Dropshipping for Beginners How to Test New Products

Dropshipping is a great way to start an online business. It’s low cost and with the right knowledge, it can be profitable too. In this blog post, we’re going to cover how you might go about testing products for your dropshipping business. We’ll briefly discuss why you want to test new products and then go into some detail on finding suppliers, validating products, and finally how to launch them through PPC marketing campaigns.

Why choose a dropshipping business model?

Dropshipping is a great opportunity to become a business owner because of how easy to start, and how accessible it is. With dropshipping, you don’t have to worry about buying products in bulk or storing any inventory. When a customer orders from your store, you simply contact your supplier and have them ship the product directly to your customer. Hence, the upfront cost is significantly lower compared to retail stores.

You can sell anything you want, opportunity is everywhere. For example, you can sell t-shirts on Facebook for some extra income or test the market with more specific niches like selling laboratory goggles to science teachers in Canada (and yes – there’s a huge demand).

You also have the opportunity to dropship high ticket items. With a little more research and some effort, you could dropship items like electric bicycles or luxury watches. The sky’s the limit when it comes to what you can sell with dropshipping!

How to find new product ideas?

There are a few ways we can go about finding new product ideas for our dropshipping store. The first way is to look at what’s popular on Amazon. You can use a tool like Jungle Scout to help you find products that are selling well on Amazon, and then see if you can find a supplier who also sells those items.

Another way is to check Aliexpress for items that are selling well there too. You can use a tool like Aliexpress ninja to find products with good metrics, and see if you can find suppliers for them as well. If you are looking for the best tools to find great products, we recommend checking out this post.

Finally, another great way is to look at what kind of posts get the most shares on Facebook. To do this, simply go into Facebook insights and look at the posts that have gotten the most engagement. Chances are, these are topics or products that would do well in a dropshipping store as well.

Why testing products is important for your dropshipping store?

Dropshipping is great, but you want to make sure that it stays profitable. To do this, you need to test new products and validate them before committing fully to the niche or industry.

You want to make sure that you can find a supplier for the items, and that there is enough demand. Let’s say you have a product with low demand and high competition. Chances are, you could lose money with that product.

For example, you might find a great product to dropship, but when you actually launch a PPC campaign for it, the cost per click is too high and you don’t make any sales. This could be an indication that the product competition is too high or you need to change your ads.

And still, it can happen, that despite all your efforts, your ads just won’t convert to sales. But if you do your research you’ll know which products and niches aren’t performing well in order to double down on ones that do work. Your efforts will be more profitable than ever!

How do you test a product before launching your online store?

We have touched a bit on how to test dropshipping products before even you would launch your store, through engagement validation.

Sales Metrics

You want to make sure that the product is selling well. If you use Aliexpress, Amazon, or a marketplace like them you can find all sorts of data about what your competitors are selling, but I generally like to look at these three items in particular – a number of reviews, sold, and avg rating.

Evergreen product or just a seasonal?

Products can be evergreen or seasonal, and you’ll want to know this before testing. An evergreen product is one that will always have a demand, while a seasonal product is one that only has a certain amount of time where it’s in high demand.

When you’re looking at products to dropship, it’s important to determine whether the product is evergreen or not. If it’s not, then you’ll want to make sure that there’s a solid plan in place for when the seasonal demand ends.

Dropshipping stores are all about providing a consistent experience for your customers, and if you’re selling something that won’t always have high demand then it can be difficult to do this.

Don’t forget, that just because you choose the dropshipping model for your eCommerce store, it does not mean that you should not take it seriously. Unfortunately, many aspiring store owners forget about it and chase quick money.

Cost of Goods Sold (COGS)

To run profitably a dropshipping store, you need to calculate the cost of goods sold (COGS). This is the main expense that your business will have – you want to ensure that product is sellable for at least 3.5x more than what you are paying to your supplier.

You also have to calculate the cost of shipping, it varies from supplier to supplier, and also the cost of your ads. We will expand on advertising later – as it’s an important element of testing – so keep reading!

Once you have all these numbers in place, it will be a lot easier to determine whether or not a product is worth selling in your store.

Target audience – size matters!

It’s important to make sure that the size of your target audience is big enough. If you aren’t able to find at least 5-10M people in your niche then it might not be profitable for you to run ads on Facebook or Google.

Hence when you want to test dropshipping products, you also need to be sure that there are enough people to advertise to.

Product quality test – sample order

If you’re dropshipping from AliExpress, you can order a sample product from the supplier to test the quality. Test order is important, as you don’t want to end up selling a low-quality product and damaging your brand’s reputation.

If you are using another dropshipping supplier, you can negotiate with them to send you a sample product. This is a great way to test the quality of the product, as well as how good the supplier’s customer service is.

Lower quality suppliers can ruin your business, so make sure that you test more than one supplier before committing.

