Tired of spending money while crossing your fingers hoping that it will pay off?
Listen to this episode of the eCommerce Lifestyle to learn why you need to STOP “testing” products and start doing your research before choosing which products to sell.
As always, if you have any questions and suggestions, please feel free to leave a comment below. Don’t forget to share this with someone who needs to hear it.
What's Covered in This Episode:
Some things to look for before choosing what products you want to sell:
Links From This Episode:
What's up everybody. Anton Kraly here from eCommerceLifestyle.com and welcome back to the podcast. If you're new, just know this show comes out twice a week. We have brand new episodes every single Monday and Thursday morning and every episode is designed to help e-commerce store owners to increase their revenue, automate their operations and become the authority in their niche.
Now, in today's episode, I'm going to be speaking mainly to the people that are either just getting into building or the people that may have found success in the past, but have found it harder to replicate their results. For example, maybe you've built one store, it did great, and then you chose a product type for store number two, and you built it and you set up your ads and it turned out to be either a nightmare or something that didn't make any money or something that didn't come close to meeting your expectations.
Now, the reason I think so many people experience this is because there's this almost trend going around. You hear people talking about this, they're saying, "Oh, we need to test more products. Oh, I don't know if that product would be a good seller, you should test it." And there's this whole mentality that if you see something and you think, "Oh, maybe somebody else is selling it, so it must be good." Or you think, you know, "I see opportunity, I feel like this would be a good seller." There's this mindset of, Okay, well then step two is set up a new Shopify store. Step three is source the product. Step four is run ads. Step five is sit around with your hands in your pockets and wait to see if you make a profit. And I'm telling you, I think this is a terrible, terrible way to think, I think it's a terrible way to try to build a business.
And before I give you some of the criteria we look for to research things first to know if it's going to work before we spend a dime, before we do any work, just for anybody that doesn't understand why you shouldn't just test products. Just picture this in the real world, in the offline world, in the physical retail world. Let's just say in the town you live in, there is a really busy strip mall and one of the stores just went out of business and a new lease is available and you can have this awesome space, again, in the best part of town. Well, if you were going to build a business there and put up real money, would you just think, "You know what? I bet a pet supply store would do good there. I'm going to build a whole pet supply store. I'm going to find inventory, I'm going to build this business, I'm going to hire people. I'm going to build out this store. I'm going to put ads in local papers and on Facebook and on Google. And I just really think a pet supply store would do good there.
And the answer is, of course you would not do that, right? If it wasn't based on actual numbers and research and an actual plan and hypothesis that you have that would make it good, then nobody in their right mind would in that scenario, put up a hundred, 200, 300K to do it. And just because online business is cheaper, doesn't mean you should go into it with, "Well, whatever, it'll cost me a few hundred bucks." No, get it right the first time. So, some of the things that I look for when I have a product idea rather than just building a store and testing it, one of the first things I look for is demand. And with demand, what I'm checking is how many people on a monthly basis are actually searching for this product type.
Now, I want a minimum of 10,000 people to be searching for the main niche keyword. And again, that's the minimum, 10,000 average monthly search volume. Now, how do you find that number so you can research your products and research demands before you just build a store? Well, if you're a member of Dropship Lifestyle, we built a tool that you enter the niche and it kicks out the search volume. You can find that at research.dropshiplifestyle.com. Again, if you're a member, research.dropshiplifestyle.com, just log in, you get unlimited searches there. If you're not a member, you can also get this data from Google Keyword Planner. The thing here is with Google Keyword Planner, that's located inside of Google Ads accounts, and unless you have a Google Ad account that you've been using actively and spending with for a long time, the results that that gives you are going to be really broad ranges. So for example, let's say I searched pet supplies, if my Google Ad accounts didn't have a lot of history it might say, you know, between 10,000 and 100,000 monthly searches. So nothing you can really do much with, a very broad range of searches. But again, just go to research.dropshiplifestyle.com, search for your potential product idea there, get that monthly search volume, you want it to be at least 10,000.
