If you’re an aspiring entrepreneur looking to start an ecommerce business through dropshipping, it’s important to understand the various factors that can impact the success of your venture. Despite the apparent simplicity of buying and selling products online, it requires significant groundwork, including the selection of the right products at optimal price points to target audiences.
As a business owner, extensive time and resources may be invested in product research. To optimize this process, our team of experts has prepared a comprehensive guide covering essential aspects such as identifying channels, seeking inspiration, product development, and branding. We also offer 10 dropshipping product research tools and a case study from an industry expert, simplifying your research process and enhancing its efficiency.
By using these strategies, you’ll gain the knowledge and resources necessary to choose the most profitable products for your ecommerce store.
Product Selection Strategies: Tips and Techniques for Finding the Best Dropshipping Products
The success of a dropshipping business largely depends on the selection of the right products. Explore some effective product selection strategies for finding the best dropshipping products. By following these tips and techniques, dropshippers can increase their chances of finding profitable products and growing their business.
1. High Utility and Applicability as the Foundation
- Utility: Products with strong functionality, such as substitutes for traditional products, can become popular items due to their uniqueness (e.g., multifunctional vegetable slicer).
- Applicability: Products that cater to a large audience, such as household essentials, determine the potential volume of sales (e.g., foldable clothes hangers vs. humidifiers).
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- Multifunctional Vegetable Slicer (High Utility)
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- Foldable Clothes Hanger (High Applicability)
2. Product Lifecycle and Advertising Lifecycle
- New Products: Products that are newly launched or have no existing video materials on Facebook Marketplace require attention to create videos for promotion (e.g., color-changing swimsuits).
- Evergreen Products: Products with high repurchase rates and quick recovery cycles can be repeatedly tested and tried (e.g., shoe racks, and food storage bags).
3. Brand Awareness
- Products with established brand awareness and audience have built-in traffic and advertising effects, such as small brands with popular products or platform bestsellers.
- Such products must have a competitive price advantage.
4. Availability, Legality, and Logistics Compliance
- The selected products must have a reliable source, be legal and comply with the logistics transportation scope.
Expert’s Product Research Case Study: A Comprehensive Guide to Channels, Inspiration, Identity, and Development
Take advantage of our featured case study, which highlights 4 proven dropshipping cases with comprehensive strategies to optimize your online business.
Case Studies At A Glance
- Strategies for channel & product selection
- Product development process with proven results
- Up to more than $5,000 GMV per day
- Experts with 7+ years of experience
Best Product Research Channels and Tools
1. Adspy
AdSpy is one of the largest searchable databases for Facebook and Instagram ads that allows you to search and analyze competitor ads across multiple platforms. It provides data on likes, comments, shares, countries of placement, age groups, ad copy, landing pages, and targeting options.
Price
Starts at $149/month
Pros
- Comprehensive Information: detailed analytics, advanced search filters
- Large Database: making it easy to find inspiration for your own ad campaigns
Cons
- The pricing can be steep for beginners or those with limited budgets. It may also take time to learn how to use the tool effectively.
- Only supports Facebook and Instagram ads
There are four methods and cases in utilizing AdSpy to gain insights into advertising strategies:
- Search for relevant keywords on AdSpy, and sort the results by likes in descending order to examine the current state of the market. Determine if the product has not been promoted before (no corresponding advertisements found), if it has been widely promoted a year ago (a large number of impressions a year ago), or if it is currently being promoted (data volume is on the rise). Additionally, identify new products with over 100 likes within 3 days, or old products with over 10,000 likes in history.
- Collect data on competitor websites. Search for Shopify websites and sort the ads by shares in descending order according to date. This way, any product with significant exposure will be captured. Collect and track the newest ads on a daily basis.
- Keep an eye on the latest popular products. Goto AdSpy’s “Technologies” feature to select Shopify, “Created Between” to select this month or the last 30 days, “Site Type” to select Facebook, “Language” to select English, and “Order By” to sort by likes.
- Examine the homepage and posts of competitors’ websites where products are being promoted. AdSpy’s tool enables the identification of product homepages, and clicking on the page information will allow you to access the database to select the country and region where the ad is being displayed. You can view all ads that are currently running on that page. If there are any promising products being advertised recently, consider developing similar products.
2. Sell The Trend
Sell The Trend is an all-in-one dropshipping platform that helps users find winning products, create product videos, and import products to their online store. It also provides a product research tool, a Facebook ad builder, and a store analyzer. Here is an in-depth review from DoDropshipping if you are interested in learning more.
Price
7 days free trial, starts at $39/month
Pros
- The Nexus: Powerful AI engine uses an algorithm to show trending products across all ecommerce stores
- Massive data: You can sort through an extensive collection of online stores and select the ‘dropshipping’ option to see only dropshipping stores
- Variety of options: several explorers where you can research products on your own. You can still sort products by ‘Hot Products’ and ‘Sold by most stores’ to find the products that are sold in the most stores
Cons
- High pricing: Sell the Trend’s monthly price of $39 may be too high for beginners
- Overwhelming data: The tool can feel overwhelming when starting to use it, even for experienced users
- Upsells: While many features come with your monthly subscription, Sell the Trend offers additional upsells that cost extra
3. Third-party Platforms (e.g. Amazon, Aliexpress, eBay, Wish)
Third-party platforms refer to online marketplaces or social shopping sites like Amazon, Aliexpress, eBay, Esty, and Wish. These platforms provide a wide range of products for sellers to choose from. Sellers on these sites can benefit from the hot-seller recommendations and shopping experience/reviews of others to increase sales. Amazon is the largest third-party platform in the world, with over 2.5 million active sellers.
