A Guide to Choosing The Best Dropshipping Niche
Drop shipping offers an increasingly attractive prospect of making online. The biggest dilemma, however, that beginners in this business face is that of selecting a product. Do you pick a product that you are passionate about? If your main goal is to make as much money out of this business as possible, then the answer is no. In order to dominate a niche, you will need to be the best online retailer in that market. So, what should you do to make yourself an eCommerce success?
9 Ways to Start the Best eCommerce Site in any Niche
Create and Sell Your Own Products
There are a number of products available in the market now with giants like Amazon selling almost everything you can dream about. Can't find the niche? Voila! Here is a great resource for you to find a product to dropship.
Get Exclusive Pricing
If you are a good negotiator and can somehow persuade the manufacturer to sell you the products at the lowest price, grab that opportunity. However, be rest assured that the competition would be tough.
Compete with the Lowest Price
Although you might be able to wipe out a significant amount of competitors, the big players like Amazon will still exist. It is highly unlikely that you would be able to compete with them, which, in turn, won’t allow you to gain much profit.
Add some valuable information to your product
Want to stand out from the crowd? Offer them something different, or, in this case, something more. Instead of just offering the product, you can sell, for example, a product or how-to-use guides.
Offer expert guidance
Along with written documentation and guides, you can offer your expert advice about the products you know inside out in the form of product reviews.
Take high-quality pictures
The products sold on Amazon often do not have attractive pictures because of which, they are less likely to attract customers. You can provide high-quality pictures of their products.
Sell complex products
Whenever there are multiple products that are supplementary to each other, customers often look up to the Internet to provide them with the answers. Make this a big part of your unique value proposition and start answering their queries.
Can you customize the products?
Do you have knowledge of what the other products are that will work well with this product? Do you know how you can customize it depending on various factors? If yes, then that’s the way to go.
Help customers install a product
Most people find it difficult to setup various electronic devices. If you can help them with that, they would be willing to pay you some amount for the same.
Another way of deciding what you would sell can be decided based on the demographic you want to cater to. Deciding upon a demographic can not only simplify your business choices but can also help you pick a niche.
Some of the customers that you can cater to are Hobbyists. They tend to spend quite a lot of money for their trivial pleasures which you can turn around for your own profit.
Another important segment you can sell to is the small and big businesses. They can help you get a steady stream of income.
Who doesn’t love regular buyers? If you can sell products that are disposable but are often required by the customers, then that is an area you should explore.
These are certainly not the only factors that need to be taken into consideration while selecting the products.
Additional Factors to Consider in Niche Selection:
- The price-range of your products should be such that you do not need to provide much pre-sales support before the sale. We suggest starting with a niche between $200 and $1,000.
- MAP Pricing would help you gain more profits. So, try to find a niche which offers MAP Pricing.
- Be ready with a number of marketing channels before launching your business.
- Accessories rake in bigger profits than the products so plan to cross-sell those.
- Finding long-lasting products that aren’t updated frequently can minimize your site maintenance saving you huge costs and time.
- Look for products that can't be found in local big-box stores.
One of the most important aspects that you have to consider while creating an eCommerce site is your time investment. Unless the product is needed or wanted by the people, you won’t be able to sell it no matter how good and cheap it is. There are several tools that can be used to analyze the needs of the market like:
Google Keyword Tool
The Google AdWords Keyword Planner tool is a helpful resource for building strong keyword lists and helping to get your PPC (pay-per-click) campaigns off to a running start. A free-to-use feature within AdWords, its tools for generating keyword ideas and bid estimations can help you plan your marketing strategy.
The next step is to research your "future" competitors that you are going to face in the market. What are the factors that you should consider while assessing your competition?
SEO RankingsThe number of different websites pointing to their site also known as Linking Root Domains. The higher the number, the more popular the site. The page rank of the sites is the highest ranking sites would be most authentic and so would their products. Are the customers loyal to that site? How many customers would recommend that site? This is one of the best metric to gauge how popular your competitor is and what their USP (Unique Selling Point) is.
Once you are well equipped with all this information, and a bit more research, you would be on your way to start a drop shipping business. Have the courage and dive in! Take the first step and you can figure out the rest along the way. Be prepared for both success and failure as both go hand in hand with entrepreneurship and that’s what makes it worth the risk.