Sharon Greenfeld | Modalyst

The Dropshipper’s Guide to Marketing Attribution

Posted on August 15, 2024August 15, 2024 by Sharon Greenfeld

As a dropshipper, your ability to understand where your sales are coming from and which marketing efforts are driving those sales can make or break your business. This is where marketing attribution comes into play.

By properly attributing your sales to the right marketing channels, you can optimize your ad spend, improve your customer acquisition strategy, and ultimately boost your bottom line.

In this guide, we’ll delve into the intricacies of marketing attribution, explore the best models for dropshipping, and show you how to set up a robust attribution framework.

Choosing the Right Attribution Model

When it comes to attribution, it’s important to select the proper attribution model. But before we get there, it’s important to explain what marketing attribution is.

Marketing attribution is the process of identifying and assigning credit to the marketing touchpoints that lead to a conversion or sale. For dropshippers, this is vital because it helps you understand which channels are driving your business. Without proper attribution, you might end up investing in the wrong channels and wasting valuable resources.

So with that, let’s take a closer look at the main attribution models to consider:

First-Touch Attribution

First-touch attribution assigns all the credit for a sale to the first interaction a customer has with your brand. For example, if a customer first discovers your product through generated content on social media, but then opens several email newsletters before returning to your site to purchase, the initial social media interaction receives all the credit.

The advantage of first-touch attribution is that it’s simple to implement and great for understanding which channels are good at generating awareness. On the downside, it ignores all subsequent interactions and thus can be misleading for longer sales cycles.

Last-Touch Attribution

Last-touch attribution gives all the credit to the final interaction before a purchase.

For example, if a customer first discovers your product through social media but then makes a purchase through an email link, the email gets all the credit.

The advantage of last-touch attribution is that it’s easy to set up and focuses on the touchpoint that closes the sale. The disadvantage is that it can overlook the importance of earlier touchpoints.

Linear Attribution

Linear attribution assigns equal credit to all touchpoints leading up to a sale.

For example, if a customer interacts with your brand through a Google ad, email, and social media before purchasing, each touchpoint gets an equal share of the credit.

The advantage of linear attribution is that it provides a more balanced view of the customer journey. The disadvantage is that it can be overly simplistic in that not all touchpoints are equally influential.

Other models like U-shaped or time-decay attribution also exist, but they are often more complex to implement and not supported by many broad-based analytics tools.

What’s the Best Attribution Model for Dropshipping?

For dropshipping, the choice of attribution model largely depends on your sales cycle. If you’re selling impulse-buy items, last-touch attribution is generally the most effective because it focuses on the touchpoint that directly led to the sale.

However, for products that require more consideration and education, a multi-touch model like linear attribution might be more appropriate.

Of course, you can also take multiple attribution models into consideration for an even more holistic view of your business.

Setting Up Your Marketing Attribution Framework

Now that you’ve selected an attribution model, it’s time to look at KPIs and tooling.

For dropshippers, you’re certainly going to focus on sales and total revenue generated from your store. However, you must also pay attention to customer acquisition cost (CAC), customer lifetime value (CLV) and return on ad spend (ROAS).

At the end of the day, you want to figure out which marketing channels result in the highest customer lifetime value at the lowest amount of cost.

To start tracking KPIs and the success of your marketing channels, you’ll need the following tooling in place.

Web Analytics

When it comes to attribution, web analytics is an essential tool for your business.

And despite some of the criticisms of GA4, Google Analytics remains one of the most popular and robust tools for tracking ecommerce metrics. Ensure that whatever analytics platform you use, your tracking script is installed as soon as possible so you can begin collecting valuable traffic data.

Meta Ads Pixel

Once your web analytics tool is set up, you’re likely going to start running ads to your store. And if that’s the case, you’ll want to install the Meta Ads pixel on your site to help track conversions from your Facebook and Instagram ads.

