In coming days, the way dropshipping business interact, engage, and sell to customers will be completely different. The ground rules and the unique ways of communicating and engaging with shoppers will take the best of the best that exists today, learn from the failures, and make both sides happier along the way. Do you want to know what trends to follow to achieve a competitive advantage? Continue reading to discover 8 consumer trends to guide your dropshipping business in 2023.
Building Relationships Starts Local
Customers are returning to in-store shopping, which is great news for dropshipping businesses with a retail presence. Still, you need to step up your game, putting more emphasis on creating value for your customers through brand experience. Whether your brand has the means to have a retail presence or not, brand experience is important to customers. Don’t just sell products. Sell your brand story, offer value beyond purchase, and engage customers directly on community channels.
Personalization Is In Demand for Dropshipping Business
Many shoppers expect brands to offer personalized shopping experiences, both in-store and online. However, customer interest in shopping experiences tailored to their interests is matched by privacy concerns. Take a balanced approach to use data to create personalized experiences for your customers. Reduce reliance on third-party data solutions and collect data directly. Be transparent about how you use this data to maintain trust with your customers, and stay compliant with dropshipping business privacy laws.
Buy Now, Pay Later Options
The BNPL market is expected to grow more than 33.3% between 2021 and 2026. Offer customers a buy now, pay later (BNPL) option to fight inflation woes. The popularity of this payment method continues to increase as consumers watch their spending. Enable Shop Pay Instalments in your online store to simply offer a BNPL option for your customers. This gives them the flexibility to purchase within their budgets through interest-free payments over time, removing a barrier to making a sale.
Brands Look To Omnichannel Experiences To Get More Customers
Online shoppers are starting their product discovery journeys in places asides from traditional search engines. Seeking new channels to get in front of potential buyers will be key in 2023. Taking an omnichannel approach can help your brand reach an increasingly large crowd. Alongside your dropshipping business, surface your products on other channels like Amazon, online marketplaces, social selling, and physical stores.
Customers Demand Low-Friction Returns
You might be wondering how you can offer a frictionless return policy that doesn’t cut into your bottom line. With margins tightening, offering free returns may be out of the question for your dropshipping business. This doesn’t mean you can’t find creative ways to make the return process less painful. Combat returns before they happen by improving size charts, using a virtual try-on app, photographing clothing on a variety of models, or offering a personal shopping assistant service.
Social Commerce And Discovery Hold Strong On Tiktok
TikTok is one platform that is dominating the social commerce space. Its platform is 1.7 times more likely to be the source for product discovery than other platforms. TikTok is a lucrative secondary sales channel for dropshipping business looking to target more customers to make massive sales. You can also monetize audiences by selling through TikTok, without having to build a website from scratch. As more young people are shopping via mobile devices, investing in vertical video content for TikTok, Instagram Reels, and YouTube Shorts for your business will be a great idea.
Brand Loyalty Is Waning
Price isn’t the only reason for waning loyalty. Consumer habits are aligning more and more with their values, pushing many to choose brands with sustainable business practices. Customers also seek a convenient, responsive, and personalized shopping experience, with brands that offer it. Thus, reward loyal customers with perks and exclusive discounts. Re-evaluate your inventory management strategies to prevent losing customers to out-of-stock products. Finally, appeal to the social and emotional interests of customers by implementing a sustainability strategy and communicating environmental impact.
Brand Collaborations for Dropshipping Business can Cut Acquisition Costs
Customers’ interest in your brand can largely improve with endorsement from influencers. Use collaborations with other complementary brands, and influencers to access audiences that mirror their target customer. Collaborations with influencers and creators are usually paid endorsements but can also involve a co-created product or experience. Likewise, don’t forget to engage with loyal followers for authentic feedback and reviews.
Dropshipping business is evolving every day and is becoming more customers oriented. Therefore, the race to survive in the market depends on your approach toward business plans. As consumer trends shift again, you should keep the feedback loop open, diversify your supply chains, and explore new sales channels to cater to customer expectations while protecting your bottom line this 2023.
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