The Ultimate Guide To High-Ticket Drop Shipping For Beginners Lesson 4: Best Dropshipping Products for High-Ticket Drop Shipping
The Ultimate Guide To High-Ticket Drop Shipping For Beginners Lesson 4: Picking Products to Drop Ship
Hey, guys. Trevor here with eCommerce Paradise.
This episode will be about choosing your niche.
The last episode was about finding the best dropshipping suppliers. It was more about market research, finding competitors, suppliers, and getting niche ideas.
This episode will be about going through those and choosing the specific one you want to choose.
This will make or break your business. So take this slowly, and go through it all the way. Don't skip on this part of the process.
I think it's really important that you don't choose your niche based on your passions. It would be best if you chose it based on profitability.
This all goes in line with the research that you've done. It would be best if you research to determine which products are expensive, in line in the right price range, and match all the other criteria I gave in the last episode.
It's important to note that if a niche has a lot of competitors, that means it's a profitable niche. Don't feel like because there are too many competitors that you won't be able to compete.
In fact, in the Dropshipping Masterclass, and this dropshipping mini-course, I'll show you how you will be able to compete with your competitors, even if they're really big online stores. The number one thing to do is to build a niche-specific site. And that's what I teach in the drop shipping master class, how to build niche-specific stores.
How you're going be able to set yourself apart when you choose your niche.
You might have some ideas. You might've narrowed it down to 5 or 10 different niches, and at this point, you really want to be sure that you're going to be able to set yourself apart. Here are a few suggestions on how you can look forward as you build your business to set yourself apart.
How to Set Yourself Apart from Your Competitors
Number one is to create your own product.
Creating your own product is a great idea. You can do it now, or you can do it later. It depends on your capital abilities. If you have money to invest, like a few thousand dollars, consider researching beyond just retailers by looking at the best-selling products in your niche and going to alibaba.com and researching the cost to get that similar product directly from China. Also, look at the liabilities involved. If you can consider that as an investment, and you think it's worthwhile, then you can import that product to a fulfillment warehouse in the United States and sell it either on Amazon or Shopify or eBay. You can ship it direct, have it shipped directly to your customer from the fulfillment warehouse. You'll still be doing dropshipping. That's a great way to set yourself apart, create a brand name, and have other online retailers sell your product later on. You can start that way, or you can do the internet stuff as an online retailer and grow into that later when you feel comfortable and have the capital ability to do that.
Number two is to get access to exclusive distribution or some sort of exclusive pricing.
Getting access to exclusive distribution is a great way to set yourself apart. That way, you're going to be able to compete better in the market place and have more profits, and you can grow your business more.
However, that isn't easy to obtain. You're going to have to develop a great sales plan for the distributor and actually follow through on that and show them some real numbers to get them to want to commit to that. If they need help with the marketing and can do that for them and get some really good sales numbers for them, you should ask for exclusive pricing or exclusive distribution.
You can turn a supplier that likes to approve anybody into a supplier that only approves select retailers by telling them you'll do more to sell their products if they give you exclusive pricing and exclusive distribution.
Number three is to sell at a lower price.
Sell at a lower price with MAP (Minimum Advertised Price Policies), which we work with as an online retailer in the eCommerce Paradise Academy. The thing about that is that you can't sell below that price, but you can offer discounts, limited-time, expiring coupon codes. And I highly recommend doing that.
The way you do that is you can set a coupon code on your whole site or set a coupon code on specific products. People use that in check-out. They get a lower price than what they would've had to pay somewhere else. That kind of a thing is awesome to do because it will win you customers. You have to be careful that you're not selling, giving away too much of your profits, but give away just enough to keep that customer. A good way to do that is to look at the competitors and see what they're doing in the market place.
Number four is to add value in non-pricing terms.
One way to set yourself apart in your niche to think about gifts. Think about gifts that you'll be able to give away or digital products that you'll be able to give away along with that physical product that they buy from you. That kind of stuff is really important because you'll gain a lot more customers using those methods.
Number five is to add content.
Another great way is adding value via content. If you have a niche with many questions, common questions, you can make blog posts based on how-to keywords in your niche. That kind of stuff will help you sell products in the long run. There are even apps in Shopify that I cover in the course that you can put guides and how-to blog posts within product pages, and that way, people will read them and trust you more and be willing more to buy from you, as opposed to a competitor that doesn't teach them. Always think about getting high-quality product images.
