Drop shipping 101: Which products to sell, and on which platforms

Photo credit: Pixabay.

In the first part of this guide, you learned the pros and cons of drop shipping and how to find the best suppliers. Here, you’ll learn how to select products you can sell and where to sell them.

Picking products to drop ship

The biggest problem merchants will probably encounter when starting their ecommerce business is picking a niche product. Some may be inclined to pick a product they’re passionate about or interested in—which is great—but it won’t always translate to profits.

You may have decided to sell toys or merchandise from your favorite comic book. But then, this comic is kind of an indie comic. And so, it only has a few followers, which means the demand for the item is quite low.

There are qualifications that need to be met before finding the ideal product. If your goal is to be successful in this business, you might want to reconsider making your passion the top priority.

Tips

1. Pick the best customers

Targeting the right demographic can lead you to the product/s that would make your business a success. These are the clients that you should consider:

• Hobbyists: People who are passionate about their hobbies will pay a lot for the things they love. You can target people like gamers, sports enthusiasts, and musicians.
• Businesses: Business clients are a lot more price-conscious than general customers. But if you build rapport with one, you can be sure to have a customer who’ll probably buy in large amounts. Maybe you can pick a product that would appeal to both businesses and individual customers.
• Repeat buyers: Aim for recurring revenue. Think about products that are disposable and/or need to be reordered frequently. This is a great way to build a loyal customer base.

2. Consider the perfect price

Make sure to consider the price point relative to the level of pre-sale service you’ll need to provide. Most people will feel comfortable buying a product worth a US$100 or US$200. But if you’re selling something around a grand or more, customers would want to be able to talk to a sales representative, through whom they can evaluate the item’s quality or make sure the store is legitimate.

3. Look at the minimum advertised price

Some manufacturers will set a minimum advertised price (MAP) for their products, and require that all resellers price their products at or above certain levels. This is done to ensure that price wars won’t break out. For example, if a store sells an item for US$700 when the MAP is US$900, consumers will think that all other retailers have inflated the price. This item’s value will then decrease in the market. So, finding a niche where manufacturers enforce MAP pricing is beneficial, especially if you plan on building a high-value store.

4. Study the market potential

Choosing a selling platform