Why You Should Always Sell Niche Products When It Comes To AliExpress Dropshipping?

Posted in INTERESTING       7 May 2020       184       GALLERY

Finding products to sell  is not easy. Sometimes the product looks  good on paper, but when you try to sell  it you find that there is too much  competition or not enough demand or it's  just too expensive and you don't have  the money to buy the inventory. What  should I sell there's the question I  asked far too often and in this section  I'll try to answer it the most important  part of a product is to understand what  a niche product is.

A niche product is one that targets a very specific group of people.

For example,  take this Toyota Camry a very  traditional family sedan popular all  over the world and compared it to this  Ferrari both are costs both have engines  steering wheels and four tyres, but  that's where the similarities end. The  family sedan appeals to everyone but the  both the supply and demand for this  vehicle is high especially when you  compare it to the Ferrari. The  family sedan appeals to the masses the  Ferrari is not for us very specific  group of people, namely automobile  enthusiasts with a lot of money who  don't mind paying a hundred thousand  dollars for a car.

The Ferrari has far  less demand and even less supply than  the Toyota, the Ferrari is therefore a niche product, whereas the sedan is a  mass product. niche products are in  limited supply because there is less  demand. The target a specific group of  people and for the customer they are a  bit harder to find. If there is one thing  you remember from this article is this: don't sell mass products - sell niche products. 

Why sell niche products?

To answer this question that's  using more practical example. Say you  wanted to buy sunglasses

If you live in  the United States chances are you would  stop or shop at one of these places but  what if you wanted wood sunglasses for  sunglasses, where would you buy those  amazon has a few shopify suppliers but Walmart,  Target sunglasses that  they don't sell wooden sunglasses. Why? Because what sunglasses are a niche product, the demand isn't high enough for  these places. Now think about it from  seller’s perspective:

If you wanted to  start a business selling sunglasses  traditional thinking suggest that you bulk buy a product that everyone wants to  buy the problem. With this is that if you  sell products that everyone wants you  are going to have loss of competition  and the last thing you want is to have  to compete against a big national brand  who has millions of dollars to spend on  marketing and inventory, but if you were  to sell wood sunglasses your competition  would be very limited and therefore you  would profit margins would be higher. Also you wouldn't have to work as hard  to get customers because they would come  to you since they don't have all the other alternatives.

I can tell you first-hand that I have tried to sell mass  products and after a few months I found  that the profit margins were too low and  it took too much work to sell the  products and I eventually gave up but  when I started selling niche products  it was a lot easier, because I didn't  have to work as hard to find customers  and the profit margins made it worthwhile.

When you start out I would  recommend looking for products where you  can earn a thirty to fifty percent  profit margin and eventually work your  way up to hundred percent profit margin.

So how do you find these niche products? This can be a bit challenging  and requires a bit of our research  generally speaking I look for a product  that is really popular and trending and  then I try to find variants of that  product.

Case in point, regular sunglasses and  boots and glasses regular sunglasses are  popular mainstream product and wood sunglasses target a very specific group  of people who are looking for an  alternative. I also use these three tools  to help me do research  k-dubb defined her Google Keyword  planner and Google Trends.

Let's try kW  finder to see how it works now I am NOT  going to show you the details of using  these tools I just want you to give an  introduction to them. I've used the  examples of cars and sunglasses let's  look at another product yoga pants. 

Yoga is really popular activity these days  and lots of people are buying and  selling all things yoga is related to  let's research yoga pants so in the  search bar here I'm going to type in  yoga pants

And the tool tells me there  are about 200,000 people searching for  yoga pants in the United States every  month and the average cost to advertise  for your co-parents is about one point  $1.95 per click 

Now if you're not  familiar with PPC advertising and how  search marketing works I recommend you  take some time to learn the fundamentals  of digital marketing and search  marketing. For now this  is very crude example to give you an  introduction to the basics so you’re thinking that yoga pants are a good product  to sell –  the demand is really high, the industry is trending. Problem is  everyone sells yoga pants including  Walmart, Target and even Nordstrom's but  what if you sell a variant of yoga pants.

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How about maternity yoga pants  the demand for maternity yoga pants is  almost nothing compared to regular yoga  pants but 3,600 people is still  significant and I can capture even 1% of  those 3,600 people that's more than a sale  a day - not bad for a new business.

Finding niche products isn't easy, if it were  everyone would do it so take your time  and use tools like kW finder and Google  Trends to help you do the research, you'll find tons of free tutorials on  using these tools.




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