Is it a product you can get high-quality pictures? If they are suppliers in the US, then chances are, you can somehow get to their warehouse, and they'll have demo products available in their warehouse. They could also be at a trade show. You can go in person and take high-quality images of their products. You'll be able to set yourself apart for the competition a lot better that way, so make sure it's something you'll be able to do that with.
Number six is to have a product that has a lot of components and customization features.
All these types of products are difficult to sell online, which means the competition will be less. It also gives you the ability to set yourself apart from the competition. Suppose you're able to easily distinguish between the different components and parts and options available and create your site into somewhat of a comparison website, with lots of content about how you can make that decision better. In that case, they're more likely to make that purchasing decision with you.
Any product with a technical setup or installation; basically, you can offer services to do that for them. There are things like white-glove delivery services, and those are in the hundreds of dollars. Anything that's in the hundreds of dollars, you'll be keeping a 20% margin on usually. That can equal out to a great boost in your revenue right there.
Any product that has that kind of technical setup or installation or is much bigger, then that kind of product is great to sell online.
Let's talk about different content types really quick because I think that was a really key point I just made there. Creating a buyer's guides is important. The keyword you should be targeting is whatever your product collection is. Let's just say skateboards. Make an article called Best Skateboards or Best Longboards. Go over all the different types and all the brands and all the variables and differences between them. That way, your buyers will be able to understand which one they should choose for their needs.
Number seven is to develop in-depth product descriptions.
Developing in-depth product descriptions is also key to making sales online and setting yourself apart. Is that niche that you'll be able to dig into and figure out and do? Can you afford to outsource that, one, or the other?
You can't just take the manufacturer's product description and do business out of that. You have to create your unique product descriptions.
In the course, by the way, I will teach you how to outsource those and how to optimize those descriptions listings to make the most sells.
You can also get from the supplier their specific product guides, like user manuals and installation guides and setup guides. Those kinds of things are really useful. You can upload those to your website and embed them into the product description as something your customers can download. You can also send them an email after they buy specific products with that user manual downloaded again. That's providing more value.
The next thing is to consider whether this a niche that you can do in-depth product review videos and useful videos like installation videos. If it's a product you'll be able to obtain in person and do them yourself, then that's awesome. If not, consider taking my course because I'll teach you how to get into Fiverr and outsource those videos for your customers. That way, you'll be able to get a lot more leads, and you'll be able to satisfy your customers better.
I talked about understanding helping your customers understand components and comparing them and stuff like that. But another great thing to do is to understand component compatibility. It depends on the product. But for, say, with the skateboard, you're not going to be able to have a big skateboard drop with a small deck. You got to tell people you have to the same-sized deck like a skateboard truck to fit and skate properly. That's something I would explain to my customers if I was doing skateboard dropshipping.
But again, skateboarding is a niche where you're not going to be able to create a massively popular, profitable dropshipping store from it because the price point is too low on normal skateboards.
The next section will be all about the customers.
You have to understand who's the best customers that you want to be targeting. There are a lot of customers. There are different types of people, and they should be treated differently with different types of funnels and different marketing communications.
Three Different Buyers
Three different buyers, I like to target. It all depends on the niche.
Some niches are hobby niches. Those types of hobbyist people are types of people that like to spend a lot of money on their hobbies. Those hobbyists are great to build a relationship with because not only will they spend a lot of money, but if they like you, they'll also refer you to all their hobbyist friends who also spend a lot of money.
If you want to get into a hobby-style niche, just understand you'll be talking to hobbyists a lot. Those types of people are really into it.
Now, the only issue with that is that sometimes they can get very technical and stuff like that, and it's okay if you aren't very technical about it. You just have to be willing to figure out a solution to their questions. The way you do that is you call your suppliers, or you look it up online yourself.
The next type of customer I like to work with is a business. Business clients are really cool because they will need to order from your over and over and over again. If you give them a great incentive and build a relationship with them by becoming their friend, they'll definitely want to purchase from you instead of the competition.
If you have a business ordering from you, call them and ask them, "Hey, where did you find us? What made you want to order from us? We really appreciate your order, and we want to be able to set up a relationship with you so that you feel comfortable ordering from us over and over and over again." Give them a special discount, maybe even a special account on your website. Make it really easy for them to log in. Tell them how to bookmark your website and that they can call you at any time or email you with questions. Then make sure that you're there to follow through on that and help them out because those kinds of customers are super lucrative.
Some niches are just strictly business-to-business niches like commercial products and stuff like that, so you'll be dealing with a lot of small businesses and large businesses in those types of niches.
