#2 How to quickly find your dropshipping niche
You probably already have an idea of what you’d like to sell but if you don’t, rest assured, there is an easy way to find yours. Finding your niche doesn’t have to be stressful or difficult, as long as it’s methodical you’ll find the right niche!
We’ll base our decision on rational elements and proof. First, I would like you to check these two popular stores and see what are their most popular products. This will give you some insights on what’s trending.
I don’t want you to pick a product right now or a category but just to go through and start thinking and asking yourself: is it something I’d like to sell? If you found a product you’d like to sell start thinking about what other products may be related to this product.
For example, one popular product on AliExpress that I’d like to sell is a tempered glass for iPhone. Selling only this product on my store will not be enough so I do need to think about related products, such as phone case, power bank or even headphones…
Don’t overthink it, it has to be done in 20-30min it’s just a first draft, we’ll dig deeper in a moment.
Check trends on google trend
You should have a quick list of products of categories with you now. It should look like this (this is mine actually):
It’s time to see if there is an actual demand for the products you selected and see which one performs better.
With your list of products, we are going to check if there is an actual positive demand. To see this, we’ll use google trend, it’s going to show us if there is a positive interest for a specific product.
What we are looking for is the dynamics of a product over the past 3 years. To qualify a product, it’ll need to have a positive or growing trend over time.
Let me show you how it works:
For example, power bank could be a good product, if you’re thinking of drop-shipping power bank. Let see the trend for this product below. The trend tends to be between 50 and 75 which is good! It looks like people are as interested in this product as 3 years ago!
However I would like to warn you! Be careful when writing the name of the product on google trend. For example, Power bank (with a space) is relatively popular but if you write powerbank (without a space) and not power bank you’ll end up with a total different trend, see below.
Since I’ve found, quite a few popular products, I’ll create a shop related to travel gears. At this point I can be general, I don’t need to think about who will benefits my products or worry that it is a broad topic. We just need to have a general idea about your category or product you’d like to sell.
Product & Stock
At this point, You should have a clearer idea of what you may want to sell. At least, you know which product performs better in your list. It’s time to see if this niche have enough products and categories. To simplify this task we’ll go to AliExpress which is one of the most popular marketplaces for e-commerce and enter a few keywords.
In my niche related to travel, I can see that there are thousands of products available, more than enough for my niche. If you don’t find enough products on AliExpress (less than 1000) it’s probably not a good niche because you’ll struggle to find products and so your potential success is at risk.
It’s time to find your ideal client, the one who benefits the most from the products you’re selling. It’s time to ask yourself, what are you trying to achieve by selling these products? I would like you to take a day or two to answer this question and then I would like you to describe your ideal client. Make them real!
What do they look like?
What are their names?
What are their issues?
What are their dreams?
You shouldn’t just sell products, you should sell a solution to a problem! Your goal is to find the problem your store is resolving and so the people impacted by this problem.
From there you’ll be able to find other products they may be interested in and so increase the number of products you offer on your website.
Again because AliExpress has the most variety of products and tends to be the most competitive, I use their website as a reference to compare the price of a product online. Take a few products from your list and check their prices online. As a rule of thumb if you have to pay less than a 1$ for a product and see it priced 15-20% more you’ve got a good product!
I recently found a handy tool called Product Mafia, there is a free and a paid version but the free version is more than enough. It allows you to find a product, it’s selling price, it’s cost and so the profit margin. The tool is great to give you an idea on the profit margin you may be able to make by selling a product.
Here we go you’ve got your profitable niche!
Your task for today is really simple, I just want you to tell me what is your people, product, suppliers and trend. I’ll review this and I’ll get back to you. 🙂
Let’s unleash your business!