How to test products: the best ways

there are multiple ways of testing products some require more budget, while others require less. We go over our two most favorite methods below. You can sure use both simultaneously or separately, it’s really up to you. Alright, without further ado, let’s jump in!

Running FB Ads is still one of the most used forms of PPC testing

Run PPC marketing campaigns

The best way to test products is by running Facebook ads. If you are tight on budget, you can run post-engagement ads, however, we recommend beginning with conversion ads optimized for purchases.

You also need to define your target audience. For example, if you are running an eCommerce store that sells beauty products for women then your test audience would be females between the age of 20-45. You will need to test different targeting, like location, age, and interests.

Also, you need to have engaging marketing materials to succeed. There are multiple apps that can help you with this, check out our 5 best tools to create ads for dropshipping products. You can also use materials that your supplier provides you, however, we don’t recommend that neither stock images. You better of using unique marketing material.

The videos or images you would receive from your supplier are likely being used by many other store owners too, hence you can’t rely on them to be successful. So despite you are selling the same product, you have to sell it from a different angle to be successful.

Once you have started your ad campaigns, you need to keep a close eye on the results. This will help you determine whether or not to continue running ads for that product. Test different ad copy and landing pages for the ads. Use A/B testing to learn what works best for your store.

Also remember that if something isn’t working out as planned, don’t hesitate to change it! You can always try new things.

Don’t forget, if you’re dropshipping from AliExpress, you can use the Oberlo app to automate your Facebook ad campaigns.

Testing low-cost products with Facebook Ads:

In our experience, Facebook ads work really well when it comes to testing low-cost products. For example, we’ve tested a product that cost $4.50 per unit to sell and generated a positive ROI.

When testing low-cost products, you want to make sure your target audience is as large as possible. This will help you generate more sales and reach your break-even point quicker.

Also, it requires less budget than testing higher-priced products.

Here is what you need to do:

  • Write a good ad copy that will grab attention right away and make people want to click on it. (So make sure to have compelling marketing content.)
  • Optimize the landing page with keywords related to your product (use Google Keyword Planner tool). You can also optimize text, images or videos for the keywords.
  • Use different ad copies to determine which one works best for your target audience, and also the product you are trying to sell.
  • Run Facebook ads that have a specific call to action (ex: buy now). You can choose what type of conversion event you want, we recommend using Purchase event.

Testing High-ticket items with Facebook ads:

More budget!

We have to highlight first, that it requires a much more budget and a different approach than if you were testing products between $10-50.

When it comes to Facebook ads, some of the rules apply as for low-cost products only on a larger scale. The difference is that instead of optimizing for purchases, you need to build awareness and brand recognition first.

High-ticket products are hardly bought in one session. There is no trust yet for your business. So you have to build a funnel to get purchases.

Reading the data: validate your product

  • Cost per purchase (CPP)
  • Conversion rate (CR)
  • Return on investment (ROI)
  • Cost per click (CPC)
  • Cost per thousand mile (CPM)
  • Click-through rate (CTR%)

Keep track of these numbers and adjust your campaigns accordingly. As you continue to test products, you will get better at finding winners – this is the key to a successful dropshipping business!

How to test your product through influencer marketing?

Influencer marketing is not really an old-school technique to test products, but it is still very effective. This method of product testing enables you to reach a broad audience who are interested in the influencer’s content.

For example, if you are selling beauty products and choose to reach an audience of makeup artists on Instagram – this is a great way for testing the product! Just find some relevant accounts that have 100k+ followers and send them your product. If they like it, there is a good chance their fans will too and you can expect some sales.

The key to this method is finding the right influencer and product match! It’s not as easy as it sounds, so be patient and test different products through various influencers before you commit to one.

Key metrics to look at

Number of retweets, likes, and shares on the influencer post
Engagement rate (comments per post)
Followers count. If the influencer has 100k followers, but the engagement rate is low – you should look for another influencer.

We hope that these tips will help you with your business! We also recommend checking out our e-commerce

How do you test products quickly?

If you want to test products quickly, that equals aggressive testing. It requires more budget so if you are on a tight budget this may not for you.

When you’re aggressive testing, your goal should be to make a sale within 24-48 hours. Use a higher budget, like $100-$200/day. If your target audience reacts negatively (you don’t have purchases and add-to-carts within this timeframe), then the product isn’t worth selling.

Don’t forget that you need to have a solid ad targeting strategy in place and great marketing material. You also need to make sure that your website is optimized for conversions.

You may reach your potential customers but if you don’t have an optimized website, you’re losing out on sales. Make sure to simplify the checkout process as much as possible.

Test, Test, and Test! This is the best way to find products that will sell for your dropshipping business. Keep track of your results and make changes accordingly – this is how successful businesses are run!

Conclusion

Dropshipping can be a great business for those who want to start their own eCommerce store without having to worry about inventory or shipping products. By testing new products, you can increase your chances of finding winners and building a successful business. We hope that these tips will help you in your journey! Remember to keep track of your results and make changes accordingly. Wish you good luck!

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