Dropshipping Product Selection: The 3 Features You Need to Consider that Nobody is Talking About
When selecting new products for dropshipping, these three features carry substantial importance. While they don't replace the existing criteria (WOW Factor, Solves a Problem, Mass Appeal and Scroll stopper), their significance is frequently overlooked. Let's explore these less-discussed aspects to broaden our sales!
Small and Light
Smaller and lighter products are advantageous as they typically incur lower shipping costs. This factor significantly contributes to higher profit margins since shipping expenses remain minimal. For instance, jewelry exemplifies this concept well—it holds high value relative to its size and weight. By leveraging the right marketing strategies, you can potentially yield substantial profits without incurring excessive shipping expenses.
High Perceived Value
High perceived value means your product appears much more valuable than it actually costs you. Essentially, you're able to set a higher price even though your production expenses are relatively low.
With this advantage, you can invest more in advertising, making it easier to attract customers without endangering your business's stability. Ultimately, this approach improves the prospects for long-term success.
Let's take a quick dive into perceived value varieties. Think jewelry: its allure can come from rare materials or impeccable craftsmanship. Then again, its emotional value can be the real gem that sets it apart.
Another example, those small vials of sand or liquid featured in Facebook ads. People use these as keepsakes, preserving memories of special places like a stunning beach in Thailand from their honeymoon. While the materials for the vial and chain might not be pricey, their emotional worth allows sellers to set a higher price that customers find worthwhile.
Consumable Products
The third standout feature revolves around consumable products—items you go through fast, like food and makeup.
But why's that a big deal? Here's the thing: When your customer finishes one of these goodies, they're coming back to you for more. This boosts how much they spend with you over time—a fancy term we call "customer lifetime value" (LTV). When your customers LTV goes up, you've got more money to spend on attracting new customers, like through ads. And there you have it! That helps your business go the distance.
That covers the three key features I’d consider when picking a new dropshipping product.
I want to emphasize, though, that if you come across a product that feels just right and meets all your criteria except for one of these three, don't count it out! It doesn't guarantee failure—it's more about weighing options. Let's say you're torn between two products, and one happens to be consumable.
In my book, I'd lean towards the consumable one because it might have more staying power. This comes from my experience handling orders, considering shipping costs, and dealing with various package sizes and weights as a dropshipping agent.
