How To Know If A Product Is Over Saturated Before Selling

David Linder

David Linder

I write about dropshipping, ecommerce and marketing. Owner of the worlds best product research agency for Dropshippers.
5 min read

Whether you are still looking for dropshipping product ideas or already found potential products, it would be helpful for you to validate their profitability. Knowing the potential of your product choices can help you avoid probable pitfalls that might be dangerous for your dropshipping business. There are two methods to do this, the long method and the short method.


Validate the Profitability of Dropshipping Products – Long Method

This method of evaluating the salability of dropshipping products requires a lot of research to come up with the information you’ll need for you to decide on which products to sell. If you haven’t decided yet on the niche for your store, this will be a great help. These are the criteria you have to use when validating dropshipping product ideas:

  • The potential demand or market size
  • Your top competitors
  • Your target customers
  • The product viability

To know how to execute the steps involved in the criteria, let’s use as dropshipping product example the baby pacifier. Now, let’s go down to the details.


Criteria #1: The potential demand or market size

Although there are tools you can use to gauge the demand and the market size of your dropshipping product idea, the process will not be simple. Of course, you have to spend time to learn how to use these applications to get the results that you desire. To get an idea of the market size, a tool like Buzzsumo can help you learn how many people are talking about the product every day. The Google Keyword Planner, on the other hand, can give you data on the number of people searching for keywords that are related to your product per month. When it comes to assessing people’s interest in the product you want to dropship, there’s Google Trends. Here’s the result I got for the baby pacifier.

Looking into the trend of a baby pacifier for 5 years, you can see that there is always a demand for the product. With 4 babies being born every second globally, the baby pacifier will never go out of the market.


Criteria #2: Your top competitors

When you dropship products there always be competition. To evaluate the level of competition for your potential products, you can do a Google search. Type the name of the product in the search key then hit enter. The results page will show competitors that sell the same product. This is the search result of the baby fruit feeder pacifier.

You can also do an Image Search by using the product image to check how many dropshipping stores carry the same product. List down your potential competitors and their pricing strategy.

Again, using the baby fruit feeder pacifier as an example, the price per piece is $1.14 – 1.52 on AliExpress and in eBay, it costs $2.46 but other online stores sell it for $9.99 – $40. If you think you that you can offer more competitive pricing than your competitors then you can proceed to sell the product but if you can’t, it would be best to remove it from your list.


Criteria #3: Your target customers

When you decide on a product consider the people you’d be selling them to. You wouldn’t want to find out later that your potential customers cannot buy the products because they don’t have credit cards or they’re living in a place where you can’t ship. To learn about who can be your potential customers, you must research your competitors’ websites. Alexa and Quantcast are some tools you can use to understand your competitors’ audience while Google Trends can provide the customer demographic you’ll need to find out where your potential customers mostly live.

Criteria #4: The product viability

After assessing the marketability of your dropshipping product ideas, it’s time to focus on their viability. Before you decide on selling the product you must know what are the pros and cons you can likely encounter. Is the product a fad, trend, growing, or flat market? Based on Google Trends result, baby pacifier is a growing market. However, the interest in the baby fruit feeder pacifier may not last for long.

You must consider the market direction of your potential products because people may have already lost interest in these products by the time you started selling them. You wouldn’t want to waste your time, money, and effort on putting up a dropshipping business then find out later that the market is already gone.

Other factors to consider when validating dropshipping products are the following:

Is the product available locally? If yes then it’s not smart to sell it online.

Is it a seasonal product? Products you can use only during the winter, summer, Halloween, or Christmas times can be affected by seasonality swings.

Does the product solves a pain or serves a passion? Products who have these characteristics can get customers easier than nice-to-have products.

Is it consumable, disposable, or perishable? Perishable products are hard to market and earn profits from.

When you have completed analyzing all the criteria in validating dropshipping products using the long method, what remains in your list are products that have more potential for profitability. The next thing to do is to look for dropshipping suppliers that carry these items on their stores. This means you will need to do other research to determine the right suppliers of the products that you want to dropship.

Don’t have the time to do lengthy research for dropshipping products to sell? Then you would want to use the short method.


Validate the Profitability of Dropshipping Products – Short Method

Determining the dropshipping products to sell is a challenging task that will take much time and effort on your part. However, it is an important ingredient to your success in dropshipping that you must go through. You can cut back on the research aspect of your business with a Product Mafia subscription. A monthly premium subscription of as low as $7 will give you access to winning products that are updated daily plus the important data like profit margins, analytics, engagement, product suppliers, copyright info, video links, current Facebook Ads, and suggested Facebook targeting.

Although you can subscribe for free, the data that a premium membership offer is those you need to skip the daunting task of research. Traditional research will cost you subscription fees to use all the desired features of necessary research tools, which means you will spend more than a Product Mafia premium subscription.

Why waste your precious time on product and supplier research when you can get all the info you need quickly and in one place?  By subscribing to our service, you’re just a few clicks away to finding your winning products.

David Linder

David Linder

I write about dropshipping, ecommerce and marketing. Owner of the worlds best product research agency for Dropshippers.

Leave a Comment