11 Tips on Conducting a Market Search for Your Dropshipping Product
Let me guess, you’ve finally came up with a product you can sell for your dropshipping business. You’re excited and ready to start purchasing and sending your products. Indeed, every drop shipper is always thrilled about reaping the monetary benefit of multiple sold products.
However, it is important to note that a huge profit is more likely to be recurring once you’ve thoroughly researched your desired product.
A market search plays a vital role in your dropshipping business; it can help you plan for the long term, reveal if a product will sell well, assist you in avoiding financial losses, help you understand your target group’s needs and guide you to purchase the most profitable products for your niche.
In order to ensure that you’ll be able to better understand if a product is a good fit your business; your analysis should cover the following…
You want to make sure that the product you are interested in selling is popular. A trend will let you know if consumers are interested. Experienced drop shippers have mentioned that they’ve had the most success selling products that had a flat or rising trend. Steer clear of products that have a decreasing trend-it implies that buyers are becoming less and less interested in the product so it will most likely be harder to sell. Consider the trend of the product you are interested in selling via Google Trends. All you have to do is search your products keyword to see its data.
- If you find that your product is constant or rising in trend continue your research. If not, you may want to try selling another product.
2) Market Size
The market size is going to let you know how well your product is selling. The product you sell should be in demand, if not best of luck trying to sell it. Keep in mind that one of the fundamentals of making a large profit is in the products popularity. One effective way you can determine the market size is by using Google Keyword Planner. I’m sure you’re wondering “how exactly do I assess the market size”? Well, I’ve found that skilled drop shippers have stated that products are worthy of selling if their searches per month are anywhere from 1,000 to 8,000.
Those numbers are ideal for beginner to intermediate experienced dropshipping suppliers. If you discover that your product has a lot more monthly searches you should only pursue it if you feel experienced enough to handle such competition .Also, note that you are just researching your product here, you should still use long tail keywords if you choose to sell this item.
- Is the market size in a good range for your expertise? If so, your product is basically one you can continue pursuing at this point. However, there are a lot more things you should account for such as…
3) Target Group
For business purposes it’s best if you have a defined target group. When you do, you are able to market efficiently to your customers, cater to their needs and offer them more products. You can find your ideal target group through brainstorming and or reading consumer’s product reviews to help you along.
Majority of the time in reviews buyers state why they needed a product, the issue the product helped them resolve, and other information that can assist you in understanding the buyers that are drawn to the product you’re planning to sell.
Evaluate your competition to see how you can become more competitive to buyers by doing what your competition isn’t doing. Weigh your options, hone in on the needs your buyers need that aren’t being addressed. Check out forums, drop sellers websites, social platforms and their buyer’s experience.
5) Local Availability
Is your product available locally? If not, that could be a great thing. Check this out, if buyers are not able to easily purchase the product you are selling from their local store they are more likely to purchase it from online businesses.
This one is not a deal breaker however but if buyers are able to purchase the product via a local store they may still be interested in getting it online which can depend on a lot of factors just let your previous findings about market size and trends guide you in the right direction in understanding buyers potential purchasing prevalence.
6) Selling Price & Markup
These two work together. A markup is the difference between the amount you are spending on a product and the price you’re planning to sell it for. In your markup you should allot for a marketing budget and the percentage your credit card processor is going to withdraw. Keep in mind that your selling price should “make sense” to your buyer. Typically drop shippers usually have markup percentages roughly around 10-20%.
Find out the best shipping methods for you and your clients. Make sure you take into account the size and weight. It’s important that your shipping method is compatible to the durability of your product. Nowadays low flat rate and free shipping are mostly used.
8) Turnover & Perishability
Will your products need updates or changes? Do they have a long lasting shelf life? These are things you should highly consider budgeting for when deciding on a product.
9) High Selling Time
Assess the times when sellers are going to need your products. For example, are you selling a seasonal item that buyers are only going to be interested in during seasonal holidays? If so, you can plan to coordinate accordingly. Even if you have a product that buyers will be willing to purchase year round or semi-seasonal you can still be more productive in planning your marketing strategies and purchasing products.
You DEFINITELY want to make sure you build good business relationships with dropshipping suppliers. Consider composing a spreadsheet of suppliers, their prices, number of products in each order and your overall experience working with them. Always keep the relationship professional.
In doing so, you may find that dropshipping suppliers may be open to providing you with a free sample or a discounted price. Keep record of the products quality so you can choose the best supplier for your dropshipping business’ needs.
11) Value Potential
Can you continue to build your dropshipping business with this product? In what ways can you do more to fulfill your customers’ needs? For instance, can you educate them on topics in this niche? Long term, can your dropshipping business become a one stop shop for buyers in your products niche market?
In completing an accurate product search feel free to expand beyond web resources, research a variety of platforms dropshipping suppliers and sellers are using. These methods are effective with every product you are contemplating offering to your target group.
Do not get discouraged if you find that the product you had in mind may not be the best to pursue- it’s not uncommon lots of dropshippers experience this. These tips are intended to guide you toward the path of obtaining a high profit from your dropshipping product.
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December 11, 2018