Have you ever wondered what the first three guidelines are
for selecting lucrative drop shipping niches?
Have you been left perplexed and considering whether drop
shipping is the right choice for you?
If so, this guide will help you get ready to start selling
or revive your drop shipping company.
Learn the three criteria Anton uses to identify lucrative
themes that will enable you to rely entirely on your eCommerce business.
You might be shocked by what they are, and we can assure you
that you\’ll utilize this knowledge for a long time to come.
Explanation of Profitable eCommerce Niche Selection
You are now prepared to launch an eCommerce drop shipping
company. Congratulations!
The biggest step of all is the first one. Instead of just
declaring that you \”want to start an online business,\” you must
really take steps to make your first sale.
Lack of sufficient research is one of the biggest errors
committed when beginning an eCommerce drop shipping business.
A niche often appears to be a gold mine at first glance,
ready to start making enormous money.
But after careful investigation, it is rapidly discovered to
be contaminated and overtaken by rivals. This would be contrary to your
objectives and result in very little profit.
The Value of Making the Right Niche Choice
Here are three excellent suggestions from Anton for choosing
the ideal niche while keeping in mind the three most crucial factors: price, target
market, and brand loyalty!
\”Niche Selection\” is the name of the first phase
in the drop shipping procedure.
The first step in creating a successful eCommerce business
is choosing your niche, which is covered in this section.
Three requirements must be met for a good niche: it must be
into our goal price range, appeal to the upper middle class, and have little
brand loyalty, which will be covered in more detail later.
A set of products that fit a specific set of requirements
should be considered when choosing a niche for a new eCommerce site. Anton
keeps stressing how crucial it is to achieve this in a profitable manner.
How to select profitable niches and why it can be simple.
The issue is that if you approach it incorrectly, you can
still profit.
The only difference is that reaching your goal will be much
more difficult. Which, I suppose, is earning a living full-time. Making a lot
of money through online sales.
First recommendation: Value Pricing
There are three recommendations for choosing a profitable
niche that will generate income.
The cost is always the first consideration. That refers to
the product\’s price, or what you want to charge for it.
The cost of a product should be $200 or more on average.
This is due to the fact that your typical profit margin
(when employing our method and drop shipping) will be around 25% of the gross
revenue.
What does that actually mean?
For example, if you sold a water bottle for $8, your profit
would be $2.
So, in order to make $200, you would need to sell 100.
The three suggestions from Anton are provided below, and he
will further discuss the advice and techniques for selecting the appropriate
niche for you.
Processing an order for $20 takes the same amount of time as
processing an order for $200 or $2,000 does. If you\’re going to put in the time
and effort, you might as well have a chance to profit from each sale.
Although I do have websites where I offer items for $999 and
more, it\’s important to highlight that I\’ve discovered consumers who put orders
that size prefer to call in.
This won\’t be a problem if you feel at ease talking on the
phone.
However, I would advise selling things priced between $200
and $700 if you want to run an online company where the bulk of orders arrive
before the consumer even gets in touch with you.
On the other hand, that would cost more than $200 if it were
a cell phone. The pricing test would be passed by that, but it would fail the
third test, which you\’ll learn about later.
Second: Your eCommerce Niche Target
Market tip
I have marketed goods online that are aimed at high net
worth individuals, middle class consumers, and low income households.
I\’ve discovered from all of my expertise that the
upper-middle class, or internet buyers with household incomes of $100,000 or
more, is who you should target.
It\’s unfortunate to say, but you will have a lot more work
to do if you sell goods that are popular with low-income homes.
After confirming that our price is greater than $200, we
consider our target market.
Now, if you work in marketing in any capacity (or have ever
studied marketing), you are probably already familiar with demographics. In
actuality, there are perhaps a billion separate demographic groups that make up
the world.
You better believe that customers will ask more inquiries if
they are forced to buy your stuff with their last dollar or with insufficient
funds.
They\’ll be giving the objects a closer inspection. You will
constantly hear about anything that\’s wrong, or even just what they think is
wrong.
The same is true of the wealthy. They have particular
expectations for the degree of customer care when investing money or purchasing
goods, which really calls for a different kind of business owner.
There is nothing improper about that.
Just be aware that if you choose that path, you will likely
end up working more as a concierge than an internet business owner.
Once more, this is the reason for looking at demographics.
Do not stray from the upper middle class. That is what I mean by having a
household income that is over $100,000 USD.
When people have that much money, they feel very at ease
making purchases online. They are accustomed to spending $200 or more on
products. They won\’t contact you by phone or email as frequently.
So once more, choosing a niche is much simpler given this
population. It greatly improves the efficiency of your company. A lot more
money may be made if you select niches that appeal to that audience. if that is
the target market for the products.
Third: Brand Loyalty in eCommerce Tip
Regarding your target market and pricing, Anton\’s third and
last advice are equally crucial.
We shall now discuss brand loyalty. Cell phones, as was
previously noted, fit the price range condition but don\’t satisfy one of my
other requirements because of brand loyalty.
Most of the time, when someone plans to get a cell phone,
they already have in mind the brand of product they want to purchase—either an
iPhone or another Android phone.
The same is true for those who plan to purchase headphones.
There are likely four or five significant headphone
manufacturers. Right? You have Sennheiser, Bose, Beats, and Sony. All of them
are major businesses, and people frequently have a favorite.
So choosing a market with low brand loyalty is the third
factor you\’ll consider when trying to identify a lucrative niche. It will have
a significant impact.
This is because finding dropship providers will be more
difficult if you try to sell in a market where consumers already know which
business they want to purchase from.
It will be more difficult for you to really sell these
things and more difficult for you to compete on pricing.