eCommerce is proving to be a titan in the business world, making headway into every business sector you can imagine, and slowly gaining a monopoly on the business world as a whole, and dropshipping is no exception to this trend. Even traditional brick and mortar stores are finding themselves with the predicament of having to adapt in an ever-evolving business environment and grow their online presence just to remain profitable. As the world shifts into an era of virtual purchases. Data taken from already existent eCommerce trends project a growth in online sales of up to 276.9% by the year 2023, and dropshipping counts amongst the beneficiaries of this growth trend. With forecasts placing its collective market size at $557.9 billion by 2025.
Ensuring your store is profitable
To ensure you gain a stronghold, and thereby extension share of the humungous earnings to be had in the dropshipping industry it helps to focus the bulk of your attention on developing a proper product strategy. As most of the dropshippers who have gone on to find tangible success in the industry have done so by focusing on a product strategy that has carried their stores past the threshold of mediocrity to multi-million dollar establishments, but how do you go about creating a good product strategy, and one that will result in success for your store nonetheless.
Endeavor to success
The biggest caveat for any business is to remember that failure is at often times a part of the business journey. All too frequently are the stories of success within the dropshipping industry drowned out by those of failure, at the behest of those few who failed in the first trial runs of their business, and rather than try again, have taken to relegating themselves to carry out verbal attacks on the industry as a whole calling into question its credibility in the modern era. But if you look past the haze and fog of disappointment that acts as a firewall so many are quick to run away from, you’ll find one of the most profitable, and easy to start business models out there, but I don’t have to sell you on that now do I.
Instead, if you go through the stories of those who have found success in the industry, you’ll find that a lot of them have the common trait of having at some point in their careers or another, ran a dropship store that wasn’t profitable. Some on purpose through niche testing, others by fate, but the common thread that ties them all together into a web of current success is that they didn’t give up. Instead, they changed the niche that their store was servicing in exchange for a more profitable one, and by finding a niche that was of service to them they built their inventory on products guaranteed to sell to those within that particular niche.
If you’re planning to launch a store on a very tight budget, failure however tempting it might be as a good story to tell once your successful, may not be something you can afford, which is why the first step in a successful product strategy is research!
Choosing what products to sell
The products you choose to sell online will dictate the product strategy you adopt. Determine the niche best suited to you and the area in which you hope to sell the most products. This is a crucial starting point when a solid product strategy is being tabled, as it will help you choose a niche that is likely to be profitable to your intended target audience, and you can a develop a solid ad marketing strategy, along with reputable product strategies once you’ve come to a conclusion on this aspect of your store. Google trends is the perfect companion for such an endeavor, and you should look into niche stores that are popular within the big five dropshipping markets of the world for even better odds of profitability, countries that include:
These countries have the highest number of consumer purchases in dropshipping stores, and healthy economies to fuel consumer spending. Access Google Trends https://trends.google.com/trends/?geo=US and play around with different niche store ideas to see which ones are the most popular in each country.
Choosing the right products
Before you can develop a strategy around the products you feature on your store thorough, research should be conducted to assess the trends developing in the market around those products too. To ascertain this information you’ll need data from Facebook, Aliexpress, Amazon, and even competitor stores, which is why the right product research tool is essential to developing a solid product strategy. Use Product Mafia to choose a product that you deem suitable for sale in your store, and compare it to other similar products all sourced from Product Mafia to determine which one would be best suited for use in your product strategy.
You can do this by going over the detailed statistics that come with each article. Which include Facebook engagement scores such as views and likes, Aliexpress seller data such as seller scores, and the number of recent sales. Along with the global audience count and influencers to market your brand to. Both Product Mafia and Google trends should be employed prior to selecting the products for your store.
Always make sure that any product you select falls into one of the following three categories:
- Always ensure it has a wide range of appeal. Such as the Kitchen Spoon Holders Folk which counts as a product that is not limited in its marketability by gender, and thus can be sold to a wide audience of both male and female homemakers.
- You must also ensure that any product you select is flawless in appearance, as looks are a testament to quality in the world of dropshipping, and the better looking an item is, the more likely it is to sell by extension.
- Last, but not least is utility. The more useful a product is the more market appeal it holds, and the easier it will be to sell.
