One of the biggest challenges marketers face when doing dropshipping is finding a winning product. While many products may look good, ultimately, the market will decide if they like a product or not. Essentially, that means you have to do your research.
You also need to plan on possibly substantial trial and error. While this sounds straightforward, it’s actually a test of patience because you’ll need to spend money on advertising and tweaking your ads until you find a winning ad and product combination. Then you kick it into overdrive and run it like crazy until a competitor undercuts you on price.
Obviously, a winning ad can only work if you have a winning product. This is what you need to look out for:
Does the product solve a problem?
The hottest selling dropshipping products solve an immediate problem. For example, posture correctors, pet care gadgets, etc.
A product that solves an immediate need tends to often be an impulse buy. Your ads will convert better when the prospective customer immediately realizes that the product will make their life easier.
Which brings us to the next point…
Does The Product Have Mass Market Niche Appeal?
Since most marketers tend to use Facebook ads which are displayed to a wide audience, the more mass appeal your product has, the higher the conversions will be. Now, don’t get confused on this one. We don’t mean you’re selling something to everyone. We mean that you choose a niche and that niche is large enough to make money with a strong number of orders.
Basically, you need to determine if your chosen niche is large enough to make money off of for years to come.
How Much Competition Does The Product Have?
This is another important factor to be aware of. Sometimes when a product is trending, every marketer and his neighbor tries to get in on the action. The end result is that there’s overexposure and most people who would want to buy the product have already bought it.
Sales will decline and if you get in too late, you’ll miss out on most of the profits. So it’s imperative that you choose a product that’s growing in popularity… and ride that wave upwards, instead of choosing the product when the market is already saturated.
Is The Product Fairly Unique?
Generally, the product should NOT be available in big stores like Walmart, Amazon, etc. If the customer can buy the product from these places, they’ll probably not buy it from you.
Furthermore, the uniqueness of the product must make price less of an issue. For example, a roll of sticky tape which can hold up bricks and seal leaks is unique. You can’t really figure out the price.
The dropshipper who is able to source the product for $2.50 a roll will be able to sell it for $15. The consumer who’s unable to guess the price of the product will willingly pay $15 because of the perceived value of the product – and the fact that it’s not available in stores.
Does The Product Require Minimal Customization
Every extra step that a potential customer has to take will inevitably lead to a lower conversion rate. Your product should be simple to purchase and have very few options to customize or none at all.
You want a seamless buying process. Dropshipping products such as pet gadgets, car accessories, etc. are easier to sell.
Clothing and other products that require one to choose their size, look at sizing tables, choose the color, etc. require more mental energy… and many people will just click off the website than go through the buying process. So that’s something to be aware of.
A Few Things To Keep In Mind
Besides the main pointers above, you should also take into account shipping times, product reviews, the demand for the product and the profit margin.
Do your due research, and it’ll take a while – but this is time well-spent. Choosing a winning product to sell is one of the cornerstones of successful dropshipping. Then it’s just a matter of getting your advertising right.