If you’re using Google Analytics, then you may want to also consider using Google Tag Manager. By doing so, you’ll be able to manage all your website tags without editing your website’s code. This can be very beneficial if you’re using multiple ad platforms that all require tracking scripts to be installed on your site.

Once your Meta Ads pixel is installed (or whichever platform you’re using), then you’ll want to configure it to track key events like add-to-cart and purchases.

Attribution Windows

Once all your tracking scripts are installed on your site, you may want to fine-tune your attribution windows. Attribution windows define the time frame in which a conversion can be attributed to a particular touchpoint.

In Google Analytics, you can adjust the attribution window in the Admin settings. Meta Ads allows you to set different attribution windows for clicks and views, typically ranging from 1 to 28 days.

If you’re just starting out, I’d generally recommend you leave the default settings as-is. However, if you have a specific reason for doing so, then feel free to adjust the attribution windows to better suit your business.

Now that all of your tracking is setup, ensure that all your tools work seamlessly together. Google Analytics and Meta Ads can both track conversions, but you need to make sure the data flows correctly between them and ensure consistent use of UTM parameters.

Leveraging UTM Parameters

UTM parameters are tags you add to your URLs to track the performance of your marketing campaigns. They are crucial for accurate marketing attribution because they help you identify which campaigns are driving traffic and sales.

When creating Meta ads, you’ll want to append UTM parameters to your URLs to track the source, medium, campaign, term, and content.

By doing so, Google Analytics or whichever analytics tool you’re using will automatically recognize these parameters and provide detailed reports on the performance of your campaigns.

To simplify the process, we highly recommend using a UTM builder for consistency and accuracy. For example, this UTM builder from GoodMetrics helps marketers create precise UTM links, which are essential for effective attribution tracking.

Monitoring and Optimization

Once your campaigns are underway, you’ll want to continuously monitor your data.

Regularly review your attribution reports to identify the most effective channels and adjust your budget accordingly.

Tools like Google Analytics provide detailed insights into user behavior and conversion paths, allowing you to make data-driven decisions. Again, you’ll want to focus on the marketing channels that provide the highest return on ad spend.

Wrapping Up

Marketing attribution is crucial for dropshippers looking to optimize their marketing efforts and grow their business. By choosing the right attribution model, setting up a robust framework, and continuously monitoring and optimizing your data, you can make informed decisions that drive sales and increase profitability.

To recap, here are some actionable steps to get started:

Choose an appropriate attribution model based on your sales cycle.
Set up your tools including web analytics and Meta ads pixels.
Create and use UTM links for all your marketing campaigns.
Regularly review your attribution reports and adjust your marketing strategy accordingly.

By implementing these steps, you’ll be well on your way to mastering marketing attribution and driving success in your dropshipping business.

The Most Popular Products to Sell on Your Dropshipping Website

Posted on July 31, 2024August 1, 2024 by Sharon Greenfeld

When you try to understand dropshipping you should first recognize the dynamic aspects of this market. Dropshipping is a business model that has taken the ecommerce world by storm. As an entrepreneur, you might be drawn to its low entry barriers and the promise of a lean business operation. But what exactly is dropshipping, and why is it so appealing?

Dropshipping is a retail fulfillment method where you, the store owner, don’t keep products in stock. Instead, when you sell a product, you purchase it from a third party—usually a wholesaler or manufacturer—and have it shipped directly to the customer. This means you’re free from handling the product directly.

The reason dropshipping is such an apeling business lies between its simplicity and cost-effectiveness. You don’t need to invest heavily in products, or storage space, or worry about overstocking items that might not sell. Your primary focus is on marketing and customer service—two critical aspects that drive sales and growth. Another important aspect is – trends, which will assist you in the wilder vision of consumer behavior and understanding what your client is looking for.

Understanding these market dynamics is crucial as they influence your product selection—the cornerstone of your dropshipping success. In the next section, we’ll dive into the most sold dropshipping products to give you an idea of what’s nowadays capturing consumers’ attention in this competitive space.

