One of the biggest challenges for entrepreneurs is choosing the best dropshipping products to sell. This seemingly easy question becomes difficult when personal preferences clash with current trends. One might look forward to selling a product they think will go viral, only for data to show that people have little interest in it.
This explains the importance of market research because it provides you with insights that you might not have thought of. By conducting market research, you will be more knowledgeable about the problems faced by your customers, allowing you to address their concerns by offering your dropshipping products.
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What Customers Look for in a Product
Part of the process of finding products for your store includes knowing what consumers are looking for. This way, you can be assured that the products you eventually choose have the features that will trigger consumer demand.
Here are some elements that customers look for in a product:
The usefulness of a product comes first for many buyers. One such product is the phone lanyard, which can be worn around the neck. Aside from being compatible with all phone and case combinations, phone lanyards are also anti-pull and tear-proof. This is practical because users wouldn’t have to carry a bag anymore or need pockets for stowing their phones in.
Shoppers also look for products that are durable despite frequent use. This way, they won’t have to spend for a new one or for repairs in case the current product breaks or wears out. Durability also safeguards your business because if you dropship low-quality items, you might put your store at risk of frequent returns and refunds. Fragile items could also break while being shipped, and no customer wants to receive damaged products.
Another factor would be the availability of the product. Can people purchase a certain item anywhere? If so, you would encounter stiff competition if you decide to choose this product for dropshipping. This is why it’s worth looking at market research to see if certain items aren’t readily available in the location you intend to service. The goal is to sell something that stands out.
If you’re really keen on selling an item that’s already being sold by others nearby, give your target market a reason to choose your product over others.
Practicality aside, you can also look at toys or items with potential for humor or novelty. Examples of these include collectibles like Funko Pops or vinyl editions of albums by popular musicians. These items aren’t necessarily valued for their practical function but for their uniqueness. These novelty items could serve as memorable presents, so consider them if you plan on targeting the holiday season.
Customers might look for accessories to accompany their existing products. For example, people shop around for casings that they can use to protect their mobile phones. Others look for items that complement the look of their clothing, or items that can improve their driving experience. These accessories might not have been included with the product at the time of purchase, which explains why consumers buy them soon after.
What Dropshippers Should Look for in a Product
Knowing what customers are looking for is an important step in building a profitable dropship store. But as a business owner, you should also consider the aspects that could affect the ease or difficulty of sourcing, marketing, and shipping products, as well as scaling your business.
As you vet product ideas, be sure to consider factors like possible local restrictions, product updates, prices, and product size and weight. Also check if a product is consumable and if you can offer a subscription for it.
And of course, if you’re aiming to be in the dropshipping industry for the long run, you have to make sure your products have solid marketing potential and can help you build a strong brand.
Minimum Product Updates
A product that frequently gets updated with newer models can pose a challenge to newbie dropshippers still establishing their eCommerce stores. You would have to implement changes to the website to reflect updates to the said product. This would consume your time and budget, compared to simply selling a product that remains as is and doesn’t get new models each year.
Minimum Advertised Price
Check if a product has a minimum advertised price or MAP, as this would require stores to sell the product at or above the specified price. This acts as a pricing floor that prevents competitors from doing price wars. You wouldn’t want other stores to lure away your potential customers by lowering the price of their products.
Consumable products can also be ideal for dropshipping because they ensure repeat purchases. If you sell pantry supplies, hygiene products, or food, people would run out of these eventually and they might order from you again. However, keep in mind that the needs of your target market matter greatly. If you intend to dropship phone chains to locations that you believe lack such products, go ahead.
Think about how your store would promote the product you have in mind. Is it something with clear benefits that can be expressed easily in copy, images, videos, or other forms of media? The more likely you can make this product go viral, the better. If you struggle with thinking of ways to market the product, you might be better off dropshipping a different one.
If the product proves to be a profitable one, then it’s good news for a newly-launched store. Soon enough though, you might have to scale your business, which begs the question: Is the product scalable? Can production keep up with growing demand?
You’ll need to ensure that stocks from your suppliers are always able to match consumer demand. This is a major challenge for all newbie dropshippers, and your ability to tackle this challenge will greatly determine the success of your store.
Recommended Reading: Create a Customer Acquisition Strategy for Your Dropshipping Business
3 Types of Best-Selling Dropshipping Products
Your main goal as an entrepreneur is to find products that sell well. To keep it simple, we can classify today’s best-selling dropshipping products into three broad categories:
- Products for hobbies
- business products,
- and products with repeat purchases.
