There are many things that can indicate a good product. Talking about technicalities, it should be coming from a trusted supplier, have convenient delivery time and shipping cost and much more, but here we’ll focus on some fundamental characteristics that winning products have and things that you should consider first when searching for one.
We’ve all seen dropshippers making a lot of money by selling cute puppy clothes, watches or swimwear, which definitely works, but it takes a lot of time and effort to build a brand and community around your store, creativity to design ads and other promotional material, and while it for sure doesn’t mean that you can’t find a winning product with provoking different emotions, the shortcut to (almost) overnight success are problem-solving products.
With problem-solving products, you offer value to your customers by meeting a real need or giving a better solution than existing alternatives. When people see an ad that aims directly to the core of their problem, it’s much easier for them to make a decision supported by reasoning, which is not a case with a nice dress or a pair of shoes that you just like and might be cool to have them in your wardrobe.
Problem-solving products are the ones that can provide you purchases even from the cold traffic since customers immediately engage with the product if it is advertised properly.
A good example of a product like that is a mini portable air conditioner, an absolute hit in France in June 2019, which is thoroughly analyzed in the AliInsder winning product case study at the end of this text.
Another example of a winning product that was dropshipped successfully is Men’s 2 in 1 running shorts with security pockets. Giving the answer just with one picture, it’s clear, specific, has defined target group, and solves a concrete existing problem.
Next thing you’re looking for in potential winning products is their exclusivity. Yes people do need umbrellas when it rains, and they all (hopefully) use toothbrushes, but you need to give them a good reason not to go to the closest shopping mall and buy the same thing there, at an already familiar and trusted place.
The potential winning product shouldn’t be widely available and easy to get offline. When your customer sees your ad or visits your website, the feeling they should get is that it is the only place they can find it. That’s why, typical winning products have some unusual characteristic, something new and unique for that type of products.
For example, when you need a new pair of sports shoes you’ll probably go buy them in some of the sports stores existing in your city. But who can resist Indestructible Ryder Shoes with so many amazing possibilities that none of our shoes had before?! Still, it is possible that they might be available in some offline store as well but that’s not the first thing that comes to your mind when you see them.
3. Wow factor
In the world of scrolling and giving no more than a few seconds of chance to ads appearing on internet, a winning product should be able to say everything just in those couple of seconds – why you need it, what is so special and unique about it, it should stop you, impress you, and make you say – WOW, I want it.
Some of the dropshipping products with the “wow factor”, that were winning products for a lot of dropshippers few years ago, were Watermelon slicer, Quick makeup bag, Anti-Gravity Phone Case… They had memorable video ads which emphasized their wow effect and managed to draw huge attention on the internet.
Once you find such a product with the “wow factor”, use that advantage and invest in having a good video material that can easily grab customers’ attention, be creative and make the most of those few seconds that crowded advertising world has given you.
After assuring that your potential winning product solves some problem, it is unique in a certain way and grabs the attention quickly, there comes the checking of its profitability.
For a highly profitable dropshipping business it is strongly recommended to search for less expensive products on AliExpress. Whether the product is or is not defined as “expensive” mostly depends on its perceived value.
A good example of it is jewelry since there’s generally accepted belief that a luxury pair of earrings is worth a decent amount of money. At the same time, a pair of socks really needs to blow you away in order to make a purchase, if their cost is higher than usually expected.
The problem with “expensive” products is that you can not easily set a price that is 2 or 3 times higher than its cost, which means that after adding all marketing costs, shipping costs, costs of other platforms or apps you use for your business, there’s not much left for your actual profit.
When setting a price, a quick checklist should include:
- Cost of the product – the cost of the product itself and all the additional expenses like shipping, ads, website maintenance, etc
- The perceived value of the product – the value your customers believe that the offered product has.
- The purchasing power of a target market – by researching the market you aim for, you should set prices according to the purchasing power of that target group. Take into consideration impulsive purchase prices as well which differ around the globe, and can also affect your profitability.
- Competition prices – it’s always helpful to know what else exists out there: in which ways competitor advertise that product, where and how they sell it along with their price for the same product. However, don’t be afraid to have prices higher than your competitors. We talked more about branding in this post – and it all comes down to the way you sell it and the brand you make out of your store. With a little bit of branding and marketing tricks, you can actually add the value to the product and make it worth more – increase its perceived value.
Have in mind that if you are a beginner in e-commerce, it’s usually better to start with the products that have lower costs, because it is proven that your initial costs for marketing and market testing would also be lower in that case.
After considering all of that, and setting the final price, check if you get at least 3x profit margin. If the answer is yes – you’re on the right road for launching a winning product.
5. Validate your idea
Once you think you have a winning product, there comes the time for validation of your idea. Ali Insider is a tool that can help you verify your idea without stepping into the market and risking your investments.
It is a Google Chrome extension that gives you precise dropshipping statistics for AliExpress products.
With Ali Insider, you can check a demand for your product because it tracks not only the current average daily orders, but the number of its current average daily Dropshipped orders, which will reveal you whether it has a lot of purchases because it had already been popular 6 months ago or it really is a trending product, selling crazy these days.
In this way, you can be among the first ones to recognize a winning product.
Additionally, you can check what’s the competition and their profit like, what are the countries where it is dropshipped the most, etc, and with your knowledge, skills, and creativity, you can just surf the trend and use the opportunity given.
To help you where to start with the winning product hunt, AliInsider also gives you the exclusive list of top 30k products on AliExpress at every moment, and all the analytics mentioned above for each of them.
AliInsder winning product case study
A mini portable air conditioner was a product that achieved its peak in June 2019. AliInsider recorded a big leap of this product’s daily sales and the number of orders shipping to France. It also recorded that at the beginning there was just one dropshipper selling more than 280 units per day with an estimated profit of $3500, and $15,000 daily revenue.
That was a dropshipper who knew the circumstances and used the moment – the heatwave spreading across France, with historically high temperatures that caused a massive demand for this product.
Soon after, more dropshippers joined the party, following the trend that was set, and even in July, this product was still successfully dropshipped by more than 13 dropshippers.
- Mini portable air conditioner was an easy and affordable solution to indoor high temperatures. – problem-solving ✔
- It was new and not present in every home appliances shop.- exclusivity ✔
- The video material was showing in an entertaining way it’s effortless utilization and the value it offers. –wow factor ✔
- The perceived value of home appliances is generally high. AliExpress price of this product was convenient too for setting a good profit margin. –profitability ✔
With all four attributes checked, we can claim with confidence that mini portable air conditioner was a real winning product.
Of course, finding a winning product is not the end of the story. It has happened a lot of times that poor advertising and pricing, bad timing and wrong market contributed to product failures even with the right products.
That’s why it’s up to you, your creativity, marketing and sales skills, whether the winning product is going to reach its full potential or not. Yet for now, knowing what are the products worth time and money investments is already a good start.