How can someone earn over a million dollar a year just by dropshipping?
It seems really hard to get to those figure without having any technical knowledge about eCommerce business.
Perhaps if we could just find out those items that are in-demand we might earn big bucks, but the question remains the same here how to finds out those items? What is the procedure?
Well, we think it’s always better to take advice from someone who has already achieved that particular triumph.
But do not worry, we have got the right person for this job.
Fred Lam, the millionaire dropshipper who earn over $6 million in a year just by identifying his winning products.
In this post, we have highlighted some of his major points on how to pick or identify your products that could earn over a million dollars and we promise by the end of this post, you’ll be able to pick up your winning products too.
So, Let’s Start.
According to Fred, the products only work when you could manage to create some connection with the product and the customers.
Everything sells online today, however, for dropshipping, accessories works really well along with clothes, jewelry, watches, wallets etc.
Everything has a particular niche but the first thing to do is creating a connection between your product and customers.
For Fred, his Butterfly Watches worked extremely well for him to earn in five figures in a matter of days.
But what makes it a winner product?
Testing by Marketing – Facebook Ads
The major step here is to align that particular item with the audiences by narrowing down your target market.
The place to market your dropshipping business is Facebook where it is most convenient to find out audience preferences.
Fred adopted the approach called Flex Targeting – narrowing your audience. For his butterfly watches, he targeted those who have a keen interest into butterflies, after that he made it narrower by targeting that audience who are interested in accessories as well as in butterflies.
This is just one product. If you have 20 to 30 items listed on your store; you will need in-depth targeting for your products.
Don’t Assume – Analyze Data
There is one mistake that most of the dropshipper does; they assume.
They offer product that they like the most and that’s how they get the first step wrong. Your audience will tell you what your winning product is, let the data do the talking.
Find Your Winning Product
To pick the product, you need to test your products to find out that one item that could get you seven figures in a year.
Well, finding your winning product from testing does require a bit of luck, but the key is being persistent. It could take 10 to 100 product testing or even more to get you that one winning product.
For Fred, the ratio of finding out a winning product is 10 to 1, which is actually a pretty good ratio. One of the reasons for this ratio is because of his illustrious experience in the ecommerce industry, which helps him to analyze the data so efficiently.
Product testing continues from flex targeting. Once you run ads for all of your product with narrow targeting and you get success, that means you have found the right audience for your store. And from here you can easily identify the winning product that gets the maximum clicks.
Shift Your Targeting from Narrow to Broader
The second thing to do here is to go for broader marketing. This can be done after you get to know your target audience. By target audience, I mean those who have clicked on your ad, visited your website or bought your product.
For broader marketing, you need to find out lookalike audience, similar to your subscriber. That’s where Facebook ads will do their job.
Facebook insight will also help you to pick up more winning products. An average ad price that is recommended to spend on an ad is $5 dollar a day.
In this price with the help of click, impression, CPA (cost per acquisition) and CTR (click through rate), you will easily figure out what is working and what should take off from the listing.
Going for the lookalike audience will lower your risk of ad irrelevancy, it would make sure that the right audience is watching your ad.
Use of Upsell
After finding your winning product just use upsell to boost sales and scale up the earning.
Upsell works as the complimentary thing (gums and chocolate) that are present at the counter of the superstore.
In ecommerce store, upsell works best on the exit page of your website. Let say your winning product is butterfly watches and your customer buys the watch and lands on the thank you page, offers him a discounted butterfly bracelet or locket.
Remember, if a customer is visiting your website and putting credit card information on your website that means he or she is inclined to make a purchase from your store.
The provision of discounted prices and coupons has to be planned earlier. Therefore, pricing strategy matters a lot here.
According to Fled, 4x the price of the product will help you to offers discounts and coupon in future. Otherwise, it would give you excessive amount to spend on advertisement.
By ordering the items from Aliexpress will cost you much lesser with freeshipping that will allow you to go easily up to 3x or 4x the rate.
For example, a butterfly watch costs around $2 on Aliexpress that further sells for $9.94 on Fled’s Shopify store. The price is dependent on how much clicks the product’s ad is receiving.
Offer Free Shipping
Free shipping always gives an edge to your product.
For instance, if the Butterfly Watch is listed as $6.95 and a $3 shipping charge is applied, it will most likely turn away the customer and impact their purchase decision.
Instead, list the items price inclusive of shipping charges and help them feel the ease of not paying for any shipping costs at all.
If we sum up this whole post and guidance of Fred Lam, there are three points that you need to focus on to earn over a million dollar in a year.
- Find out your winning product
- Use upsell on your winning product to scale up the sales
- Analyze the data and get in the depth of it
We hope that this post would surely help you earn maximum bucks from your dropshipping business.
So when are you planning to step in dropshipping business?