Now, the next thing that I check for instead of hoping things work out, is is the niche seasonal or not? Will people be buying this year round or only for a small portion of each year? Now, the way that I test for seasonality and the way you should as well, is go to Google trends, just go on Google and search for trends, they own it, it's free. And on trends you can search for any keyword. So put in your main niche keyword and change the date range to see a five-year view of what has happened with this keyword over time. And for seasonality, what we want to see is are there huge peaks and valleys. If it's constantly going up and down every year in a repeatable way, that means the niche is seasonal. And for me, that means it's not, you know, not that you should never do it, but it should not be one of your first few stores. The reason is chances are you're building the store to earn you a real income, to be a real business, and if it can only be a real business three months out of the year, then I would not recommend starting with that or else it's going to be too hard for you to know what's working, what's not, and it's going to be really hard for you to project your revenue, profit, and income.
So, check for seasonality on Google trends, look at a five-year graph and if there's huge peaks and valleys every year that are repeatable, that means it's seasonal and that means it's not worth building a store around, at least not in the beginning. Now, next thing that I look at before testing, because we don't just test products, again, I'm going to keep saying it because I think it's ridiculous, but the next thing that we look for is price points. What do the most popular products within the product category sell for? We want this to be above $200 and the way we check this is by going to google.com, searching for the main niche keyword and then clicking shopping. So we're searching on google.com, but we're looking at the results in the shopping category. And what it's going to show you there are the most popular products within that category. And what we're looking for is the average price point on the first page of Google shopping results. We want at least half of the products to be $200 or higher. Because if the most popular products, for let's say, pick something random, for surfboards, this is probably not true, but if the average price on the first page of Google shopping results was $80, guess what? I'm not going to sell surf boards. So, definitely want to be looking there.
Now, next test that we look for before we even think of making a new Shopify store is how much competition is there? And the competition I check is on Google product listings. So again, go to Google, type in your main niche keyword, click on shopping, and what you'll be able to see for those most popular products is how many stores are selling them. So it might say like the first, most popular product, right? It might say this product is being sold by five stores. The next one might say this product is being sold by two stores. The next one might say this product is being sold by 50 stores. And what we're looking for is trying to have half the page or more, again, of the Google shopping results being sold by 10 or less retailers. That way we know we can compete, we can get clicks and we can make money. You don't want to sell in something where all of the most popular products are being sold by 25, 30, 50 stores. It's just not enough room for you to get in there and be able to compete, even if you do everything I teach you inside of the Dropship blueprint.
By the way, if you want to see, I know it's hard with a podcast, but if you want to see me do all of these tests, like share my screen and show you exactly how I researched niches, go to dropshipwebinar.com. It's D-R-O-P-S-H-I-P webinar.com, and I have a free training there where I show you exactly how I do this. You watch my screen step-by-step as I validate niche ideas or disprove them to show they're not good. So, dropshipwebinar.com. With that being said, I want to give you one more test here on the podcast that I do every time I'm researching a new niche, and that is to see if it is dropship friendly or not.
The way we check this is by looking for the stores that are selling the products we want to sell, and we look to see if we can find stores that are selling the products we want to sell that do not have warehouses, and that do not have retail locations or showrooms. Because if they do, it means they can either get approved with brands that maybe we can not get approved with, or it means they might have a unique advantage where they can have better pricing. So we're trying to find online only stores that sell for the brands that we want to sell for.
So I hope you guys found this helpful. I know I was going fast here because I just keep seeing people talking about test, test, test, and do all this work, spend all this money and then find out if they're going to make any. Instead, what I do, what our students do, what I recommend you do, is do the research upfront. That way when you build something, you know it's going to work. Can't guarantee, Oh, you proved all these numbers, it's going to make you a million dollars a year, but you at least know that it's going to get sales, it's going to make money and it's worth your time. And you're not putting money up just, you know, like you are in Vegas, gambling on roulette, hoping things pan out.
So if you want to see, again, the exact steps I use, watch me do this, go to dropshipwebinar.com. As always, if you got value from this episode, do me a favor, go over to Apple podcasts and leave a review. Really appreciate it. And with that being said, I will talk to you on Monday in the next episode of the eCommerce Lifestyle Podcast. See you, everybody.