Dropshipping has all the hallmarks of a great business: low cost, low risk and high reward.
This ecommerce model has been growing steadily in popularity. In 2017, approximately 23% of online sales last year were fulfilled via dropshipping.
And this isn’t a trend that’s likely to change. The growth of dropshipping is directly related to the growth of ecommerce, and ecommerce sales have been massively rising over the past few years.
So, despite the fact that the dropshipping market is already crowded, the increasing demand means that now is still a great time to start your dropshipping store.
What is dropshipping?
According to Shopify:
Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party and has it shipped directly to the customer.https://www.shopify.co.uk/blog/what-is-dropshipping#definition
So you list a product on your store. Then you sell it. And finally you buy it from the distributor, and its sent to your customer.
This model turns traditional business on its head. Rather than having to purchase a load of stock, find a place to store it, and then distribute it, you can just focus on sales. Only once you have sold a product do you actually purchase it.
And because the product is sent straight to your customer, you never need to physically hold it!
Finding a product to dropship
Deciding that you want to dropship products is all good, until you have the difficulty of actually finding product that will sell well.
We recommend using three questions to decide if a product is worth dropshipping:
- Does the product have a good niche?
- Does the product have value?
- Can the value be easily demonstrated?
Let’s delve a little deeper.
The first question is about whether the product has a niche. This means is it something with an easily identifiable group of customers, ideally a smaller group of customers with specific reasons for wanting to purchase the item?
This is hugely important. It’s highly unlikely you’ll have success selling something generic with huge competition – for example phone chargers. There’s so many shops doing this, and doing it well.
A product with a good niche is one that has lower competition, with a special group of people who have a high demand for the product.
The second question is simple: does the product actually make peoples lives better? Does is solve a problem that your niche is facing?
The third question is about marketing. It’s much easier to sell a product that solves a problem that your niche will quickly and instantly understand.
The worst types of products are those where you have to persuade the customer that they need your product. The best types of products do the persuading by themselves.
3 amazing products
We thought long and hard about 3 products that match these requirements which we think will do well in 2020.
- Bag planters
Coronavirus has brought with it a lot of food security concerns. But some of these people haven’t grown food before, which is a great niche. This product meets that need perfectly, by making growing easy within a small space.
- Dog activity toy
More and more pet owners are understanding that dogs are intelligent animals that need stimulation. These kind of toys play well into that niche.
- Eco-friendly toothbrush
Caring for the environment is hugely important, we all know that. But interest in this topic, and dedication to changing lifestyles to be more eco-friendly, has boomed in the past couple of years. A select niche of people are willing and able to use wooden toothbrushes as part of this.
Finding good drop-shipping products isn’t easy. But with a little inventive thinking, its certainly possible to identify product that could easily sell in 2020.
We hope these three ideas help to kick-start your thinking into finding even more great products.