Dropshipping Products with HUGE Profit Potential
Jessica: Hey everyone, I’m Jessica with Oberlo.
Andreas: Hi. I’m Andreas.
Alexander: Hey, I’m Alexander.
Jessica: And today Andreas and Alexander are going to share their recommendations for five products with huge profit potential new dropshippers should sell. And these guys know a thing or two because their last dropshipping store made over $170,000 in its first four months.
You’re going to learn exactly how much money Andreas and Alexander would spend on an ad before cutting it and how much money they would spend on advertising before deciding a product does not have profit potential.
You’ll also see examples of video ads that Alexander and Andreas made in Alexander’s backyard and worked to sell tons of products with huge profit potential for them. Andreas and Alexander will break down why those ads work, so you can do the same with the products that you sell. So stick around to find out what these guys would sell and how they would sell it.
Okay, we’re going to go in and out of the computer and you guys are going to share your product recommendations and your thoughts on their profit potential. But before we get into that, I wanna know how did you guys get into dropshipping?
Andreas: That was a nice story. Alexander asked me around one year ago, “Hey, Andy, let’s start a business. Let’s do a new business.” We were in sales, we did lots of things together in the past, but Alexander wanted to work with me in the ecommerce field. And then we had two possibilities, Amazon FBA or dropshipping. And then we decided to dropshipping. You just tell them why.
Alexander: I know a lot of things about dropshipping, but I never knew the rules about dropshipping. And we looked into this business, and then we decided to do dropshipping because it’s much easier than Amazon FBA, you don’t need so much money. And yeah, I love it.
Andreas: And then we decided to start it together.
Jessica: And was it your very first dropshipping store that made you so much money in such a short amount of time?
Andreas: No, it was a hard way to get there. Yeah, it was a really hard way.
Alexander: From the first store, we spent a lot of money and had no earnings.
Andreas: And a lot of time. To explain to you, we had the first store, we had around 50 products. And we wrote for every single product a new product description. We did not copy and paste it. We really wrote it, but we didn’t know if there was a winning product inside those products or not or if there was profit potential. So we lost a lot of time, and then we started to make ads on it. We got some sales, but we had no…
Alexander: Not more than 10 sales.
Andreas: Yeah, in a month.
Jessica: But through those, kind of, fumbles and mistakes, that’s how you learned as much as you needed to learn to get to where you are now.
Andreas: You have to learn it, you have to learn it. Nobody starts a dropshipping store and has success from the day, yesterday to tomorrow. You have to learn it, you have to trial and error, and then you will get successful, but you have to go on. If there are some mistakes you have to go on.
Alexander: Yeah, it’s not burning money, it’s investing money in your knowledge in this business. It’s not burning, you must see it as an investment in the knowledge of this business.
Jessica: Andreas and Alexander, one thing that’s unique about you guys among the dropshippers we’ve had, is that you are still actively running and growing your dropshipping store, is that right?
Andreas: Yes, we have a store in the pet niche.
The store we talked about, we launched this four months ago and made this $170,000 turnover at the moment.
And now we’re starting to scale it to other countries, to scale the ads to private label new products to introduce new products with profit potential, and make this a bigger, bigger shop.
Alexander: In December we had the turn over of $55,000.
Andreas: In December, yeah.
Alexander: Exactly, yeah.
Andreas: It was a good month. It was the best month I think for now, because of Christmas, Christmas shopping.
Jessica: Wait, but I wanna stop there. You made $55,000 in December.
Jessica: What was that, the first or second month of your store’s existence?
Andreas: The third month. The third month and it was $44,000 in the second month and around $30,000 in the first month.
Jessica: That’s mind-blowing, that’s really cool. So I think what’s great is because you guys bring an expertise in product research that’s born out of lots of trial and error. And you also bring insights into advertising and marketing that you’re using right now, in the spring of 2019. Okay, without further ado, I know that people want to know what you would sell and also how you would sell it. So let’s get to our first product with huge profit potential.
1. Key Tool
Andreas: Great. Let’s start with the first product with huge profit potential?
Alexander: Yeah, this one. This is the six-in-one tool. Everybody needs this for his keychain.
Andreas: Yeah. This is the six-in-one tool and this product has huge profit potential because it solves many, many small products you have in everyday life. It’s very small and easy to take with you and you can put it on your keychain.
