Drop Shipping is often a cash cow if you have the right product. The right product for you may be a product that gets sales quickly to reduce deadstock or a product that will sell for longer periods. The best product in terms of sales depends on whether you have a long-term or short-term strategy.
Some products may offer high sales or sell over a longer period but offer minimal sales margins that often leave your business gasping for air. It is best to choose your product methodically using proven methods to ensure that your dropship is a success and gives you a competitive advantage.
Here we highlight how to find dropshipping products that will work for your business. It is vital to find products that have high sales volumes at good margins. Getting the right wholesaler can also heavily influence the products you choose.
The best way to ensure sales is to find a product that is irresistible for your chosen niche or market. Follow these tips to get the right product.
Popular products can be easy or hard to sell, depending on the number of sellers and your competitive advantage. It is in your best interests as a small retailer on online platforms like eBay or Amazon to ensure you stand out against the larger businesses by having a good selection, availability, choice, and price.
How can you determine that a product is popular? The best and most trusted technique is to analyze online stores. Target big stores for best-selling products, least selling, and trending items to gauge what works for you. Popular products are often sold in and out of season; if you see that a product has a high sale in summer, you might get it and be disappointed in the fall. Target timeless products in your product research.
Each year over 250,000 products are launched into the market, but only 5-15% 0f the products survive the market. There are products in this category that sell for an extended time before they grow unpopular. The best time to sell popular products is when they hit the market when consumers are excited and willing to try the products out.
If you manage to source trending products before your competition catch wind of them, then take advantage of the low marketing fee and establish your store as a brand leader. You can use resources such as Kickstarter, Google Trends, and Wish to get leads on trending products. Once you get the right products, you can filter for products with huge profit potential. You also have to figure out how you will market the products to your audience before getting inventory.
Social sites have different meaning depending on the context and use; however, joining the two most common meaning are:
a) A place where users can share and communicate information on prices, products, and deals. User can create custom shopping lists and share with friends online. An example of this is Zwibe and Pinterest.
You can also leverage the power of social media to get insight into new products. Social shopping sites provide the best leads since they are based on consumer recommendation-your actual market. There are prominent customer reviews and feedback that help you make a more informed decision. You can also find out products that interest most people.
Iron sharpens iron, the best way to get the technical information on how to find dropshipping products is to learn from the master of the same craft. The first place you can find communities of a drop shipper is on Facebook groups and communities where you can discover tried and tested methods and get leads on the hottest product. Communities on Facebook have hundreds of people and, at times, thousands that can impact your business.
Join niche groups of specific products you have the most interest in, such as gardening, fashion, and fitness, among others. You can also use online forums like Reddit and Quora to discuss with fellow the trendiest and most stable products. If a problem is discussed, find a product to solve the problem, and you are on your way to making big cash.
As much as you can learn from your peers, there is much more to be gained from your competitors’ tactics. Identify your current or potential competitors. Try to identify their pricing strategy and predict the new products they will sell. Remain a step ahead to be more competitive.
If your competitors offer products you are considering, you can cross out the product if you cannot undercut them or match their price. You can easily get your competitor by searching on any popular search engine.
search engines like Google, DuckDuckDo, and Bing have democratized information; therefore, you should have an excuse. Just go to your favorite search engine and search your terms like “interesting product,” or “most profitable product this year.”
The best way to get around the search engines is to type the Product+” Niche.” The niche can be anything you like such as fashion. Click through most of the results to get a cash cow.
Getting a good lead is just the first step on how to find products for dropshipping. You have to keep a list of all the products and conduct a rigorous analysis to select the most profitable dropshipping products.
You are into dropshipping to make a profit. To maximize profits, you have to find a markup price that ensures continuous sales. The price should not be too low that you make a loss or too low that you do not make sales.
You should focus on a product that can generate a profit of at least $10 more than the price you bought them. If the price markup price cannot generate $10, the good can sell multiple units over a short period and aim for products with a profit margin of at least 10%.
Profits less than 5% are considered too low, while 30% is a lucrative business. The markup price should ideally cover the cost of the product, the shipping costs, marketing costs and still earn a decent profit. You should scout the competitor in your niche so you can also get the price that undercuts them.
The dropshipping supplier is likely to be the one to fulfill your order on your online store. If you have an unreliable supplier or poor dropshipping support, you will likely get bad reviews and lose your customers. You should settle for reputable suppliers who have been vetted or have the best customer service.
Get suppliers that only focus on dropshipping and communicate with them in advance so that you are on the same page regarding the terms of service. You have to be familiar with all charges as some are sneaky and have hidden costs that cripple new dropshipping businesses.
Your survival is only as good as your competition. You may have a niche product but find several people who are stocking the same market. Your strategy in such a situation is to ensure that you stand out from the competition by having a big online presence or offering the most value to the consumer.
You can easily spot your competition by doing a google search of your niche product. A reverse image search is equally useful in getting the right kind of result. If the competitors are too many, you will not get noticed; therefore, just abandon the product. If the price of your product competitor is too low, you cannot offset it time to concentrate on another product.
Google Trends is a tool that allows you to determine the frequency of a search term over time. It is simple as it makes most of its analysis in a visual impression. Using the tools, you get a visual impression of how products have performed. The only thing you have to keep in mind is that you need can only analyze five products at a time.
The tool enables you to conduct an analysis based on country. You cannot filter by region yet. You have the option to filter by time which is a sensitive issue with trending dropshipping products. You can refine the category, interest over time.
The best way on how to find dropshipping products is long and tedious, but a rigorous process ensures that you have products that guarantee a profit in the long run and the short run. You should exercise patience to find out how to find products for dropshipping and ways to conduct proper research and product selection. Find multiple product ideas to be much easier to drop low-margin products at the selection process.