How To Choose A Winning Product
Hi there! I’m spending 30 days documenting my dropshipping journey. I have created a series of blog posts to walk you through my experience. Here I talk about how to choose winning products. To check out my entire project, click here.
Choosing products for your business can be one of the most critical decisions you’ll make. It can determine whether your business will make it or break it. So, here are three points on what winning products look like.
1.The majority of products fall under two categories: Problem Solving and Wow Factors.
Problem Solving products address specific customer pain points or issues. Posture correctors, compression gloves, and braces are great examples of problem-solving products.
Wow factor products are mainly lifestyle purchases. They have characteristics that impress audiences and create a desire to buy.
Examples:
- Clothing
- Jewelry
- Watches
- Shoes
- Hats
Both these categories can be successful, but for beginners, like myself, looking to venture into the e-commerce world, it is recommended to stick with problem-solving products. It will be easier to come up with marketing angles without having a known brand. This is why I chose the problem-solving route and decided to put together a brace collection.
2. When looking for your first products, focus on items sold for at least $30.
It is important to start with low to mid-range products because the higher ticket items can be more expensive to market. Selling more expensive products may result in more expensive ads, which can be challenging to do when starting.
3. Make sure you can have a 2.5 to 3-time markup to sell the products.
It is important to sell the products at reasonable prices but still profitable to reinvest into Facebook ads. For example, Compression Gloves have a product cost of $3.84. Shipping cost $5.59 via e-packet. If I set my product’s store cost to $14.99, I will make a total of $5.20 per order. Now let’s say I run one ad for Compression Gloves with a Daily budget of $3.00 on Facebook. I will have to get at least one sale a day to pay off the ad and profit $2.20. The more products you sell a day, the longer you’ll be able to keep your ads running and make more money.
Tools to help find successful products.
When looking for products for my store, I used a tool called Ecomhunt. Ecomhunt shows you all kinds of products to start dropshipping. The tool provides information like a product’s selling price, product cost, profit margin, and current seller stats.
The key to using Ecomhunt is NOT to use it like everybody else. Most people sign up for Ecomhunt and pick the first products they see because they’re new or trending. Avoiding the most current pages results in falling into saturated markets with a lot more competition. It is better to view products on older pages and select a previous winning product or one that has not been tested. Why? Although the products and people may not change, the Facebook algorithm does, resulting in the algorithm targeting a different range of people producing different results.
When finally selecting a product, it is crucial to do product research. When I chose my brace collection products, I checked various reviews from different sellers on Aliexpress and Amazon. I wanted to make sure the products I was going to sell had good reviews with happy customers. It is also essential to make sure the products already have a good order count with trusted suppliers. If products you want to sell have negative reviews, take notes and see if you can address them or if they’ll be problematic for your business.
Once you have covered the checklist for finding a successful product, its sales will be determined by your ads’ creativity. When committing to your selected products, you will then be able to build a store around them. Check out a store I built for my products here.