Jessica: So this is a small tool that you can put on your keychain, and it solves a lot of…
Jessica: Different problems you might have in a day. So I’m looking at it and I see it’s got a bottle opener, a saw, like a blade…
Alexander: A knife.
Jessica: A knife. You can even extend it. So you get more leverage.
Alexander: Like here, when you come here. Now it’s hard, you can cut paper, for example. And then we can close it here. It’s a bottle opener. And yeah, and then you’re here, you put in your keychain. And it looks like a key.
Andreas: There are some reasons why we choose this product because it’s not well-known. In normal shops, in offline shops, I haven’t seen it before. I haven’t seen it and I was surprised. And the niche is very big. It’s the self-doing niche, the gadget niche. It has more than 50 million…
Andreas: Yeah. More than 50 million active users on Facebook a month.
Why This Product Has Profit Potential in the US
Jessica: Well, why don’t we go into Facebook Audience Insights and show us how you found that out in the first place.
Andreas: Sure. You click in the expenditure on the Audience Insights tool, it’s here. And in the Audience Insights tool you choose your country. We always test in the United States because the market is big. People are willing to pay via PayPal or credit cards, and then I type in the niche.
Alexander: And this product is perfect for the US market because the US people like to do-it-yourself.
Andreas: And now I typed in two interests, “gadgets” and “do-it-yourself” niche, and I see here it’s 50 to 60 million active people on Facebook, just on Facebook. Every month on Facebook. And I see, okay, this market is big enough to test and to start. If you have a dropshipping niche here, a very, very little niche with around 500K active users a month, I would not start testing it. A bigger niche is good, there is space for competitors and your new store as well.
Jessica: Okay, but one thing that has surprised me about this tool, when you first told me that you wanted to feature this product on the show, I went to Oberlo and now we can see we’re in Oberlo. It’s not very obvious, when I look at images of this product, what it does or why it’s useful.
That’s a big audience on Facebook to market to, but how would you market something when it’s not very clear what this does?
Alexander: You need a video to explain all the things this tool can do. This tool has a lot of functions and you can’t explain it with a photo or something like that. You need a video.
Andreas: It’s complicated to understand.
Alexander: It’s complicated because you see this picture, what is it?
Andreas: What is it?
Jessica: And you actually know this from experience, because you did sell this in a previous store.
Keep Video Ads Between 40 and 60 Seconds
Jessica: And did you make a product video to sell it?
Alexander: Of course.
Andreas: Yes. We can show it to you.
Alexander: We have it here, the video.
Jessica: Yeah, definitely, okay.
Andreas: Okay, yeah, we did myself… This is Alexander in his garden at home, and we spent two whole days creating this video. One day, for filming the materials, the small clips, another day to cut it, was my part, and I was not a video prophet, I just tried it with free video editing software and tried to edit it. Let’s play it.
Alexander: Okay, this is for fun, 100 percent stainless steel. This is the knife, it works, you see?
Andreas: A razor-sharp knife that everybody can see how good this small tool can be. This is the saw.
Jessica: And everything is in fast motion.
Alexander: Yeah, yeah.
Andreas: And here are some cool pictures.
Alexander: “Easy to use”, yeah, and the beer.
Andreas: Bottle opener, yeah, working fine, and here, the screwdriver, we try to put in every scene in a small scene so that everybody can see what the tool can do.
Alexander: And we always show the tool again to the people. The knife, Andreas was scared that I would cut his hand.
Andreas: It was dangerous to film. But we put our whole effort into that video and we were looking for a great song in the background. This is royalty-free music, everybody can choose. This is important, you have to have the rights of everything you produce.
Alexander: The saw.
Andreas: Saw again, yeah.
Alexander: Wow. Stainless steel, so.
Jessica: It doesn’t rust?
Jessica: And then you’ve got a discount here at the end.
Andreas: Yeah, discount.
Alexander: Yeah 50 percent off.
Andreas: And our logo animation. It’s just a short video, it’s around 60 seconds.
I would also recommend the shorter, the better. If you can do it in 40 seconds, it’s also very, very good.
Alexander: Never goes over one minute because this is too much.
Jessica: So yeah, it seems like what you did really well in this video is you showed what the tool could do, you also showed when it might be needed to cut paper or something like that. And you always, as you said, Alexander, made sure to show the tool on the camera so it’s very clear.
