Dropshipping and the psychology of sales

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Forecasts show that by 2025, a quarter of the world's total retail sales will be in the online segment. With this in mind, you've opened a great online shop, worked on the design, chosen a niche, uploaded your products and are ready to dive headlong into the dropshipping based e-commerce business.

Creating and launching an e-commerce shop is just the first step - now you need to develop sustainable strategies to increase sales. Experienced dropshippers, more often than not, do this by combining techniques that work in unison.

Let's talk today about the psychology of sales, and more specifically how to push your website visitor to buy. Make the user a loyal and dedicated customer.

Percentage discount

If you were selling a product for $30 and then decided to drop the price to $15, how best to tell about this promotion? You could advertise the product at a $15 discount, or you could talk about a 50% discount. Using the percentage discount in this case provides a much higher conversion rate. Even though it is mathematically the same discount, 50 is more than 15, so the customer feels like they are saving more money!
The reason for the discount

Customers are more likely to buy an item if they are told the reason for the discount. For example, if an item is on sale for 50% off as part of a special Christmas sale, the shopper has the anxious feeling that they may be too late: they know that when the holidays are over, the sale will also be over and the item will be gone!

Emphasise benefits rather than features

Instead of advertising the features of the product, write about how it will benefit the customer. If you just list the features, the customer still has to take the time to understand how they will affect them. And that's hard work. Help the client.

Clear and simple

"Lively pictures can tell you a lot about a product. Customers like to look at small details. Use the HD format so that customers can zoom in and out. This has a tangible effect on conversion rates.

Short descriptions

Short descriptions usually work better than long ones. A customer set up for an impulse buy is easily distracted. Include specialized jargon and slang in your ads. This will show potential customers that you have a good understanding of their niche, and you will be easy to communicate and work with.

Emotional words

In advertisements and product descriptions, use words that will evoke emotion in the customer. Words that make you feel like you're about to get everything and lots of it: limited, hurry up, shortened, bonus. Wake up curiosity with words like amazing, quirky, mysterious. Making yourself feel special is helped by words: gorgeous, elegant, stunning.
"Magic" words

"Free" is a very powerful word. Yes, we all want to get a lot without spending a penny. It's not greed, but an irresistible childlike desire to find a treasure or a magic wand!

When advertising emphasises how low today's prices are, using words like "only" and "just" conversion and sales always increase.

Testimonials

Testimonials are read by most customers. People like to hear the opinions of those who have already tried the product. We believe that what others like, we will also like. Before and after photos, reviews and testimonials encourage people to buy. Don't forget to ask customers to leave feedback about your shop and the products they have bought. Encourage them to do so, thank them and motivate them for the next purchase with a discount for the review.

Fincraft Capital recommendations

Dropshipping, where you depend on the supplier for both the delivery and the quality of the goods you send, encourages you to constantly look for high-margin, untapped and high-margin niches. Experimentation with promotional advertising helps to understand trends and customer needs. Fincraft Capital's marketers conduct detailed analysis of customers' online businesses and make recommendations on sales promotion, new directions, expansion or contrary reduction of assortment.