Product research is the lifeblood for dropshipping. With any e-commerce business, you’re dependent on how well your product sells. You could spend thousands of dollars testing products randomly, praying for one viable product to fall in your lap. Or you can follow proven dropshipping product research strategies that have worked time and time again. Product research allows you to observe the market and predict which products will perform well. It’s important to be looking at products daily so that you can immediately hop on trends before your competitors find them. There are some great tools to make this process a lot easier. Check out this dropshipping product research tools guide, which compares the best product research tools. Here are five reasons you need to prioritize product research in your business.
Save yourself Time and Money Testing Bad Products
Many beginners who start a new business don’t have the patience to work years without seeing results. You can shorten your learning curve by only testing the products that are proven to work and not test bad products. One huge mistake beginners make is testing products they “think” will work rather than what the data shows.
Find Winning Products Faster
Winning products are products that are wildly more profitable than others. Usually, they have a unique quality about them or solve a huge problem for people.
For example, these posture correctors sold tens of thousands of times on Aliexpress alone! If you make only a small fraction of the total sales on these products, you’d be quite well off.
Hop on Trends Before Competitors Take your Profits
It’s important to hop on product trends before a product gets over-saturated. By simply keeping your eyes open for products to sell daily, you’ll eventually stumble on a gold mine. Once a product is over-saturated, the cost per sale rises dramatically.
Understand What Consumers like to Buy
The more you study your niche, the more you’ll start to figure out what people like to buy. In the kitchen niche, consumers love buying little kitchen tools that make cooking and baking easier. For example, chopping products to easily slice vegetables, fruits, and meat is something that always comes up. To confirm how popular these items are, you’ll also find many of the same products sold thousands of times on Amazon.
Know who your competitors are
In every industry, you should always study your competitors. Sam Walton, the founder of Walmart, wrote about in his book, “Made in America,” how he would famously spend more time in competitors stores than his own. He would study every little aspect of other sellers, such as their prices, display signs, layout, and more. If you know the best dropshipping stores in your niche, you can undercut their prices, find better suppliers with faster shipping times or sell the same or similar products as them.
The truth is, once you find a profitable product, you’ll get recurring sales daily, making this business more and more passive. Though product research can feel tedious, the upfront work of finding good products will pay off a hundred times over. The better you know your competitors and your consumers, the higher chance you’ll have of succeeding.