Same as many Dropshippers
When we decided to start this business, we also faced two extremely important issues:
1. Where to sell?
2. What to sell?
Speaking of which, I must admit that our team spent almost three weeks collecting data and debating these two issues,
Because of my experience in e-commerce, the difficulty of starting a new e-commerce project is to start a business in Silicon Valley with a great idea.
You will face no less than 100 decisions from the 0-1 stadium.
These decisions may include a macro part such as the two questions we mentioned above.
It will also include some micro-answers: how to take photos, which model to choose, how to describe the product, etc.
The sad reality is that any mistake in the decision-making phase can increase the chances of subsequent failure.
And when you finally survive, you will have to deal with 100 more decisions during Phase 1 to 10 … or even more …
So when we wrote these two questions for the first time on the board. We were actually very carefully
I believe that most people who want to start Dropshipping would be the same as us.
In the beginning, you need to have Google for different cases of Shopify success, join various discussion groups, to get all kinds of support and help, we are no exception.
Finally, you'll find that, whether it's the YouTube expert course or the non-active members of the group, or the various experiences and successful articles from the forum, you may feel that you understand everything. both senses do not understand anything at all.
That's why, when this feeling was first expressed to our team during the discussion meeting, I decided to let the team drop all the study work and analyze the actual market data. from our own experiences to make decisions.
You may be familiar with the concept of niche products.
It is always said that when you decide to start an online store, be sure to choose the niche product.
The answer is yes, no doubt!
But if you ask me about it, I'll add some prerequisites, like:
-If you have resource advantages, try choosing the category associated with your higher resources. (Present resources may refer to social network, product selection, design, promotion, KOL, supply chain, etc.)
– If you want to follow others or make money quickly, make sure your ability and efficiency in performance testing is very powerful.
(I mean you'd better master Facebook ads and be sensitive to the data)
At that time, we thought very clearly:
Although our team has 3 years experience in e-commerce, our supply resources are not strong enough. In this case, in order to survive in the complex Amazon market, the ability to acquire traffic and the sensitivity of our team's data have forced a sharp increase. In addition, we also own the FB advertising genes, such as affiliates.
In this context, we spend most of the month of March doing our analysis of data from real data that we can get on the market.
Then comes to the first question
Which country are we going to start?
In our case, the appropriate countries should have at least the following characteristics:
1. Online payment has become a habit
(Whether PC or mobile, online payment habits will be affected primarily by cash flow, and if cash is still the norm in the country, it may be better COD)
2. Not monopolized by a single e-commerce platform
(Online consumer payment habits are not monopolized by the platforms.If there is a dominant position, as in China, consumer buying habits will be difficult to educate and migrate, and the trust will be difficult to cultivate.The direct result is that your sales will be converted to be very low)
3.The population is sufficient for a niche consumer market
(If the total population of a country is too small, even if you really find a niche market, it will soon reach the ceiling)
4. Independent site competition is within an acceptable range
(The number of competitors can prove the heat of the industry on the one hand, and also directly shows the fierce competition that you will face.We really wish to find and choose countries that are not as competitive .)
5.English population should be large enough
(To be honest, you can not compete with some e-commerce teams that use local languages)
6.Logistics service is well developed and popular
(The status developed in this document refers to a fast speed, to sufficient areas to be reached and at a reasonable price)
I recognize that the United States is the leading country in the Dropshipping industry:
good online consumption habits, big market, rich people and convenient logistic service.
On the other hand, it is also the most competitive country in the world.
(If you've also opened a store on Amazon and managed it to date, you'll understand how much the word "real competition" brings to your daily anxiety.)
BUT, when you decide once to do a dropshipping business, I suggest choosing a familiar place, where at least you know some of the brand's habits and people.
Everyone knows that competition in the US market is very intense, while in Southeast Asia, Africa and the Middle East, online payment habits have not been cultivated yet. . China has Alibaba, JD and the Japanese Internet environment is relatively closed.
This is the first trap that we have lost a lot of time analyzing
WE ANALYZED THE DROPSHIP MARKET IN THE WORLD!
The most common result is that when we look at the countries and sales of the Amazon category in vogue in these countries, the products are very different from those of the United States.
In fact, embarking on a totally unknown market, such as local culture, people's habits, is very risky for everyone.
So, after searching a lot of data for a while, even though we did not find potentially less competitive countries, we finally chose the United States.
And when we made that decision, here's the next problem that I think should be of interest to most Dropshippers.
What category will we do?
The next update, I will share how we do market research in the United States. Also share some of the methods and ideas we used to find the Niche product. Do not hesitate to leave comments below for discussion.