Dropshipping has been one of the most profitable industries in the world for the past decade. This market is worth almost 600 billion dollars, and millions of people around the world are part of it. The reason for this is that the consumers are happier, prices are lower, and the whole process of connecting the supplier to the consumer is faster and simpler. If you are looking to become a part of this industry, you should know that some things are more profitable than others, and you need to know how to attract your customers.
Since there are millions of different items that are being sold every single day, we ask ourselves if it is better to sell a lot of smaller items with a smaller profit or go for something big, that is not going to interest too many people, but it will bring a lot of cash right away. In this 2020 guide, we are going to give you some tips for finding the most profitable niches and help you out with your decision. Know that you have the final word and that we are here to only give you information about this industry and what you can do to be successful in it. It is said that the best dropshippers can make millions of dollars of profit every year, so why don’t you try your luck and become one of them?
1. What do people want?
The first thing you need to think when it comes to finding a profitable niche is to know what people are looking for. Follow the latest trends and adapt to them if you want to be successful. Something that never goes out of style is tech and clothes. When you combine the two, you get something that people will always buy. Choose clothes that are easy to fit smart devices on, and look for something that will help people get in shape faster. It is said that this is the way to success.
When we say follow the latest trends, we mean that you need to think about what people want and need right now. For example, this year the whole world is facing the pandemic and we are all looking for ways to protect ourselves and continue living as normal lives as possible. Masks are the new normal now, so if you want to make profits, then try to use this knowledge to your advantage. Know that you need to offer standard and basic products that people will like, but also you need to find something cool and unique that is going to make users different from the rest.
According to GoTen.com, when it comes to the best niches for dropshipping, gaming equipment is definitely one of them. You should look for things starting from headphones and microphones, up to chairs and desks. Anything that is gaming related interests people, especially during these hard times when we want to focus on something that will make us feel better and forget about the issues.
2. Look at your competitors
The next thing you can do to help yourself is to watch what other people are doing. Nowadays there are a lot of different dropshippers and they sell millions of products. Before you make your final decision about what you want to sell, you should open your competitors’ websites and see how their sales are going.
In most places, we can see how many items are sold, and when you open a specific item, you can see how many customers like it, how many of them bought it and you will also be able to check the reviews. When you follow this data, and when you make an analysis you will be able to figure out if that is something you would be interested in offering on your website. Know that your main goal is to make sales because in that way you make the profit. If you notice that dozens or hundreds of people are interested in the item, maybe you should steer away from it. You are looking for bigger numbers, and you want to make thousands of sales. The exception of this is if there is a limited amount of orders consumers can place, if it is an extremely specific item, or if it is something that is really expensive. Know that the more expensive the item is, the fewer people are going to buy it.
Last, but definitely not least, we will talk about profits. When choosing the right items for you and your business, you need to make enough profits so that your business is sustainable. This is a bit more complex than just the percentage you are going to get from a sale. You need to think about returning customers, and if someone would buy the same item more than once. If people like your store, and if they like what you are offering, chances are, they will come back. You need to think about the marketing, and you should also calculate the discounts that you would give for buying in bulk, or to those that make more than 5 or 10 purchases.
It is said that every dorpshipper makes about 20 percent profit from a sale, and if you sell something for 10 dollars, you will get 2 dollars for you. If something costs less than 5, but if thousands of people purchase it, then your profit is going to be a lot bigger.
Combine all of this knowledge, and know that research is the key. Even if you make a mistake, and try to sell something people don’t like, you don’t have to continue collaborating with the same seller, and you don’t have to offer that item twice. Because of that, when you first start in this industry, you need to limit the number of orders. Depending on what people are interested in, you can change your orders, and you can give them what they want.
This market is constantly changing, and if you want to be successful, you need to pay attention to it. Always be on your toes, and when something happens, do your best to be the first person that offers your customers something new.