Dropshipping is a popular business model for new online businesses. Younger online business owners are more inclined to start online businesses according to the dropshipping model.
This is mainly because young entrepreneurs have good internet marketing skills and understand basic online business technology well. Their internet skills often far outweigh their financial capacity. As you don’t have to purchase stock, it’s possible to start a dropshipping business with limited funds.
As with any business model, there are pros and cons to using the dropshipping concept. So before you start looking where and how to find the best dropshipping products for online stores, it is good to find out more about the model.
When you’ve considered the many factors involved in a successful online store with dropshipping products, you’ll find it easier to find products and suppliers.
What is a Dropshipping Product Online Store?
The Concept
When you own an online store with dropshipping products, you sell products you don’t keep in stock. First, you get the customers and accept their orders and payment online. Then you transfer the orders to your supplier, which can be the manufacturer, a wholesaler, or even another retailer. From the money you’ve received from the purchaser, you pay the supplier. The supplier then ships the product directly to the customer.
Your Online Store’s Role
Your online store is responsible for marketing and selling the product. But you don’t have any control over the product quality or product delivery. However, if the customer encounters a problem with the delivery or the product, the question comes back to your online store. This is because the customer has bought the product from your online store as the retailer. This is the main reason why you have to choose your suppliers very carefully.
Your Online Store’s Saving
But this concept saves you as the online store’s owner many expenses. For example, you don’t have to purchase the products beforehand, and you don’t need storage space for the products. In addition, it eliminates the maintaining of a warehouse and staff to administer the storing inventory.
Your online store makes its profit on the difference between the price you’ve paid for the product and the price you’re selling it for, less all other fees you have to pay the supplier, and the payments to your remote and other employees involved in the process. However, with an online dropshipping business, the overhead costs are much lower than most other online stores.
Steps for How to Find Dropshipping Products
Before you search how to find dropshipping products, you must determine what dropshipping products you will sell in your online store. Although you will not lose much money, except your advertising and marketing costs, if the products you put on sale don’t sell, it is better to put time and effort into preparing your online shop and making a profit from the start.
Select Your Niche and Product Types
Studies have shown that products you as the online store’s owner are passionate about sell better than other products. So keep that in mind, but also look at the other aspects.
Look for Viable and Attractive Profits
Your online store will be focused on marketing and customer acquisition. The amount of work required to sell a $15 item is, in principle, the same as it would be to sell a $1,500 item. It is always better to sell more expensive articles.
Look for Low Shipping Costs
Your supplier handles the product shipping, and it is not your expense. But if the shipping cost is too high, it might keep potential customers away. So instead, try to find products that are inexpensive to ship. Low shipping costs will also allow you to offer free shipping specials and absorb the cost as a business expense, while there will still be enough profit left.
Look for Products for Impulse Buyers
Studies have also shown that a large percentage of an online store’s revenue comes from products triggering impulse buys and appeals to those with the money to make on-the-spot purchases.
Look on Google Whether People Are Searching for the product (s) You Have in Mind
Look on Google’s Keyword Planner and Trends. If nobody is searching for what you are planning on selling, get another product!
Look for a Supplier Who Lets You White Label
Your dropshipping online store is in another league if you have your own brand and sell branded products. Look for suppliers with products you can white-label, meaning you sell it as your own brand with custom packaging. The shipping will still be done by the supplier directly to the purchaser.
Look for Something Not Readily Available Locally
If you can get products that are not on sale in every shop, your online store’s option becomes more attractive for the purchaser.
Do Competition Research
Don’t fall into the trap of looking for products with no competition. No competition can indicate that the product is not in demand. It might sound strange, but the more online stores are selling the product, the better your chances are selling the product. If there is competition, it means the product is in demand. Also, use products in demand to give you related product ideas.
One way to also check how well a niche or product is doing is by looking at the Amazon Best Sellers as this provides valuable data into what people are actually buying. Additionally, you can also use a tool called AMZscout to verify products on Amazon.
Start Exploring Website and Launching Methods
Get all the information you can regarding web design companies to assist you in designing your online store’s website. At the same time, look at e-commerce platforms like Shopify to see how and where you can launch your business. If you have all the information ready beforehand, you don’t have to waste time when you’ve decided on products and suppliers.
Create a Customer Acquisition Plan
You can also plan your customer acquisition plan even before you have decided on the products you are going to sell. Like the website design and launching methods, get everything ready for when you have decided on the products.
Decide on Products and Secure a Supplier
You will now be in a position to choose your products and suppliers.
Products
If you’ve followed the steps and tips set out above, you’ll now be ready to choose the products you want to sell in your online store. To summarize, remember the following factors:
- If possible, choose products you’re passionate about
- Choose the more expensive products
- Keep impulse buyers in mind when choosing products
- Products that are in demand will sell and will give you relevant other product ideas
- Choose products that are not readily available in regular shops
- If possible, choose white label products
Supplier
Getting the right supplier is just as crucial as getting the right products. Do thorough research. If the supplier is not situated in the same country as you, make sure about delivery times, and even whether possible language barriers will offer problems.
To a certain extent, it is good to get a supplier in your own country. COVID-19 pandemic restrictions on movement have shown how easily imports from another country can be delayed.
Visit general business blogs and blogs of other online store owners providing dropshipping products. Take note of anything negative regarding suppliers.
Ongoing Monitoring
To pick up immediately when your products are not selling anymore as well as initially, check your analytic data frequently. Then, when you spot any negative results, go through the whole process again to find new exciting products. Don’t remove products from your online store unless there are no more sales, but add the latest products. Then, target your marketing campaigns on the new products.
FAQs
How do You Research Great Dropshipping Products?
Search online to find out what products are trending. Then, look at competitor online stores’ websites and blogs to try and find out what is actually selling.
To find products in your niche, search for online videos and YouTube videos. Generally, the more online videos you find regarding a product, the more the product is in demand.
Social media shopping lists indicate products that sell. Use Google to search for the product niche you have in mind.
Is Dropshipping Profitable?
If your online store offers products in demand, your price is competitive, and you spend many hours on online marketing, including social media, dropshipping can be very profitable.
As the online seller of dropshipping products, you can share in the dropshipping profits reaching $4 billion globally, which is a 7 percent year-on-year increase for the last 10 years.
Can I Dropship on Amazon?
Dropshipping on Amazon is generally acceptable if you purchase from the supplier or manufacturer. Buying from another retailer is prohibited.
Conclusion
e-Commerce is being changed by dropshipping. Online shopping is escalating, and dropshipping products form a large percentage of online shopping. Your online store can be a part of it.
How to find dropshipping products for your online store is one of the most crucial aspects to ensure that your online store is profitable. Ensure that you do enough research to find your niche and the right products in that niche. The time you use research to find the right product (s) is time well spent.
