This is the third or fourth dropshipping article in this series of dropshipping. Sorry, I can’t remember exactly how many I have done. However, I can tell you that the one before this is here and the one before that is here. And you can look at the whole category of dropshipping here. Right, now I have mentioned all that, let’s get on with what we’re looking at here – Common Mistakes When Choosing Dropshipping Products.
Common Mistakes When Choosing a Dropshipping Product
First of all, you need to accept the fact that you are going to make mistakes. The best dropshippers in the world make them and so do the worst, so you will as well. However, that is not to say that we cannot lessen the chances so that when you do make a mistake, it is not going to be a costly one.
The good news is that you don’t have to learn from your own mistakes; you can learn from other people’s mistakes. And it’s those common mistakes that we are going to look at here to see how we can avoid them.
Mistake #1: Choosing a Big Name Product
This is one of the most common mistakes when choosing dropshipping products. The feeling is that if you’re selling a branded product for a lot of money, you will make a lot of money. Sadly, that’s not the case. If it were, everyone would do it, right?
But when you are selling a designer product, the margins are, in fact, incredibly low. And because the prices of branded/designer products are so high, you’re not even going to sell a lot.
Think of it this way. Sell one product for $500 and make $50 per sale or sell 500 products for $10 and make $5 a sale. To use a very well-worn cliche, this is a bit of a no-brainer. Go for the cheap option and go big.
Generic products are your best bet and, if you want, you can consider private labelling as well, to promote your own brand.
Mistake #2: Opting for Fake Products
I know what you’re thinking. You see all these people selling knock-off products on the street and you reckon you should have some of that. Well, you’re right that there is a market for fake products but you should not be getting involved.
While it seems like what you’re doing is not really hurting anyone, it is. It hurts the companies whose products you are not selling. It hurts the people who work for these companies, and it hurts you because, quite honestly, it makes you look like a charlatan, which you would be.
But even if you didn’t care about the companies, which are normally hugely rich anyway, I could understand that. You might not even care much for the employees, which is a little less understandable. And maybe you don’t even care for your own reputation, and that’s fair enough too.
But I am sure you do care about being arrested and getting a police record because, no matter how you try to justify your actions, you’re breaking the law. If you live in a country that takes this stuff seriously, you will get into trouble and you will end up with a record.
And even if you are not sure they are knock-offs, you probably know they are. Let’s be honest, if you’re buying a Louis Vuitton bag from China for $10, it would be very hard to claim that you didn’t know.
Mistake #3: Choosing a Product That’s Too Competitive
While it does not seem like such a bad idea to sell products that are popular, this is not normally such a good plan. No matter how many people are selling it and no matter how high it is on the list of popular products and, furthermore, no matter how often you see it posted all over social media, avoided it like the plague.
The fact is if you sell a product that has a lot of competition, you can win on only two points, marketing and price. You’re not likely to win on marketing because there will always be dropshippers who are better than you.
The only other way you can win is if you sell lower than everyone else. This is called price competition and you need to avoid that at all costs too. If you start battling on price, you’ll lose as well. So avoid competitive products.
Wrapping It All Up
And there you have it – Common Mistakes When Choosing Dropshipping Products. For once, I have managed to keep a post under 1000 words, which you’ll probably be happy with it. Now that we know how to avoid choosing bad products, we’re going to look at how to choose great dropshipping products.
If you enjoyed this article, please leave a comment. And if you think I’ve left anything out, feel free to add that below too. Thanks and speak again soon.