Our company owns a number of dropshipping stores including the one we’re discussing today. This store was built around useful products for car owners: organizers, accessories, repair and cleaning tools, etc. The team decided to sell the goods on the US market, because it’s one of the most promising markets with a large number of potential buyers. And almost every American has a car.
The store was a success, but the team wanted to raise its growth rate somehow. And that’s when they started testing Sellvia and shipping goods from the Sellvia Fulfillment Center in the US. That’s how the store performance changed after just a few months: let’s see how Anna, the store’s leading Marketing expert, describes the experience!
More orders from customers
First of all, we saw a rise in the number of orders – from 373 in August to 6,413 in the 30 days of using Sellvia (Nov 21 – Dec 21).
Previously, shipping could take up to several weeks, and some people refused to place orders hoping to find a similar online store with faster delivery. But now that shipping takes 1-3 business days for the US customers, our store visitors are more willing to buy.
As a result, the store’s revenue rose by 1,725%!
More purchases from ads
Faster shipping also affected advertising. After the team started using Sellvia, they saw more positive comments from previous buyers. Such feedback works as a social proof showing that you can trust the store. As a result, the efficiency of our ads improved. For example, the revenue from Facebook and Instagram advertising increased from $5,854 to $241,116.
The number of refunds on our dropshipping store dropped from 1.34% to 0.6%. In most cases, customers ask for refunds because of long shipping time or poor quality of the products. Unfortunately, when you dropship from China, you can’t control the quality of the goods you sell. And there’s little you can do about shipping times.
But now Sellvia’s team thoroughly checks every item they receive from suppliers. As a result, customers have almost nothing to complain about. Even those buyers, who asked for refunds in the last 30 days, did it simply because their products didn’t match their cars.
The average order value increased
The average order value is how much money a single client spends on a single order. In other words, the higher this parameter is the more revenue you get from each customer. But there’s another reason why it’s important.
Most traffic comes to the store from social media advertising (mostly Instagram and Facebook ads).
But advertising there costs money. You actually pay for showing ads to users. That’s why it’s important to make clients buy not just one but several goods at a time – for example, by offering bundles and product sets.
Since the team started using Sellvia, the store’s average order value rose from $54.55 to $57.91.
They used this approach even before, but now we can advertise bundles and send a number of goods in a single package, which eliminates a lot of problems here.
Net profit improved
The team also saw a rise in the store’s net profit. There are several reasons why it happened.
First of all, buying goods from Sellvia (which purchases products directly from manufacturers) is cheaper than ordering them from AliExpress sellers. For example, buying and shipping one car seat organizer from AliExpress costs $10 on average. But on Sellvia, it costs about $8.
Second, now the number of refunds has considerably decreased. And finally, thanks to better average order value and more efficient ads, the cost of conversion is lower.
As a result, the team now spends less to make the same amount of profit.
Less work for customer support
Previously, we had to send several packages even when all these goods were ordered by the same customer. This often caused misunderstandings and confusion. Clients often thought that they were tricked or their packages got lost.
But now the team can pack most orders in a single parcel, so there are fewer frightened or confused customers.
Improved customers’ trust
Now that customers receive goods not from China but from California, they trust our dropshipping store more. Besides, the quality of our parcels is much better than the ones coming Chinese sellers. This improves clients’ confidence and convinces them to buy again.
Customer lifetime value improved
The customer lifetime value in our case increased by more than 3 times! Now that clients receive their goods within a short period of time and have no complaints concerning the quality, they are more willing to buy again.
Customers follow the recommendations we share in our emails to buy more goods for themselves or for their friends and relatives. They actively use the coupons from our emails and remarketing campaigns and come back more often.
Dropshipping from China allowed this store to enter the market and develop. But when we started shipping goods from a Fulfillment Center located in the US, we achieved an unbelievable growth rate. And this success wouldn’t be possible without Sellvia. If your dropshipping store sells products to American customers, you too can benefit from this solution. Use Sellvia to raise sales, your average order value and revenues.