Alexander: Yeah, it’s easy to hire, you have it on your keychain, and everybody knows, I have it every day by myself, and when I need one of these tools I can use it.
Give Volume Discounts to Increase Profit Potential
Jessica: So you end this video giving a 55 percent discount. But this product is already barely $2. So how would you price this product so that you could make a profit and still offer a discount like that?
Andreas: That’s a good question, yeah. The price is very, very important for dropshippers. You have to have a really low-cost price when you buy the product and the normal price when you sell it. We pay for this product around… With shipping, with ePacket delivery, around $2, $2.50 maybe, and we would sell this at one piece for $14.95 to cover the ad spend.
But we would double-pack it. We would double pack it two pieces or three pieces with a discount code, and then we can make a good profit per customer with a high average order value.
Alexander: Yeah, because when you have two of these tools you can give it to your brother, your sister, your parents. Everybody needs this. So it’s the perfect bundle.
Jessica: Now in the past, whenever we’ve had merchants recommend products they almost always price their products at $9.99 or lower. And I just heard $14.99. Are you telling me that it’s not a hard and fast rule to price something under $10, that you can price something over $10?
Andreas: No. In our case, definitely not because we are now in 2019, and Facebook advertising costs and Instagram prices are high.
If you sell something for $9.95, you cannot afford the ad spend, the shipping, and the product cost, and you will definitely have no profit.
Yeah. Therefore we go a little bit higher with the price, then we can cover the ad spend and then we can still have a profit.
Andreas: And then we can scale it out.
Alexander: If you’re under $10, only Facebook wins.
Jessica: When you were running this video, did you target those DIY-loving, gadget-loving guys in the USA, or not?
Andreas: We have here a secret tip for everybody, what we do all the time, we choose eight to ten audiences, they are related to that niche. But we do not spend a lot of time to find these audiences to exactly narrow it down, narrow it down.
We just choose eight to ten audiences that are related to this niche. And then we let Facebook’s algorithm do the work. Then we put $5 a day or $6 a day.
Alexander: Not more. $5 is okay for testing because it’s not working, you don’t spend a lot of money.
Andreas: Yeah, these eight to ten audiences cost you around $40 to $50 a day, and after one, two, three days, you definitely have results. Clicks, CTR, purchases if you are lucky, and then you can…
Alexander: You know it’s a winning product or it’s not a winning product.
Andreas: Yeah, and then you can develop these audiences which had purchases, for example, and duplicate them and go in for the detail.
Jessica: So this is why it’s important when you’re spending money on Facebook, in the beginning, to get in the mindset that you’re spending money on the data.
Jessica: And you’re really buying the data first, and then you start to get those conversions as you get more data.
Andreas: You never lose money. You just buy data at a different price.
Test Facebook Audiences of Two to Five Million
Alexander: Another secret from our side is that many dropshippers say, “You must narrow down, narrow down to, for example, 100,000 people.” But we use big audiences, we do not narrow down. We use 2, 3, 4, 5 million because the Facebook algorithm is learning more, the searching, the people in this big data world and… Yeah.
Andreas: The smaller the audience, the more you restrict the algorithm and the harder you find your right target audience.
Jessica: So you mentioned testing with six to eight audiences, but new dropshippers find it hard to even pick one audience. So how do you even go about selecting six to eight?
Alexander: We check up the Audience Insights Tool, and there is… We can show you.
Andreas: And there we put in the gadget niche and the do-it-yourself niche or any other niche that is related to the product.
Alexander: And then we look at the page likes.
Andreas: From this 50 to 60 million people. Most people in this audience like, in “Magazine”, “Dusty Old Thing”. Then I would check this magazine up and if this is related to the product, then it will be one of my audiences. If this is something totally different, then I would not add it. Or here is “Lowe’s Home Improvement”. That sounds good.
Alexander: That’s perfect.
Andreas: Yeah, I will do an audience with “Lowe’s Home Improvement”. And then I would also duplicate them and would make one with men, one with women. With these Facebook suggestions, you can easily find more audiences. And I would differ them, I would not do the same magazines or the same…
Alexander: You do it in different ad sets.
Andreas: Yeah, yeah, yeah, I would differ them.
