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Offering gift wrapping to your customers is service that can prove to be
very profitable at times. There are many customers who will pay good money
for the service as their time is more valuable doing other things aside from
wrapping packages. At some point, you will most likely get a customer buying
for a holiday, birthday, or a special occasion. If you are new to gift
wrapping with drop shipping, there is something to consider. If you are
e-tailing a small size item that is relatively inexpensive and is very
popular with your customers, this could be a good product for you to offer a
gift wrapping service. This particular item can make things a little easier
for you in terms of offering the gift wrapping. Here are some reasons:
1. If it is a good seller for you, then you could probably stock up with
a few of these items for a "mini inventory" with minimal risk of being stuck
with these items over a long period of time. This allows you to have a small
stock of these items by paying the shipping only once to your doorstep. This
reduces the cost of double shipping the item. Why carry this mini inventory?
First, you will have to wrap these items yourself and repackage. So, you
will need them at your location. Remember, you are going to be charging
customers for this service. So, add up the numbers (shipping, materials,
time...etc.) before you take the plunge. Second, you can control the
delivery a little better since you will be sending the item. Those last
minute shoppers can call you and ask, "Can you send it over night gift
wrapped." At this point, you can get their business and say, "Yes we can!"
2. It is better to pick a small item as it will not require a bunch of
space in your office area.
3. Most importantly, you want to make sure this item is a real mover for
you. If you still have items in your mini inventory after the holiday, they
will eventually sell as this is your popular item and is more likely to
move. This greatly reduces your risk of being stuck with items that could
not sell.
How much should you charge? Well, that's up to you and the numbers...but
let me give you a real life example of a situation that happened with a
business associate of mine. She offered gift wrapping as an extra service on
her website. Last holiday season she received a call from a customer wanting
to buy a $19.95 item they had seen on her website. It was December 23rd and
this gentleman wanted the item gift wrapped and GUARANTEED next day on his
doorstep the following morning. Truly a last minute shopper! In short, this
customer paid over $110 for a $19.95 item. The shipping alone was over $70.
This gentleman was thrilled. I was beyond stunned. My business associate
said, "I get these kind of orders frequently. Particularly around holidays."
My lesson of the day...There is profit in procrastination.
Why was this customer willing to pay so much for an item that costs so
little? I later found out my business associate received a thank you email
from this customer describing the situation. Apparently, this customer was a
pilot for a private airline. He was so busy flying clients in December, he
did not get enough time on the ground to go shopping or get on a computer.
So, he called in the order while in the air!
Folks, you never know where your next customer is going to come from.
Gift wrapping is a popular incentive for the special occasion shopper. They
will remember your service and your ability to deliver when they are in a
crunch. This can win customer loyalty.
