that include drop shipped items. Or better yet, just offer a promo on a specific collection of items you have in stock, or on products from a specific vendor.
- Take advantage of mystery offers or other promos that encourage customers to purchase more from a single vendor, like BOGO or Buy More, Save More deals.
- Don't post super lower ticket items.
- Offer mystery deals or bundles at a discounted rate. This allows you take advantage of combined shipping and ensure that the value of the actual sale is worth it.
Drop shipping is just another strategy for running your business. I will always be a passionate advocate for it and believe in it's ability to improve your business and life. However, it is essential that it is done with intention to ensure you maintain profitability.
If you found this helpful and are interested in working one on one to implement drop shipping in your business please email me at emily@holdenhelpswholesale.com