Benefits Disadvantages Is dropshipping for you?

4. Choosing the Right Products
75
Product demand
If a product doesn’t have sufficient demand, it might be a dud. Demand is a 
basic 
rule of economics
, but it’s even more important when it comes to dropshipping 
products. Basically, demand is even more important for dropshipping than it is for 
other forms of online retail.
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In a niche market, there’s more room to work with dropshipping products that 
have less demand. Think about action figures of characters from movies. That’s 
an incredibly niche market, and in the large scheme of things there’s a low level 
of demand, but the prices offset that low demand. If you’re a hobbyist or collector 
who’s not too interested in dropshipping, this isn’t a problem.
However, if you want a sustainable business, the best dropshipping products are 
those that are in moderately high to very high demand. Selling action figures isn’t 
going to pay the bills consistently, even though it may pay well. You want items that 
have steady levels of demand.
Later on in this chapter, I’ll show you how to gauge demand by using various online 
tools and resources. When it’s time to seek out products for your store, you’ll have 
to know these crucial skills.

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4. Choosing the Right Products
76
Competition
If you want to sell products online, you need to stand out from the other stores that 
are just like yours. You have to study your competitors and discover where their 
weaknesses lie. The goal is to essentially one-up them by doing things that they’re 
not doing. Researching your competition is a huge part of understanding how your 
niche’s product landscape looks and how you can break in.
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When I say study, I mean it. I’m talking deep analysis of what your competitors sell, 
how they market themselves, what their websites look like, and so much more. 
Like marketing and product research, competitor analysis is ongoing. As your rivals 
change their strategies and offer different dropshipping products, you’ll want to 
keep an eye out because these actions could signify changes in trends.
All of this makes up the basics of selling products online. I’m going to get even 
more in depth in this chapter because dropshipping requires you to approach 
selling in a very targeted manner.

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