Drop shipping is all the rage. E and m-commerce has seeped its way into our shopping habits and with it has come the prevalence of drop shipping . For the companies whose business model fits this supply chain management method, it is a great way to decrease risk and increase margins. But, there are a few aspects that can and will affect just how high those profits are. Price is Not the Sole Factor When thinking of ways to compete, lowering the price is usually the first train of thought. While having a fair price is key, provide an experience for the customer so they can justify a higher cost. Maybe that experience is your expertise on the product at hand, a more intuitive website or loyalty programs. Get on Trend Trendy short-lived products are a nightmare for retailers and dream for drop shippers. Nothing haunts a retailer more than the ghosts of products from seasons past looming in the back room, instead of profits sitting in the bank. You have the flexibility that others do not because you don’t have to keep product on hand. Don’t miss out on those opportunities. Sell What You Believe In While being on top of trends can bring in quick short-term cash, in the end keep a product line mostly of items you believe in. People respond to authenticity, if you have zero interest in your products then the product descriptions will not be accurate and the execution of everything mediocre at best. When you love your product your expertise and passion will come through, helping create that aforementioned experience for the customer. Work Shipping into Your Price You may have graduated college, but Psych 101 is still in session. You don’t need a degree to tell you people HATE paying for shipping and people LIKE free. But, behavioral economics will tell you that consumers overvalue what is presented to them for free. Therefore, they will value your business as it feels you have done them a favor. If you cannot give free shipping per item, find a way to lower costs such as deals on shipping if they purchase a bundle. Go the Extra Mile Many wholesalers will allow you to use their stock photos and product descriptions for your own business. Arguably, this is a great service as you save time and money not taking your own or writing descriptions. Consequently, though, your business ends up lost in the mass of all the others who did the same thing. Maybe people aren’t purchasing from you for your lyrical prose under the description for a tank top, but showing personality makes you look human. And people like human. For the most part. In the end customers like feeing they are interacting with a living, breathing entity instead of a machine. Drop shipping is an increasingly prevalent business model for online retailers. Utilizing this method for some or all of your products can decrease risk of keeping trending or seasonal items in stock. With a little modification of these tips to your specific business, you will be drop shipping your way into e-commerce success.