Three Things You Want To Avoid When You Choose A Niche
If you have decided to get involved in the drop shipping business
, the first order of business will be to find a niche.
By narrowing your focus you will be able to better target keywords and bring attention to the right group of people who will buy from your online store.
Focusing on a specific niche is really sensible, however finding the right niche can be quite bothersome. It's nearly impossible to say what exactly makes the right niche, however it is rather simple to make out a list of some things you really need to avoid when selecting one.
The first thing to avoid is lack of commercial intent. Many people getting started in the drop shipping business will use the google keyword tool to see how many searches there are on a particular product. This is extremely useful.
However, it should be noted that while it tells us WHAT people were looking for, it does not tell us WHY. For this reason you will want to always use a commercial intent tool alongside the google keyword tool, to make sure you will be promoting a product which most people intended to buy.
This tool will tell you how many of those searches actually ended in a sale. It does no good to sell "big watches" for example, if people were only looking for funny pictures of them, and not to buy them.
Too much competition can be a major problem in almost any niche you can think of. Some areas are really really competitive, for example electronics, however competition is an entity all its own.
It is extremely easy to check up on who's competing with you by typing in your prospective keyword into google, you then take a look at the unpaid results that come up on the first page. Sometimes what you see, is not always what you get. If the top sites are major stores, this can actually work in your favor, as they don't take the time to optimize properly, so you can do better, however if they are optimized, best to cut your losses and look for something else.
You want to look at the bottom line.. Money! Before selecting a niche, you need to get your financial goals in check, by this it means seeing if its even possible.
Lets say you want to make $120,000 a year, or $10,000 a month. Is that Gross Income or is that Profit? If it's profit than your Gross income should be double, so say $20,000 a month. (This is possible by the way, you just need to sell your products for double their worth)
What is the average sale size? If it's $100 then you will need 200 sales a month, or roughly 7 sales a day.. That doesn't sound to hard to do does it? Of course, if your product only sells for $50 then you need 14 sales a day, and if it sells for $25 you need 28 sales a day.
Keeping these things in mind, you should be able to avoid picking a niche which turns out to be a money pit, and not a high earner. It will take time, but have patience, you will find the right niche for you.
by: Kirsty Hale
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