SMART Dropshipping in 2024: Decide based on the most extensive data reports22-1-2024 eCommerce
The world of dropshipping might be the leading eCommerce business model when it comes to transformation. And the next big change is here: SMART Dropshipping. For dropshippers to keep being profitable, this new version of the business model is crucial.
Introducing SMART Dropshipping
SMART Dropshipping is a must for dropshippers in 2024. But why? It brings a couple of major advantages, which are needed in order to stay ahead of the competition. First and foremost it’s all about data. With hundreds of data points, dropshippers can extensively analyze their business. And the second major part is automations: With SMART Dropshipping on average 20% off the business is automated, due to which dropshippers have time to focus on the more important things. Let’s dive into these topics separately.
This topic is definitely not new to the world of eCommerce. But in a way, it is for dropshipping. Data from ads and sales has been used forever, but supply chain data is fairly new. The simple reason for this: Suppliers don’t disclose much information due to the lack of communication, transparency or simply capability. In SMART Dropshipping, every single piece of data from the supply chain is analyzed. Leaving you with utmost simple decisions based on true data. You simply cannot go wrong any longer.
This data is super extensive:
- Shipping time
- Processing time
- Dispute rate
- Average purchase price
And the best, you are able to filter this data:
- Per product
- Per supplier
- Per country
- Per month/week/day and even time of purchase
With this, guessing is no part of your business anymore and your decisions are explainable. And all of this data is explained perfectly in a supply chain data report. This is updated real-time and accessible whenever and wherever you want.
The second part of SMART Dropshipping is all about automations. With SMART Dropshipping, you can automate the following:
Automated emails: Did your customer for instance fill in an address with a typo? Your customer gets an automated email, so you don’t have to manually chase the customer.
Automated fulfillment and after sales: You don’t have to do anything to have your products fulfilled, this can be fully automated. Same goes for the after sales service.
Automated order checks: With this, your orders are proactively checked on a daily basis. If anything goes wrong – e.g. a variant is out of stock – this will be solved before you even knew the problem.
Sounds like a dream right? But there is more.
As mentioned, you can filter the supply chain report based on suppliers. Usually, dropshippers work with just one supplier. But with SMART Dropshipping, this can be expanded to multiple suppliers. That is because SMART Dropshipping works with a bidding system: After you upload your product to Shopify, the best – handpicked – suppliers from China start bidding on your product. WIthin 24 hours, you receive multiple quotes. The decision is easy: Pick your favourite supplier based on the shipping time, processing time, supplier reviews and of course, price. Want to use a different supplier per product? No issue with SMART Dropshipping.
And the moment you’re not satisfied with a supplier anymore, easily start a requote process and have the suppliers bid against each other again.
Long term business mindset with SMART Dropshipping
With all these features, dropshipping becomes more and more a long term business. As you know have all the relevant insights, you can scale infinitely with confidence. And this goes both for a specific product and for a specific country.
How do I start?
Service Points offers SMART Dropshipping exclusively for experienced dropshippers. Joining is completely free, as they work on a profit share basis with suppliers. And onboarding is easy with your personal appointed Account Manager.
Explore their revolutionary platform today.
Case Study: Extra €44k of profit in 3 months
Below, Devon shares how he managed to achieve an extra profit of €44,296 within 3 months by implementing SMART Dropshipping in his dropshipping business. He accomplished this without any extra effort or additional investment.
Step 1: Reducing Product Costs
When I joined Service Points in late July, I first requested new prices for all my best-selling products. These were 4 products totaling around 120 orders per day. Within 24 hours, various agents bid on my best sellers. Initially, I focused on agents with the lowest prices.
The products are still being sold and for confidentiality, I use aliases for the product names:
|Old Agent Purchase Price
|Service Points Purchase Price
|€13.20 = -9.3%
|€16.90 = -7.2%
|€10.80 = -6.9%
|€21.20 = -12.8%
This means an average of 9.05% lower product costs and therefore additional profit. This allowed me to scale faster, resulting in increased revenue.
With an AOV of €42.50 and 120 orders per day on average in August of this year, my total revenue was €153,000. With the 9.05% savings, I now have €13,846 more profit for the next month!
Step 2: Start the automations
- We implemented the automated emails in my business
- We automated the entire fulfillment and after sales service for my business
- Implemented the tracking code hack for payment processors
- Set up the daily order checks to prevent disputes
Step 3: Provide supply chain data insights
Mapping the average shipping time, processing time and dispute rate:
- Shipping time: 8,9 days
- Processing time: 4,6 days
- Average dispute rate: 2,8%
Step 4: Plan in collaboration with my personal account manager
Goal: We then set a goal to reduce the total delivery time by at least 20% and the dispute rate by 30%.
My account manager then provided advice on how to improve these supply chain statistics, summarized briefly below:
- Switch product X shipped to Germany to agent Eric for better shipping terms.
- For fashion products (product Y & M), collaborate with agent Arnold for the best quality/price ratio.
- Negotiate stock purchases for product Z with agent Leon to shorten processing time.
We discussed and implemented these action steps to achieve the set goals.
The mindblowing results
The results for the following period (06-09-2023 to 21-10-2023 with a total of 5358 orders) were remarkable:
- Average processing time = 3.2 days = -43%
- Average shipping time = 7 days = -27%
- Average dispute rate = 1.7% = -65%
- €2505 more in monthly profit due to 59 fewer disputes
- €252 more monthly profit due to 21 fewer customer service hours at €12 per hour
- Higher customer satisfaction, improving the page score from 3.4 to 3.6, leading to better-performing ads and increased profit potential
In conclusion, working with Service Points has allowed me to achieve the following in 3 months:
- €41,539 in extra profit by smartly managing my procurement
- €2,757 in additional monthly profit through supply chain optimizations
- Foundation for a long term business due to Improved ad performance and higher customer satisfaction
If you want to increase profit in your dropshipping store, just like Devon did, without investing extra time or money, apply SMART Dropshipping. Sign-up for free today.