Every dropshipper wishes to charge more than they do, so why aren’t they? Because they are scared to. Fear of losing customers if prices are higher is very common. Luckily, this is far from the truth and here is why.
Psychology is crucial for this one. When customers see that one shop charges a lot more than others do, they assume that it must be of higher quality. Seeing significantly cheaper products, makes these products suspicious. For example, if you saw one shop charging a dollar for bracelets and other charging 20 dollars, you would probably assume that the first one is fake or a bad copy of the more expensive one.
This only works if your price is noticeably higher than others. If there is the same product for just a dollar difference, customers will opt for the cheaper one. Why? Because for such a slight difference in price, they will risk a slight difference in quality. Probably they’ll even assume that you are overcharging. Therefore if you are increasing your price, increase it significantly.
Another aspect to consider is the actual quality of your products. Are they worth the price? If you have low quality products no one will buy them. On the other hand, if your products are great, your customers will be ready to pay even ten times more for it. After the first few purchases you will have reviews to speak for you and justify your price. Although it is harder to start selling expensive products, you can have reviews even before the first purchase with the help of Reviify. Reviify is AliExpress reviews importer for Shopify. It allows you to import reviews already on the AliExpress product page to your shop.
Even though some customers won’t choose to buy from you because they cannot afford it, this is not something to worry about. Higher prices will attract richer customers. This is a great benefit for you because they are less likely to ask for refunds. Additionally, they have a greater chance of being regular customers which is every dropshipper’s dream. To make them more loyal to your shop, make an email marketing campaign. Retarget them with offers related to the products they bought. Do not forget to provide them with some values in emails, as well. This type of customer is also very pleased if you have great customer service. Despite not being very prone to complaint if there is a problem, they wish for it to be solved as quickly as possible with ease. Once you raise your price, you will see that you will attract better customers and even more customers overall.
Raising prices also plays a role in distancing from the competition. Sometimes it is very hard to find a niche that is not overcrowded, making standing out from the crowd very hard. Significantly raising your prices puts you in a niche with less competition. If your price is drastically different from all the other offers, you also have a different audience.
In conclusion, the only thing keeping you from earning more is your fear of risking losing customers. As explained before, the opposite will happen. Also, when you raise your price so much, expectations customers have from you are higher forcing you to do better. It will push you out of your comfort zone shaping a much better dropshipper.