How To Choose A Dropshipping Niche

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How To Choose A Dropshipping Niche

The key to a successful dropshipping store is finding a dropshipping niche industry that you’re gonna sell products in. I believe that it’s getting harder and harder for young people to create a life that they’re happy with, and I’m trying out modern tricks to try to succeed in a modern way.

So dropshipping is the modern way of setting up your own business, a fraction of the cost. It seems like a perfect thing for me to try. So some of the major thought leaders on the topic of choosing a product to sell on a dropshipping store or any e-commerce store are Andrew Youderiean over e-commerce fuel, Shabbir Noorddin over at bootstrapping e-commerce and finally Richard Lazazzera over at a better lemonade stand.

One of the main things you need to think about when you’re choosing your product is the price points. As mentioned in the book “4-Hour Workweek“, one of the advantages of a dropshipping store is you can set it up and get all the technical stuff set up at the start. But in theory, it should take minimal work to keep maintaining once you turn on the grunt work. The right sort of sweet spot for a product to sell at the right price point; it’s between $50 to $200. Any more than that people don’t really feel comfortable ordering off an online store, and they need to sort of put a face to a name or face for products or a voice to opponents before ordering, and they’re gonna be ringing you up for technical support other questions. So, keeping it the price low at between $15 to $100 guarantees you’ll have sort of minimal customer service requests which is gonna be good for you as the owner because you’re gonna have so much other stuff to think about.

Product Size
You will want to use a product that you’re going to be able to post relatively easily, and you’re not gonna have excessive delivery fees because of how big your package is. To try and keep the product small and it’s gonna benefit you and your customer. Because, in theory, if it’s a nice little package you’re going to be able to offer free delivery, you know the delivery cost is gonna be so small that you can make the shopping experiences as smooth and as pleasant as possible for the customer. They don’t even have to worry about adding delivery costs onto it and the checkout stage, it’s just free delivery; but what you see is what you get on the price.

Another thing to think about when you’re trying to pick a product to sell online is it needs to be something hard to find locally. If you’re gonna sell something that you can just buy at the supermarket down the road why is that customer gonna come on your site and order from you, it makes no sense. So find a product that’s hard to find in the local area, and people need to go online to buy it.

I wanted to find something that was going to encourage repeat customers. A product, disposable or consumable such as foods, toiletries, coffee are the sort of things that your customers are going to use and when it out of his stock, then come back to you to order again. That’s great for you because of repeat customers and the repeat income. You’re gonna see money from those customers hitting your account multiple times rather than just on a one-off instance which is great for me, and you should be thinking the same way it’s gonna be great for you because that’s going to repeat passive income coming your way.

How To Choose A Dropshipping Niche

Another consideration that I found really useful when I was trying to pick a product to sell in my dropshipping site is that the product appeals to the right customer at the right age group. If you were selling a product that peels to children or to teenagers, they’re like you’re not gonna have much money, and they’re not gonna be doing any spending online. If you’re appealing to the older generations, they’re probably less likely to be tech savvy then younger generations and less inclined to order things through the internet. So I wanted to pick a product that appealed to sort of middle-aged people who are from 25 to 40; people who have money you know they’re established in their careers, they understand technology, and they’re more than happy to buy things online. That’s an important factor to think about, make sure you’re selling to the right age group and the right customer.

The final thing that I had in mind when I was trying to choose my dropshipping niche industry and my exact products to sell online is that you’re picking an industry or like a store idea that’s scalable. By scalable I mean you can start by selling a few products in that dropshipping niche area. And then if the store is a success, you can build it up and sell more and build a complete store based on that industry.

I didn’t want to find just one product I could sell on a one-off, and when once that trend or that buzz has gone, it’s not going to sell anything else. It’s important being able to build a brand. Then, I added products to that store, and I should get more and more traction if they’re still successful. Those are the primary considerations that I was mulling over. It took three weeks for me while I was trying to think of a dropshipping niche industry and in each set of products to sell online from my dropshipping store. If you want to build a dropshipping store too, check Shopify for free.

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2 years ago

It is really helpful