Dropshipping has been found to be a successful business model for entrepreneurs. In fact, a study by Shopify found that over 80% of surveyed stores reported that they were profitable, and over 50% of stores made more than $5,000 in revenue over the previous year.
But with any business model, there are challenges that need to be overcome. And one of the biggest challenges for dropshipping store owners is finding good products to sell.
So how to find good dropshipping products? Read more as we will discuss some methods that you can use to choose the right products for your dropshipping store.
Steps To Follow In Your Product Selection Process
- Know Where To Find The Products You Want To Sell
This is the part where most of the brainstorming happens with your team. To be specific, what you need to do is to pinpoint the right products you need to sell in your store. Generally, 5 products will be an ideal starting point, but you can choose to add more.
If you are struggling with this part, we recommend you to check out these sources in finding inspiration for your dropshipping products:
- Identifying the most profitable products from other eCommerce stores.
- Checking out online community sites and various social media channels.
- Go around stores in your neighborhood to know which products are popular among the locals.
- Establish The Ideal Price Range
When choosing the perfect products for your dropshipping store, it is also important to establish the ideal price range. This is essential so you’ll be able to create a balance between retailing the right products and generating profit.
Experts say that the ideal products should be those that you can sell for a low price as these will have a higher conversion rate. As for high-priced items like smartphones and digital devices, they require buying consideration from your shoppers and more customer support as well.
- Filter Your Ideas Further To Find The Most Feasible Products To Sell Online
You can narrow your selections and determine the first 5 products to sell by using keyword tools And Google Trends:
In particular, Google Trends is a tool that allows you to determine the frequency of a search term according to the corresponding search volumes. And though this tool you can compare product ideas and customize comparison based on country, category, time range, source, and the search interest over time.
On the other hand, keyword tools will help you determine the right products by identifying the product niche, and it can also allow you to evaluate your competitor’s most profitable products.
- Locate A Dropshipping Partner
You will need to partner with distributors or manufacturers that can dropship the products you have selected. And at this stage you will need to:
Contact The Manufacturer/Supplier – Discuss with your chosen dropshipping manufacturer on how you can purchase products at the best price. Visit DropshipChinaPro.com and talk with them. Surely, they’ll be more than willing to give the best deal for your dropshipping store.
Online Distributors/Wholesalers – A good indication of partnering with the right distributor or wholesaler is their online presence. You also have to check their reputation, efficiency, quality, and pricing.
- Closing The Deal
Finally, picking the right products for your dropshipping store also requires you to establish clear-cut terms with your partner. If you fail to do this, you’ll be having problems in the future.
So as part of the process of closing the deal, you need to ask for a quotation (also called “RFQ”). An RFQ is a document that is sent to get quotes from potential suppliers for a product or service. And this document includes details such as the price of the item, order volumes/quantities/minimum order values, delivery requirements, quality levels, terms and conditions.
And if everything is set, the last thing to secure is a contract. When partnering with a dropshipping company, a contract should be drafted that outlines the expectations, responsibilities, and terms of the business relationship. This will help protect both parties and ensure that everyone is on the same page.