Dropshipping Niches – Why You Don’t Need a Niche In 2021
Transcribe of “Dropshipping Niches – Why You Don’t Need a Niche In 2021”
Hi, guys, Neil Waterhouse. One question that comes up a lot with drop ship beginners is, what is a good drop shipping niche? In this week’s video, explain why for the last 20 years that we did not do niche research? And also explain why we sell off our niches and you should too. So let’s launch straight into it. Now, the reason we don’t focus on one niche is simply because when we’re doing product research, we don’t want to limit ourselves to one particular set of products.
Drop ship research is all about finding the drop ship items
For us, drop ship research is all about finding the drop ship items which are making the most profit. Profit for us is number one. Profit, the way we look at it is, how much profit an item makes every time it sells, times how many times that item sells per month. So for example, if an order makes say, $30 profit per sale. And it sells say, 10 times in a month. Then that one item makes $300 profit per month.
The problem with niche research is you limit yourself to your particular niche
Now, the problem with niche research is you limit yourself to your particular niche. So let’s say, you’re drop shipping niche is gardening products. But you see a lampshade that’s making say, $27 profit per sale. And it’s selling say, 20 times per month. What do you do? If you’re limited to your garden niche, you have to ignore this lampshade that’s making over $500 profit per month.
First start off with a generic store that sells anything and everything
Now, what we do instead is, and this is what I’ve been teaching for over 20 years, is first start off with a generic store that sells anything and everything. And when you have a lot of products in one particular niche, all your baby products gardening products, toys, tools, home and garden, or whatever niche, take all those products from that one niche out and put them in a new niche store. Then run that store for six to 12 months and sell it off.
There are a huge amount of buyers out there who want these niche stores
There are a huge amount of buyers out there who want these niche stores. And you can sell ’em off for one to four times their annual profit. I’ve even seen them go up to as high as eight times their annual profit. So if your niche business is making say, $100,000 profit per year, you can sell them off for $100,000 to $400,000. If you want to know more about that strategy, I’ll put a link on the screen and below to a previous week’s video.
Problems coming up with a name for a new generic store or a name for a new niche store
Also, if you have any problems coming up with a name for a new generic store or a name for a new niche store, I’ll also put a link on the screen and below to another free previous week’s video, which shows how to quickly come up with a name which inspires trust and confidence to your buyers. That’s all for this week. Please leave me a comment below, I’d love to hear about where you’re up to on your online journey. And while you’re there, make sure you hit the subscribe button to the No Fluff channel that teaches how anyone can make a full-time living from their home, drop shipping, using less than $100. Until next week, stay safe, list more, sell more. This is Neil Waterhouse.
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