Commercial industries are great customers to get into. I highly recommend them. However, they do require a bit more of the upkeep on the customer satisfaction. That is because you have to be calling them and establishing real relationships. If you're that type of person that's willing to do that, then this can be a very lucrative customer type for you.
The next type of customer is 'repeat' buyers or VIP customers. Those are the people that are going to buy from you over and over again. Those are the types of people you want to really treat well.
Those are the types of people that will bring money and revenue into your business constantly and are going to refer more people to you than anybody else. Treat those people the best. Build specific sales funnels for them. Build specific account types, specific email sequences, and all that stuff, specific videos just for them, because you want those people to keep coming back. You want to build that relationship, establish it, and build it and grow the friendship more.
Now, let's talk about considerations when you're selecting products.
When it comes to considerations, you want to think about the pricing. I think that is the most crucial part. Pricing is important, and I cover this in other videos that the most important thing is you get a product that's priced over $200. If it's at least $200 to $500, that's great. $200 to $500 products usually require the least amount of customer support. However, they also have the least amount of profit per sale. You have to have up to 10 sales per day, on average, to create a profitable business. However, if you're selling a product that's somewhere around $1,000 level, and you have a 20% to 30% margin, you're only going to need a few sales a day to make a profitable business because you'll be making a couple hundred to a few hundred dollars per sale or more.
With that said, it might take a bit more customer service to sell those expensive products. You can do a lot of automation with that. You can create FAQ pages and questions and answers within the website, and you can get reviews. You can do videos and stuff like that. Everything that's going to help that customer make that decision online, as opposed to having to call you, those are things that you should be doing if you want to consider selling at the higher price line.
All I mess with now are products that are priced over $500 and mostly over $1,000, up into the thousands of dollars, maybe five or more. As you go higher in price, the amount of sales you get is lower, but the profit amount is higher. It's worth it to put in time and effort into building those listings out.
Now, understand also that when you're looking at a niche, unless they have MAP pricing in many of the supplier's products, you really don't want to go into the niche because it's just going to be a race to the bottom. MAP pricing should definitely be a foundation for what you're going to do.
Of course, there's the marketing potential. I mean, you want to be able to set yourself apart in that niche. If there's already a ton of websites that are doing really good marketing, it's going to be difficult to compete. Look at the websites that are your future competitors in that niche and think, "Are they doing good marketing?", "Are their product descriptions filled out?" "Are their websites really good?" "Are they doing videos?" "Are they doing really good email sequences?" "Are they doing specific funnels for their customers?" "Are these websites professional ecommerce websites, or are they newbie, novice websites?". If they're newbie, novices, then you can definitely compete and beat them in their own game.
Ability to Upsell Accessories
The next one is the ability to upsell accessories. A niche should always have accessories to upsell. You should always think about that.
Every single product page should have a product option on it to add accessories. There can be multiple accessory options, and you should have pictures of the accessories, links to separate listings where the accessories are, and things like that. That's going to help the customer understand the accessories and how they benefit them and actually go ahead and purchase the accessory along with the main product. You can be that one-stop-shop for somebody in that way, and they're really going to like you and shop from you more often if you are that one-stop-shop. Lots of accessories are great for a niche.
As far as returns go, you want a niche with low returns and low turnover. The problem is, is with things like fashion is that you get a large return rate, very high returns, so you want to make sure you choose a niche that has a low return rate.
Niches with big products that are really well-built and easy to use, easy to set up, those types of products are great to sell because it's more expensive and difficult to return them. If they have really good, high-quality suppliers and products that are being made, then it's less likely that they're going to be defective.
Industries that have been around longer, so more than 10 or 20 years, 30, 40, 50-year-old industries or more, are great like the furniture industry, for instance. All the sub-niches within the furniture industry are wonderful because they've been around for a long time, so they've had time to perfect the product quality and perfect the processes for fixing damaged products, so they don't have to be returned.
Don't Go for Locally Available Products
Another great way to identify a profitable niche is to look and see locally if those products are available, so look at your local Walmart, Best Buy, or whatever the niche happens to be. If they can't find that product locally, they're obviously much more likely to buy it online and have it shipped directly to their door. So that's a good way to do it.
Generally speaking, smaller products are usually better. But it really just depends. Smaller products are easier to sell, so you have more competition. And they're more likely to be able to be found locally.
In this case, I usually say that bigger products are better because they're more complicated to sell, they're not found locally as often, so you'll be able to compete better with them. There are a lot more accessories and upsells to sell with them.
In my training, I usually teach you to sell big products. It goes against the grain, but that's okay.
