Understanding Drop Shipping Product Research

Introduction

• The success in drop shipping largely depends on the product you sell.
• Struggles with organic marketing and paid ads are common.
• The lecturer shares five principles of product research that transformed their business.

Characteristics of a Winning Product

1. Solves a Problem: Must solve a problem for a specific and passionate group of people.
2. Amazing Margins: Should have good profit margins; buy for $10, sell for $30-$50.
3. Lightweight and Small: Easier for shipping and brand building.
4. High Quality and Functional: Must work and solve the problem it purports to solve.
5. Proprietary Element: Unique branding or long-term proprietary aspects.
6. Evergreen: Can be sold year-round, not seasonal.
7. Existing Market: Should already be sold on the market with good performance.
8. High AOV and LTV: Average Order Value and Lifetime Value should be high.

Competitive Strategies

• Be the first, best, or unique in the market.
• Focus particularly on being unique for easier market entry.

Methods to Find Winning Products

1. Conscious Scrolling

• Social Media: Identify potential products and trends.
• Study Trends: Looking for products, winning ads, and mainstream societal trends.

2. Paid Software (less preferable)

• Paid tools provide lists of potentially winning products.
• Lacks societal perspective and faces high competition.

3. Validation Process

• Keyword Research: Use keywords to explore various platforms (Amazon, Google, AliExpress).
• Competition Analysis: Study price points, reviews, and market saturation.
• Content Analysis: Understand top-performing content and customer psychology.

4. Testing Phase

• Build a Shopify store around the product, order samples, and create organic videos.
• All Work is Profitable: Failed attempts are learning experiences.
• Importance of perseverance through initial discouragement.
• TikTok Strategy: Use organic videos that achieve engagement for paid promotions using Spark Ads.

5. Rinse and Repeat

• Might need to redo the process for different products or after exiting a business.
• Custom-designed Shopify Stores: Free resource from the lecturer’s team.
• Aim is to ensure sustained success due to mutual benefit with Shopify.

Conclusion

• Perseverance and consistent application of the given principles will lead to success in drop shipping.