Four Key Elements When It Comes To Picking Winning Products For A Dropshipping Store

This article will give you a checklist offering the greatest chance of picking winning items to sell and make money with your dropshipping Store.

1.Is your product unique?

Some time ago we had a client who makes hundreds of thousands of dollars every year selling kitchen utensils on Amazon FBA, told us that they were sick and tired of being chained to Amazon and wanted to open their own store with Shopify, run Facebook ads to it and sell them on there instead. We advised him not to. No, don’t get me wrong, of course. We at SaleSource are obviously the biggest fans of Shopify, but selling dropshipping such typical items is never a good idea. The client didn’t listen to us and opened the store anyway. It flopped.

Here’s the thing kitchen utencils are a common good. Take for instance these salad tongs.

You’d think that a big number of orders on AliExpress indicates that there’s demand and thus you should dropship that item. While we’re all happy to have spatula tongs in our lives, it’s just a normal boring item that we use day-to-day.

Thus it is a common good and usually you purchase normal common, boring everyday goods when you need them and when you need them you want them fast. So, what are you going to do? You’re going to go and get them somewhere where you know that you can get it quickly such as your local mall or amazon.com because with a Prime Membership you have fast free two-day shipping.

The client that we mentioned earlier, was struggling to sell his kitchen utensils and his Shopify store having normal three to five day shipping times. So if you think that customers are going to wait for common goods to arrive from your AliExpress Dropshipping store, then think again.

2.Does your product encourage customers to buy more than one?

At SaleSource, we often recommend beginners that they focus on selling dropshipping products that cost 10$ or less or ideally even ideally cost 10$ or less. In doing so, oftentimes the customer goes:”

But if I sell a product for $10 and I want to make $10,000 a month and that means that I’m going to have to make a thousand orders each and every month. That’s a lot of orders.” Well, no, it’s actually a lot less than you would think, assuming you pick the right products.

We’ve recently opened up a new dropshipping test store to test things like ad copy and product copy and Shopify apps in it. It’s truly only two to three weeks old and yet despite it being so new, we’ve already scaled it and found a potential winning product that is already making us money.

The reason why the store is doing so well is because despite the fact that every single item we’re marketing is priced at around $10 or less, the average order value in the store is over $22.  

The average order value is double that of the most expensive item in the store, so what’s going on? Well, it’s because usually a customer won’t just buy one our items, instead they will usually buy them in multiples at least, two at a time. Our current record for this particular store is one customer who purchased 8 units of the same item.

And the reason for that is because we have chosen the products that we are selling in the store very specifically. We have chosen products which customers want lots and lots of them in their lives. Building a dropshipping store that makes it irresistible for the customers to purchase multiple items from you at once is key to building a long lasting profitable AliExpress dropshipping  business

We’re not going to reveal the exact product that we’re selling, in this article, since the moment that we reveal it is the moment that everyone floods Facebook trying to sell it. So instead we’re going to be using some example products in order to explain why this is so important. Take for instance the “Angry Mama Microwave Cleaner”:

You’re supposed to fill it with water and vinegar and then stick it in your microwave, run it for 7 minutes, then take it out. It will have made all the grease and grime easy to clean. In theory that sounds great. But the truth is you can just do the exact same thing with a microwave-safe bowl making the Angry Mama cleaner pointless.

Besides being utterly pointless, The Angry Mama microwave cleaner fails as a winning product in other ways. Most people only have one microwave and so even if they did want this really ugly thing, they would only ever want one of them, unless they decided that they wanted to buy another one as a cruel joke on their friend.

On the other hand, these cat coffee spoons are a totally different story:

The thing about spoons is that they need to be washed. And so you tend to go through them quite fast and if you have friends around, you want everyone to have their own one, too.

Thus, these little spoons have a much higher potential to make you money because of the fact that customers are incentivized to purchase multiple of these at once, which pushes that very important average order value up.

The higher your average order value, the more money that you make and it’s not just because of the fact that you’re selling multiples of the same item and you’re obviously making more money than just selling one – it’s because of the fixed costs. Fixed costs make it so the profit on each additional item that you sell greatly increases, leading me to my next key point.

3.Your product needs to be lightweight and small

This is one of those things that aren’t as important in the beginning, but are going to be more important later on. When I first started dropshipping, what I did was I started dropshipping items directly from AliExpress. The next step for me was to start dropshipping them out of a Usa-based fulfillment center, as it actually makes your store even more passive. The fulfilment center will charge you around $5 for shipping a small item.

However, if you sell items in your store that are likely to be purchased in larger quantities by the same customers, you can cut your shipping costs drastically. If your items are small and lightweight, they will put up to 10 of them in the same package, meaning that for each additional item that you sell, there are no extra shipping or fulfilment charges.

So, if you focus on selling small lightweight products, then your expenses are going to be less which means that for each sale you will make significantly more money.

4.Does your product have no perceived value?

Yes. I actually can’t think of any winning products that I’ve worked with that didn’t meet this criteria: All of them had no set perceived value and it’s actually tied very closely to what we were just talking about and this is very important, of course because Facebook ads costs money. And so if you want to be making money off of your Facebook ads and you need to be making sure that you’re selling items that are as profitable as possible.

So let’s take this example of an item that is never going to be a winning product, ever – the salad tongs. Well when I say to you. Hey, what’s the salad tongs worth? You’ll think, well when I went to Walmart and bought mine it costed me $2-3. So that’s what it’s worth $203. But if I said to you, hey what about this cool incense holder, how much is it worth?

You’ll probably look at it and go: “I have no idea, I have no idea what this is worth. I have never seen this before”. Well, this product perceived value is an enigma, so you can set the price to what you want it to be. This has limits, of course. If you go and slap a $99.95 price tag on it everyone will know that its unreasonable. Instead, if you went ahead and priced it at $39.95, then why not?

That seems fair and that’s the advantage to selling products that have no set perceived value –  you get to set the price and the higher that you set the price the more money that you get to make. So, if you aren’t sure if what you’re selling will have a set perceived value to your potential customers, then ask yourself if your customer could find something quite similar at the local mall. If they can, then chances are they’ll know what the price should be, removing your opportunity to drastically increase the product price and thus drastically increasing your product margins.

Final Words

When you’re trying to pick winning items ask yourself: Does this product have potential to push and encourage customers to purchase more than one item at a time so that you can drive that very important average order value up? Does your product have a set perceived value? Is your product unique? These are the keys to making AliExpress dropshipping stores profitable.

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