How to Find the Right Dropshipping Product
Selling is just the first step, it's not the end goal. To grow your audience and your business your product must be reliable in order to retain customers and you need to generate positive reviews.The most important guidelines are:
Quality & Reliability - Your product must be reliable to retain customers. Quality is just as important because you want to provide a good product, of course, but you want to be able to command a fair price and offer a reason for customers to leave a positive review.
Generate Positive Reviews - It’s no secret that a majority of people look to the opinions of others before purchasing a product, whether it’s on your website, Amazon, or any other 3rd party platform. Those 3rd party platforms use the amount of reviews, and your average rating, as a major part of their algorithm when deciding how often to show your product and how high to rank you. You’ll surely spend time, effort, and some amount of money to bring visitors to your own site so having strong reviews will improve your conversion rate and, in turn, your revenue.
Price range between $150–250 - This price point will give you enough margin so that you won’t need to sell thousands of items just to make the minimum profit to get by. And don’t be too fast to sell low-cost items for $10 since the margin will be quite low and you’ll need to sell a ton to make any money.
- Lightweight - Shipping cost can become a huge factor for heavy products sales, especially if you offer express shipping options. An express courier can charge $70–100 for a 20lb package to be delivered from China to the United States. When you sell a product that costs $150, paying an extra $70 on shipping is a conversion killer.
Simple to use - This is very important in terms of returns and product education. When a customer receives a product and is not able to figure out how to use it, they are more likely to return it and you will have to pay for the return shipping cost. These costs can pile up and lower your bottom line profit significantly. Also, if the product is not easily and quickly understood you’ll need to educate the customer and that will take time and effort to design your landing page accordingly. Easy to understand = Easy to sell.
- Look for unbranded items- Selling unbranded items is a great idea. This is where there is a ton of room for creating value to the customers while staying under the radar of the bigger players.
For example:This dropshipper received an eBay award for having the “highest conversion rates” for selling UNBRANDED car GPS devices.
The gps listing design created professionally to increase sales
So, if you were to sell “Garmin”or “TomTom” branded devices, you would find yourself competing with big players with no competitive advantage whatsoever. By selling an “unknown” brand – you can offer your customers unique value and bite off the market share of the big players.The big players usually have no interest in unbranded items, as these require work that they are not set up to do – building the brand.
Read our other articles in our Series on How to Start Your New Dropshipping Business:
- How to Start a Dropshipping Business in 5 Steps
- Avoid These Mistakes When Starting Your Dropshipping Business
- FULL article on How to Start Your New Dropshipping Business
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