eCommerce Lifestyle
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4 Tips For Profitable Niche Selection in 2022

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4 Tips For Profitable Niche Selection in 2022

Episode 312

Podcast Description

In today’s episode of the eCommerce Lifestyle Podcast, Anton shares 4 tips to use to pick profitable products to sell when dropshipping on Shopify.

If you liked today’s show, please subscribe on iTunes to The eCommerce Lifestyle Podcast! The podcast is also available on all major podcast players including, Stitcher and Spotify.
Transcripts

What's up, everybody? Anton Kraly here from dropshiplifestyle.com. In today's episode, I'm going to share four tips that you can use to find profitable products to sell online in 2022. Now, before I get into this, I do want to say I've done two previous episodes on this topic. Rather than just regurgitate what I already said, I'm going to post links in the description that you can circle back to later. They share tips on niche election for how to sell high-ticket products that appeal to the upper-middle class. They share how to check for niche demand, how to check for niche saturation, how to become a retailer instead of an affiliate. I share how to do focus brainstorming, how to research and evaluate trends, how to niche down, how to think like a marketer. They're all just as relevant today as they were when I recorded them, so watch this one first, go back to them, and you will be sure to find a profitable niche.

Now, in today's episode, what I want to do is go deeper into the topic of profitable niche election by answering some of the most common questions that you, our amazing community, have asked, so if you're looking for a niche for your first store, or if you've been building a store and you're still not set on the niche you have, watch this episode in entirety. I promise by the end, you will feel confident knowing you can choose a niche that is a winner.

Tip number one comes from a question that was asked in many different forms. The one that I pulled here says, "Can you do a video on how to obtain products? Do I contact the company directly? I know of Olly Express, which many use, but I don't want low-quality products." First off, you're thinking the right direction. Good. I'm going to answer this with a bit of a different spin, but it'll still definitely help you. The main thing that I want you to take away from this answer and the main thing I want everybody to take away from this tip is that when choosing a niche, especially moving into 2022, you can find at least 20 possible suppliers. This means you're never going to work with a company like Olly Express and you're never going to find one source for your products. You always want to go direct to the source, and especially moving into 2022, you want to find at least 20 suppliers for your niche.

Now, the way that we do this if I was actually researching a niche myself is I would simply go to google.com and then I would search for whatever niche I was researching. Let's go with chandeliers and we'll do chandeliers. Then what I would do is pull up all of the websites I could find on page one of Google, most likely go even deeper than that, and when I pulled up those sites, the first thing I would be checking is the footer menu of their website, looking for anything that had a physical address. If I didn't see it there, I would go to their contact pages, I would go to there About Us pages, and what I'd be trying to identify is which online stores that come up for my niche keyword on the first page of Google are online-only. I don't want to see a showroom, I don't want to see any retail stores. I don't want to see a warehouse because I want to find online stores that I will actually be competing with.

Now, once I identify those stores, I look to see how many brands they sell for. Remember, we want at least 20, the reason being is because when you're a new retailer, you're building your first online store or even your first online store in a new niche, you're never going to get approved to become an authorized retailer for all of the brands from day one, so you want a big sample size of suppliers so you can get your approvals. You'll have some rejections, too, but at least you'll have enough brands to sell for as an authorized retailer where you can make money, and then you can circle back to the rest to get approved.

Now, I'm not going to dive into all of these websites for the purpose of this episode. If you want to see in-depth training on that, go to dropshipwebinar.com. I'll link it up to the description. But what I will show you here is a website that anybody in any home goods niche could use. That website is wayfair.com. You've probably heard of them. They're a multi-billion dollar a year company that's publicly traded that operates almost entirely on the dropship model.

What I'll do now that I'm here, I can actually just go to their category, I'm going to go to lighting and I'm going to go to chandeliers, again, if this was the niche I was researching, and then what I'm going to do on their site is in the sidebar, I'm going to click where it says "Show more filters" in the bottom left. When I do that, it's going to show me a section, let's scroll down and find it, that says "brand." Now, if I click on brand, it'll expand it. I can click show all brands. What this is giving me here is a list of brands that are sold on wayfair.com. Remember, I know Wayfair dropships almost entirely for everything they sell, and this is a list of hundreds and hundreds and hundreds of brands. For tip number one, again, only sell in niches where you could find at least 20 suppliers. This would be an example of a, what, 60-second search we just did that found hundreds, so this is the type of thing you want.

Remember, this search isn't something that is limited to wayfair.com. Typically, the way we find our "future competitors" is by going to google.com, searching for our niche keyword, then finding those websites that sell what we want to sell that have no physical location and then we look for the brands on their store and try to find at least 20. That is the first tip for dropshipping in 2022. It is extremely important because although some suppliers are dealing with inventory issues because of supply chain problems, not all of them are, and a way you can guarantee you're safe is by finding more suppliers to work with. That is how you do it.

