Dropshipping is a very popular ecommerce model currently. If you search for Dropshippig on YouTube, there will be a lot of video tutorials like \”How to do Dropshipping via Shopify to make million dollars a month\”. What\’s dropshipping? It is a kind of e-commerce mode in which the seller opens the store online without having any inventory, and the supplier directly delivers the goods from the warehouse to the buyer after placing the order. For the dropshipper, the cost and risk is low, also the management is free and simple. Without inventory pressure, there is not much need to prepare funds. The most important thing to do Shopify dropshipping is the product selection. Only by choosing the right product can you get profit easily. In this article we will show the ultimate product selection tutorial for shopify dropshipping.
The product selection of Shopify dropshipping is better to meet 3 conditions:
High marketing demand
Easy to ship
If the product you selected meets the above three conditions, then it is more suitable for Shopify dropshipping. In general, when you select product you can go to some e-commerce websites such as AliExpress, eBay and Amazon to view hot products, and to social media to see what is popular now. Then, calculate the profit margin and finally choose shopify to start dropshipping.
Product price for shopify dropshipping
The price of the product selected by Shopify Dropshipping is preferably between $15 and $200. Although the two price gaps are quite large, this is also a feature of Dropshipping.
Cheaper products mean small profits but quick turnover. Such products can lead to greater sales. These large sales volume can bring orders and customer evaluations to the store. Helps increase the credibility of the store. But the downside is that the profit is relatively low and there is some pressure on the inventory, the seller must ensure that there is enough inventory.
Products with more than $200 will have difficulty in sales. And, if the customer asks for a refund, it is also very difficult.
If you have daily 30 or above orders, the daily order fulfillment takes lots of time, you can start to outsource the order fulfillment works, thus you can focus on store marketing. You can take a look at China 1688 Pick and Pack Order Fulfillment Procedure for Shopify Dropshipping
If you choose order fulfillment agent to help you fulfill the orders, the product price would be better high than 20 usd, else your profits might be cut down. We suggest the product price above 25 usd.
Profit margin for shopify dropshipping
Dropshipping product margin must be at least between 20% and 40%. Ideally, the profit should be higher than 60%.
If your Dropship product retails for $200, then your profit margin may be 30%, so you can get a profit of $60, but if your product retails for $20, then the profit margin should be higher. Since profit margins need to take into account transportation, packaging, marketing and other costs, it is safer to choose a high-margin product.
Product Weight and size for Shopify dropshipping
The best choice for Shopify dropshipping is a product that fits into the size of the shoebox. Any product that exceeds this standard is likely to cause shipping costs to be too high. For those who want to do dropshipping, pay attention to the lighter and smaller the better the product, and avoid those fragile products. This product is prone to a large number of refunds and complaints.
Potential repeat purchase rate
This is a problem that many new e-commerce companies will ignore. Good products will bring repeat purchase customers. In the past few years, the subscription model has become more and more popular. From basic household items to luxury goods. The subscription model is a way or means for a company to obtain a stable income stream. As the traffics cost increase higher and higher, the product selection strategy also should be considered to help you increase potential repeat purchase rates.
Product selection is just half of the Shopify dropshipping work, another challenge is to find quality suppliers. This is especially important for Dropshipping, because a trusted supplier is the one that ships the item to the customer after the order is placed.
The ideal dropshipping product needs to be a product that can be stably produced for a long time. In this way, the cost of the product will be reduced. Frequent replacement of products requires constant updating of the listing of the Shopify store, which is very time consuming and labor intensive.
What are the common mistakes made in the Shopify dropshipping product selection?
Mistake 1. Choose big brands and well-known design products for shopify dropshipping
Many people may feel that well-known brands have their own visibility, so there will be sales. Because of his fame, the demand is large and expensive.
But the truth is that it is difficult to profit from the products of these brands, because big brands are very cheap, and the profits of the products are extremely low. Unless your purchasing power can keep up with big stores, it\’s best not to choose these brands.
Mistake 2. Select counterfeit products for Shopify dropshipping
Selling fakes can be very attractive because they are very marketable. However, this will lead you into legal disputes, which is not conducive to the long-term development of the store. Therefore, in the selection of products, we must be cautious of those products with unusual price advantages.
Mistake 3. Select a highly competitive product for shopify dropshipping
This is a common mistake made by many new Dropshipping novices. Because we may feel that selling well, competition and fierceness indicates that it has a market. But the truth is that the market share we can get from this product is small! It will force sellers into vicious competition.
So, how do you choose a good product for shopify dropshipping?
The product selection is a matter that needs to be studied and planned. Let’s take a look at the perspectives from which the selection can be made!
First, familiarize yourself with the best-selling products on Amazon, Ebay, AliExpress and other people platforms. This allows us to understand the market trends. Here we suggest a tool called SaleHoo. This website was previously used by \”small business who are looking for Chinese suppliers on Alibaba?\” This article also shared, is a website for dropshippers looking for suppliers.
SaleHoo Market Research Lab
SaleHoo has tens of thousands of products in more than 25 categories you can view:
The degree of competition between each product on Amazon and ebay
What is the average retail price of each product on the Internet?
Sales volume of each product
This makes it easy for users to research product competition on the market and help with the selection.
Social shopping sites
The social shopping site is an online market generated by the user\’s evaluators, so what is popular now, you can basically find out here.
These sites can save dropshipper a lot of time to filter millions of items compared to Amazon and Ebay.
Study successful stores for inspiration
Study what those good shops are doing. How they select products, how they write listing, and store style and so on. Try to look at the online stores of big brands and small outlet stores so that you can see the different approaches companies take.
Finally, do a good job in the price market research of the product, as well as the degree of competition. Check prices for similar products on ebay and Amazon, it\’s best to choose products that cost between $15 and $200. Research competitor products and product prices. If the same product is sold in more than 15 fairly mature stores, you may need to change one.
In addition to the Ultimate product selection tutorial for shopify dropshipping, 86Deal also listed other articals for product selection: