Most new owners of Dropshipping websites struggle to figure out how to sell products with a higher profit margin. Although it’s not a task to resolve in five minutes, the strategy is worth the time spent. With a lower volume of visitors to your e-commerce shop, you’ll be getting the same profit.
That said, it’s possible to create a balance between the time and money invested in attracting people and finding good products.
How to identify the products with a higher profit margin to your Dropshipping store?
The next steps are going to provide you full guidance towards finding them. You’ll be able to find the ones that generate more profit before your competition does.
1. Identify Where the Demand Is
It’s no use to discover products with a higher profit margin if no one is going to buy them. You should be aware that profitability from products with a bigger margin of profit results directly from the inverted proportion to regular products.
The best way to identify products with high demand is to use Google Trends. It determines the number of searches for a specific term. Then, graphics make it easier to identify variations and make a comparison between terms.
With such a powerful tool, it won’t be a problem to sell products with a higher profit margin. However, this initial step still doesn’t relate to the price or the sale. Even so, it will be your vehicle to find products that people actually want to buy.
Use all possible tools to identify keywords related to the products you can sell.
2. Seek Uniqueness
People pay more for products with the same function as others, if they feel it’s special.
Now you have a list of great products to add to your Dropshipping store. That’s wonderful, but not enough. You’ll sell products with a higher profit margin, and being unique is a must.
Most of the times, it’s easy to identify what the market wants. You just did it in the previous step with a free and straightforward tool. The catch relies on finding a sample within a niche that stands out from the rest.
Too introductory? Let’s get more specific.
See: People who need a hoodie could simply buy the most common and cheapest black piece at the store nearby. Adding such a product to your Dropshipping e-commerce would have low conversion and profit.
It’s all about uniqueness.
From kitchen utensils to clothes and accessories, special details can double the price. The material is the same, which will probably keep the cost.
Can you see to where the simple math leads? A bigger margin of profit.
Do quick research through many competitors. Especially those who use the social web to promote the products. See what you could offer differently, and that’s unique enough. It’s also a good idea to take a look at what is new at your suppliers’. Maybe it’s a known product with a different design that could be offered for a higher price.
This step is not only crucial, but it’s also highly demanding in creativity. On the other hand, it’s also where the work pays off.
3. Offer a Bundle
People love gifts and tend to elevate the value of the whole when receiving them.
There are hundreds of types of products that are worth less than a dollar. Many Dropshipping stores think that the way towards a higher margin of profit is to sell thousands of those. The margin continues to little. Even selling such products of a few bucks every minute, they never really get much.
Far from being useless, they are an excellent addition to this strategy. It’s an excellent deal to order a bunch for a low price from the supplier. However, forget about adding them to your shop. Instead, add one or two items that represent the cost of a dollar and charge more.
How can products with a higher profit margin benefit from these extras?
When offered as gifts and free of any charge, the deal attracts much more people. In case the free items are related to the product and capable of adding value, even better.
This strategy works the same way as prices with decimal numbers. It affects the customers psychologically, making them increase the value or not perceive the price correctly.
Also, it’s far different from a common approach, which is faking a discount to try to sell items. There’s no unethical behavior involved, and the practice mentioned above no longer fools any intelligent customer. And that person is the one that is going to bring you profit.
There are two ways of increasing the revenue of a Dropshipping store:
1. Increase sales numbers, perhaps investing more in advertising;
2. Sell products with a more significant margin of profit.
The focus of this article relies on the second option. Most suppliers already offer good discounts, so you have to increase the margin on the other end.
There is no magic or extraordinary button to do it, nor a plugin. Research is still necessary, and also creativity, to identify the market opportunities regarding unique products.
The steps are simple to follow. You must identify the terms that are often used by customers. Then, within the possible and most interesting niches, you need to identify the profitable ones. Those are the products that carry a feature or detail that makes them different, unique.
Finally, comes the last step to sell products with a higher profit margin. To improve sales, adding very simple items as gifts works. It really works. It’s not predatory and unethical as faking discounts and using unrealistic prices. A happy customer will not only add an increased value of the gift to the price, but it will also come back.
Basically, you get higher and recurrent profit.
That’s it. Don’t forget you can read more about picking hot products for Dropshipping.