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4 Product Selection Strategies and Skills for Cross-border Dropshipping

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The favor of foreign online shoppers for “Made in China” goods has led many small and medium-sized sellers as well as individuals seek business opportunities and invest in cross-border e-commerce industries. As the saying goes, “70% of the cross border dropshipping success based on product selection and 30% on marketing operation.” Product selection is a very important part of cross-border e-commerce business. Good product means half of the dropshipping business being succeeded. In contrary, if the products are not good, it will waste a lot of manpower and resources, not only do not operate well, but also easily punch the enthusiasm of the dropshipper. The right direction is often more important than the method, and the choice determines the direction of cross-border e-commerce, just like the helm, only the right direction, it is possible to reach the other side. Successful product selection of cross-border e-commerce sellers requires strategic skills. In this artical we will share 4 product selection strategies and skills for cross-border dropshipping.

Find trending products via big data from cross-border e-commerce platforms

The purpose of the product selection is from the perspective of consumers, while the cross-border e-commerce platform provides a lot of data about consumers. Through the analysis and mining of these data, we can find products that consumers need, the product selection skills listed as follow:

Take advantage of platform information to understand foreign market demand. Take the DHgate as an example. There are industry dynamic columns on the seller channel page. This column has detailed introductions and trending product analysis of an industry. For example, when choosing the maternal and child toy industry, the first thing to see is the latest products. It is a new product release platform created by DHgate. The industry manager carefully selects the hot products that are urgently needed by overseas market. Followed by industry information, it includes cross-border e-commerce maternal and child toy industry buyers structure and appeal analysis, the female roleplay toy in the industry increase year by year, and entity + virtual leads the United States New York Toy Fair guide children to play with AI. Next is the industry report, you can see 2019 maternal and child industry category planning, toy industry products and categories as well as the toy industry report”, through the analysis, you can find new exotic toys and female character toy demand has great potential.

Analyze buyers’ hot and potential needs with the platform built-in search function. Basically, each cross-border e-commerce platform has a search bar, the demand can be judged through product keyword search volume. Take AliExpress as an example, open the AliExpress buyer page, below the search box will display mechanical keyboard, camera drone, rings for women, cat eye sunglasses, 3d printer and many other product keywords, refresh the page, every time The words will be different. These words are popular product keywords. In addition, enter the product keywords in the search box, such as sandals, the box will automatically pull down a series of hot search words related to the core words and the corresponding search results, such as sandals women, sandals girls, platform sandals, shoes women sandals and gladiator sandals Women and so on. It can be judged that women’s sandals and sandals with waterproof feature are in great demand.

Explore the potential needs of buyers with a variety of data analysis tools. Commonly used tools are in-site data tools and off-site tools. Cross-border e-commerce platforms will have their own on-site data tools, such as eBay plus, Amazon’s four rankings, AliExpress’s data latitude, wish’s cross-border merchant data analysis platform and DHgate data think tank.

A tool commonly used is Google Trend. Google Trend is a Google-based search analytics product that analyzes Google’s billions of search results worldwide and tells users how often a search keyword was searched for Google at various times. In short, see what people are interested in on the web through Google Trends. Take the super-explosive fingertip gyro in the dropshipping industry as an example. Enter the keyword fidget spinner, you can see the trend curve. The curve starts to rise in January 2017, and it starts to soar in March. It peaks at the end of May and then slowly falls back. August It has almost fallen back to the level of March. Through the graph, you can judge whether the product has demand and whether the demand is rising or falling. If it is rising, it must pay attention on time.

In addition, VOTOBO is also a good analytics website that monitors the hot-selling and soaring rankings of eBay, AliExpress, Wish and Amazon in real time, and can be emailed to view hot product data analysis under specified product keywords.

Using the overall concept of the hot sale product to develop its derivative product market

The existing market consists of two oceans, the Blue Ocean and the Red Sea. The Red Sea represents a fierce, brutal and bloody market in which there are many competitors and limited profit margins. The Blue Ocean is a market with little competition and demand and profit potential. For the dropshippers, it is necessary to avoid the Red Sea market and look for the Blue Ocean market.

