Although Amazon enjoys 34% of its products sold from dropshipping, finding products for Amazon dropshipping can be very much a challenging task. It is because around 250,000 products are launched worldwide and only 5-15% of them survive.
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Learn from A to z in this article, ‘whats’ and ‘hows’ of finding products for Amazon dropshipping. The main points covered in this article are as given below.
- Finding product ideas
- Determining the product’s price range
- Selecting products to dropship
- Product sourcing
- Finalizing deals with the suppliers
- Filtering out the product.
How to dropship on Amazon?
Amazon is the only platform where you struggle to make your position on the selling list. To make the most out of the dropshipping module you need to try dropshipping on Amazon. With an active user base of 300 million and 280 billion in sales, Amazon has proved to be the “Mecca and Madina” for drop shippers.
Just like any dropshipping platform Amazon has got the facility to dropship on it, only with few restrictions. The only restriction is:
- You can not buy from an online seller from Amazon and dropship the same item on Amazon itself.
Be rest assured while dropshipping on Amazon. Every step that should be taken for dropshipping on Amazon is the same as any other platform.
Where do you find product ideas?: Introduction
Finding product ideas is not that simple. Product research is one of the toughest tasks in dropshipping. Let us discuss some ways to research products in an efficient manner.
Other online stores
The idea here is to find what the big online stores are selling. Find what products are trending, their best selling products, even the least selling products. This will help you analyze what to assess and what not to while choosing products for dropshipping.
Understand why certain products are popular during a period while others are not. Use the assessment to your advantage. Here are some links that will help you find products from the most popular eCommerce stores.
- Amazon best sellers
- Amazon new and interesting finds
- Trending on eBay
- Alibaba first look at new season’s product
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Social media groups
Online community sites display related behavior, people’s interests, and opinions that nowhere else you could find. Here are some online pages that you would love to look into while dropshipping.
Social shopping sites
Social shopping sites work much like an online store but with a little twist of consumers’ recommendations in the shopping environment. It circles around communities with similar interests, but you’re gonna get much out of it. As there is a population voting for a single product and you know, who is gonna buy what kind of product. This will further help you get market sample research.
These are some social shopping sites you should visit too if you are dropshipping.
Local Community markets
Don’t rush anywhere else, instead visit your local market to get an insight into local trending, best choice, and best selling products. Begin the research by finding out what locals are crazy about. Visit local bazaars, food parks, or frugality stores. There you can find products worthy of your dropshipping.
Determining a product’s price range: DOs and DON’Ts
Determining a product’s price range becomes an essential part when you are doing product research for dropshipping. You have to find a balance between the price of the product and the profit margin you want to sell.
Generally, the conversion rate is higher if you are listing the product at a low rate. The product listing should be value-based. The more is the value, the greater is the profit you’re gonna credit yourself. There are two types of approaches while pricing a product. Those two types are:
- Cost-based pricing approach: It is an approach in which you basically list a product based on a simple study of manufacturing and retail margins without encrypting any value into the product.
- Value-based pricing approach: It is an approach where you price a product based on the overall value it provides to the customer i.e. the list of problems it solves for the customer.
For example, a shoe-rack, with a manufacturing price of around $1 will be priced at $2-3 if approached through cost-based pricing and will be listed at a price around $50-60 if approached via value-based pricing.
The reason being, “a shoe-rack solves much more problems than just holding shoes, it also keeps the floor dirt free, etc”.
To conclude we can say, “adding value into a product through product description decides the rate of the product. A product poorly presented is the product sold for a lesser profit margin”.
Selecting products to dropship
Selecting products to dropship can be totally creative if you use the apt tools at the right time. You can use social media to know the trends and validate them via the use of tools as Google Trends, Ubersuggest, SEMrush, Google keyword planner, etc.
Narrowing product research
Find out the products that have just started to pick up traction or at the stagnating stage. At both phases, you have enough time to capitalize and test the product for launching into the market. Let us discuss the product research tools we were talking about.
Use of Google Trends for comparing product ideas
Below is a snippet that compares five product topics on google trends. Every diagram in the snippet is self-explanatory.
Use of Exploding Topics for finding the trends at micro-level
The below is a snippet from Exploding Topic that you would like to consider.
So the combination of Google Trends, Google keyword planner, and Exploding Topics is a great way to start if you don’t know what products to dropship.
Finding your niche
As we have seen from the snippets above we can find and choose our niche as per the research on different topics. As of now, we have learned to do it the right way. Let us find some places we can find the apt niche for our products.
Once you like a product you want to dropship you can easily move it to your dropshipping inventory.
Hint: Find a niche in which 5% of the products are being sold in the last week.
One of the most popular dropshipping websites in the world. It provides a comprehensive package of the information on products i.e. trends, purchases, etc.
Evaluating the competition
The competition can be well evaluated from tools like Ubersuggest, SEMrush, etc. These tools use an algorithm to find the competition of the keywords. Let us dive deeper into ‘how they work’.
In the snippet below we have done the keyword research for the shoe rack. You can see the competition is too high for this keyword (i.e. 93%).
The same shoe rack is shown here with a competition difficulty of 78%. This amount of competition difficulty is considered fairly difficult for the market. Henceforth the starters should avoid selling shoe racks.
Although the competition might vary from tool to tool, on average they reveal the same result. So, you should avoid dropshipping products with a higher competition rate.
Product sourcing: Where to find the best dropshipping supplier?
Product sourcing is too complex a task to handle. Finding the right sourcing partner is a delicate task and you should act accordingly. Let us discuss some ways of product sourcing.
Buying directly from manufacturers poses a challenge if you are not good at negotiations and dealings. Putting a better deal than your competitor might give you a better position to buy along with a marginal profit.
Buying products in bulk: Online wholesalers
Buying products in bulk can offer a good profit if and only if good market research is done before it. Good market research forecasts you ‘what to buy’ and at ‘what time’.
How to finalize deals with suppliers?
Finalizing a deal of any kind is an art of its kind. Finalizing a deal requires the following given skills.
- Leadership, etc.
Request for quotation
After negotiation, the strategy should be, to request a quotation from different suppliers and choosing the best deal.
Conclusion: Filtering out the product category
From the above discussion, we have considered ways to filter out a product category. Now we know the exact method to find a product to dropship and hence the name ultimate guide.
Considering that this article has helped you, let us now end this conversation.