Jessica: Okay well, you have me pumped to start selling this key, but before I go and start my online ecommerce store, let’s get to product number two.
2. Infusion Water Bottle
Jessica: Reveal the second product. What is the second product you recommend for new dropshippers?
Alexander: This the secret bottle.
Jessica: A secret H20 water bottle.
Alexander: Not only a water bottle, this is like the tool that we had before and yeah, you can explain it.
Andreas: You can get the taste of fresh fruits, without having small parts of them inside your water. How does it work? Here, for example, you take a lemon. You squeeze it, and then, you close it and it is connected.
Alexander: With the water inside.
Andreas: With the rest of the bottle, here… It’s connected and then you can take your fresh fruit, fruity water with you and it has a very cool design. And we also created a video for that.
Alexander: You can use it with all fruit, with strawberry and other fruits and…
Andreas: Let’s show the video.
Alexander: It really looks nice when you are in the fitness center, everybody would ask you where you got this bottle from.
Andreas: Let’s play the video. We did a video also for that.
Alexander: Different colors, It’s also available in blue, black.
Andreas: But it was also in Alexander’s garden.
Andreas: Here, we bought some fresh fruits to show the customers what we can do exactly with that bottle. And there are five or six different colors. And the customer can choose the color, can choose the fruit, and can mix it. So, yeah, here we tried it…
Alexander: Blueberry, yeah.
Andreas: With some different fruits and…
Jessica: And I’m interested in this, “Tag someone who needs this.”
Jessica: Did people actually do that?
Jessica: Yes, they did.
Alexander: Yes they did it.
Andreas: We split tested this video and with the tag, we had better reactions from the customers.
Andreas: A bigger engagement.
Alexander: And always the logo inside, now, in this case, it’s on the left side.
Andreas: It’s in the left corner, our logo.
Andreas: We’ve watermarked the video.
Alexander: Yes, that’s my phrasing.
Andreas: And here in the end scene we also put, “Share if you need this” and we animated our logo so that it looks nice.
Andreas: And people like it.
Good Ads for Products With Huge Profit Potential Will Get a Sale in Three Days
Jessica: Yeah so, talk about how you knew people liked it. When you’re looking at how an ad performs, are there certain benchmark numbers that help you think, “Yeah, we’re on to something.”
Andreas: The ad has to have in its first one, two, three days, a sale. If there is no sale and it burns more than two times your profit margin, then you have to kill it. Then it’s not the right audience or maybe the ad did not have the right start. You can also duplicate it again and try it once more and if there is no sale then you have to look for other audiences.
Jessica: Wow, okay, that’s really helpful information. Maybe let’s take an example with this water bottle. So, let’s take a look at it in Oberlo first and get a sense for how much it is and then I’m gonna make you do that math on the spot.
So let’s say I want to advertise this product on Facebook and it costs me just under $6 to buy the product from the supplier. Now, walk me through your math.
Andreas: If I were to market this with Facebook ads, I would sell it for $19.95, so I have a profit margin around $15.00, so I can pay the ad spend and still have a small profit, then I would do upselling and cross-selling.
Alexander: Second bottle.
If an Ad Costs 2x Your Margin but Gets No Sales, Kill It
Andreas: Yeah, second. But if this ad set had burned around my double profit margin, that means more than $30, I would kill it.
Jessica: Without making any sales?
Alexander: Without making any sales.
Andreas: Yes, yes, I would try other audiences, I would try other audiences but this ad set I would kill.
Jessica: Okay, so your method is to set the price for your water bottle, and in this case, it’s about $6, you would sell it for about $20 or change, so you’d have a $15 profit. Multiply that potential profit by two and that’s how much money you’d give yourself to test an ad and if it doesn’t make a sale before, in this case, $30, kill it.
Alexander: And when you’ve sold a few bottles, I would try to raise the price, because $20 is cheap for this bottle. You can also try it with…
Andreas: With free shipping.
Alexander: Yeah, with free shipping, you can also try $25. I would buy it for $25 when I see it in the shop.
Andreas: And the important thing is, I would test around $100-150 per product. If I have my ad sets and I’ve already spent $150 and it’s not getting profitable, I would stop testing this product.
Alexander: And it’s important that this fitness, healthy lifestyle, and there you have, I think a better audience on Instagram, because there are fitness and healthy lifestyle hypes on Instagram, I think it’s the best way to advertise this product.