Identifying the Best Selling Niches in Dropshipping

Choosing the right niche is a pivotal decision in your dropshipping journey. A leading niche is a specific segment of a larger market that you can target with your products. It’s about finding an area with high demand but not so much competition that it’s impossible to make a mark, be ranked with relevant keywords in the search engine results, and succeed with high engagement and purchase in your dropshipping store. For more details check our profit margin calculator.

What is a Niche Market?

A niche market could be anything from eco-friendly household goods to tech gadgets for fitness enthusiasts. It’s an area you specialize in where you can offer unique value to your customers.

The most profitable Dropshipping Products

1. Car Accessories

The car accessories market is substantial, with popular products including air fresheners, Bluetooth car adapters, car chargers, and dash cams.

2. Sustainable Products

Sustainability is a top-performing niche, especially for US consumers who prioritize eco-friendly products. This niche includes items like reusable bags, eco-friendly household products, and sustainable fashion.

3. Kitchen and Dining

Products in this niche include kitchen gadgets, cookware, and dining accessories. This category remains popular due to the continuous interest in home cooking and dining experiences.

4. Home and Bedroom

This niche covers a wide range of products such as bedding, home decor, wall decor, and furniture. The demand for home improvement and comfort items continues to grow and updated according to the latest prints and fashion trends.

5. Toys and baby accessories

Products for children and babies, such as baby bottles, booster seats, and breast milk storage solutions, toys, and gadgets for kids are consistently in demand due to the ongoing need for childcare products.

6. Home Office

With the elevation of remote work, home office supplies like ergonomic chairs, desks, and organizational tools for laptops have seen increased demand.

7. Phone Accessories

This includes items like phone cases, chargers, and screen protectors. The continuous release of new smartphone models keeps this niche super relevant and in high demand all the time.

8. Wellness

This niche includes fitness equipment, health supplements, and wellness products. The growing focus on health and self-care drives demand in this category and is relevant for all genders and ages.

9. Home Gadgets

Products like smart lights, security cameras, wireless remotes, and other home automation devices drop under this niche, which is growing with the increasing adoption of smart home technology and the need to control and reschedule your home electric devices.

10. Personalized Items

Customizable products such as personalized gifts, clothing, and accessories are popular due to their unique appeal and personal touch.

Key Considerations and how to master Product Selection in Dropshipping

Selecting the right products is not just about intuition; it’s an art that requires research, analysis, and a strategic approach. Your product choices can make or break your dropshipping business, so it’s essential to get this step right and choose the most suitable products to sell on your dropshipping website.

The Importance of Product Research: Before you dive into sourcing products, you need to understand what makes a product desirable in the dropshipping market. This involves looking at trends, understanding your target audience’s needs, and identifying gaps in the market that you can fill.

Tools and Platforms for Finding Trendy Dropshipping Products

There are numerous tools and platforms available to assist you in finding trendy dropshipping products. These tools can be used for researching, analyzing, and tracking product trends in specific niches. With the right tools and platforms, you can stay ahead of the competition and maximize your profits by tapping into the latest trends in the market.

1. AliExpress

AliExpress offers a “Find Products” feature within its business suite, showcasing top-performing categories and popular products. This tool allows you to browse best-selling items across different categories and see the most popular products for the day.

2. Amazon Best Sellers

The Amazon Best Sellers page lists products with the highest sales in specific categories. By checking this page, you can identify trending products that are in high demand and consider selling similar items in your store.

3. Google Trends

Google Trends analyzes the popularity of search queries and topics over time in the browser. You can use Google Trends to search by CCTLD and compare different queries to find high-demand products for your dropshipping store.

4. Social Media Hashtags

Social media can be a goldmine for spotting trending products and consumer interests. TikTok & Instagram hashtags feature popular products that users are buying and sharing. Browsing unique relevant hashtags inspires, creative, and trendy dropshipping products that you can find and likely sell fast and easily on your site.

5. Social Media Platforms

Social media channels like Instagram, TikTok, Facebook, and Pinterest are excellent for discovering trending products. Follow popular influencers and browse the Discover sections and hashtags to see what products are gaining traction.

