Becoming profitable with the right niche
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Have you been struggling over and over again with dropshipping? Maybe you actually understand the concept of dropshipping. Maybe you have already grasped the general idea of finding products for cheap and marketing them for double triple the price. Maybe you are hitting a decent amount of people in many different countries.

So then, why do we keep struggling?

I’ll tell you my friend. It’s because you are not selecting the right niche.

Click to download our Top 50 Hot Niche Ideas

This is the key missing ingredient in your drop shipping game. Please see below a handy blueprint which illustrates key insights. (Tiny secrets if you will.) Bundled together just for you! Bundled together so you can start living the life you really want. Bundled together so you can start enjoying financial & time freedom. Bundled together so You can start becoming U!

You Become U

Some of the criteria outlined below may come as a shock to you. Maybe that’s good! It means you haven’t contemplated using these techniques yet. It means you will be learning something new. The concept of learning something new is what will make you constantly compete with your competitors and keep you ahead of the game.

Right! Enough of the Jibber Jabber. Let’s get stuck into it

Niche Selection Research is Essential in the eCommerce game

Get you! All ready to start an online business. And more importantly, the right online business. Drop Shipping! I believe the first step is the most important. It’s actually not just simply saying your going to do something but actually doing something and taking action! Once you do this the rest will follow. It’s like an avalanche! All it needs is a little push and when it gathers momentum THERES NO STOPPING IT!

Believe me when I say, this momentum will come when you make your first sale.

You Become U.

Many times when researching a product, too often we believe we have found a golden nugget. We then rush into importing it into our store and publishing it to the world. To often we skip past the difficult chores and navigate straight to the fun part. Selling!

What we should do is research the product vigorously and evaluate to see how saturated the market is for that particular niche.

More competitors = Less profit. Below, I will explain further my findings.

The Importance of The Right Niche Selection

Right then. Here it is. Below you will see three really cool sections from the team @YouBecomeU. Make sure when you read the article you bear in mind some key necessities. (See what we did there? Bear necessities...) : )

  • The monies (In other words, your price)
  • The people who you will be selling to (In other words, your target audience)
  • Your image (Branding is an integral part of this game)

OK! The very first step of the drop shopping model is ‘Picking your niche’.

Selecting your niche we would argue is the most important section of the overall blueprint outlined in this article. If you don’t get this part right you can pretty much forget the big bucks. Yes, it is that important!

A profitable niche will meet each one of the 3 (above points). It will fall in that sweet spot of our price range and will attract the right audience.

The first step of the drop shipping process is called “Niche Selection”.

When you first go about picking a niche it is vital you make sure it meets the right criteria points. We always bang on about how crucial it is to first pick a niche which is actually profitable. I mean your probably in it for the big Benjamin’s right? You could possibly do this with a ‘not so profitable niche’ and still make money but I want you to have financial freedom. I want you to have time freedom. I want you to go to Miami at the drop of a hat.

Below you will see a set of instructions. Follow this blueprint and bear it in mind when picking your HOT niche!

YouBecomeU with the right Niche : )

#1: Understanding the Pricing game

You may be surprised when you hear this but on average you should be looking at a product price of around $200 or more. This is mainly because in our Drop Shipping model you will get around 20% of the gross revenue.

What does this mean in plain English?

?It basically just means that if you sold something like a teddy bear your gross profit will be quite minuscule. You will not be getting high returns. Unless of course it is a limited edition teddy bear.

It is worth bearing in mind that you will probably end up spending a similar amount of time and effort working on a product for $30 or $300. Remember, if your putting in this much leg work you should really be aiming for the higher profit margin.

(I hope this is making sense so far. If not please leave a message below and we will make sure someone reaches out.)

Only You can Become U.

Remember that on some stores you may get high ticket orders (upwards of $799). On these websites it’s quite normal for a customer to ring up and go through a few specifics. Or even pay over the phone! It’s happened many times before.

Are you OK on the phone? If you are then no problems. Go ahead and try out a few high ticket sales. However if you are not comfortable on the phone you should definitely go for the lower end. Moving forwards however you may want to practise the art of customer service on the phone because you will then be able to attract high ticket sales.

#2: Target Market for your selected niche

During my years as an online business owner I have sold products to the rich, middle and lower classes. I can tell you now that it is best to sell to the upper middle class. Those who have a combined yearly income of $90,000 and more. With the utmost respect it doesn’t work out incredibly well if you sell to the lower class. In terms of time effort and just pure hard graft.

Now, here is where it gets interesting. Listen up. As soon as you have selected your product around (or above) the $200 mark it is now time to look at demographics. Don’t worry too much if you haven’t studied much of this before. It’s just a fancy name for something quite simple.

Demographics relate to different groups and the personas (or personalities) of these different groups. For example if you are selling to the lower class you would probably assume they have little to no money once they have fulfilled all bills and expenses. Which means when they purchase one of your products they may well be spending a large chunk of their monthly allowance. Or in some circumstances money which they don’t really have (I’m thinking credit cards and loans). Therefore when they eventually purchase your product they will have questions. better believe it.

The same can be said about the upper class. When they purchase something of value they demand the product & service to be of a certain standard. Really, this in truth needs a different type of person running the business.

That’s absolutely cool if that’s something you desire but it’s worth bearing in mind that this type of business owner usually plays the concierge role instead of someone who generates online income on a regular basis. To further reiterate, when researching demographics, I would advise you target the upper middle class. It really is that sweet spot between generating high ticket sales and attracting the right clientele.