The overall concept of the product consists of five levels: core product, tangible product, additional product, desired product and potential product. It is recommended that new dropshippers research the expected products and potential product levels of the hot sale products, looking for gaps to seek for profit margin. For example, there is an hotsale Bluetooth headset S530 on the Wish platform, which is sold by many businesses. By analyzing the user evaluation of the product, it was found that many people had insufficient power capacity. From the expected product level analysis, the hot sale product did not meet the customer’s expectations very well. The capacity of the power is a blank, you can fully develop the new upgraded S530 Plus, the capacity is larger, the upgraded Bluetooth headset is more cost-effective, attracting users who originally purchased the S530 but suffer from insufficient capacity, and are uniquely competitive.

Similarly, there is a “Mens Sketeton Mechinial Watch” on the Wish platform, which sells well. The cumulative sales volume is as high as 90,000 pieces, since this watch is so popular, why not continue to dig deep into the demand for this product and explore the potential product level? Each person’s wrist is not the same thickness, the table is not suitable for the size of the watch, naturally there is the need to adjust the length of the strap, then the splitter is a very promising explosion of peripheral products.

The first choice for using this strategy is to find the hot sale product, and then analyze the overall concept of the explosion and look for a blank area. For example, summer is coming, and products such as swimwear and sunglasses are bound to be hot. Using the sunglasses as a keyword in the AliExpress search, find the results of 19907, choose to display by orders, the first order quantity is 35061, and the order quantity ranked tenth is 12561. There is no doubt that the first product is a hot sale product, browse the product details page, the product is priced at $3.06 each, titled “UVLAIK Night Vision Sunglasses Men Women Goggles Glasses UV400 Sun Glasses Driver Night Driving Eyewear”, from the title It can be judged that this product is available in both men’s and women’s models. The product is both eye-catching and suitable for night driving.

From the detailed description of the product, we found the following information: the lens material of the product is resin, the frame material is alloy, the lens has four colors of yellow, red, black and silver, and the frame has four colors of gray, black, gold and silver, frame and lens. There are 8 products in different color combinations, including 5 yellow lens products and 1 color lens product. View customer reviews for a total of 1205 reviews, giving a score of 4.6 out of 5, and browsing 1 to 3 stars for evaluation. Summarize useful information: packaging is too simplistic, of poor quality, color is not correct (not transparent yellow), slow and functions are not as described at night.

How to find the gap for the hot sale products? First, look for blanks from the use of objects, the glasses are for men or women, then can you develop the same product for children or pets? After all, people in the west still like to keep pets. Those who buy this kind of glasses will have an expectation that their children or pets can bring the same glasses. In the AliExpress platform, we found 931 search results, which were displayed in the Orders ranking. The first order volume was 1762, and the tenth order volume was 187. From this, it can be judged that the competition in the market is not intense. In order to determine whether there is demand in the market, look at the first transaction record, only 50 sold on May 30 and 31. In addition, the shape of the lens of the product is a perfect circle, which is different from the explosion of the previous analysis. In the search results of the pet glasses, no glasses like the explosion are found. Therefore, it is a blue ocean market to use pets as a target to develop hot sale products for your dropshipping business.

Secondly, looking for the blanks from the colors and materials. Browse the Sunglasses search results and find that the black, red, yellow and blue colors of the lenses are the mainstream colors, which are popular, but the analyzed hot sale products are not blue. The second and third hot sale sunglasses are the main blue lenses, but the shape and material of the frame are different from the first one. Browse other products and find two popular shapes and borders on the second page. Similar, but the color of the lens is blue, the sales quantity are 5421 and 4599, respectively, the price of each piece is 8.88 US dollars and 11.57 US dollars, the frame material is stainless steel and aluminum. In addition, both products are beautifully packaged. It can be seen that these two products are products developed by other sellers based on the material, color and price on the basis of the first hot sale product, and they are sold very successfully.

Thirdly, think about it. Since sunglasses are so hot, what about the sunglass case market? Searching for the sunglasses case on AliExpress, we found 15564 results, the first sales volume was 3112, and the tenth sales volume was 920. Among the top ten product advertisements, there are five products with similar appearances and small boxes with ropes. Searching for the same keywords in the GHgate, there are only 122 products, the first product sold 17,250 pieces, 500 pieces from the order, is a simple cloth bag. The top 12 were all similar bags, and the thirteenth appeared in the fourth line of AliExpress. The first-ranked product of AliExpress was found on the second page of the Dunhuang website search results, and sales were low. The mainstream of the GHgate glasses box is a style, that is, cloth bags, and this is still to be sold wholesale. Therefore, the glasses case is a blue ocean market.