6. Google Keyword Planner and Ahrefs

These SEO tools help you identify popular trends and understand the demand for specific products. They show how many people search for particular keywords and how interest has changed over time, helping you gauge market saturation and demand.

Evaluating the level of competition in your chosen dropshipping niche is also a crucial part of your ongoing website maintenance as a marketer and store owner.
Now, you have acquired all the needed tools and guides on how to select the right products to sell in your store and how to take care of you’re dropshipping business health, trends, productivity, and profitability. In case you don’t have a dropshipping business yet, or you still considering how to start your business and what will be your store name, you can check our guides and start easily with minimum risk to build your e-commerce business.

Why User Generated Content Is Crucial For Small Business Growth

Posted on April 19, 2023June 8, 2023 by Sharon Greenfeld

Small businesses need help with building their brand and driving growth. With limited resources and budgets, finding ways to stand out from the competition can take time and effort.

However, one solution that has proven to be highly effective for small businesses is user-generated content (UGC). Among consumers of all ages, 55% trust UGC over other forms of marketing, giving the idea that UGC can be a game-changer for small businesses looking to connect with their audience, increase brand awareness, and drive sales.

This blog will explore why UGC for small businesses is crucial for growth and provide practical tips for utilizing its potential. So, let’s dive in!

A Brief On User Generated Content

User generated content (UGC) refers to any content created by users rather than the business itself. This content can take many forms, including reviews, testimonials, photos, videos, social media posts, and blog comments.

UGC is an effective marketing tool because it provides social proof of a brand’s quality and helps build trust & credibility with the target audience. When users create and share content related to a brand, they endorse it to their friends, family, and followers, which can drive awareness and interest in the brand.

Types Of User-Generated Content

User-generated content (UGC) has recently become integral to the digital landscape. With the emergence of social media and online communities, UGC for small businesses has gained popularity for users to express themselves and share their experiences with others.

Reviews

Reviews are a type of UGC that allows users to share their experiences with products or services. Reviews can be found on various websites, from e-commerce platforms to travel booking sites.

They can be created in different formats, including star ratings, written descriptions, or a combination. Reviews are an essential source of information for many consumers, allowing them to make informed decisions before purchasing or booking a service.

Photos

Photos are another UGC form that has become increasingly popular in recent years. Users can share photos on social media platforms like Instagram, Snapchat, and Facebook.

They can also upload photos to image-sharing websites like Flickr or Imgur. Photos can be a powerful way for users to express themselves and share their experiences with others. They can showcase products, capture memories, or convey emotions.

Videos

Videos are a type of UGC that has gained immense popularity recently. Users can share videos on social media platforms like YouTube, TikTok, and Instagram. They can also upload videos to video-sharing websites like Vimeo or Dailymotion.

Videos can be used to share a wide range of content, including tutorials, product reviews, and personal experiences. They are a powerful tool for storytelling and can help users connect with others on a deeper level.

Blogs

Blogs are a more traditional form of UGC for small businesses that have existed for many years. Users can start a blog on various website building platforms available like Wix, Blogger or Tumblr.

They can then share their thoughts, experiences, and opinions with others. Blogs can cover various topics, including fashion, travel, food, and politics. They can be a dominant tool for building a personal brand or sharing information with others.

Ways To Use UGC For Small Businesses

By leveraging UGC, small businesses can create authentic, engaging content that connects with their target market. In this context, there are three primary ways that small businesses can use UGC to their advantage: incorporating reviews, displaying different use cases, and surveying their customers.

Incorporating Reviews

Incorporating reviews into your marketing strategy is an effective way to showcase your brand’s credibility and build trust with your audience.

Reviews provide social proof that your services or products are worth investing in, which can be a significant factor for potential customers on the fence about purchasing. By showcasing positive reviews on your website, social media pages, or other marketing materials, you can demonstrate the value of your brand to potential customers and increase conversions.