Furthermore this demographic probably has an above average household income and reasonable disposable income to splash out as they deem fit. They really do not have a problem spending up to $300 on a single product. They have done it before and they will do it again. It is also worth noting here that this demographic rarely email or phone you when purchasing a product. They more often than not want a quick purchase. They enter, they purchase and they leave.

In the long run, this means you will run a smoother business whereby you will concentrate more on generating sales and less on fire fighting with customers. Therefore benefiting your profit margin and making it easier to operate your business on a daily basis.

Sounds absolutely Devine doesn’t it.

#3: Your brand image

Last but not least we are going to talk about branding. Although mobile phones meet certain criteria like price range and demographic it doesn’t tick the branding box. Ultimately when someone purchases a mobile phone they more often than not think Apple iPhone or Android devices. These two products already have a well established brand behind it. More importantly the user already has in their head what this brand looks like and what they will be purchasing.

You can say exactly the same thing about those who are purchasing earphones. You would argue that there are 4 or 5 big earphone manufacturers. If you think about it, the customers know what they are getting when they purchase one of these branded earphones.

This brings me nicely onto my third point. Pick a niche product which has no brand identity. Trust me when I say that it will impact you in a very positive way. This is because if you attempt to sell in a market where your potential consumers already know which brand they want to purchase from, it makes it that much more difficult to find a supplier. This then has a knock on effect with you trying to sell these products and trying to make a decent profit. It’s near impossible.

Stick with unbranded products and your on your way to You Becoming You.

Target audience for eCommerce products are essential!

YouBecomeU have been in the dropshipping game for a long time now and we can safely say that selling products to a low income household is much more difficult. Mainly because there is much more pre selling involved, a lot more talking with the customer but more importantly there are a ton of complaints to deal with.

Quite frankly this is something you can do without.

This can also be said about the wealthy. It’s a whole new ball game. They kind of expect a bespoke and tailor made service. This in turn requires much more hard graft to make a sale.

Essentially what you want to do is create an online business which consists of as little effort as possible but at the same time creates a sizeable profit margin. Furthermore, you want to target individuals and families with a healthy income who are no strangers to purchasing products online because they have done it so many times before. You also want to make sure that occasionally you hit users who are not afraid to purchase high ticket products (maybe $200 plus) so that you constantly hit your financial objectives for each month.

Click to download our Top 50 Hot Niche Ideas

Why not create a set of financial objectives each month. This way you have a plan of action. And you can measure progress over time.

How brand loyalty affects your niche:

Let me ask you a question. What company mobile phone do you own? Did you purchase the same make previously? The answer to this is more often than not a resounding YES.

Why is this the case? It all boils down to brand identity.

However, when selling online you want to avoid selling brands which customers are familiar with. Because they will more often than not respect the brand and quality of product to keep purchasing the same brand over and over again. Just to give you an idea, I would never sell TV’s online because users have probably completed their due-diligence and found the exact TV they want which meets all their requirements.

I guess it’s just worth bearing in mind for you guys that selling quality branded mobile phones and TV’s online is difficult in terms of being accepted by suppliers but also to compete with high street stores who have sound warranty experience and sound supplier guarantee experience.

I know what your probably thinking...What type of products do we sell?

Click to download our Top 50 Hot Niche Ideas

The answer is simple. We would attempt to sell products which users absolutely need but they don’t mind too much about moving away from the brand which they have purchased from twice before. They aren’t precious about the brand identity.

In order to give you a bit more guidance on the matter, here are some types of niche markets we would choose.

For arguments sake let’s just say I live near the sea and I want to take up Surf boarding, however I have never done it before. I really don’t know what brands are reliable and actually don’t care about the brands. As long as the product is relatively cheap and it has decent reviews I would probably go for the most cost effective option.

This product ticks all of the three boxes we have highlighted in this article. It attracts a decent demographic, we can price the surfing set at a fairly high price because they are high in demand and you cannot necessarily purchase surf boards from any physical shop. But also you will be targeting the middle to upper class. Furthermore the end user probably doesn’t really care what brand the product is.

Are you ready for another example?

A couple from Liverpool, UK are keen gardeners. They are enthralled with garden features like large scale ornaments and furniture. The wife wants a waterfall feature however the husband can’t find one with the correct dimensions. It has to be a particular size so that it doesn’t block the pathway for their children to play.

Anyways, they go online and try to find a waterfall feature with the correct dimensions. Eventually they find one which they both like. The experience was nice because they simply had to search on a specialised website rather than searching physically in certain shops in the North West of England.

This is another good product niche because it attracts a certain demographic, the price range is high (which in turn means your profit margin are high) and it appeals to the upper middle class who have a healthy disposable income. Also, lets not forget the end user probably doesn’t care what brand or make the product is as long as they find something which is cost effective and the reviews are decent.

Let me give you a quick task. Right now, wherever you are in the world. Think of a product which meets the key points we have highlighted in this article. Have a good think and evaluate all the possible pros and cons. Maybe create a set of bullet points outlining a number of different products which you may explore. I bet you can jot down 3 - 4 today - 100%.


If you would like further help with your niche selection click on this link to download the YouBecomeU Top 50 Niche selection list. Your chances of finding that hot niche product will significantly enhance once you pocket this free resource.

This document will fast track your drop shipping life and give you that freedom you desire.

Click to download our Top 50 Hot Niche Ideas

Happy shipping!

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