If dropshipping seems like something you might be interested in or you’re already a part of the dropshipping scene you might wonder how to maximize your profit and chose the best items to sell. Although it might not seem like such a hard task to find popular products to sell, that’s hardly the only thing to pay attention to. The products you’re selling are supposed to be popular as well as bring you enough money. Even though you might find a product that smells great, the profit margin might not be as high as you’d like. Today, we’re going to take a look at a couple of different methods and products to help you grow your dropshipping business.
For those of you who are new to the whole dropshipping world, let’s briefly go over what dropshipping is. Dropshipping is a form of online sales in which you eliminate the need to purchase and stock items before you sell them. Essentially, how this works is, you find a supplier for products or products you’re planning on selling, strike a deal with them, and create an online store. What this does is saves you money and time, because you eliminate the need for storage space and start-up money needed for purchasing the product. Another thing that saves time and money, as well, is shipping. Your supplier sends the product directly to your customer, which does not make you a shipping middle man. All you need to do is create an eCommerce store and marketing tactics and get to work.
Now that we’ve gotten familiar with the basic concept of dropshipping, let’s see what you should do in order to select the best product for your business.
1. Research the market
Like we’ve said, finding the most popular products might seem like a good idea, however, it might not be the case. Even though the said products are in high demand, that also means that the competition is high and that there are already well-established sellers, with regular customers and probably a better deal than you would be able to strike with the supplier.
So, do the research. Find the best and most popular products out there and focus on some of them. Take a look at the profit margins of the selected few, because even though the dropshipping is mostly about the volume of sales, you don’t want to make a profit so insignificant you have to sell thousands of products monthly, that is not a good business model.
2. Create a theme
One thing to remember when creating your e-store is – it’s not a supermarket. Even though it might seem like a good idea to have all kinds of different items so you can tailor to everyone’s needs – that’s rarely the case. Stores like those often look unprofessional and make you seem like you don’t know what you’re doing. The best thing to do is to focus on a certain type of product and stick to that. If you want to sell tech gadgets, create a store that sells tech stuff. Don’t sell smartwatches, hair products, and jewelry from the same store just because all of those are mentioned on GoTen.com as best dropshipping products. Find your niche and stick to it.
3. Don’t follow trends
This is great advice for the newcomers. Trends come and go – that’s why they’re called trends. Sure, jumping on a bandwagon and selling stuff that is popular at the moment might bring you some cash in the short term, but it’s not going to last. Riding trends is not a great long term business model. You want something that’s going to sell for a long time.
4. Go for the items that will be bought repeatedly
Recurring customers are the best customers. However, if you’re selling something that tends to last a long time, then you might be missing out on a recurring customer. Sure, if you’ve sold a good phone or a smartwatch to a person, they might come back to you in a year or two, depending on their desire to upgrade, and that’s great. However, that’s not what we meant when we’ve mentioned recurring customers. What we mean is, sell a product that people use and buy often. If you can connect with your customer enough for them to make you their only makeup supplier, you’re winning. These products usually don’t have a significant profit margin, but they make up for it in demand.
Let’s say you’re selling moisturizer or a facial tonic. A bottle of that product lasts about a month or so. If you can sell the same thing to the same customer every month, you’re golden.
5. Don’t sell fragile objects
One thing to keep in mind is that you’re going to ship all of the products you sell. It’s not like you own a store on the corner and people come in to buy their stuff. So, if you’re planning on selling some coffee mugs, plates, cocktail glasses, or any other fragile object, you might want to rethink that decision. You could be shipping a set of margarita glasses from Brazil to France and a journey like that can pose a lot of danger for your product. It could easily be broken or damaged in any way in transit. The worst part is, no one is going to blame the airline that flew your package all over the world and broke it along the way, they’re going to blame you and that’s bad for business.
6. Order samples
One of the most important things is the quality of the product. If you sell quality items, you’ll probably do just fine. On the other hand, if your product is bad – you’re not going to sell it. Even if you do manage to sell it a couple of times, all it takes is a couple of bad reviews and it’s over. That’s why it’s important to order a sample and see for yourself what you’re dealing with. If you’re satisfied with the quality – go for it.
Dropshipping is constantly evolving and when it’s all said and done – anything can be sold. However, some things sell better than the others and, hopefully, we’ve managed to help you select those products for your online store.