Drop shipper business guide
How to choose good products to dropship on Shopify? Here are a few advices and a recommendation to let an expert to the market research. The cost of goods is usually relatively close to the wholesale price, allowing you to sell products at market value and make a profit. The goal of a dropshipping business is to be profitable. If you’re selling a five dollar product, you should be charging around $19.99 for it. You need to consider the cost of goods, marketing, business expenses, and eventually hiring a team. If other brands are undercutting their prices, don’t undercut yours. As long as your prices are fair and within market value, you should maintain a profitable price point. You should also work to increase average order value so that you make a higher profit from every order. Create strategies that will allow you to make more money overall.
When you’re going high ticket with the best suppliers, you’ll have pricing policies that set a Minimum Advertised Price (MAP). That means you can’t discount below that price to beat competitors. But you can convince people to buy from you by offering more than your competitors. You have to ask yourself what your customer wants or needs that is inexpensive and that they’re going to buy anyways. These are usually smaller accessories like a phone case when you get a new phone. For example, if you’re selling paddle boards, you could include an ankle leash or board wax. That way, when they’re shopping for that board and are comparing between you and your competitor, they’ll see the same price. But with you, they’ll get something more.
In terms of what products to sell via dropshipping, you might easily be tempted to offer just about anything that can generate a good profit as long as there are suppliers around. But before you post photos of those large vases or paintings or those home theater systems that you couldn’t believe suppliers are selling at a really low cost, remember the risks involved in a dropshipping business. Logistics should be one of your top concerns when shipping an item, so it is better to consider light and durable products instead of heavy and fragile ones. It’s also wise, especially if you’re just starting out, to steer clear of products that require more than simple technical assistance to set up.
How to find the perfect products ? A few words about dropshipping market research. There are tonnes of online communities and forum that you can join and begin to do research through. Facebook has hundreds of open and close communities that can help you understand the needs and wants for people in certain areas of the world. If you want to limit your dropshipping business to a country or region you can restrict your research to groups in these areas. Alternatively, you can open your search to many different areas or just search for niche groups that have people from around the world in them. There are many worldwide groups and forums around areas like veganism, gardening, fitness, and so many other subjects the list is too long to note. Check these groups out and notice if products or problems are mentioned. If problems are discussed find a product you could sell to overcome this. Or you can let an expert to do the product market research for you while you focus on marketing or improving your website. See extra info on Dropship on Shopify.