In This Edition…
In today’s edition, we’re discussing some of the parts of Wholesale Research that you need to do when attempting to uncover a good niche market online. We’re going to take a closer look at actual niche research we gathered using The Sell Niches Research Sheets (and steps from the Sell Niches Bundle) for this month’s niche idea “Unique Dining Tables”.
In the previous Newsletter we identified the niche market we want to research, “Unique Dining Tables” by drilling down from a main product category. There are numerous niche markets in the ‘dining room’ sub-category but for this series we are focusing on what kinds of research we can find for truly unique dining tables. Is there a market? Could it be profitable to sell them online? Using research steps from the Sell Niches Bundle, we’re going to review some of the research we uncovered. In today’s Newsletter, we’re looking at one of the first critical research steps…can you find a Supplier for that product?
Let’s take a look…
Can you find a Supplier that will work with you?
Some Suppliers Don’t Work With New Online Sellers
New online sellers often mistakenly think that because they see a product being sold online it means they can get a Wholesale Supplier for that product. It’s important to keep in mind that some Suppliers will not work with new online sellers. Some Suppliers require their retailers to buy in large volumes that smaller home-based sellers just can’t do. Others have requirements such as only allowing online sellers who also have a physical storefront. So for some products you see being sold online, the people who are selling them are not small home-based sellers. Some of the people who you see selling a product online are actually larger companies who buy in volume or also have a retail store somewhere and meet the requirements laid out by the Supplier.
Some Suppliers Do Not Drop Ship
If your plan is to use drop shipping (so you don’t have to buy inventory) then it’s even more important to make sure you can get a Supplier that will not only work with you but can also drop ship to your customers 1 product at a time. There are less Suppliers who are willing to drop ship for online sellers than there are Suppliers who will work with retailers who want to buy inventory. So, as a home-based seller who needs to use dropshipping to deliver products to your customers, it becomes crucial to make sure you can actually sure up a Supplier for the product you’re researching.
Remember: Finding A Supplier Is The Beginning, Not The End
Finding a good Wholesaler that will work with you is important but just because you have access to a Wholesaler it doesn’t mean you can instantly compete with other sellers online who are also using that Supplier. This is actually a big problem for new sellers who use a Wholesale Supplier Directory. They often think that just because they have access to wholesalers they can sell anything they want. Then they start seeing wholesale prices that are MORE expensive than retail prices online. They usually get frustrated and give up thinking all the good products are taken. They assumed that because they had a Supplier they could instantly compete with any product. They don’t realize that wholesale for dropshipping is wholesale on “1 product” where as their competitors are getting wholesale on “bulk quantities”. You’ll discover all of this during your product research but it all starts with finding a good Supplier.
Let’s see what we found for Camping Chairs…
What we found out…
We did find a Certified Wholesaler that carries a number of very interesting dining tables and IS willing to work with online sellers. They provided us with all of the necessary information we needed to conduct our wholesale research and fill out the first part of our Sell Niches Research Sheets. The best part is, we didn’t spend a dime collecting this information. When you do niche market research you don’t have to spend any money at all gathering the research. You can do your research using FREE methods using just the internet and knowing where to look and who to talk to. In this case, for Wholesale Research, we contacted the Supplier and asked them questions outlined in our Research Sheets (and discussed in more detail in your copy of the Sell Niches Bundle).
So, with a Supplier confirmed, we could begin our Wholesale Research. We opened up a Sell Niches Research Sheet, clicked on the Wholesale tab along the bottom and began adding the information that we received directly from the Wholesale Supplier (for FREE).
Keep in mind, real Certified Suppliers don’t charge you money to for YOU to sell their products. They want to help you succeed because the more you sell the better they do. Also, during this phase of your research, you are NOT committing to selling their products. You are simply on an information expedition, gathering research to see if you want to sell their products.
Some of the Wholesale Information we gathered includes:
- Contact information
- Delivery Information
- Product Dimensions
- Wholesale Costs (and any additional fees)
The purpose of gathering this information isn’t just to make it handy to correspond with your Supplier, it’s to start the process of figuring out what “your costs” will actually be for that product. Once you can estimate your costs, you can compare those with the current market prices. If you are doing all of this on your own (without using the Sell Niches Bundle) then you’ll need to put that research aside and save it so you can use it later on in calculations to estimate profit potential and other important research. However, if you are using the Sell Niches Research Sheets the information is automatically organized and used to calculate parts of your research for you. Our Research Sheets are designed to do the math so you don’t have to. All you have to do is follow the steps in the Sell Niches Bundle and let the Sheets do the rest.
As you can see in this Wholesale Research Sheet the ‘wholesale costs’ for this product are a few hundred dollars. However, if you’re having it Dropshipped, you won’t pay that cost at all. Your customer will. With Dropshipping, you don’t pay the Supplier until you get paid by the customer. So whatever your Retail Price is, your customer will pay you that amount and then you’ll order it from the Supplier at Wholesale Costs.
For instance (this is just an example to illustrate),
Our costs for the Dining Table so far are: $452.00
Our Sale price though, may end up being: $752.00
That would mean we could potentially make around $200 per sale. Not too shabby!
However, before we can determine what our Retail Price would be, we need to continue with our product research. We need to see what other people are selling it for and find out what kind of demand there is (and were we could sell it and make the most profit). We never want to assume, we want to research!
In next weeks Newsletter we’re going to take a peak at the research we uncovered for this products potential ‘customer base’. How do you find customers and estimate a products demand? Check out next weeks Newsletter. See you then!