Tip number two comes from a question that was submitted on a recent video where the person said, "I have an idea for a niche that is seasonal. People buy it in the winter. Do you think I should go for it?" The short answer is no, especially if it's one of your first stores. You want to sell in an evergreen niche. That is the second tip moving into 2022. By "evergreen," I mean something that will sell consistently year over year, month over month. You're not going to have huge peaks of a month or two where you make a bunch of money, then the rest of the year where you sit around and wait for sales to come in that never do because people aren't buying.

The way that we check for this and the way you can as well is go to trends.google.com and then you could search for a search term or topic. We'll just do one that is obviously seasonal, right? Let's say snowblower, so I'll search for a snowblower. I highly doubt many people are buying them in the summer. What we're going to do is edit the results that we see. By default, it's showing me the results for the United States in the past 12 months. I'm going to click where it says "past 12 months" and I'm going to change that to past five years.

Now, what I'm seeing here is the history of how interested people are in this search term, snowblowers, in the new United States over the past five years. If I hover over the graph here, it shows me the interest. You could see whenever it goes up. When is that? In late November through December, peaks in January, still okay in February, then it starts dying down, then the search is almost nonexistent. It comes back. There might have been a big snowstorm in November of 2018 because we had a little bit of an early season there, it looks like, then a little dip and we're back big in January and so on and so on. It repeats every single year. Now, you can see at the time I'm recording this, we're going into the winter of 2021 into 2022, so it's picking up yet again.

Now, with a niche like this, you can make money with it. You can have a few months a year where you make a ton of sales and you do great. The problem is if this is one of your first stores, let's say you launch a store now, as we move into the busiest season, you might have a few months where you make all this money. You think you are set, you quit your job. You're like, "Yeah, I'm good. I'm living the dropship lifestyle now, right?" Then what happens? We roll around to March and you don't get any sales anymore and your business is gone, not gone but gone for the next nine or 10 months. That is the last thing we want to happen. When we're building businesses with what we do here at Drop Ship Lifestyle, we want them to be consistent. We want them to be sustainable. We want them to be evergreen. We want them to be true lifestyle businesses and something like this, while it could be good for cash for a few months a year, is not something I recommend, especially if it is one of your first stores.

For the person that asked that question, do I think it's a good idea to sell in a niche that's seasonal where people buy in the winter, do we think I should go for it? No, don't go for it. Choose something that sells year-round. Once you have a bunch of profitable stores, if you want to dabble in seasonal niches, fine, add them on, make more money, it'll only add to what you earn, but not for the first.

Okay, tip number three comes from a question that was recently submitted. By the way, this one was asked on a brand new video I posted that shares the top 10 niches for dropshipping in 2022. If you haven't seen that one, check the description. I'll link it up as well. But this question said, "I always see YouTube dropshipping gurus say it's best to dropship a product that's low in weight, for example, less than five pounds. When it comes to selling things like bedroom furniture sets, are there any issues because of how large and heavy the products are to ship?"

First off, the reason you hear a lot of people preaching selling these little light products that are easy to ship is because most people are talking about dropshipping internationally, which obviously, it gets insanely expensive if the products are large and heavy and they also say "Sell things that are small and light" because they're typically talking about dropshipping products that are like 20 bucks, 30 bucks, and you can't have a product that costs a lot to ship if your average order value is super low, so they're saying it for their own reasons.

That is not what I recommend. That is not what I do. Just know most of the things that we sell are large and heavy. That's why tip number three is solve problems with your niche and earn more money because this question you just asked, the reason I wanted to call attention to it, is because you're not the only person with this question. Think about all the people that want to build online businesses that start looking into product types to sell that look at different options, "I could sell something cheap and light. I could sell something big and heavy. That's expensive." They're going to go towards the thing that easier, right? A lot of people go there and a lot of people never make money.

Now, if you're willing to do the little bit of extra work, you're automatically playing in a smaller field. You have less competition and you have more money to be made. Now, let me take this to the biggest extreme, which is dropshipping products that are 10,000, 15,000, 20,000 or more, which, by the way, I've had bulk orders for that price, but there are members of my coaching program Drop Ship Lifestyle that their average order value is above $10,000. I have a recent episode on that as well. I'll link you to the description. You're going to have a full day of content to watch after this one. But one of the key things that helps you to be able to dropship products that are $10,000-plus is if you're solving problems that other people aren't.

Without getting into too much detail, I'll give you one generic example and then tell you how this applies to everybody I know doing it. Going back probably almost a decade ago when I was first getting into e-commerce, I was reading in a magazine about a huge online store that sold pool tables, billiard tables, and they had blown up just doing tons of sales, dominating the market space, and the reason they were dominating isn't because they sold the best pool tables. It was because part of what you got when you bought from them is somebody to go to your house to level the whole thing out, to carry the huge piece of slate, to make sure everything was perfect and seamless and just ready to go. They left your house and you had a gorgeous pool table.

Back at that time, no other online stores were doing that. This company was a small company. It was like a one or two-person show. The way they did it was by going online, I think it was Craigslist, and whenever they got a sale in a different city, they would post a job saying, "We need somebody that can install a pool table," and they would call local pool table companies they found in the yellow pages and say, "Can you all this pool table at this house, X, Y, Z? What's the price?" By doing that extra work, they were able to go into a market and dominate it because most people thought, "Yeah, I'll sell a pool table and we'll leave it on the curb," and other people thought, "I'm not going to sell that because what does shipping even look like?" Right? They gave up before they even started. That's why tip number three is solve problems and earn more.