Price
Mostly Free
Pros
- Offers a vast array of product ideas and categories to choose from
- Large customer reviews database
- Provides a platform to identify popular and trendy items in real-time
- Offers an opportunity to tap into a wider customer base through social sharing
Cons
- Limited control over product pricing and availability
- High competition among sellers on these platforms
4. Social media (Facebook, Pinterest, Instagram, YouTube, TikTok)
Social media platforms can offer a wealth of product inspiration and ideas. You can follow popular accounts in your industry or use hashtags to find related products. Social media also provides the opportunity to build a community and engage with potential customers.
Price
Free
Pros
Vast user base, detailed analytics, easy to use
Cons
High competition, limited control over data
5. Crowdfunding websites (Kickstarter and Indiegogo)
Crowdfunding websites like Kickstarter and Indiegogo allow entrepreneurs to raise funds for their projects and test the market demand for their products.
Price
Varies by campaign
Pros
Provide a visible gauge of the popularity of a product idea through the number of funds and attention it generates
Cons
- Generally higher-priced items, particularly electronics.
- The products are typically protected by copyrights and patents.
- There is a limited variety of product types, and some categories may not be available
6. Dropship
Dropship is a product research tool that was established in 2020 by a duo of siblings who identified the challenges faced by store owners in sourcing profitable products. Its functional capabilities include a comprehensive product database that encompasses millions of items from diverse ecommerce platforms, as well as a daily selection of 10 high-potential products that have been handpicked from top-selling items. Each product listing features pertinent information such as product and shipping costs, a product description, a list of benefits and drawbacks, a roster of competitors, Facebook and TikTok content, as well as a Return on Ad Spend (ROAS) and profit calculator, among other relevant data.
Pricing
7-day free trial then starts at $29/month and up
Pros
- Amazing for finding information about competitors.
- The Portfolio is a great place to find new product ideas. It’s also great to see how much additional information Dropship includes for most of the products.
- Access to free tools. There is an Interest Explorer to find hidden Facebook interests, a Profit Calculator, a ROAS Calculator, and more.
- Clean and user-friendly interface.
Cons
- More focused on showing products analytics from other online stores instead of from the supplier pages
- Might be on the pricier side for beginners
7. TV products – As Seen On TV
TV products refer to products that are advertised on TV infomercials. These products often have unique features or solve a specific problem.
As Seen On TV – You can filter products by new arrivals, bestsellers, or categories on the homepage. TV products primarily target people over the age of 40.
Price
Mostly free, varies by websites
Pros
- Have a unique selling point or story that can help attract customers
- A wide appeal, as they are often marketed to a specific demographic
- Have a dedicated fanbase and a proven track record of sales
Cons
- TV products can be seasonal and may not have long-term demand
- It can be difficult to find reliable suppliers for TV products
- As TV products are often marketed to a specific demographic, it may limit the potential customer base for your online store
8. Web Scraping Software – Niche Scraper
Web scraping software is used to extract data from websites. It can be used to collect product information, analyze competitor pricing, and identify trends.
Niche Scraper is a SaaS solution that facilitates dropshippers in conducting research to identify successful products to feature on their E-commerce store, regardless of the platform they use, whether it be Shopify, WooCommerce, or any other.
Price
Two pricing plans; the Basic is FREE and the Pro plan is $39.99 per month
Pros
Winning product research, comprehensive product analytics, user-friendly interface, trending products
Cons
Limited features on the Basic plan, Monthly subscription fee, Limited niche selection
9. Competitor Product Research
Photo by Unsplash
By analyzing the products that competitors are selling and their pricing strategies, dropshippers can remain competitive in the market. However, there are both pros and cons to this strategy.
Pros
Save time on product testing, price products competitively, and potentially attract more customers. Gain ideas for new and unique products to sell
Cons
Lack of originality in product offerings, challenging to accurately predict competitors’ future product offerings, and might not be able to compete on price
10. Salesource
Pricing
Salesource offers a 7-day free trial, and the pricing starts at $49/month
Pros
Product research tools, competitor analysis, automation tools
Cons
Limited features, no free plan, the learning curve
Product Materials and Selling Points
When it comes to dropshipping, product materials are essential in showcasing your products and enticing potential customers. Here are some resourceful tips to consider:
1. Determine the best content format
- For non-clothing products, videos are the dominant content format, with a 90% share, while images only account for 10%.
- For clothing products, multiple images, collages, carousels, slideshows, and single images make up 95% of the content, while videos only account for 5%.
2. Source materials from various platforms
When sourcing materials, consider using a mix of platforms such as ADSPY, Facebook, Youtube, and Aliexpress. These platforms offer a wide variety of content that can be used to create compelling product materials.
3. Utilize video editing tools
Video editing tools like Quick and Gif5 can help you create high-quality video content. These tools are easy to use and can help you edit your videos to suit your specific needs.
4. Repurpose materials
To save time and effort, consider reusing materials for different products, as long as it doesn’t violate any rules or regulations.
Product Selling Points
Discover the distinctive selling points of three product niches that can help your business stand out.
1. Automatic bird watering device
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- Attractive appearance
- High practicality
- Low unit price, buy more get more
- Showcasing usage scenarios
2. Shoe Storage
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- Practicality, space-saving, and clutter-free
- Consumable, low unit price, bundle sales
3. Clothing
- Fits target market style
- Showcase multiple colors and sizes to meet everyone’s needs
- Use best-selling colors as the main image or enlarge
I hope that you have found the insights shared in this blog to be both valuable and informative. We encourage you to visit our previous article, where we covered Proven Ways To Drive Traffic To Your Shopify Stores with another thorough case study.