Follow cross-border e-commerce rules to avoid infringement of selected products

The identification of infringing products on each platform is similar, and the types of infringements that sellers often encounter are mainly divided into several types:

The first is trademark infringement. Did not get the official authorization of the product brand, use the other party’s trademark or LOGO. For example, the more popular Peppa pig infringement incident, the seller only sold a Peppa pig puzzle worth 12 dollars, the account was frozen, the store also has 10,000 dollars in payment. As long as there are pics of the pigs on the product, such as the plush dolls of the pigs, the cake molds, the clothes ornaments printed with the pigs, the toy cars, etc., it is possible to be accused. In addition to the product, the occurrence of the Peppa pig trademark in the attribute and description is also an infringement. Therefore, for a well-known brand of products, unless you have the authorization of the brand, you can not sell, do not appear brand name in the description of the advertisement.

The second is the patent infringement. The invention patent means that the inventor applied for patent protection for the invented product, and the seller could not produce and sell without authorization, that is to say, the imitation product could not be sold. For example, once a very popular balance car involved in patent disputes. The owner of the balance car patent, the American brand olowheel authorized the patent to the local Razor, Razor sent a letter to Amazon, Amazon took the off-the-shelf product, frozen the seller account, hundreds of sellers involved in and suffered losses.

The third is the appearance patent infringement. Appearance patents refer to new designs that are aesthetically pleasing to the shape, pattern, color, or combination of products and are suitable for industrial applications. More than 60% of the appearance patents are considered to be infringing fakes. For example, last year’s hot-selling fingertip monkey, this toy was submitted on April 12, 2017, and was approved on August 22. Brand Wowwee settled in the autumn, and traced the legal responsibility. A large number of sellers’ fund accounts were frozen, and even the stores were closed one after another. Hundreds of sellers received letters from overseas lawyers, with a frozen amount of over 10 million usd.

For dropshippers, you should carefully check whether the products you want to sell are infringing. First, use keywords to search on the platform to see if there are similar or similar products. If so, check the product for trademarks and patents or use Google’s map search to analyze. If you can find many products with LOGO, And similar to the products sold, it is necessary to pay attention to whether the product is infringing. Secondly, search for Baidu or WeChat in China with the Chinese corresponding to the keyword to see if you can find some information about the product and find out whether the product is infringing.

Once again, consult a few suppliers to see if their products are developed independently, whether there are patents, and the legitimacy of the supply channels. Finally, you can go to the patent website of the market country to inquire, take the US appearance patent inquiry as an example, enter the US Patent Office website https://www.uspto.gov/patent; in the open webpage, select Quick Search or Advanced Search; After the page, select Application Type to 4 (design) and then retrieve it with other information.

Improve the profit margin by utilizing the characteristics of the product portfolio

It is impossible for every seller to sell only one product. When selecting a product, it must have a product portfolio thinking, rather than selling what it is. There are two main ways to use the product portfolio strategy: the first product portfolio is to determine the store’s traffics and profit products. The so-called drainage model, which is a product that provides traffic to the store, has high exposure, high click-through rate, and low general profit, and is not a major source of profit. It is recommended to set about 5 pieces per store, and the profit margin expectation should be set at 0 to 1%. The discount space for the drainage product is set at around 30% to 50%. The profit is a product that can provide profit for the store. The sales volume is driven by the drainage, and the flow is not much, but the profit of the product is high, and the reserved discount space is set at 5% to 20%. In this combination, it is necessary to make the associated sales of the traffic products and profit products.

The second product portfolio is bundle sales. Take the popular sports camera on the Wish platform. The price of this sports camera is between $10 and $20. Given that many people do not have the supply chain advantage or the patience to find cumbersome accessories and combine them, As well as big sellers who often specialize in their own superior categories, they are not interested in such a combination of products that require a lot of energy but whose profits may not be as good as their own. This gives many small and medium sellers a chance to take advantage of them. The accessories of the explosive sports camera (including charger, bracket, lens, etc.) are sold together. After the combination of low-priced accessories, the unit price has reached $43. With the advantages of convenience and affordability, it is often able to attract a large number of users, so small and medium-sized businesses selling such combination products can usually earn considerable profits.