Displaying Different Use Cases

Displaying different use cases for your products or services using UGC can be a powerful way to showcase their versatility and inspire potential customers. By sharing UGC that highlights different ways your products or services can be used, you can provide new and exciting ideas to your audience and encourage them to engage with your brand in new and creative ways. This can assist you in building a loyal customer base that is invested in your brand and willing to advocate for it.

Surveying Brand Customers

Surveying your customers is an effective way to collect UGC for small businesses that can be used to improve your products or services and showcase customer satisfaction. By asking your customers for feedback and incorporating it into your marketing strategy, you can create engaging content that strikes a chord with the audience and builds trust in your brand.

This can be a powerful way to differentiate your brand from competitors and establish a unique value proposition that builds a rapport with your target market.

How UGC Is Beneficial For Small Businesses?

UGC is created by the users themselves, which means it is cost-effective, easy to get, and can be used anywhere. In this context, there are five primary benefits of UGC for small businesses: cost-effectiveness, ease of acquisition, versatility, community building, and increased engagement.

Cost Effectiveness

User-generated content is an incredibly cost-effective way for small businesses to create content. Instead of spending time and money on creating content themselves, small businesses can leverage UGC created by their customers. This means they can spend resources on something other than creating content from scratch, which can be beneficial for small businesses with limited budgets.

Ease Of Acquisition

UGC is easy to acquire. With Taggbox, for instance, small businesses can collect UGC from several social media platforms, such as Instagram, Twitter, Facebook, and others.

By curating and displaying UGC on their website or social media pages, small businesses can easily create engaging and authentic content that connects with their audience.

Highly Versatile

User-generated content can be used anywhere. Small businesses can embed UGC on their website, display it on digital screens at their physical locations in the form of a social wall, include it in emails to their subscribers, and more.

This versatility makes it easy for small businesses to incorporate UGC into their marketing strategy in a way that works best for them and their audience.

Efficient In Community Building

UGC can build a sense of community around your brand. By featuring UGC created by your customers, you can foster a sense of belonging among your audience, increasing brand loyalty and encouraging them to share their experiences with your brand.

Boosts Audience Engagement

Lastly, user-generated content is renowned for increasing audience engagement. Users who see their content featured on a brand’s website or social media pages are likely to engage with the brand and share the content with their followers. This can lead to increased visibility, organic reach, and conversions.

Wrapping Up!

In conclusion, user-generated content (UGC) is crucial for small business growth in today’s digital age. With the rise of social media & online reviews, consumers trust UGC more than ever.

By leveraging UGC, small businesses can build trust, increase engagement, and drive conversions. Incorporating user-generated content into your marketing strategy can be simple and inexpensive.

There are several UGC platforms available, such as Taggbox, Taggshop, Social Native, and Yotpo, that offer affordable and easy-to-use solutions for small businesses. By displaying UGC on your website, social media pages, and digital screens, you can create a sense of community and authenticity that resonates with your target audience.

By surveying your customers and asking for feedback, you can gather valuable insights into what your customers want and need and use that information to improve your products or services.

Author Bio
Prakash Rawat is a results-driven performance marketer with over 2 years of experience in the SaaS industry. He specializes in crafting and executing data-driven digital marketing strategies that deliver measurable ROI. His areas of expertise include PPC, SEO, and social media advertising.

You can reach out to him on Linkedin.

How to Make Sure Your Dropshipping Delivery Will Get to Your Buyer Safely

Posted on January 1, 2023July 26, 2023 by Sharon Greenfeld

If you’re in the online sales business, you probably know that the future of eCommerce is dropshipping. In fact, the dropshipping market is projected to reach a whopping $476 billion by the end of 2026!

While that’s good news for small businesses and eCommerce hopefuls, it also means competition will likely increase. In other words, customer satisfaction will have to be your priority if you hope to stand out among the dropshipping crowd.

Keep reading to learn more about increasing customer satisfaction by keeping your delivery promises as an eCommerce business.

