When starting a dropshipping business one of the most crucial steps is to find the perfect dropshipping products. When looking for dropshipping products it is important to bear in mind that the products need to match certain criteria:
Before we describe all these topics in detail, we would like to inform you that if you are a UK based dropshipper and want to sell UK products within UK market using automated dropshipping tools, we can recommend a company which offers this all-inclusive solution, and it is Getshop Today (https://getshop.today/).
Let’s now look closer at each of the aspects listed above.
Product pricing is an important to factor for any business. Everyone who is starting in retail has the same question at one point – should I sell my products at a higher price or at a lower price than the price available in the market currently. There are no set answers for this. It fully depends on the product itself, the marketing strategy of the specific business and the marketplace you are targeting. In our opinion, the ideal pricing for beginners should be set as the average price between various marketplaces.
When you are deciding about the prices of your dropshipping products, first you need to decide where you will be selling your products. You may be selling your products on your own online store or in 3rd party marketplaces such as eBay, Amazon, Facebook or Instagram.
When you have decided where you will sell your products, you can go further and price the items accordingly.
Let’s say you are selling on Amazon. Firstly, you will get to know the product price from your dropshipping supplier and straight away compare this price with Amazon. If you see that you have a certain margin available, then try to keep your margin as small as possible in the beginning and set the price accordingly. For example, if your dropshipping supplier’s price is £5 and Amazon sellers are selling this product for £12, your pricing should be £10-£11. The reason for this is that you as a new seller have to focus on a high number of sales so that you can gather some good reviews from your customers and increase your shop credibility. But if you are selling on your own eCommerce website and doing marketing on, for example, Facebook or Instagram, then you may be able to sell the product for £12 or even higher. This is because in Facebook and Instagram marketplace you are not competing directly with any other seller.
It is very important to look at what is the shipping cost and VAT and are those included in the overall price offered by the dropshipping wholesaler. Traditionally, dropshipping suppliers or wholesalers show the product net price without any VAT or shipping cost included. Therefore, often dropshippers make loss in the beginning of their business as they don’t realise that the price offered does not include all expenses. Again, we would like to mention that if you are a UK based business, here is a link where you can find dropshipping supplier UK who will always give you a single all-inclusive price that includes VAT and shipping etc.
We all know that dropshipping business is a great way to start an online business, but traditionally the majority of dropshipping product suppliers are based in China or in other parts of far East, therefore the delivery time is the biggest hurdle towards success in this business model. For this reason, you need to pay attention to the location of your dropshipping products supplier very carefully. That is, for best results you need to make sure you are planning to sell in the same country where the dropshipping supplier is located. For example, a business located in the UK should look for dropshipping supplier UK.
If you are a UK based dropshipper, this list of UK dropshipping suppliers might be of interest to you.
When sourcing dropshipping products, it is important to know what the quality of product documentation is, for example, what is the quality of product images, what are the image sizes (dimensions in pixels and KB/MB), are there any infographics available, and (if it is a fashion product) is there any size chart available, etc. This is important because when you are selling online your documentation is crucial to present the products properly to your end-customers. If the right information is not there, you may need to buy every single item and to create the documentation yourself. In a dropshipping model of business, this is not viable in the beginning. Therefore, we strongly recommend choosing only such dropshipping products which have the fullest and correct documentation.
Shipping time is one of the most important aspects when someone is buying a product online, therefore when you are sourcing dropshipping products, we suggest to make sure your products can be delivered in 3-5 working days within your country or location that you are targeting.
Any online business has on average 5-30% returns from sales. For this reason, before you get a product from any dropshipping product supplier make sure their return and refund policy is favourable to your business.
We hope that this article was helpful. If you want to know more about dropshipping, here is a useful YouTube channel with a playlist dedicated to UK dropshipping.