Among many other things, the success of your online store depends on finding the right products to sell. For dropshippers, selecting the right products would solely be the most pivotal part of their business. For instance, an eCommerce store owner in the UK would check if the dropshipping UK service should offer the products capable of generating more leads per day. There is no accurate way to find the products that are entirely ideal for a dropshipping model. However, dropshippers can select and shortlist products to sell after proper research and based on facts and historical data. Market research provides insights into the selection of products that can create more leads and boost conversion rates.
Successful dropshippers take cues from these for ascertaining products that ramp up sales. Some opine to consider factors such as purchasing power, consumer behaviours and trends. While there is also an argument that if they can present/ display the product perfectly, it aids sales while a section of people says the prices should be kept low and there should be enough product promotions by way of attractive advertisements. But online store owners should not get baffled. For your convenience, we have broken down a few decisive criteria every dropshipper looks into while determining if a product is ideal for dropshipping purposes. Let’s go through each of them.
1. Size and Weight
As we all know, packaging and shipping costs depend on the material used for packing and the transportation expenses on sending goods to the delivery point. While it is evident that lighter and smaller packaging attracts less cost, they can be dropshipped at a higher profit. That way, it is ideal to select small products such as, for instance, toys, cosmetics and beauty products. At the same time, large products that require more space, packing material also attract moderately high profits. As a rule of thumb, it is ideal to start with smaller products in high demand. For eCommerce store owners and marketplace sellers, it would be worth selecting drop shipping services that offer compact and small products through their platform.
2. Retail Selling Price
Dropshipping takes into account both retail as well as wholesale price. While low priced products end up making smaller profit margins per product but being low priced, they attract more sales; products priced higher will make more profit for each item sold. Knowing the right way to price products while meeting customer expectations is the key. Consider different pricing methods and understanding how they would influence the profit margins for operating eCommerce stores successfully. The product price is usually arrived at based on the minimum retail price, mark up rate, market analysis, researching competitor pricing, buyer purchasing behaviour and so on.
Selling related products is another feasible way to persuade your customers to make additional purchases. It is almost similar to impulse buying, where customers make an unplanned purchase. Nine out of ten times, such encouragement has made way for more purchases. By using software tools, it is easy to sync the product details and categories. For example, if the product inventory includes plants and seeds, the customers would likely look for garden pots. Hence selecting relatable products would help a lot and follow a strategic pricing policy that both customers and the business would enjoy the best deal on each product sold. Also, if the eCommerce business earns a low markup for plants and seeds for helping customers to purchase them more, it can enjoy a high markup on accessories such as garden pots and planter stands.
There are plenty of transformations happening every day with artificial intelligence (AI) and machine learning (ML) taking the lead; businesses use AI virtual sales assistants to upsell and make the customer experience more fruitful and customised. The software communicates with the users through messaging applications, and it is capable of managing customer queries. AI uses the data patterns to provide the list of potential leads who make purchases down the line. Further, businesses can save time looking out for potential customers.
In the modern era of eCommerce and online marketplace for buying and selling, the dropshipping model is one of the most suitable forms of fulfilment. Explore and utilise our dropshipping UK suppliers catalogue, which helps you find several products that generate more leads and fulfil purchases while offering end consumers an enjoyable buying experience. It is easy to import and sync products, package and ship products from suppliers across the globe and get them shipped to the delivery location within no time. Help us know your needs, and let our platform give you a big start!