Jessica: Did you guys use influencer marketing, or do you use influencers a lot with your products?
Alexander: We try it.
Andreas: We did already.
Alexander: We did already and yeah, but with influencers, it’s hard to find a good influencer, because most influencers say they can advertise your product and dress it up, but you pay for nothing.
You must really check the Instagram profile because many of them have fake followers and so you must check the engagement rate, and all.
Jessica: Another problem that some dropshippers have had with influencers, is that it’s a bit hard to scale. Is that something you’ve seen as well?
Andreas: That’s true. We try to work with influencers, but maybe an influencer is posting your product one or two times. But he cannot post it again and again and again, then the audience will not like it. And therefore, you have to search, all the time, for new influencers, and then this takes a lot of time and therefore the scaling with influencers is not so easy.
Therefore, we really like to scale our products with Facebook and Instagram ads and in addition we use influencers.
Alexander: But this product is pretty cool to advertise with influencers because they are many sport or healthcare influencers and they have the right audience for this product. So, the sports niche and working with influencers is one of the best ones, yeah.
Andreas: Maybe you can start with influencers to get some data, some pixel data, for your pixel and then build look-a-like audiences out of that data and push it out everywhere on Instagram stories, on the Instagram news feed, and on Facebook feed.
Jessica: And if you’re new to the Facebook Pixel and you’re not sure what that is, here’s a video that will explain everything. All right, so we’ve done two out of five products. What’s the next product on your list?
3. Steel Straws
Andreas: May I introduce it a little bit. Sustainability and saving the environment are huge topics nowadays. In fact, more than 500 million plastic straws a day are used only in the US. And we saw that and we were thinking about, hey…
Alexander: This special product here.
Alexander: What is this?
Andreas: What could that be? That’s not a plastic straw, it sounds like aluminum and this is what it is. These are aluminum straws. You can reuse it and you save the environment every day because these ones are undestroyable, I think. And you can clean it with that small piece and put it into the dishwasher and use it again and again and again.
Alexander: And it looks really fancy if you have this one. Cool color.
Andreas: Yeah this is cool. This looks cool. Yeah can do something good for the environment by buying this product and we know the trend is going in this direction.
People like to buy things that are good for the environment and sustainable.
Cross-Check Your Data With Google Trends
Jessica: Okay, so we went into Google Trends and we typed “reusable straws” and as we see here, there’s a really sharp spike in 2018, and definitely, the spike has calmed down a bit but the trend is way above where it was just a year ago.
Alexander: For example in Europe, the government decided… The UN government decided six months ago that in 2025, I think, plastic bags and plastic straws will not be allowed. It’s going to be finished with that and so you can’t buy it anymore but you must buy this because you can’t buy normal straws again, plastic straws.
Jessica: Okay so now let’s talk about how you would advertise something like this. Did you make a video ad?
Andreas: Oh yeah.
Alexander: Yeah. We did a cool video ad for that.
Jessica: Oh, you did. Perfect, okay. Let’s play the video ad and as we’re playing it, go ahead and talk us through what we’re seeing there too.
Andreas: This was our small video.
Alexander: Five hundred million straws every day. Plastic straws used every day.
Andreas: People see the waste, people see the destroyed nature. People see what happens, and these are real, real numbers from National Geographic. And here you see everything about this straw problem. And after this small problem introduction, we show our solution.
And our solution is also “50 percent off today”. If you put the “today”, this is a little bit of conversion increasing. So now you see these small straws and everything is fine, no environmental…
Alexander: You can order it in different colors. A color for everyone.
Andreas: Yeah, and then always our sentence, “Share if you need this”, and our logo animation. Yeah, that’s how we did the ad for that.
Jessica: What’s interesting to me about this ad versus the ad that you had for the key tool and the water bottle, is you don’t actually show the product you’re selling until a couple of seconds into the video. Why is that here?
Andreas: We showed them the story. We showed them the “why”. Why should they buy this product?
Alexander: It’s a sad story, it’s emotional.
Andreas: It’s for our own planet and therefore we come in with some pain and through this pain they see, okay, they can solve this pain with a little decision just to buy this product. And it’s 50 percent off.
Alexander: It’s not only selling this product to make money, it solves the problem and to do good stuff to the world, yeah.
