How to select small product category with high profits margin for Shopify dropshipping

How to select small product category with high profits margin for Shopify dropshipping

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As a Shopify seller all of us prefer to choose trending products or best seller products for dropshipping business? What the trending product or best seller product looks like? Mostly Shopify sellers have no idea, from another point of view, the product selection is key to Shopify dropshipping business. when you dropshipping via Shopify, How much effects you paid on product selection and marketing? This sharing is mainly for small and medium-sized Shopify sellers. We are familiar with the Red Sea product category. If small and medium-sized Shopify sellers get involved with the red sea products, they often end in failure. In this article we will see how to select small product category with high profits margin for Shopify dropshipping.

What is a small category of high-margin products

The small categories discussing here are not the product categories that no one sold on Shopify or other platforms, but the subcategories that are subdivided. This market is not big, and there is no satisfactory service. Sometimes the products have a certain demand, it is also known as niche product.

Why choose small category of high product margin products for Shopify dropshipping

Lots of Shopify sellers might have the same doubts, most of the current product selection methods are the following two:

Through 1688 or Aliexpress to select a trending product which might be easy for sell. This kind of product selection method often has problems such as out of stock, goods not in the right version, and weight inconsistency etc.

Follow-up sale, choose the TOP sale sellers with the same product category, follow the hot sale product in the other stores, I think this method is really harmful. Pulling down the profits of the entire category, and at the same time lossing money.

I think that new Shopify seller can start with small categories. Firstly, there are fewer people who do the small categories. We can quickly place orders and even become the category TOP. Secondly the profits of small category products are usually very high, everyone can earn more money. Thirdly small category usually means less risk for beginners.

How to choose small categories of high-margin products

3-step product selection – make sure your direction

As a Shopify seller we should know what kind of product to sell on Shopify, which is what kind of product category you are interested or familiar. Only with directionality to select products you can save more time.

3-step product selection – Product selection skills

There are lots of product selection ways, skills or strategy online. Here I only selected some product selection methods that I think are useful for sharing.

<1> Last level subcategory products

Take the wrench as an example, you can view the last level of subcategories. Tools, hand tools and wrench. It can also be selected through the AliExpress buyer interface, and you can also view the best selling product to select high quality wrench products.

<2> Select products and supplements through customer buying habits and needs

You can open the AliExpress background to see buyers with a relatively high rating. It is recommended to view the above A3 level buyer review.

View the customer’s purchase history and make supplements to your Shopify store.

<3> Select products through Aliexpress official product selection convention

For most Shopify sellers overseas, it might be a little difficult and costly, you can pay attention to the convention in the community or news.

<4>Selecting products by taking advantage of industrial belts and sources of supply

It is more easier for Chinese Shopify seller as there are many industrial belts distributed in China which centralized all the supply chain with the latest products.

<5> Select product based on eBay Amazon and Wish as well as other platforms

in addition to Alibaba and Aliexpress, other C2C or B2C platforms also can be used for product selection.

<6> Observe the fashion trends through social media and forums. Such as YouTube, Facebook, etc., as well as forums for current categories.

It is recommended that FindAForum select TOP FORUMS to observe trending product and select products. There are many ways to choose products, and the one that suits you is the most important to your dropshipping business.

3-step product selection – testing product

For most Shopify sellers the products will be upload to Shopify directly after selection, and they will not be tested at all, and finally bring a series of troubles.

(1) Check whether the selected product is fragile and contraband, and is suitable for transportation or not;

(2) Testing for compliance with platform rules, such as some products that are prohibited from being sold, we must not sell;

(3) Check whether the brand and appearance are infringing;

(4) Check whether the supply chain is complete. I suggest that you first sell products with complete supply chains. The integrity of the supply chain is really important.

(5) Check whether the product is feasible through profit. It is recommended that you calculate with a profit of 20% to 40%, and then compare whether the platform is competitive.

(6) Test by Google Trends

Through Google Trends’ Hot Trends, you can see the hot products and topics in various regions of the country in real time, conduct heat detection, and heat the products to be selected.

With the hand spinner as the column, the hot search is getting lower and lower, so it is not worth to sell.

(7) Detection by free keyword tool

Recommend https://ubersuggest.io/, there are also a lot of tools like Twitter Trending, Clickbank and so on. Taking more time to test will reduce a lot of unnecessary trouble in sales. These are some of the ways to select high-margin small-category products. Here is just a little idea. You can try some of the product selection methods and choose the one that suits you.

At last, there are some dropshipping tips below:

If you are dorpshipping to different countries, it is recommended to select some small and light weight products suitable for transportation.

When selecting products, you can expand by selecting the selected items and select the same type of products and corresponding supplements.

Choose some products that are relatively single after sale, so it is easier to get started.

Choose a product with a relatively high stock so that you can keep the order.

Unless the operation and promotion is strong, it is not recommended that beginners choose products that are not available on the platform for sale.

Large holiday items are not recommended as the main products, as these products will only be available for orders at certain times, so it is recommended as an auxiliary product.

After all the tips mentioned above do you know how to select small product category with high profits margin for Shopify dropshipping? 86Deal offers one step dropshipping fulfillment service to help you save time and money on orders dropshipping from China to overseas countries.

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