The point of selecting products based on the following three criteria is that they will help you to access the selling potential of a product, one of the key components to a good product strategy.
Always aim to select top tier products for your store, as niche stores rely heavily on long term relationships with customers, and one way to go about achieving this is by offering your customers quality offerings, building up on trust with your brand amongst those who frequent your store often.
Most successful stores attribute their success, especially in the nascent phases of their business to a small number of items that possessed within them high sales potential. One example of this is the aforementioned Kitchen Spoon Holders Fork . It is a perfect example of a product that fulfills the three criteria mentioned above in the article.
- Appeals to everyone
Everyone has a kitchen, and clutter amongst one’s kitchen utensils is a nuisance that most homeowners face on a daily basis. Most kitchen folders are made for knives, which leaves the often cumbersome kitchen spoons free to clutter the kitchen space, but this item is a practical solution for a problem that all homeowners encounter on a daily basis. You don’t have to sell people on why they should buy it, no, instead you just need to make people aware of its existence, and the fact they can get it off your store.
- Aesthetically pleasing
The Kitchen Spoon Holders Fork looks very much in its appearance similar to your conventional knife holder. Which is a good thing because consumers won’t have to take the time or a lot of ads to get used to it in terms of appearance. They are more likely to warm up to it in appearance immediately because of its familiarity with other kitchen utensils. Its appearance also speaks to the quality of the item in general, which is why you should always use the best quality pictures for all the products you feature on your store.
- It’s useful
Not only is a spoon holder not as common an item as its analogous cousin, “the knife holder.” It is an item that is very useful in the kitchen. Most big cooking spoons don’t fit in your conventional cupboard or kitchen drawer designed for small eating spoons and thereby cause these spaces to be cluttered, or not close properly in the process. One of the reasons you have knife holders for big knives in the first place. This item however provides a storage solution for your large spoons instead. It is almost guaranteed that most customers in search of kitchen items have this space issue as far as their large spoons are concerned, and this item is the perfect solution for that. Finding use in the everyday lives of homeowners throughout the globe.
Promote your products
Creating a winning product range is just one step in the journey to a winning product strategy, promotion is another!
You needn’t market all of the items on your store’s inventory, just those with the highest selling potential like the Kitchen Spoon Holders Folk. Most successful product strategies involve a focus on products that solve a problem in the niche they are serving and building their ad campaigns around that particular product as opposed to marketing your entire store’s inventory at once is a practical and efficient way of promoting products that are guaranteed to sell.
Increase the average order value
Once you have your ad campaign in the bag it helps to move on to increase the average order value of your store. Some of the ways to go about this is by offering your customers combo deals, combining products in sets, and offering bulk order discounts for purchasing more than one of the same item. This allows you to offer your customers incredible discounts as a reward for them purchasing a product in bulk, thereby encouraging customers to make bigger purchases on favorable terms. Leverage this with pop-ups that make customers aware of these bulk discounts when they are browsing an item selected to feature in your promotions.
The pricing formula of the items you chose to feature on your store is a tricky beast, even to novices in the industry, but a basic formula which works well is to charge a premium price for the products that are shown to trend well in the product research phase, and moderately price the others. If this isn’t assurance enough always feel free to go over the profit margins and pricing formulas for the products on Product Mafia have. As they are expertly formulated to bring store owners the highest amount of conversations possible on each of the product they sell.
Once you have the pricing formula down it helps to move on to the last and final phase of your product strategy journey, and that’s boosting sales. A really great, time-tested method of doing this is by offering additional products to your customers right after they checkout and complete a purchase. Or after they leave the website after seeing what it is exactly that you have on offer through your store. You can accomplish this by means of pop-ups, or through emails that market similar high sales potential products similar to what that specific customer was looking for online.
This helps customers, and visitors to your site learn more about the other products you have on offer on your store, and possibly purchase them once they return!
To paraphrase many of the great and iconic figures present throughout history, “Great achievements cannot be accomplished without a good deal of planning.” And dropshipping is no exception, a good and efficient dropshipping outfit isn’t possible without a great deal of planning behind it, and no aspect of dropshipping is deserving of greater planning than the product strategy aspect of the business, which is why we’ve given you the blueprint to perfecting yours.