To build a successful dropshipping store in particular and e-commerce in general, you must choose the right products to sell. In the dropshipping model that omits shipping and inventory management, product selection becomes the most important factor in this business model.
Below, Ola City will suggest to you the criteria that can help you choose a suitable product for dropshipping.
1. Retail price when dropshipping
When applying the dropshipping model, the retail price and the wholesale price are very important. Product price greatly affects whether you can sell or be able to make a profit. When you set a low price, you can sell more products, but your profit per product is low.
Conversely, if you set a high price, less products will be sold, but the profit per product will be higher. The profit margin of dropshipping activities ranges from 15 – 45%, this means that the wholesale price (from wholesalers) should be between $50 – $100, don’t choose products with too high wholesale prices.
2. Dimensions and weight
Packaging and shipping costs will vary from item to item. Therefore, you should choose products that are small in size and light in weight, easy to pack and transport to reduce shipping costs and increase profits.
3. Related products
Selling related products in the same category will bring more value to customers and encourage them to buy more every time they shop at your store.
4. Product durability
If your products are both disposable, recyclable and reusable, this is definitely an attraction for customers to return to the store and make repeat purchases.
After identifying the product you are interested in, the next step is to consider the customer needs of that product. Look for product reviews on forums and websites that allow users to review products.
Some blog sites you can refer to are: Uncrate, Acquire, Bless This Stuff or internet consumer trend research tools like PSFK, Cool Hunting, The Cool Hunter. Depending on trends and specific times, there will be different market “niches”, however, here is a list of recent best-selling products/industries:
- Phone accessories
- Versatile T-shirt
- Camping equipment and gear
- Nutritional foods and superfoods.
- Sports training equipment
- Baby care products
- Skin care products
Forecasting and analyzing trends is very important when choosing dropshipping products. Therefore, you should research the trends through the electronic press and the tools mentioned above. For any business, attracting new customers is essential to generating revenue and profits. However, keeping existing customers coming back is even more important to sustainable profitability.
Ola City hopes this article will give you some useful ideas in choosing smart products when doing Dropshipping business, making it easy for you to implement customer retention strategies in the most effective way. Good luck!
Ola City Global