Table of Contents
- 1 How to Know Before Sale Whether a Product is over Saturated?
- 2 Validate the Profitability of Dropshipping Products – Long Method
- 3 Criteria #1: The Potential Demand or Market Size
- 4 Criteria #2: Your Top Competitors
- 5 Criteria #3: You’re Target Customers
- 6 Criteria #4: The Product Viability
- 7 Validate the Profitability of Dropshipping Products – Short Method
Today I am going to share some tips which will be useful to know whether a product is saturated or not before you start testing.
1) If the product is 6 months old, do not test it. Tons of other promoters would have promoted. So if we promote it after 6 months, people already exposed with other dropshippers we would not get any engagements.
2) Look at the product count at Aliexpress, if it has more than 1000 orders then it is a saturated one. Do not test it. Move to next product.
3) Type the product name in Facebook search and tap to videos, if you get more than 10 video ads with large number of views. Skip the product and move to next one.
How to Know Before Sale Whether a Product is over Saturated?
If you are always searching for ideas for dropshipping goods or have already discovered possible products, validating their profitability would benefit you. Knowing your product decisions’ potential will help you prevent possible pitfalls that may be harmful to your dropshipping business. To do this, there are two approaches, the long-form and the short method.
Validate the Profitability of Dropshipping Products – Long Method
This method of determining the salability of dropshipping goods involves a great deal of analysis to develop the details you would need to determine which products to market. This will be tremendous support if you haven’t settled yet on a niche for your store. When validating dropshipping product concepts, below are the parameters you have to use:
- The prospective demand or industry share
- Your leading rivals
- Your target clients
- Viability of the goods
Let’s use the baby pacifier as a dropshipping product example to see how to implement the steps involved in the requirements. Now, down to the specifics, let’s go.
Criteria #1: The Potential Demand or Market Size
While you can use tools to quantify your dropshipping product idea’s demand and market size, the process will not be easy. Of course, you need to spend time learning how to use these tools to get the results you expect. A platform like Buzzsumo will help you understand the market size and learn how many people chat about the product every day. On the other hand, the Google Keyword Planner will send you details on the number of users every month looking for keywords relevant to your app. There’s Google Trends when it comes to measuring people’s curiosity in the product that you want to dropship. Here’s the answer I got for the pacifier for kids.
Criteria #2: Your Top Competitors
Competition still occurs if you dropship goods. You should do a Google search to determine the level of competition for your future goods. Press the product name in the search key and click Enter. The results page will reveal rivals who sell the same object. This is the infant fruit feeder pacifier search result.
Using the product picture to verify how many dropshipping shops carry the same brand, you can also do an image search. Again using the baby fruit feeder pacifier as an example, the price per piece on AliExpress is $1.14-1.52, and on eBay, it costs $2.46, but some online retailers offer it for $9.99-$40. List your future rivals and their selling policy. If you think you can deliver more affordable prices than your competition, then you can try to market the commodity, but it will be better to withdraw it from the list if you can’t.
Criteria #3: You’re Target Customers
Consider the customers you’d be marketing them to if you settle on a commodity. You wouldn’t like to find out later that your future buyers will not buy the goods. They don’t have credit cards because they live in a country where you can’t import them. You have to study the websites of your rivals to hear about who will be your future clients. Alexa and Quantcast are some resources you can use to consider your rivals’ audience, while Google Trends will have the population of consumers that you will need to figure out where more of your future customers live.
Criteria #4: The Product Viability
After determining your product proposals’ marketability for dropshipping, it’s time to concentrate on their profitability. You need to know the pros and cons you are likely to face before you vote to sell the commodity. Is the commodity a demand that is fad, trending, increasing, or flat? The baby pacifier is a rising demand based on the findings of Google Trends. However, the interest cannot last for long in the infant fruit feeder pacifier.
Since individuals may have already lost confidence in these items by the time you began marketing them, you must understand your future products’ business direction. You wouldn’t want to spend time, resources, and effort on starting up a dropshipping venture and later finding out that the demand is already gone.
When validating dropshipping goods, other considerations to remember are the following:
Is the commodity locally available? If so, then selling it online isn’t wise.
Is it a product of the season? Seasonality fluctuations will impact items you can only use during the winter, summer, Halloween, or Christmas seasons.
Is the product solving a pain or feeding a passion? Products that have these features will make things simpler for buyers than nice-to-have products.
Is it available for consumption, disposable, or perishable? It is challenging to sell perishable goods and gain income from them.
When you have completed evaluating all the requirements in validating dropshipping goods using the long process, what remains on the list are products that have more potential for profitability. The next thing to do is check for manufacturers who sell these goods in their shops. This suggests that to decide the correct vendors of the goods you want to dropship, you may need to do other studies.
Do you not have time to do a lengthy analysis to market dropshipping products?
You’d want to use the short method, then.
Validate the Profitability of Dropshipping Products – Short Method
Determining the items to be sold by dropshipping is a daunting process that will require a lot of time and effort on your part. Nevertheless, it is an integral aspect of your performance in dropshipping that you need to go through. With a Product Mafia subscription, you can cut back on the research element of your company. Monthly premium membership of as little as $7 would allow you access to daily updated winning goods plus valuable details such as profit margins, analytics, participation, product distributors, copyright records, video connections, current Facebook Advertising, and recommended targeting for Facebook.
While you can subscribe for free, the information you need to avoid the intimidating analysis task is the information that a premium subscription provides. To access all the desired features of the appropriate testing software, conventional research would pay you subscription fees, which means you will pay more than a luxury Product Mafia subscription.
When you can get all the details you need quickly and in one place, why spend your precious time on product and supplier research? By subscribing to our service, you will find your winning items only a few clicks away.