Take the children’s toy alloy car as an example to illustrate the specific application of the product mix strategy. The product has the characteristics of low unit price, many styles and light weight. The average selling price in Aliexpress is about 5 dollars per piece. If a single item is free of shipping, the net profit will be close to zero. In order to increase the profit of the business, there are the following practices. The first quantity is matched, and the minimum order quantity for free shipping is set. The minimum order quantity is set to 4, and the buyer can freely choose the style of the alloy car, and the profit is greatly improved. The second type is a combination of similar products. Four alloy cars are selected as a set of toys and packaged for sale. The third type is a heterogeneous product portfolio, which sells products in the form of a blessing bag, and puts the toy car together with a lightweight toy product such as a ball or a small doll into a blessing bag. From the psychology of consumer psychology, parents are more willing to spend money for their children. When buying toys, they often don’t just buy a toy. Reducing the unit price of each toy and selling the toy combination can constitute a competitive advantage and increase the profit of the business.

In addition to the 4 product selection strategies mentioned above, it also needs to take into account the product life cycle. It is generally recommended that sellers enter the market in the growth period of the product. It is not recommended in other time periods. Because of the investment period, customers do not know much about the products, and the sales volume is low. In order to expand sales, a large amount of promotion expenses are required. During the saturation period and the recession period, the sales growth was slow until the decline, the competition was fierce, and the profit margin was limited. The life cycle of a cross-border e-commerce normal product is 1 year, and the product life cycle with less competition may be 2-3 years. If a product cycle is 1 year, it has been sold for 8 months. At this time, it is not recommended.

For seasonal and festive items such as swimwear, sandals, Christmas trees and string lights, the product life cycle is shorter, and the sales season is only 2-4 months, which means sellers need to come in the peak season. Enter before, layout three months in advance. The life cycle of a product can be obtained through sales history, price trends, and ranking trends. If a product, its price is getting lower and lower, the ranking is getting lower and lower, the sales history shows that there is a transaction record in the previous year, then the product is coming to an end.

At the same time, the product selection needs to be suitable for its own situation, choose the products and industries that are familiar with them, and avoid products with potential safety hazards. In addition to the infringement, the balance car and the fingertip gyro are also concerned about the safety hazards. Once the platform is identified as a safety hazard, it may be removed from the shelves, and even severely. In the selection of toys and 3C and other safety incidents, it is best to carefully check whether the supplier has obtained the relevant certification. You can also check the Ultimate product selection tutorial for shopify dropshipping.

Useful Product Selection Tools and Strategies For Shopify Dropshipping

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Shopify is a thrilling start for beginners, but there are countless thresholds and difficulties to face. The biggest difficulty and challenge is what products can be sold for profits? It’s hard to figure out and decide how to select products for Shopify stores. You always feel that no matter what product market is available, even the market is saturated. Not to mention the current fierce competition between e-commerce. how to select products for shopify dropshipping business? In this article we list some practical product selection strategies, methods and tools for Shopify dropshipping.

Resources and tools for shopify dropshipping

Blog: when you start shopify dropshipping, you can check Shopify official blog regularly, also you can study from salehoo, alidropship as well as other suppliers blog for the dropshipping marketing.

Youtube: Some videos on YouTube mainly introduce the product selection of the niche market, as well as some paid courses. In fact, many ideas on Youtube are worth learning. You can search and subscribe to some YouTube channels.

Use Google/Facebook search related Shopify spy tools, those tools might be useful for the product selection for your shopify store. Here we will introduce some product selection tools for Shopify dropshipping business, including both free and paid tools. These tools may not solve the problem of goods selection in your store, mainly because the Shopify product selection involves many aspects with the seller. The operating model is also relevant, sometimes the tools may suitable for other sellers but not necessarily for you, You can just take them as a reference.

Shopify Product Selection Tools Comparation

Commerceinspect: Paid tools for professional shopify sellers. Top1 traffic tools for shopify store. You can try it if you have competitor list already, the price is a little high and charged based on the shopify stores, you can try 1 to 2 months.

