I am a member of the online forum Quora and today I was asked to answer the question what are profitable products to dropship?
This is how I answered;
The most profitable products can be measured in two ways;
- How much profit you can make from a product
- How much profit you can make per sale
An advantage with drop shipping is you do not need to have your own inventory and therefore there is the opportunity to make smaller margins and more sales, but you need to factor in any selling costs that e-Bay or other marketplaces charge.
The other option is to target high margin sales and do fewer of them. This will mean less work processing any sales, but only once you have found the right products. Typically these products will be very niche rather than mainstream, but given that you do not need many sales then that is okay.
On my blog I suggest to my followers going for:
- Deep niches such as rear brake lights for late model Honda Civics
- Low-volume sell-through rates and high profit margins – meaning you won’t sell 150 per week but you will make a decent profit on them when they do sell
- Low competition. This is important when you are drop shipping as you have to take those drop shipping fees into consideration, which makes keeping up in a competitive market really tough on sellers who are drop shipping.
We suggest that you try the SaleHoo Directory which is full of reputable sellers stocking a wide range of products from cosmetics to farming equipment. But the real gem is the SaleHoo Market Research Lab which performs market research for you and is included. When you input key words into the search tool, and tells you all sorts of valuable information including the average selling price, average shipping price and sell-through rate (ratio of listings which sell in relation to those which do not). It’s free with your SaleHoo membership, well worth it to ensure you choose only profitable items to sell!
Find Out About Salehoo
Most people think that setting up an online business is difficult and expensive, but these days it is not hard to set up. The ‘hard’ part of doing business online is getting your products or services noticed and that is where a lot of people are targeting the online market places like e-Bay and Trade Me as places to sell products.
The key missing piece is then where to source products and ensuring that there is a profit in each sale.
This is where Salehoo have done the research for you and also provide the tools to make this a quick and easy process.
Sure, you need to buy Salehoo to get access to this, but the cost is minimal versus the benefits you will get from having the tools.
You can read my article on my simple 4-step plan to make money online or watch the video below.
The Best Way To Access SaleHoo
You may see the benefits of having the SaleHoo Directory and SaleHoo Market Research Lab but the best way to access Salehoo is by getting the Online Selling Tactics course.
Included when you purchase the Online Selling Tactics course is;
- 7 core videos, each with over 60 minutes of pure, boiled down content and advice
- Useable, step-by-step instructions and live demonstration from the experts
- Prediction on the future of e-commece from CEOs and marketing managers of some of the most exciting marketplaces
- Handy note-taking feature to store your notes as you go through the course
- Bonus videos specific for beginner sellers to get them up-to-scratch
- Hand picked supplier lists
- Email templates
- A 1-year subscription to SaleHoo (includes access to the SaleHoo Directory and the Market Research Lab)