Some say that dropshipping is like selling hotcakes and earning thousands, but without having to make the batter, to cook the cakes, without even having to stack them on plates. As an easy entry to the business model and the attractive potential profits, dropshipping has taken over the e-commerce world.
But not all ‘hotcakes’ are equal in this business model. There are products that might not have a consistent, stable market, but there are also those that could be an endless goldmine. With a lot of people diving into the same dropshipping model, how do you find winning dropshipping products?
Competition has grown wide in dropshipping, but that doesn’t mean you cannot be successful. Staying informed of the current trends in the industry will be your edge in the game. Trends are not just about what’s trending now though – you need to know how to anticipate what’s coming and be able to predict what would gain popularity next. Observe shopper behavior, be on the lookout for anything in your niche that is gaining momentum. Remember that the name of the game is adaptability.
Market Research and Niche Selection
Where to start finding winning dropshipping products?
The process of finding winning products revolve around two e-commerce concepts: market research and niche selection.
Market research would be your foundation and guide around the e-commerce landscape. This is where you would dig into and analyze trends, observe competition’s performance, and understand your target market’s preferences. Market research is literally researching and studying the market you want to penetrate.
Niche selection, on the other hand, is narrowing down to one niche or industry that you want to cater to. It’s finding that sweet spot where market demand and your passion meet. By selecting a niche, you are able to tailor your product offerings and narrow down your ideal customer into one whose preferences and behavior would be more familiar to you.
Tools and Resources
As dropshipping dominated the industry, tech around it also continue to develop, enhancing the business experience and making it easier for entrepreneurs to find success in this field.
- SEMRUSH: Semrush is one invaluable tool where you can keep track of trending keywords, gain an understanding of what’s in high demand, and predict which ones will soon be the trend.
- Google Trends: This tool from Google tracks trends of search terms in real time, as well as a trend history so you can discern whether a product has its peak seasons or if it is in demand consistently.
- Ahrefs: Use this tool for in-depth backlink analysis, organic search, and keyword research. This is especially useful when you have narrowed down to a niche as it would provide necessary insights to what’s trending in your chosen niche.
- Google Keyword Planner: Another tool from Google, this time to help you keep track of and plan your keywords. This tool also offers data and reports on competitive keywords, and is better utilized when used in conjunction with Google Trends.
- Amazon Best Sellers: If you are including the Amazon marketplace in your research, this tool is essential to know the top-selling products in whichever category you choose. That’s like looking out the window and seeing the actual playing field before your game!
Learning to navigate these tools may feel overwhelming for beginners, but trust us when we say these would be your best friends in this business. The data you will get from these tools will not only fill up your research but will provide actual solutions to any challenges in your market research.
Building Your Product Selection Strategy
In the journey to finding winning products to dropship, make sure to do the following for good measure!
Analyze the Competition
How are your competitors selling their products? Which products are selling the most? Do they write very long product descriptions? Are their product images custom to their brand, or do they use generic images? What keywords do they use in their product titles?
Especially if you are a beginner, analyzing competitors means analyzing the success of people before you. They are your competitors because they are successful in selling the same products your planning to sell, so might as well copy their best practices.
Once you’ve dissected their marketing and selling approach, leverage this to your advantage and apply the same insights to yours. Remember though that this does not mean a complete imitation – just get inspiration from their best practices and then go from there.
When it comes to selecting the actual products to list, make sure to consider the following:
- Product price: How much is the product on average when bought from the suppliers? How much are your competitors selling it for? The prices you assign to your products should still allow for a reasonable profit margin but also still remain competitive.
- Product quality: Subpar products lead to negative reviews. To make sure you’re selling quality products, buy the actual product from your supplier (or just ask if they can send you a sample!). This way, you won’t be left in the dark of what the product actually looks like or how it actually works.
- Trends vs. Evergreens: There are trending products and there are evergreen products. Trending products give quick boosts in profits and are often seasonal. Examples of these are holiday items, which would only have certain months where demand peaks. On the other hand, evergreen products are in demand all year long. This means a steady, stable income for your store. Try to find the balance between listing trending products and evergreen ones, and you’ll be able to create a robust business.
Sourcing Reliable Suppliers
Your dropshipping business will rely a lot on your chosen suppliers, so choose well! Secure trustworthy suppliers only and build a relationship with them.
Remember to check their customer reviews as this will tell you a lot on how they interact with their buyers. When you find the right supplier who not only communicates well but also supplies quality products, then you’re in luck!
Validating Product Ideas
Before selecting a product to sell, you have to validate that there is actual demand for it. Aside from analyzing competitors selling the same product, you can also try the following:
- Chat ‘n’ Surveys: Run free surveys and engage with your potential customers. This way, you’re hearing the interest straight from the buyers. Tip: entice potential customers by including a small discount for their future purchase for when they answer your survey!
- Test, Test, Test: You can also try out a number of products and see which ones actually sell. As dropshipping doesn’t require you to have the products on-hand, there’s no harm in listing as many products as you want as you’re still going to have to order these from the supplier once a sale is successful. Remember to set a deadline for this. Remove the non-performing products on your listings, and optimize listings of those that have sold well.
- Numbers Don’t Lie: Your chosen dropshipping platform should give you reports and actual data from your tests. Pay attention to the numbers! These are not random numbers generated. These numbers could make or break your business!
Some platforms like Cartzy gives you an overall view on how your products are performing. This overall view is a real-time live view of your store’s analytics, such as where your campaigns are most effective and which traffic sources are performing the best.
Cartzy provides a series of comprehensive performance reports that reveal vital statistics for every aspect of your business. Track and analyze a variety of store performance factors, including sales reports, profit margin analysis, general financials, inventory, orders, customers, and others to get an in-depth view of your store’s health. Careful study of these reports can also help you predict future trends for your store, which can add considerably to your bottom line.
Creating a Unique Selling Proposition (USP)
Your USP is your edge against all the other stores selling the same product.
A unique selling proposition can take many forms: it could be your brand identity, your shop’s reputation, your brand’s commitment to a cause such as eco-friendliness, or even featuring an “exclusive” selection.
A compelling USP will attract the ideal customer you have your eye set on, so think about them when crafting your USP.
Finding winning products in the crowded dropshipping arena takes serious hustle, but being nimble and adaptable is key for those who thrive on the challenge. One must constantly analyze data and trends to catch the next viral product before competitors. When a new item gains steam, swiftly pivoting inventory to capitalize on its momentum is imperative.
Attachment to any one product is futile; the fleeting nature of fads in this business can torpedo even formerly hot items overnight! Maintaining a diverse catalog insures against such unpredictability. Reliable supply partners enable the scalability needed to test new products while upholding quality standards. Leveraging such partnerships is essential.
Not every gamble pays dividends, but the wins make the relentless grind worthwhile. Just last month, jumping on weighted blankets at the right moment crushed previous revenue targets! Now everyone wonders what’s next, but research already traces the next big wave. Trusting one’s process is crucial when the profits of 2024 seem within reach. For now, it’s back to listing products for dropshipping!