Now, another example, right, something that I think is more common is if you want to get into one of these super high ticket niches, which by the way, there is more customer service, just know that, but again, less people do it, so maybe for you, it's easier money, and maybe you're willing to do the extra work. What typically happens is you'll be in an industry where things need to be customized, so it takes that extra effort of, one, either working closer with the customer to get them exactly what they need, or by creating custom packages where maybe you're combining one product from one supplier, another product from another supplier, and creating these bundles that no one else in your industry is doing.

Now, I'm going to say this right now because I know a lot of people are probably listening to this, and let me know if this is you, and don't feel bad about it, but I'm sure a lot of people are listening right now thinking, "That sounds like a lot of work. I don't want to do that." Again, that's the point. Do what other people aren't willing to do, especially up front. It'll make you stand out. It'll get you traction faster and it'll get you a better return on ad spend when you're still learning the game.

Tip number four answers a question that says, "How can I tell if a niche is saturated?" Now, I've answered this specific question in a previous video that's, again, linked below this one, so I'm not going to go into specifics of niche saturation because niches don't get saturated, it's products within a niche that get saturated. Again, If you want to see the tests that we do for that, go to the links in this description, go watch it. I'll show you exactly how we test for that.

The thing is and what I think this question is really asking is how do I know if there's too many stores selling in a certain niche? Now, listen, that is the wrong way to think about niche election because right now, what, we have 30 years of internet history and it's almost impossible to find any niche that has no or few stores selling in it, so you want to flip the thought process here and you actually want to find the most successful stores that are selling in the niche you want to sell in.

Now, the way we do this, and this is the tip, the tip is to find stores that are already successful, now, the way we do this, I'll show you in just a minute with the research, but more importantly, how do we first find these stores to then research? Well, that goes back to tip one of this video. If you forgot it already, just go back, watch it again, then jump back here. But remember, those stores that we found on the first page of Google search results that were dropship-friendly, those are the stores we are going to research. I have one of them pulled up here for the lighting niche. All I'm going to do is grab that URL.

Now, to do this test, I'm going to do it with a Drop Ship Lifestyle research tool. We have different software. That's available for members of Drop Ship Lifestyle. If you're watching this and you're a member, just go to research.dropshiplifestyle.com. You can use all of this. If you're not a member yet and you want to become one, go to dropshipwebinar.com. Register for that free training. It's about three hours long. You're going to learn a ton and you get a special offer on the drop ship blueprint and the software. Again, dropshipwebinar.com. If you don't have the program and for some reason you have no interest in it, you can also get similar data from alexa.com. Don't use the paid version there. You don't need to.

Okay, moving forward, let's jump into the competitor research tool. All I'm going to do here is paste that URL that I found on the first page of Google and I will let it load the data. What I'm looking at here is the competitor rank in the country where I plan to do business. Now, for me, that's the US. You can see here in the US the competitor rank for this specific site is 5,356. What that means is out of all the websites in the world in the United States, the 5,356th most popular site is this specific site. This number we want to be within a 100,000, so 100,000 or less. If they're not getting that much traffic, right, if they're not that popular, and when I say "them," they're the sites that you find on the first page of Google, that means there's not enough people searching and going to these stores. That means that niche is going to be problematic. That means that niche might not have enough demand. If you can't find stores that are already successful, it's going to be a problem.

Now, I should also mention that when we find these stores, it's important because then we can see what brands they're selling for and we can get an idea of what they're doing, but that's extremely important that we don't just find them and then try to copy them because that is not helping anybody, okay? If you copy one of the stores you find in your niche, the most popular store, yeah, you're going to get some sales, you're going to get some traffic, but it's only going to be what I'll refer to as "bottom-feeding," where you're getting a few sales here or there off them. What you really want to do is find out how popular they are, find out how much traffic they're getting and where they're getting it from and find out what they're doing good and what they're doing bad so that you can do what they're doing good even better and you can fix whatever they're doing bad. That is how you can grow. That is how you can outtake companies that could have even been in this niche for a decade-plus.

Now again, if you want to know how to do all that specifically step by step, it's all in my award-winning Drop Ship Blueprint program. That's the course that was voted Best E-Commerce Course by Shopify. They only gave out that award one time and it was to us. I would highly recommend you enroll in it if you're serious about this and you want step-by-step instruction and mentorship. Best place to start there is dropshipwebinar.com.

With that being said, guys, that is it for this episode. As always, if you got value, give it a like. If you know anybody that is struggling with profitable niche election, click the Share button, share this link with them. Hopefully, it can help them out as well. If you're not subscribed to the channel yet, click that Subscribe button. I post two new videos a week, every single Monday and Thursday. If you click Subscribe, you'll get notified this Thursday with the newest one, so click that button and I'll see you on Thursday. Thanks.
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