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22nd August 2019
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DROP SHIPMENT

Direct Delivery Of Goods: How To Choose The Right Niche?

One of the most important issues that should be taken into account if you want to succeed in direct delivery is the choice of products that you will offer to potential buyers.

In this article, we will consider the main factors that should guide the choice of products for sale in your online store, direct delivery or on the trading floor. At first glance, they may seem quite obvious, but we assure you that a clear understanding of these problems will help you save several hours when choosing goods for direct delivery and successful work with the system.

Choose products with which you are familiar or have experience using

If possible, try to choose or become an expert in a particular category of drop-ship products. Especially if you sell products in your own online store, and not on the trading floor, you have to demonstrate knowledge of the category and specific products in order to gain confidence. For example, if you do not understand computers, IT technologies or mobile phones, we do not advise you to start selling goods from these categories. In the long run, it is always better to work with products and categories that are attractive to you and work with which is comfortable for you.

On the other hand, it is important to note that you do not need to compromise your business or the drop ship store to suit your personal tastes. Do not forget about other factors and do not enter the market of goods, where you can not stand out, no matter how you like it. Keep this in mind and strive to find a middle ground.

Analyze the competition and your margin

Each distributor, working on the system of direct delivery, has to check retail prices from competitors (other online stores or marketplaces) from time to time in order to decide whether or not to sell a particular product. After such a comparison, calculate whether you can offer the same price while having a positive margin. If the margin is negative, then refuse such a product or find another supplier who can offer you a lower purchase price.

Entering a saturated market always brings a headache. If you have no additional value besides the price (which will cost you time and resources), you will most likely lose to this market, especially if you are just starting to get used to it.

Choose for direct delivery products that you yourself have tried.

Although not always possible, ideally you should test the products you intend to sell. Thus, you can get to know them and select those that meet your minimum standards. Or, if you decide to sell the product, despite the quality of the materials from which it is made, you will do it consciously.

On the other hand, knowledge of the goods will help you provide buyers with more information than that provided by the direct delivery operator (and which will ultimately be very similar to other competitors). By doing this, you can create additional value that your customers will appreciate.

Test dropshipping in various categories.

One of the advantages of direct delivery is that you don’t need to invest a penny in stocks. Based on this, you can try to sell products from various categories: original gifts, gadgets, beauty and health products, etc. In this way, you can get a hand in hand and understand the specific features of each market segment. In the long run, this will also allow you to find the very category with which you will be comfortable and profitable to work.

Track stocks and catalogs of your dropship operators

In such a competitive market, the difference between success and failure can be a matter of time. As we have already mentioned, high competition reigns in every product category, and in most cases, the launch of new products will be a determining factor in your success or failure. In addition, if your competitors notice the appearance of a certain product offer, they can choose other new items, and in the meantime, you can conduct your business in a niche that is not too saturated.

Forget about finding the perfect product.

Take for granted: there is no perfect product in the direct delivery system. Do not try to find a super-cheap product that you can easily sell to your customers at a high price in order to earn bread and butter. In any case, you have to spend time developing effective strategies to sell products and create additional value in addition to the price.

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