Jessica: Again, I’m gonna say offering 50 percent off on this product, sounds like you’re not gonna have any profit margins. So let’s jump into Oberlo and tell me how you would price this so you’re still making money, because you did sell this product too right?
Jessica: Okay, so we’re in Oberlo looking at these stainless steel straws. How would you price something like this?
Andreas: I would only sell the ten pieces. Ten pieces of straws and I would negotiate the price with the seller with shipping for $5.
And then I would price it for three times the price, for $14.95 to cover the ad spend, and I would upsell more pieces of them.
Alexander: Or for example in the second photo on the next one, it fits perfectly with the straws.
Jessica: I see, so you’re saying you could upsell with either additional straws, or choose a product in the same niche like this mason jar.
Andreas: We would split test that. We would split test that. Yeah.
Jessica: What interests are you going after on Facebook to get to the right audience?
Alexander: A lot of things in this case. We target straws, for example, is the easiest way. And we target, for example, the sea problem. The plastic sea problem. And we target a company, 4ocean. And they have millions of people that like their pages and they are the perfect audience for this one.
Jessica: So you’re saying you’re targeting people who like…
Andreas: To clean the ocean.
Alexander: To clean the ocean.
Jessica: Yeah. Okay so, non-profits.
Alexander: This is perfect for that.
Andreas: I would also target vegan people. Because vegan people live vegan because of the environment, because of the animals, because of nature and they would love that. And I would test different audiences and let the pixel, the Facebook algorithm decide.
4. Penguin Travel Bottles
Jessica: You guys flew in from Austria last night, right?
Andreas: Yeah. We came from Vienna to Berlin and I had, again, my problem. I forget. I had this big body lotion. My big body lotion I put into my small suitcase. I came to the airport, and then the security said, “Oh no, this is too big.” and I forgot. And then I had to throw it away.
Jessica: All of it?
Andreas: Yeah, it was my expensive favorite body lotion and I had to throw it away. And Alexander came up with a new…
Alexander: New product.
Andreas: Perfect product idea, and now I can show it to you. This is the solution, penguin travel bottles.
Alexander: Everybody knows the problem when you are around the airport, if you have body lotion or shampoo or something like that and they say you must throw it away, it’s not allowed to take this on the airplane.
Andreas: We have four different ones and you can put inside the right cream, the right body lotion, the right liquid.
Alexander: For example, here the shampoo, there is, show it.
Alexander: Here shampoo.
Andreas: This is shampoo, you can.
Jessica: So you can twist the base and you can see what’s in it.
Andreas: Yeah, shampoo, cream…
Alexander: Lotion, body lotion.
Jessica: I don’t know if this is a selling point for you, but I think they’re adorable, too. I really love the fact that they look soft and squeezy and have cute penguin faces.
Alexander: They’re funny.
Jessica: And they match my nails, it’s great.
Alexander: Everybody who’s flying knows this problem, and yeah, this is the perfect solution for this problem.
Andreas: You can target the audience very well. Yeah, yeah.
Jessica: Not every traveler would want a squeezable penguin. So okay, how would you target the exact audience that might like this? Do you wanna show us some audience insights?
Andreas: Yeah. I will definitely target women because I think women will like this product more. What do you think, Alex?
Alexander: I would…
Andreas: Because it’s a penguin. Because it’s a penguin.
Jessica: I’m gonna ask you to walk me step-by-step through this. Okay, so we wanna find an audience for these penguin soap dispensers or travel bottles. So first, I’m in the US, and I’ll select only women. Okay, what next?
Andreas: Then I would type in in the interest field, “travel”.
Jessica: Okay. Air travel.
Andreas: Only travel.
Jessica: Only travel. Okay.
Andreas: Yeah, and now this would be my first audience, I would choose “travel” as my first audience. This is a very big one, but then I would break it down to different suggestions that Facebook makes to me.
If I’m in the audience-creating tool then I push the button, “suggestions” and then I see okay, “travel”, “air travel”, I don’t know, “beach travel” or everything like that, and I would also target big hotels, yeah? I would also target big hotels or I would look here the page likes.
Jessica: Or you would target people who like big hotels.
Andreas: Yes, because if I like big hotels, I’m most likely to travel.
Alexander: And one… A good secret is, these are penguins, and what are the most popular penguins in the world? The penguins from Madagascar. So we would advertise that to people who like the Madagascan penguin.
