In the world of 2020, where e-commerce has become more popular than ever, competition is fierce and has forced entrepreneurs to take on new business tactics like dropshipping. The question is then, with so many players in the market, how do these businesses find competitive dropshipping products?
To start, we need to understand what dropshipping is. Dropshipping is a business model where companies only place an order to their suppliers only after a customer has purchased the product from their website. This means that businesses no longer have inventory on hand, keeping startup and overhead costs low.
A great business model right! The trick is now understanding how to find competitive dropshipping products that your consumers will want to buy while still offering good profit margins for your business.
Finding Valuable Products
With relatively low barriers to entry, companies need to make sure that the products they choose are new, unique, and provide value to their customers to make them stand out among their competitors. Searching through sites such as Google Trends, and AliExpress to find new products before they hit the mass markets is a great place to start. Additionally, companies can choose to join social media communities and forums to gain insights into new emerging problems and products and the needs of their potential target markets.
Another thing to consider when looking for a dropshipping product is the type of market you want to sell to. For example, products for hobbyists have the potential to bring in large revenues as people often spend more on the things they are passionate about. Business products, however, will likely be bought in larger quantities but tend to be more price-sensitive. Meaning that it is critical to thoroughly understand the wants and needs of your niche, especially when it comes to choosing a price point.
Expanding your Product Offerings
Once your brand has been established in your market, you might consider expanding your product line. Taking a look at what your competitors are selling, how they are marketing those products, and at what price points can give you valuable information as to what steps you should be taking next to remain competitive.
Doing your research will go a long way.
Selling product accessories is a great way to boost sales and in many cases will have higher returns than your main product. Think about it, when buying a cell phone it is likely that you will shop around to find the best price, but when it comes to buying a case or a screen protector, you will likely just buy those from the same place you bought the phone. Taking the time to research products that you have the ‘first to’ advantage on and that compliment your main product item will help your business to go a long way.
Dropshipping opens up the world of e-commerce to more entrepreneurs daily. And while the correct product can make you rich in minutes, finding these products can be tricky. Taking the time to research your product, understand your competitors, and know your consumers will be the difference between your company’s failure and success.
For assistance in creating an effective e-commerce website and marketing your dropshipping products, call us at 250-740-1844.