Intelligynce:Paid tools for professional shopify sellers. You can search product keywords directly, but it only have around 2 million products keywords in its database, it is a little pricey.

Ecominspector: Paid tools for professional shopify sellers. It doesnt have too much product data but integrated product keywords data in Aliexpress, Amazon, Google, Facebook, Pinterest and Youtube. Although they are only links jump to those platforms, it can be taken as a reference, you can search products on multiple platforms with this tool.

Xpareto: Free tools for shopify beginners. It provides store traffics rank which is very sample and intuitive. But it has two disadvantages, only domain can be searched and it only offers around 20 thousands stores data.

Angage:Free tools for shopify beginners. It has many features such as hot sale products and stores etc. The product and store data are also big enough, it is a recommended tool for Shopify store product selection.

Productfinder: Free tools for shopify beginners. It only provides free product search with good data results. However, it also has two disadvantages, it doesnt provide product sales data but offer the best selling product in the store, currently Productfinder only has product search feature.

Globalshoplist: Free tools for shopify beginners. It is similar to Xpareto but improved a little, you can search products based on title and description, the products data is also bigger than Xpareto.

Shopspy: Paid tools. It doesnt recommend as it doesn’t have too much product and store data, while the interface doesn’t user friendly.

Myecomspy: Paid tools. PC client software doesn’t user friendly and only list data, doesn’t recommend.

Usually the shopify seller will select one to two free and paid tools for shopify store product selection, if you are new to shopify just try the free tools at the beginning. You can take advantages of the product selection tools based on your own product selection thoughts.

In addition, there are also 8 Shopify product selection strategies for you to find your inspiration.

Find opportunities by keyword searching

Organic search traffic is a huge market channel. You can find out their number and level of competition by searching for the goods users are looking for. This method is technically strong and requires a deep understanding of keywords and SEO. This is a very effective method and strategy for getting stable organic traffic on Google. If you want to do dropshipping then it is a very good strategy.

Create a fun/charming brand

The way to create a brand and SEO is completely different. In this case, you need to have a very detailed understanding of your audience and then create a unique brand for them. This approach can be very effective in a market with little profit or fierce competition.

The key to building a successful brand is to choose whether you can position your product or market in a unique or novel way. DODOcase is doing very well, it is a manufacturer of iPad shells. They are in a highly competitive market, yet they create their own outfits and use San Francisco’s traditional technology to make their products unique.

Find the pain points of consumers

To get sales, it is always a good idea to solve the pain points of consumers. If the headache is not painful, then there is no need for Taylorno. Of course, the pain point of the consumer is not necessarily physical, but it can also be a frustrating thing or a bad experience.

Find the user’s interest

This method is not worse than the pain points strategy mentioned above, and may even be better. When users are interested in something, they are usually willing to spend more money. For example, golfers are willing to spend thousands of dollars to improve their performance, even if one shot is good. This method is still to help you and users have a deeper level of communication, so that consumers have a stronger sense of participation.

Follow your own interests

Some people think that choosing a market that they are particularly interested in usually leads to a tragic ending. In fact, this idea is wrong. Sometimes the profit brought by this situation is very considerable. It takes a lot of effort to establish an e-commerce business, and you will encounter countless difficult. At this time, interest can help you stick to it. For some people, this process may even be enjoyed by interest. So power is the key to the machine. If you love your career, then you have succeeded in the shopify business.

Find Opportunity Gap

Finding an opportunity gap requires you to research a specific product or market, and then find the problem that exists, and the problem must be solved. How do you go beyond other businesses in the market? At this time, if you can improve the product features, then you can enter a market that has not been discovered by others.

Consider your own experience

Have you ever worked in an industry and have a relatively thorough understanding of the industry? Maybe you are very professional about some topics. It is a very good way to turn your own profession into your business, and it is difficult for others to imitate your business model.

Grasp the trend in time

Seizing the changes in the trend on time is significant for a new shopify business. It allows you to open up a place in your heart that will make you a leader in this industry. At the same time, the help for your store SEO is huge.

The above are some useful product selection tools and strategies for Shopify dropshipping business, if you are new to Shopify you can learn product selection skills step by step by different methods and the traffics and sales data based on your store.

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