If you are new to the business of dropshipping and the sales and marketing strategies that go along with it, then the first part of creating a product strategy is to define exactly what it means. It is the final vision of where you want your product to end its journey. This will be determined by the effort you put in to your business.
Selecting a market niche is never an easy task for any type of business, particularly gaining popularity for the product against huge online competitors like Amazon, etc. Your product strategy is the foundation that enables you to retain focus on a particular determined market segment, instead of spreading your resources across a vast and varied area, which could mean attempting to please everyone, everywhere.
Profit and competition The goal of your business efforts is to achieve business success and profit and for this to happen you need to determine the product that will attain the greatest rewards for you. Therefore, when selecting your market niche, keep this in mind, in spite of any perceived personal preferences!
If, during your research and strategizing, you reveal a niche segment that is underexploited, this could open the door to opportunity.
Amazon, price and quality Consumers have become more discerning with experiences learned from online buying and selling. Amazon in particular has changed consumers‟ perspectives, causing them to expect more things, faster shipping, and better prices all on the same, easy to use platform.
Accordingly, their priorities have become directed towards value related to product quality and the price they pay for it. It will attract attention to your website if you are able to add value to them, with, for instance, personalized information and photography, which will stand-out from duller presentations.
Understanding a product and the support behind it gives value and is a foundation for creating good will and trust, which merits a higher price and will thus increase your profit.
Delivery to a global marketplace and product strategy When creating your product strategy, take into account that with the advantage of dropshipping, you can access targeted market segments worldwide. As long as you can work with the language, you can access the market. The dropshipper takes care of the rest.
You should determine the dropshippers policy related to shipping costs, reliability and ability to resolve any product related and delivery issues. You must be aware that a failure in any one of these areas could result in a greater loss in revenue than shipping costs.
If you can find the right wholesaler, a well researched and well designed product strategy can make a critical difference between the success of your competitors‟ and yours. Find that niche.