Dropshipping eCommerce business is a fantastic business to be in as it’s lucrative and hassle free. The beauty of starting eCommerce business with drop shipping is that the eCommerce merchant can sell the products without owning them, i.e., when the customers buy the product online, the company that owns the merchandise will ship the product directly to the customer. Awesome, isn’t it? So if you are aspiring for a successful business, this is it. Start your own dropshipping eCommerce website and know how to make money by dropshipping. But to start the business, you need to decide on the product that you are going to sell.
For selecting the product, the first thing you need to do is measure the market demand and figure out the supply side. Unless there’s a demand for the product, you can’t supply it and become profitable. You will get a fair idea of market demand through the following sources:
- eBay and Amazon categories: To know which products are the most popular ones in the market, check out eBay and Amazon categories. Although it has hundreds of categories, the most viewed categories are at the very top, indicating their popularity.
- Compete.com: This source will offer you tons of information about any website that you want. The offered information includes traffic, most viewed items, location of advertisements and what not. However, this paid service is bit on the steep side.
- Google trends: With this service you can find all the information about a particular part, i.e., demographics, search volume and seasonality of the product.
- Watchcount.com: Designed for eBay, this free service will help you gather data about how many watchers are viewing a particular product and which products are selling like hot cakes.
Analyze your niche:
Once you have decided on the product, you need to analyze its current market and feasibility of initiating its business. For analyzing the niche, consider the following factors.
- Selling price: The selling price is quite important. Cheaper the products, easier to sell. The perfect price range of selling the products is $100-$200. Also, when you are selling inexpensive products, you will get less emails and phone calls. So consider these while deciding on the price range.
- Market size: It becomes easier to sell products when the market size is big. If the market size is small, you will have problems converting visitors into paying customers.
- Market age: Make sure that your target audience is neither below 18 or seniors requiring care givers. They should be savvy enough to be independent online shoppers.
- Product rarity: How widely available the product that you are trying to sell is? If it’s easily available, why would anyone approach you? Wouldn’t they just go to the local store and buy it from there?
- Product obsolescence: Selling a product that won’t go out of fashion or become obsolete is a smart decision. When the product is there to stay, it becomes easy to build a website around it. However, this is not possible for the products that go out of fashion after few months.
- Product seasonability: If your product is seasonal, understand it clearly that you will be able to sell it only during seasons and not throughout the year.
- Product size and weight: Picking a product that costs a small fortune to ship is a bad decision. Pick a product which doesn’t weigh much and shipping will be a breeze.
- Profit: Ideally, you want to shoot for the profit of 75% to 100%. This way, even after paying for all the overheads, you will end up with decent amount of profit.
Do you need help to start ecommerce dropship website? Ydeveloper is there for you. Our business consultants will help you analyze your business prospects and set up eCommerce website that’s painless yet beneficial.