Its no doubt the key to a profitable dropshipping business is held within the product.Along with the marketing of your business, the product you choose to sell is crucial to skyrocket the revenue of your dropshipping business, so, finding a winning product is key to generating a successful dropshipping business.
You can spend a lot of money on paid advertising, have an eye-catching, professional online store and attractive prices, but if your product is not well sought after, you will most likely not be able to create a well profitable dropshipping business.
If you are thinking of starting a dropshipping business and want to find winning products to increase your revenue, follow our tips and tricks below to determine the likelihood of your product’s potential.
Winning product criteria
Our overall recommendations to find a winning dropshipping product result’s in the following:
- The product solves a problem and provides value to peoples lives
- It is in trend and well sought after
- Has a mass-market appeal and is attractive to multiple target audiences
Does your product solve a solution?
Finding a product that solves a problem and adds value to peoples lives already reaps the benefits of a successful product. A customer is more likely to purchase a product that serves a useful purpose and makes doing things easier for them, compared to a cheap, gimmick item that is not purposeful. In this case, you would have the advantage.
Furthermore, finding a gap in the market where there is largely a common problem is of course an overall win to consumers. Identifying a solution to a problem and providing a product that fills this matter is a great selling point as it is not necessarily something somebody thinks they need but will benefit from.
Well sought after and trendy products
A drop shippers model is usually based on products that are trendy, hot and well sought after, as they seem to generate lots of revenue. Selling these products is a good way to generate revenue because people are influenced by others that they must own the latest gadgets and gimmicks. So if your marketing and product align’s, you are likely to fill this need for consumers.
You could further expand your trendy product into whitelisted products and extend the longevity of your dropshipping business to become brand familiar to consumers. When people are aware of your brand, your product is most likely to sell over competitors when the product begins to transcend in saturation. Whether this is the case or not, your drop shipping business success is determined by your marketing efforts. Having products that are customised with your labels name will help with this acquainted process, so investing your time, money and effort into whitelisting your product will help with marketing, the popularity and reputation of your product, seeing a greater return on investment and the likelihood of a purchase from consumers because of brand security.
Mass-market appeal
Exploring niches with a large mass-market appeal that attracts multiple potential customers, genders, ages, characteristics etc, can help aid in a successful outcome. Having a wide customer range helps you extend the reach of your product into diverse places and further expand your dropshipping business. Before finding the products within these niches, it is a good idea to go the extra mile and research your target market using different platforms such as social media, popular sites, reviews, articles, forums, blog sites, etc, in order to get familiar with your target audience, plan ahead- especially with your marketing approaches, estimate your products assessed value and so forth.
Upselling niched products
Another great way to increase your revenue is to upsell other products based on your initial product. Finding similar products to your existing product or ones within the same niche is a great way to upsell new products. This will help you switch from a one-product store to a general store if this is the dropshipping model you want to expand into. There are many benefits in doing so, see our article here to view the differences between a one-product store and general store, to dictate which is more beneficial for you and your business goals.
With our guide, you can find fortunate upsell products that are likely to sell- if they provide additional value to peoples lives and solve a problem. The psychology in needing your primary product and seeing other products of benefit is an easy way to boost the purchase rate chances on your ecommerce store by upselling different products.
Advice to consider
- When choosing a niche it is good to research further in the target audience and market before choosing a product. Some people usually worry about the target audience after they have found a product but it could be beneficial to encounter this initially. Doing this helps open options to multiple products rather than being shortlisted with a singular product, which is great when upselling products or converting from a one-product store to a general store. Knowing this information on your target audience can help determine the mass probability in your dropshipping business and calculate an estimated profit margin. Does this calculation line up with your business plan and targeted profit?
- A common mistake people make when first starting their dropshipping business is choosing to sell a product they would buy personally. It is common to want to sell a product within a niche that you are passionate about but this can take away from the potential of your business. Not filling a purpose from the consumer’s needs or taking into consideration what people actually want to buy, could result in slow operations, so it is important as a store owner to choose from a consumers perspective.
Overall
We hope this guide helps you choose your dropshipping product with careful consideration and determines the longevity of your product, ways your product can expand your dropshipping business much further and how to decide if your product is fit for purpose.
All the best from OPMC.