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How To Lose Money Dropshipping On Shopify By Picking The WORST Niche

How To Lose Money Dropshipping On Shopify By Picking The WORST Niche

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In today’s episode of the eCommerce Lifestyle Podcast, Anton shares how to lose money dropshipping on Shopify by picking the WORST possible niche.

The podcast is also available on all major podcast players including, Stitcher and Spotify.

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Transcript

Hello, everybody. Anton Kraly here and welcome to episode number two of a brand new series where I am showing you all of the secrets, tips, tricks, and hacks that you need to know if you're looking to lose money dropshipping on Shopify. Now, if you missed episode number one, don't worry, I will post a link to it. In that episode, I showed you how to lose money dropshipping and selling for bronze suppliers. I promise you, if you combined what you've learned there with what we're about to cover in this lesson, then you are almost guaranteed to lose all of your money dropshipping on Shopify.

All right, let's get into it. In this episode, we're going to talk about how to lose money dropshipping by picking the worst niche. You might think, "Well, the worst niche, what does that mean? A niche where I just won't get any sales?" No, it can be worse that that. You can have a niche where you do get sales, but then those sales either lose you money as soon as the person buys, or, even better if you're trying to lose money, the customer becomes problematic after the sale is made. That way, there's more customer service, there is refunds requested, there's chargebacks, and it's not just losing money, but then you're losing money plus time. If you want to lose as much money as possible, you want a niche like that. You want the absolute worst. What we're going to do is cover some criteria that will help you and help us together to find it.

The first thing you want to look at is price points, meaning what should be the average price for products in this niche? The lower the better here. Anything less than 200 should be okay, but if you really want to lose more money, then go even lower, maybe $20, $10. If you can get a five dollar product, that would be a great way to lose money. Maybe even do free plus shipping. You'll lose a ton.

The next thing you want to look at when it comes to the criteria here is local availability. What I mean here is, can your potential customer just get in their car and drive to a Walmart or Target and find the thing locally? If they can, then it's probably a niche you can lose money on. Now, I should clarify here, it should not only be easy to find locally, but it should be something where there would be no reason for a customer to turn to the internet to purchase, meaning there are no unique styles or variations. Because then, even if people do find your online store, they might think, "Well, I'm going to go to Target later anyway, I'll just pick it up there." Basically, you can spend your money advertising products that people will just buy at a local store. Great way to lose money.

Now, the next thing you want to look at is demand, meaning how many people out there are actually even interested in what you have to sell? Demand levels here, you want to be mah. What I mean by that is people might want it, but not a lot of them, and they definitely don't want it year round. Ideally, you can find something that's extremely seasonal. That way, you can have little periods of time throughout the year where maybe you get all of your orders there, and then the rest of the year, you can basically deal with customers that are complaining from your short sale spike.

Now, the next thing you want to look at is customer support. This can be people asking questions before they buy. But really, if you want to lose a lot of money, it's going to be the people that ask questions after they buy. The more customer support the better. How do you find niches that require a lot of customer support? Well, anything that is technical, right? People might have questions. "How do I use this thing?" Or, "I think this is broken." Or even anything that takes longer than usual to ship. Definitely more customer support needed there. Or even anything that requires you to build technical guides or have installation instructions created or instructional videos on your store. The more of them you need to create, the more money it's going to cost you, the easier it will be to lose money dropshipping on Shopify.

Then, the final thing I'll give you here for the criteria just to round this all off is the target market, meaning who is going to be your ideal buyer? If you want to lose money, you want to sell products that appeal to lower income households. People that don't really even have the money to spend that are spending their hard earned money, what's left of it, at your store. That way, the purchase matters that much more to them, and if there's any sort of even little issue, they will be following up, you will be hearing from them, and you will be refunding them. If you do all these things, you put it all together, you are almost guaranteed to lose money by picking a terrible niche.

I'm sure a lot of people here right now are thinking, "Anton, thanks for the tips. I appreciate the criteria." By the way, if you do, be sure to give it a like. But I'm sure you also want the actual terrible niche, right? Just give me a bad niche idea. What's the worst? I actually did spend some time brainstorming. Kind of a ridiculous way to spend my time, but I was trying to write down a bunch of bad niche ideas. I think I found the absolute worst.

Here it is. Drum roll please. Terrible niche idea, one that is almost guaranteed to lose you money, Christmas tree lights. Here's why. Price point, definitely low. You can get these things for like 10 bucks at Home Depot, CVS, Target, anywhere. Get a few hundred lights for $10. The price point is way, way, way down there. Also, local availability. Again, go to any store around Christmas, you can get them. You don't need any special Christmas tree lights you're going to go to the internet for. Also, demands for these things. Yeah, of course, you have a really busy, probably three week period of the year where people would buy. But the rest of the year, you can sit back and just not make any money and watch your ad spends go out the window and watch customers that bought them two months ago, say, "Hey, they broke. I want my money back." Yeah, demand, no, not there, so definitely can lose money with that.

Customer support, right? I said the more the better. Christmas tree lights, anybody that's ever set them up before, you know how problematic they can be. They break, they get tangled up, people don't know how to install a new one. This is coming to you from somebody that sold Christmas trees for six years while I was in high school and college, so yeah, there's a lot of customer support that comes with selling these cheap little things.

Then, finally, for target market, this is the only one that, yeah, it's a little iffy here, if it fits all the criteria, because you can make the argument, which is true, that most people with Christmas trees will be buying Christmas tree lights regardless of their household income. But with that being said, this is a niche that I think fails the others so much that, for this one, we're just going to check it off. This will pass all the criteria. I will say that, if you want to lose money dropshipping on Shopify by picking the worst possible niche, it probably would be inexpensive Christmas tree lights.

I should also mention that is just one niche out of many that I brainstormed. I'm sure you have some of your own ideas, so if you do, leave a comment, let me know what you think is a niche that is almost guaranteed to lose money. I'd be curious to hear. Also, if you are not subscribed yet, be sure to click that button because I am going to be back on Thursday with part three of this series where I am going to show you how to lose money dropshipping on Shopify by getting the worst possible traffic to your online store. Thank you, everybody. I appreciate you and I will talk to you then. See you.

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