Jessica: Oh, okay, so target people who like the movie, Madagascar.
Alexander: Yeah, because everybody knows these penguins.
Jessica: That’s a great idea. I mean, that actually makes…
Alexander: Kowalski and all the names. This is Kowalski and the other penguins.
Jessica: Yeah. What about targeting mothers? This seems like a product that kids would love.
Alexander: Yeah, of course.
Jessica: Would you recommend going after that audience?
Alexander: Of course mothers would pay… Buy it for…
Alexander: I would give it a try. I would definitely give it a try. You cannot make anything wrong because you just spend the double-profit margin at one ad set, and it gets either results, or it gets no results.
Jessica: Is this a product that you would create a video ad for?
Alexander: Yeah. And I would create a video ad at the airport. I’m here with my bag, and I take my shampoo, for example, and must throw it away, and then so everybody knows the story. And now, the solution…
Jessica: Yeah. As we do with all of our products, I want to ask about the price. So I see it here in Oberlo, and this costs $11, so it’s a little bit more expensive than our product.
Alexander: It’s a little bit more expensive but you buy it only one time and you can use it forever.
Jessica: So how would you price something like this then?
Andreas: If you’ve taken into consideration how much money you lose throwing something away at the airport and how much this cost, I would price it for $24.95 because it’s four pieces and you have a bag.
Alexander: You have a bag.
Andreas: You have a bag with it, you can choose it, and you can reuse it again and again and again. Yeah, therefore I would definitely price this for $24.95 so I can cover the ad spend and so I can upsell different, for example, different small bags that fit better.
Alexander: And there is small stuff inside.
Order Test Products to Market Products Better and Increase Profit Potential
Jessica: That’s a great point. So, when we ordered this test product, we got this bag with more travel accessories inside of it. And if you were advertising this on a product page, you may not know until you order a test product that you actually can talk about this in your product descriptions, and that’s one more reason customers would pay more. They’re not just getting the penguins, they’re getting the bag, and other things…
Andreas: Yeah, free bag, for example, I would write, “There is a free bag inside, there is also a small thing.”
Alexander: This is only for the perfume.
Andreas: This is for the perfume, that means if you travel, you cannot put in the perfume in the suitcase, in the small suitcase. If you travel only in cities, for example in the US or in Europe, then you have only your small suitcase. And with this, you can put in your favorite perfume and take it in the small suitcase. And this is also a free giveaway.
Free giveaway, free shipping, and then the price $24.95 seems to be good.
Alexander: Two pieces from this protector for the toothbrush.
Andreas: Yeah, also included.
Alexander: It’s also included.
Jessica: So you’re saying, not only mention it in the product description but frame it as, “Buy the penguins, get a free bag, get a free perfume dispenser.”
Jessica: Okay, great.
5. Posture Corrector
Jessica: So our last product is coiled up on the table and I have no idea what it is. What are we looking at?
Alexander: This is a really cool product. I found it one month, two months ago on the internet. I also saw a Facebook ad.
Jessica: You found it a month or two ago on the internet through a Facebook ad?
Alexander: Yeah, I saw it on Facebook and I checked it out. And yeah, I bought it for me. This is a really cool product, this is for the back problem. So if you are… For all those dropshippers outside, buy this thing because you’re sitting for the whole day in front of the computer and everybody knows the problem, you’ll go a little bit down with your back, and then you have a problem, it hurts a little bit. And with this product, we always have the correct position, and you have no back problems after that.
Jessica: I see, so it’s both a posture corrector and in the process of correcting your posture can even improve back pain.
Alexander: Yeah. It’s a product that you can advertise to a really big audience because healthcare, health, fitness, this… it matches many people. Yeah.
Jessica: How about… Can we dive into Facebook Audience Insights and show…
Alexander: We can check it out.
Jessica: Yeah, how would you create an audience here?
Alexander: The best way is fitness.
Alexander: I think this would be millions of people.
Andreas: Fitness and wellness.
Jessica: Fitness and wellness. Okay.
Alexander: Let’s see, it’s 150 million per month.
Jessica: Yeah, is that too big though?
Alexander: Okay, that I would narrow it down, this is really big. I would narrow it down to 10 to 20 million. Facebook Pixel can search for the right people.
