A 5-Step Framework for Finding Winning Products
- CA Bhavesh Jhalawadia
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- Posted on
Dropshipping has become a popular business model, allowing entrepreneurs to sell products without holding inventory or handling delivery. The speaker in the video transcription shares how they built a successful dropshipping business, generating over $221,000 (more than ₹1.4 crores) in sales. This success, they explain, is due to a five-step framework for identifying winning products.
What Makes a Product a ‘Winning’ Product?
A winning product is one that checks all five of the following boxes:
- It Solves a Big Problem or a Mass Desire: A product that addresses a widespread issue, like back pain, or fulfills a common desire, like the desire to look good (e.g., cosmetics), has a large target market and the potential for high sales.
- It Has a Clear Target Audience: Even if a product solves a big problem, it will fail without a clear understanding of who you are selling it to. For example, a back pain product must be specifically positioned for a particular demographic, such as housewives or office workers, to be successful.
- It Has a Product Hook: In an age of short attention spans, your ad must grab a viewer’s attention within the first 10 seconds. The ad should immediately highlight the product’s most unique or interesting feature. For example, an ad for a pen should show it being used to write, not just unboxed.
- It Has High Margins: For a dropshipping business to be profitable, the product must have a high markup. Selling a product for 5x its cost (e.g., a ₹100 product for ₹500) ensures you can cover marketing and shipping costs and still make a significant profit.
- It Has Exclusivity: To justify a high price and prevent customers from buying a cheaper version elsewhere, you must create a sense of exclusivity around your product. This can be achieved through better branding, packaging, or positioning.
How to Find Winning Products
The speaker suggests three methods for finding winning products, two of which are free:
- Facebook Ads Library (Free): Use the filters in the Facebook Ads Library to find active video ads that have been running for at least a month. This indicates that the products being advertised are likely profitable and in demand.
- Amazon Movers & Shakers (Free): This section of Amazon highlights products with a recent surge in sales. You can find product ideas that are already proven to have market demand.
- Paid Spy Tools (e.g., Minea): For those who want to save time, paid tools like Minea provide a centralized platform to see weekly winners, monthly bestsellers, and other top-performing products with all the necessary information, including the ads and competing stores.
Common Dropshipping Mistakes to Avoid
The speaker cautions against several common pitfalls that can lead to losses for new dropshippers:
- Selling the Same Products as “Gurus”: Do not simply copy products recommended by online gurus. Instead, focus on finding products that fit the five criteria for success.
- Making the Process Overly Complicated: Dropshipping can be a simple business model. Avoid overcomplicating things with fancy websites or elaborate ad campaigns. The key is to find a good product and present it clearly to the right audience. Remember: “Simple scale, fancy fail.”
- Sticking with a Failing Product: If a product isn’t selling, move on. Don’t waste time and money trying to make a bad product work. Learning from mistakes and quickly moving on to the next product is crucial for long-term success.
Successful Product Examples
The speaker shares three products that generated millions in sales for their business:
- Beard Comb: This product was launched in 2019 and generated over ₹1 crore in sales in the Indian market. It solved a clear problem for people with beards, had a strong ad hook, and met all the winning product criteria.
- Makeup Brush Cleaner: This product, sold in the US, generated over $21,000 in sales. Its success was driven by an effective 10-second ad hook that resonated with its target audience of makeup users, leading to millions of organic shares.
- Heart Handle Magic Mug: Using the Facebook Ads Library, the speaker found this product and sold it during the Valentine’s Day season. It generated over ₹9 lakhs in prepaid sales and ₹50 lakhs in total lifetime sales in India, proving the power of targeting a mass-market desire with clear timing.
Coupon code to buy Minea
https://app.minea.com/en/india/premium?ref=rnnl9