Dropshipping product selection has always been one of the core topics of e-commerce. In recent years, due to the turn of people’s consumption concept and the continued impact of the epidemic, more and more sellers began to step into the e-commerce industry. With this, industry competition has become more and more intense. DTC shop or Shopify shop is different from the shop on amazon. It requires more promotion and marketing. Therefore, dropshipping product selection is the sellers’ winning strategy to grab consumers’ attention.
So, today we are here to talk about what tips and strategies for dropshipping product selection are more practical.
Understand the target market
The most important thing in dropshipping product selection is to understand your target market. Sellers who target a more mature market (European and American markets) can choose a product in a higher price range. Because usually, consumers in this market can afford the higher price.
They also have a high level of interest in some high-end products. Sellers will have a larger range of products to choose from. In addition, niche market products will have good sales in a more mature market.
If the target market is emerging markets such as Southeast Asia and Latin America, then low-cost dropshipping products are a good choice. Emerging market consumers have not developed online shopping habits for a long time, and consumers may prefer more practical consumer products.
Products in niche markets may not sell well in these markets. However, sellers can choose to target market folklore products, which have more potential.
The suitable volume and weight of products to reduce logistics costs
After understanding the target market, we recommend that sellers choose as small or light products as possible. In the early stage of website operation, sellers have limited capital and need to face fierce competition in the market. Therefore, smaller products can save logistics costs and improve overall profitability. At the same time, it can also reduce the proportion of space and reduce costs. Sellers can spend more money on website traffic and product promotion.
Monopoly-free market
First, the monopoly-free market leaves sellers with a much friendlier market volume. The trial cost for sellers is low. Most sellers are in the same starting line. Sellers can compete with their marketing strategies and operational tactics to stand out from many other sellers in the same class and capture the market.
Secondly, the monopoly-free market has not been developed and has great potential. Sellers can also choose niche markets and niche categories for deep plowing. Although the total volume of the niche market is small, at the same time the intensity of competition is also lower. The target audience of this market is also more precise.
The slack competitive environment is more conducive to sellers generating traffic. And it’s more friendly for new sellers.
Sell necessities and stabilize sales during low peaks
Necessities are more advantageous than holiday items and products for specific occasions. These dropshipping products can better circumvent the cyclical product sales off-season and bring more stable sales to sellers. Also, reduce inventory pressure.
Analyze competitors and their dropshipping products
We can research competitors’ product categories, product sales, and market feedback to understand the products and the market demand. By analyzing competitors, sellers can better clarify their product categories and develop efficient marketing strategies.
The above is to explain the basic strategy in product selection. Sellers still need to pay more attention to the product analysis from several unique and different points. For example, the market potential of derivative products. In addition, product selection must be a comprehensive consideration of the market’s factors.
Things to note when selecting products
Supply Chain
The dropshipping product selection should adhere to the principle of the optimal supply chain. A stable supply chain is the basis of website shop development. Whether it is DTC or dropshipping, we should take into account the supply chain when selecting products to ensure a stable source of goods.
Product Relevance
The stronger the relevance between the selected products, the clearer the positioning of the website shop. Therefore, the more accurate the audience is, the stronger the customer stickiness will be.
And the clearer the brand image, the clearer the style of the website shop, which will be more conducive to the sustainable development of a shop.
Product Development Potential
Only products that truly meet the changing needs of the market will be able to get lasting development. So, the selection of products should pay more attention to the development potential of the product.
Style & Practicality
The first thing to consider when selecting products is the visual value of the product. Good-looking and interesting products are easy to catch the customer’s eye. But the born of the product is to solve the customer’s problem. So, the product must also be practical.
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