Dropshipping is a risky business model. Not all online marketplaces succeed in this field. Questions circulate about whether this model will still work for business owners in the coming year. Apparently, it is predicted to gain an income of $150 billion by the end of 2020.
It may still be quite soon to tell though, because the business industry is unpredictable, paired with an unstable global economy. The trends change from time to time that it’s almost impossible to catch up. Everything is moving at a fast pace.
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Players in the dropshipping game are gradually shifting their focus on just one product category, one niche, and single-product selling. They are slowly creating private labels and are well on their way to establishing their own brand.
But it remains true still, in any up and coming store, the defining variable of success is the product. What you sell will determine your store’s fate. The right choice will keep your store afloat, and could even give you the big bucks. How do you figure out which products will work? You’re in luck! Because in this article, I am about to present some tips and tricks for product research that will guide you to that decision of selecting your niche all the while considering other crucial factors such as time and money.
AliExpress Product Research Tool
AliExpress is the go-to place on the web for accurate product research information. But with the wonders that it does, comes the threat of scam. You can encounter suppliers that are not worthy of trust, and products that are made with poor quality. How do you distinguish the naughty from the nice?
Choosing your niche
Filter your search results. Begin by sticking to one niche, or even a sub-niche. Specify smartly. Home furniture, perhaps, can be narrowed down to, living room, bedroom, kitchen, dining room, or bathroom. You can choose the general niche, with a wide avenue for a product catalog or you can opt to have a more specific product focus. Having a niche gives you the chances to explore the array of product choices you can have under that niche and then establish your brand tone and what you want to offer to people. There are a lot of opportunities that come along with it. There is no right or wrong with this. Every niche can work as long as the handling is good. But you can still know if that niche works well in a dropship model.
Check the Demand
Niches with high demand are suited for dropship. Find out the demand through these tools:
- Google Trends – a chart that shows the search volume of a particular keyword is generated with this online tool. You will also be able to make a comparison between multiple niches and know where that niche is most frequently searched in.
- Social Media – Facebook, Instagram, Twitter, Pinterest, Reddit, and many others are great ways to gauge the interest of online buyers. You can have an idea just how popular a niche or a particular product is by browsing through conversations, forums, and discussions that people engage in at these social media sites.
- Ali Insider – this niche analysis tool can be added to your browser as an extension. It has an added feature where a simple keyword search generates a lot of useful information about that niche or product based on the AliExpress database. It can tell you how much of their products fall under that niche, daily sales made, and the income that dropshippers gain from that niche.
Evergreen is a must
It is in your best interest to get a niche that is constantly in demand all throughout the year and not just in a particular span of time or is commonly termed as, “seasonal.” Holiday items, products that are only hyped during certain months of the year, are bad for dropshipping because you will only get sales at the time when they are in demand. What about during the times when they aren’t?
Easily accessible target demographic
You’ve got high demand, the evergreen attribute, but you should also consider where you can find the people that you’re going to try and sell these to, how you’re going to approach them, which platforms they frequent, and what kind of campaigns ads they respond well to. Is there a popular blogger that you can ask to promote your products?
Familiar to you
All seller interest aside, a business that you are personally interested in and are passionate about will indeed be more of an enjoyable experience for you. When you are invested in something, you rarely ever get tired because you actually love what you are doing and you’ll want to learn more about it, which then makes you better at dealing with all the things that come with it. From producing marketing content to communicating with customers and everything in between, it’ll be a piece of cake for a business owner who understands it well.
Apart from niches, a one-product store can also be good for a dropship model. While it may limit your chances of exploring other product and niche options, you will be able to focus solely on that one product, and all your resources can be dedicated to making that single thing work.
What products are prone to success?
There isn’t exactly a blueprint that you can follow for specific products that gain a lot of success for business because of the several factors surrounding its performance on the market, but there some characteristics of a winning product that you should look for.
People face different kinds of problems everyday. Problems with physical and mental health, home furnishings, etc. A product that hits the bullseye for a customer’s needs are surely promising.
While it may not be a necessity, a product that invites excitement and is appealing to your target market will also generate you sales. Something that blows people way like multifunctional products are a hit on the market today.
A product that cannot easily be found in other stores and that you are the only one or one of the few that sell it? Cha-ching! It eliminates the aspect of competition and a great key to brand building and brand recognition. Furthermore, if that product performs well, then your customers will remember that you are the only one selling it and then return to you.
A high mark-up for a product is always desirable to a seller. In order to cover the expenses that come with advertising, site maintenance, shipping, and other tools and resources, you need to sell your product with a mark-up of at least more than 200% to still have profit to spare. A minimum sales price of $20 is advised to give you a justifiable profit.
Finding good suppliers
Reliable, positive reviews, fast and cheap shipping, and offers products at low price – that’s what we are looking for in a supplier. Ali Insider Suppliers Finder feature can give you a list of suppliers that offer the product with a bunch of important information regarding pricing and shipping. You can also conduct your own research.
Learn from the competition
One thing that’s good about having competition is that you can take note about how they do things, and apply it to your own way and improve it. Do not hesitate to learn from your competitors. Observe the way they handle business and how they deal with the product that you are both selling. Take note of some key points that work well and those that don’t then strategize your game plan using those notes as one of your references.