Dropshipping as the online store solution

As an eCommerce seller, you’re responsible for completing a long list of tasks. But, as you know, the solution to allowing online stores to operate with fewer production costs has been dropshipping.

Some of the best examples of this business model include Amazon, eBay, and AliExpress. What’s more, the right dropshipping tools free you of the financial and time-consuming aspects of labeling, shipping, and stocking.

However, not everyone considers that with dropshipping, customer service is still squarely on the seller’s shoulders.

What makes good dropshipping customer service?

If you want your eCommerce business to thrive, customer service will need to be your top priority. As a dropshipping seller, you must maintain good relationships with customers by any means necessary while simultaneously managing suppliers.

Ways to improve your customer service:

Keep response times fast: Have you ever waited on a response from customer service reps? If so, you know the frustration can make someone second-guess their purchase. If you want return customers, having a quick response time will help.
Invest in a content platform: Juggling marketing, customer service, and an online store is hard. But investing in a content platform can help you stay organized. It also helps you limit the amount of time between orders.
Follow up with customers: Want to establish a trusting relationship with your customer base? The best way to entice people to keep buying from you is to reach out. Follow up when the order is being processed, when the order ships, and again after they’ve received their package.
Make sure packages get delivered safely: Believe it or not, you’re also responsible for ensuring that packages get delivered safely. Below, we’ll go into more detail about this aspect of dropshipping customer service.

Here are five things you can do to make sure the package delivery process is smoother:

Test shipping times
We know it’s exciting to start your eCommerce journey. But if you want your orders to arrive without incident, tests and experiments are well worth the opening delay. Testing the ordering, shipping, and delivery process of your own product gives you an inside look into what customers can expect. If one supplier doesn’t fulfill your order on time, keep trying until you find one that’s more reliable. You’ll thank yourself later when your customers aren’t complaining about faulty deliveries.Also, choosing a pre-qualified supplier can help reduce potential fulfillment complications.
Be transparent about shipping times
The worst thing you can do with your online store is hide expected shipping times. If you have a product that people want, you won’t need to rely on bad messaging. Being transparent about shipping times can help manage expectations. Moreover, when customers have a timeline for the fulfillment, they’ll know when to expect their order and can plan to intercept it.
Be thorough and organized
When it comes to fulfilling orders in a timely, organized manner, the best thing you can do is be thorough. Some of the biggest time-wasters in shipping are wrong addresses, misspellings, and half-filled forms.Make sure you double-check all information before finalizing orders. Second, don’t be afraid to reach out to customers if something doesn’t look right on their shipping form. They’ll thank you for following up if it means their order arrives safely.
Choose reliable shipping methods
Depending on which supplier and dropshipping company you partner with, choosing a shipping method may be the best way to control outcomes. If you can choose the final delivery expert, choose a well-known handler like UPS, USPS, or even FedEx. These handlers will know their neighborhood, access a customer’s package locker, and even have real-time delivery updates.While you can’t control all aspects of the final delivery, you can at least rest easier knowing you used a reliable handler.
Take responsibility
Sometimes, no matter how hard you try, shipping delays and package loss happens. It’s not the end of the world, but as a top-notch seller, taking responsibility for these mishaps could make all the difference.

Some good ways to make up for unforeseen order issues:

– Be open to fixing the issue
– Keep communication lines open
– Issue refunds when needed
– Follow up after resolving an issue
– Offer to replace broken or lost itemsUltimately, you must decide what’s more important: saving money or saving your reputation as a dependable seller.

Takeaways

Dropshipping is quickly becoming the best way for eCommerce businesses to sell on a limited budget.
This type of online business is the solution to making it easier for sellers to focus on more critical aspects of selling.
Dropshipping customer services is what will set you apart from competitors.
Five ways to ensure packages arrive safely include testing shipping times, maintaining transparency with customers, keeping addresses organized, choosing a reliable package handler, and issuing refunds when necessary.

Learn how to start a successful dropshipping business with Modalyst. Overnight.