How to Find the Right Products to Dropship
If you are interested in using the drop shipping business model as an online entrepreneur, you will need to know how to choose the right products. Since your options are pretty much endless when it comes to dropshipping, it is important to know which criteria to look at before making a final decision. The products you choose will ultimately determine how easily you will be able to make sales on a regular basis. Dropshipping doesn’t have to be difficult, provided you are selling all the right products.
Focus on the Price Points
When you are trying to select the right products to drop ship, it is important that you select the right price point for your particular niche. The last thing you want to do is to charge too much for whatever it is you are selling, because you’ll have a very difficult time getting people to buy. One of the biggest mistakes that people make with drop shipping is overcharging for their products.
Look for Excellent Markup Opportunities
The primary goal of any businessperson should be to turn a profit, so you will therefore need to look for products that offer great markup opportunities. You should try to find dropshipping products that will give you a minimum profit of $10 over what you sourced them for. Some products have better markup opportunities than others, and it is crucial that you keep this in mind when trying to decide.
Focus on a Specific Niche
One of the best tips that you can follow when it comes to finding the right dropshipping products is to find a specific niche that isn’t too general. Those who do this tend to have more success, so you will need to keep that in mind. You should also avoid doing battle with the larger retailers, but you will most likely fail. Instead you should focus on niche products that the larger retailers don’t offer a lot of. The last thing you want to do is compete with large retailers with products that they already sell to many people.
If you have done even a little bit of research into dropshipping products, you have probably noticed that a lot of manufacturers will set a MAP or minimum advertised price for each of their products. It is highly recommended that you take the time to find niches with companies that will enforce this pricing, as it will definitely work in your favour. This way you will be able to use your website to gain the upper hand, as you won’t need to worry about competitor’s prices.
Potential for Marketing
The fact is that some types of products are easier to market than others, so this is something you will need to factor in before you select anything in particular to sell. You will have to come up with a detailed and effective marketing strategy prior to getting started, because otherwise you don’t have any hope of succeeding in this sort of endeavor. The easier your products are to market, the less work you will need to do.
Choose Products with Tons of Accessories
If you want to sell products with very high profit margins, you will need to focus on ones with lots of accessories that people can buy. For example, smartphones have many different accessories that can give you up to a 200% profit margin. It is important to keep in mind that this applies mostly to cheaper accessories. If you are selling cell phones, you can definitely expect to see lots of sales with the lower-priced accessories that go along with them.