Creating a dropshipping store reduces risk and makes the online selling process effortless. Most people believe that the primary disadvantage of dropshipping is that all your competitors will be selling the same products as you.
But I tend to take a more optimistic view of the situation. If everyone else is selling the same thing, you should have no trouble selling it. Finding items that are perfect for dropshipping is an easy task if you know the steps to follow.
If you are aware of the products that are most popular with your competitors, you will be able to sell successful products. You need to perform a bit of study on various products to identify the one that will assist you in winning the jackpot.
So, in this article, I will outline the key steps you should take when researching your product ideas.
How To Find Profitable Products For Dropshipping
With so many product categories to choose from, how do you know where to start your search for an ideal product to dropship? There are a number of tools and resources we can leverage to help us find winning products. In this guide, I’ll discuss the techniques and tools I use to find my winning products saving me hours of precious time and making me a lot of money in turn.
These are the steps I take to find profitable products for dropshipping.
1. Check That The Best Niches For Dropshipping Are Not Over-Saturated
The first thing you should do when choosing a niche is to check how many competitors are already in it. If there are too many, you might have trouble standing out from the crowd and making money with your dropshipping business.
If you have many competitors, it’s time to look for another niche. Choose something else!
2. Check That Your Niche Is Not Too Broad Or Narrow.
Make sure that your chosen niche is neither too broad nor too narrow. This way, it will be easier for you to attract people the right number of people to your business as there are not too many competitors and not too few customers.
3. Make Sure There Is Sufficient Market Size For Your Niche, Especially If You Intend To Go Worldwide.
Make sure there is a sufficient market size for your niche, especially if you intend to go worldwide. You might be able to find information on people who search for your products on sites like eBay or Amazon.
However, these sites may not be reliable because they are not global in scale and are focused on specific countries. Instead of using them as a basis of comparison, use Google Trends and Keyword Planner.
4. Make Sure The Products Are Practical And Can Be Quickly Packaged and Shipped.
When you’re selling a product, the customer will be looking at how easy your website is to use, how quickly they can find what they want, and whether or not the shipping costs are reasonable.
- Make sure the products are practical.
- The product should be easy to ship.
- The product should be easy to package.
The product should be easily displayed on your website so that customers know what it looks like. This also reduces returns.
5. See If The Profit Margin Is Above 20%
Profit margin is one of the most important things to consider when dropshipping because it’s a good indicator of how much you can expect to make on each product. The profit margin is calculated by dividing the cost of goods (COG) by the selling price. If your COG is $100 and your selling price is $150, your profit margin would be 50%.
It would help if you always aimed for a profit margin above 20% to make a decent return from each sale.
6. Check That Your Competitors Have At Least Five Reviews On Their Products.
The next step is to check that the products are practical. This doesn’t mean they have to be useful, but the product should have a broad appeal.
Finally, look at how many reviews your competitors have gotten from other buyers on their products before deciding whether or not this item will sell well enough for you.
7. Check That Your Competitors’ Prices Can Be Beaten By Around $5 – $15
After you’ve found a product that seems like a good fit, don’t stop there. Ensure your competitors’ prices can be beaten by around $5 – $15. It will serve as an incentive for customers to buy from you instead of them.
If the price is too high and you think it will be difficult for customers to justify paying that much for the same item elsewhere, consider thinking about ways in which you could use dropshipping to get lower prices or better prices (or both).
8. Check That You Can Get Picked Up By Google Shopping
This is important as it will help increase the number of potential customers who see your product and therefore visit your store. The more products you can get in front of customers, the more sales you will make!
The next step is to make sure that your dropshipping product has a decent amount of reviews on Amazon. This allows people to see how well-received it is by other shoppers and reduces any concerns they may have about buying it themselves.
9. Market Research
You will not want to spend loads of time and money creating a dropshipping store without thorough market research One of the most common mistakes new drop shippers make is not doing enough research before they start. They think that because they have found a niche and decided what products to sell, all they need to do is throw up a website and wait for sales to roll in.
Suppose you’re serious about making money with eCommerce. In that case, you must understand from the outset that many different factors are at play when finding winning dropshipping products. Without thorough market research, you will not want to spend loads of time and money creating a dropshipping store.
Conclusively, you should now have enough information to confidently start your dropshipping business. Remember, there is no formula for a winning niche. It is up to you to do the research and find one that suits your needs.
Also, remember that it is not advisable to sell a product because it has low competition or high demand. Ultimately, by going through market research, you will be able to identify profitable and sustainable niches, ensuring you get off on the right foot with your new business.