Focusing on these three types of products will let you hone in on a niche that interests you when you start dropshipping.
Products for Hobbies
People won’t mind spending a lot on something they love. Just look at the multitude of hobby shops operating globally today. Common examples include toy collectibles or video games for the young at heart; bikes or travel gear for outdoorsy people; or clothes, accessories, and shoes for fashion lovers.
You can choose to focus on providing products to businesses. These may refer to materials that businesses need in order to manufacture their products, such as mirrors for cars or leather for shoes. These can also be items that companies need in their daily operations, such as light bulbs or printer paper for offices.
Products with Repeat Purchases
There are products that don’t necessarily fall under the first two categories but still get purchased a lot by the public. These include cosmetics or bathing essentials. If you use these products in your daily routine, you would likely buy or order them again before they run out.
Recommended Reading: How to Find the Best Dropshipping Niches in 2021
How to Find Winning Dropship Products
Now that you have an idea about today’s best-selling products, where can you find them? Public interest in a product will change over time, and if you’re able to spot trending products that have the potential to sell like hotcakes before your competitors do, then you stand the chance to make healthy profits.
The following methods can help you find your next winning product:
Conduct Research Within Your Community
You can find product ideas within your local community. Visit physical stores to see which products are selling particularly well and note which items on display are getting a lot of attention. The local newspaper might also talk about retail trends that could fit within your preferred niche.
Once you’ve gathered ideas from your local community, you could then research further to see if these product ideas are viable for your dropship business.
Use Various Platforms to Identify Trending Products
The platforms listed below can help you identify trending dropshipping products:
Wiio’s on-the-ground team can source the next best-selling products from suppliers and manufacturers in mainland China. Just sign up for the service and take advantage of the Hot Products feature. Categories include beauty and wellness, electronics, toys, and sports.
Wish is an eCommerce platform that has around 100 million active monthly users and sells over 2 million items per day. Currently, it has over 500,000 merchants selling items on the site.
Amazon is a great sales channel for dropshippers to target. The platform has over 30 categories you could target with an unlimited number of products to research and target for your eCommerce store. For more information on how to dropship on Amazon, please check out our guide.
Etsy brands itself as the global marketplace for unique, handcrafted goods. You can use this platform to connect with suppliers and artisans from around the world and find trending products that would appeal to your customers.
Wanelo is a social media mall that lets members post about products they’ve recently purchased or put on their wishlist. The site adjusts the feed of its users to their preferences once they like products or have interacted with more sellers, resulting in a curated shopping experience.
Kickstarter is a funding platform that allows project creators to reach out to financial backers. Numerous gadgets, artistic projects, and inventions have been funded through the platform with varying degrees of success.
Project creators who’ve completed successful campaigns will sometimes launch eCommerce stores to start selling their products to the public. If you’re able to spot trending products to add to your store before your competitors do, you could make a lot of money for your business.
Validate Your Findings with Market Research
Aside from knowing where to find trending products, you also need to make sure these products align with the pain points, needs, and desires of your target market and target audience.
You’ll also need to validate your initial findings with solid market research. Use the following tools and tactics to back up your hunch and identify your next winning products.
This product research bot gathers information on thousands of products to determine which ones are performing well. Aside from product discovery, the platform also offers store analysis and gathers sales data about your competition.
What’s more, Niche Scraper will show you the top-selling products on AliExpress and in Shopify stores, along with sales data for the past week and the level of competition in your chosen niche.
This free service by Google lets users find the latest trending search topics. According to the website, its mission is to organize global information to make it accessible and useful for everyone. By using Google Trends, users can gauge public interest in a topic or product over time.
You can filter the search by location, relevant dates, categories, and types of Google searches. Validate your business idea by checking if people have been searching for your target products. For example, Google Trends might indicate that users have actively searched for fidget spinners in the past; however, interest in this product may have dropped over the past couple of months, making it unviable for dropshipping.
Research Your Competitors
Competitor analysis is a worthwhile endeavor if you wish to gain a significant edge over your competitors. Research the products being sold by your top competitors, the niches they’re targeting, and the prices they’re charging.
Can you emulate or improve upon their current business model? Are there any deficiencies in their product offerings that you could step in to fill? Gather the right intelligence and make changes to your business model and inventory based on your findings.