The next thing is measuring demand.
Let's get into demand a little bit. Using the Google Keyword Planner tool is really cool. There's also a tool called kwfinder.com. You go to ecommerceparadise.com/kwfinder, and you'll be able to use that tool to identify how many searches per month are being done on the keyword in your niche.
You'll be able to look at the different match types of that keyword, which means if you're looking for phrase matches or exact matches, you'll be able to see different variable keywords, and it'll look at those search volumes as well.
You'll be able to see where they are higher and where they are lower. Skateboards are probably higher in Southern California, whereas kayaks are probably higher in the Great Lakes area because there's a lot of lakes to swim around with kayaks.
Long-tail variations are really important. You have to understand that product keywords are the most lucrative keywords to be typed in. If you want to find some product keywords, specifically in your niche, maybe try searching Amazon and type those basic product keywords into Google Keyword Planner. You'll be able to see how many searches per month happen on those products. If it's a lot, that is because people are buying them a lot, and that's a really good sign. You should definitely check that out.
The next thing to look at for a product niche selection is Google Trends. Google Trends is really good. It's important to get in there because you'll be able to understand the seasonality of a niche, and you'll be able to understand whether something is trending up or trending down.
Just type it into Google, and you'll be able to see your niche there. That's really important to look at. You can see the geographical concentration, like I said, seasonality, all that good stuff.
You have to go and look at your competition and measure them and see how they're doing SEO-wise because it's not just about the ads, which I teach in the course how to do ads, but it's also about showing up organically for product-based keywords, brand-based keywords, product-type keywords, things like that, generic keywords.
If they're doing really good for SEO, you're going to have a lot of competition. That's okay because you're going to be able to compete with paid advertising. But eventually, later on down the road, you want to be getting backlinks and organic rankings, especially for those product-based keywords, so that you can show up and get those sales organically. And you don't have to pay for them all the time. If your competition has a lot of SEO, you're just going to have to make sure that you understand that backlinking and creating unique content will be a really big part of your business growth in the long term.
Let's get into the next section.
A competing site's authority can be decided upon easily by just looking at the Ahrefs profile of them. You can see there what the page rank is for that particular website.
You can also use a website like similarweb.com. You can use all sorts of SEO websites and stuff like that. Page rank is important because if a website has a high page rank, it will be tough to compete. It's also going to be lucrative to find out if you can do guest posts on that website that'll link back to yours somehow. I'll get more into that later in other videos. It's not really important when you first start, though.
If they have a really useful website, you can definitely extract all the different things they do, right?
If they do a really good job at product comparison, you can extract all the different ways they do that and import that into your own website. You can hire a VA to do that even.
If they have a really good reputation in their niche, they have things set up like BBB accounts and stuff like that, lots of trust seals, lots of expensive trust seals, just understand that, and you're going to want to mimic that with inexpensive trust seals, at least, so that you'll be able to compete.
The best way to really choose your niche and to finalize your niche decision is to choose one and get started.
When it comes down to it, you'll need practice with marketing, so choose the best niche you can out of all of them and then get started.
Give yourself a few months, as a timeline, to launch - if you're doing it part-time or a few weeks or full-time. Once you do that, give it a few more weeks or a few more months to grow. The goal is to hit six figures in revenue within three to six months of launch. That means $100,000 in sales.
That's what I teach in the Dropshipping Masterclass. You can sign up there with the link below, and if you're not quite ready for that yet, definitely jump into the next video where I'm going to teach you more about the drop shipping methods that I teach and how to get launched fast and how to get going.
The topic in the next video is going to be all about starting your business.
Up to this point, you've researched the markets, you've found competitors, you've found suppliers, and now you should've chosen a niche.
It's time to start your business to start building your website and actually get this thing launched.
See you guys in the next video.
Step-By-Step Training for High-Ticket Drop Shipping
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eCommerce Paradise was created by Trevor Fenner of Seattle, Washington in 2015 to help you, the entrepreneur, to start and scale your own eCommerce business selling high-ticket products online with the drop shipping fulfillment method so you can make more profit per sale, have a sustainable and evergreen online business, get started with very little upfront investment, and live a location independent lifestyle. Trevor owns multiple 7-figure High-Ticket Drop Shipping eCommerce stores and is a digital nomad, traveling the world while working remotely with the help of his team of over 10 virtual assistants from around the world. Trevor is currently located in Bali, Indonesia. Trevor is also a passionate skateboarder, surfer, scuba diver, photographer, environmentalist, outdoorsman, fitness and tattoo enthusiast.
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