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What makes a product suitable for dropshipping?
What are the key features that you should look out for?
Product research is crucial for your dropshipping business. Uploading tons of products to your store and promoting them everywhere won’t help you sell; you'll just be wasting money on ads. What you need to do is fill your online store with high-demand products selected through effective product research.
To help you source trending products with potential for sustainable growth, we prepared this product research guide. Read on!
Make sure your product solves a problem for your customers.
If you can identify a real customer need, then you can sell them a product that provides the solution. A useful item that solves an everyday problem is always going to be in high demand. It doesn’t need to solve a big problem, but it should be convenient to use by saving the customer’s time and effort.
If your profit margins are too low, you won't be able to pay for running costs such as marketing and site maintenance.
Select a product that you can dropship for a healthy profit. Ideally, we recommend products that allow for $15-25 in profit after product and marketing costs.
If your product ticks both #1 and #2, you’re off to a good start. But having these two features will only make your product a qualifier, not a winner.
Look through the additional key indicators below to determine whether you have a winning product.
Look for gimmicky and entertaining products with “wow” features that gran your attention when they pop up in social media feeds. This usually means that people would stop what they were doing and start finding ways to get their hands on it. The "wow" factor makes customers willing to pay a higher price, so these products shouldn't be easily found at your local retailers.
Products that appeal to customers’ emotions are more likely to trigger a strong desire to make the purchasing decision.
It should be something with uniqueness of design or function, so that it resonates with customers. For instance, people spent tons of time at home with their pets during the pandemic lockdowns. The emotional connection to their dog would be the reason why someones impulsively picks up dog paw necklaces in a dropshipping store.
You’ve probably heard of the need to find a niche market to reduce competition. While that's partially true, having a wide selection of products could net you a bigger audience. For instance, clever phone cases would appeal to a broader audience, because most have phones that could use phone cases. On the other hand, niche products are more likely to attract passionate buyers. For example, custom dog collars would be a huge draw for dedicated dog owners. So it really doesn't matter whether the product has niche appeal or broad market appeal, just make sure there is an audience for it.
Does the product have a high perceived value that makes it worth the premium price tag?
Even if you source products for a low price, the value it provides to the customer should be obvious enough to justify selling them for a $20 markup or more. This value can be derived from their problem-solving qualities or uniqueness of design and function. Products with good quality images/videos also enhance their perceived value.
When deciding which products to dropship, look for items that are small and lightweight so you won’t run into shipping issues. Shipping speed is critical for eCommerce. You must account for size and weight constraints to avoid potential hazards. The rule of thumb for dropshipping products is that it should be able to fit inside a shoe box.
Avoid selling “common” products. Only sell products that can’t be easily found at the local Walmart. For example, products like screen protectors are essential, but they don’t have a "wow" factor and can be found anywhere.
When doing product research, remember that you need to understand the product and your target audience. Having both points covered can help you effectively predict the needs of your potential customers.
Ready to test out your product ideas? Start your 7-day free trial with Shoplazza - the premier store builder in Asia - to build your dropshipping business.