Andreas: Maybe we go inside one ad, then we can show it better. I choose any ad set.
Alexander: Sets, perfect. Age, perfect.
Andreas: So on here?
Using Facebook’s Suggestions Tool
Jessica: Okay, so now we’re inside an ad and you’re showing us how Facebook will suggest interests?
Andreas: Yeah. I would create a fitness and wellness one here. I would create the first audience and then I would press here the suggestions button. And here, you have lots of perfectly fitting suggestions that you can use to create other audiences.
Alexander: Here’s a really good example, “quality of life”.
Andreas: Yeah, if I took “quality of life”, I would pick it and I would kill this one, so that I have one quality of life, and one fitness and wellness, and so I would create my eight to ten audiences. Different ones.
Andreas: Yeah. And so you can test it. So you can start to test it and then the algorithm will find the best audience, and where the purchases come from, there you focus on it.
Jessica: And this seems to be a product that you would really have to have a video ad for because…
Alexander: Because you must explain it.
Alexander: Because when you only show a picture nobody knows what that is.
Andreas: Yeah. Yeah.
Alexander: And yeah, I would explain it also with the big problem. I would show me in front of the computer the whole day and then I’ll stand up and have back problems and then now, the solution.
Andreas: Often also the big sellers from China have some videos.
Alexander: Yeah. You can ask them.
Andreas: With, with… They animated that, for example, digital, yeah, and you can use them if you ask them because they are the sellers for resellers. And there you can mix the video with a small scene from you, then this video animation from the seller, and then your logo animation in the background. With this nice music, 30 to 40 seconds should be good for a start.
Jessica: And of course let’s talk about price. This product in Oberlo is about $7 with $1.50 for shipping. How would you price this?
Andreas: This is a fitness product. A fitness product.
Alexander: Fitness and health, yeah.
Andreas: Whatever that is for your health can cost a little bit. Yeah, I would definitely price this for $29.95.
Andreas: For $29.95. And plus a second one for an additional $14.95. That means two pieces for $44.95 with free shipping. Yeah. If you sell the bundle, you have a high average order value and then you can definitely make a profit with that product.
Jessica: That might be the most expensive product that we’ve had recommended for dropshippers to sell.
Andreas: Because now we are in 2019, and the prices on Facebook and on Instagram increased a lot, you need to have higher prices. If you don’t have these higher prices, you cannot afford the ad spend and you cannot do dropshipping in 2019. Yeah.
Alexander: And in 2019, healthcare is a big hype. Everybody talks about healthcare and a healthy lifestyle, and so people are willing to spend a little bit more money on that stuff.
Andreas: Because if they buy two pieces, they mostly buy it together for a partner, which means they pay $45 together. That means together a little bit more than $20 and that’s okay for everybody.
Top Criteria for Finding a Product With Huge Profit Potential
Jessica: Okay guys, you have recommended some fantastic products for new dropshippers to start selling in 2019. But there are gonna be dropshippers out there who want to do their own product research and find their own winning products. So before I let you go, what are your top criteria for finding a great product to dropship?
Andreas: What I would suggest is, look for products where you will sell them. Look on Facebook for a product. For example, you go on Facebook and you type in “fitness” or “body” or something else and a little text part like, “Get yours now,” or “50 percent off”, and there you will find a lot of ads with different products and then you look at the engagement.
If there is an ad with 10K likes or with 1, 2, 3, 5 million views, then somebody has paid for it. And people only pay for it if it’s worth it.
And then you see, okay this product is working, you can open the store in the background you see, “Okay how is it advertised? What is the bundle? How is it priced? How do they do it?” and then do it similarly.
Don’t copy it. Copying is not allowed, yeah? Do it similar and do it better. Do it better than your competitor, and so we’ll find on Facebook really nice products.
Alexander: And it’s important to check up the comments because if the comments are over one year old, it doesn’t work. It’s over. But when they are two days old, or one day old, or a few hours old then it’s, the ad is running, it’s online and he sells it the whole time. And yeah.
Andreas: That’s how we find new products with huge profit potential all the time.
Alexander: Yeah, and we have a second secret.
Andreas: Yeah, your secret.
Alexander: It’s one of my favorite sites, “ThisIsWhyImBroke”. Here you have the funniest and most popular stuff all over the world and… For example, there’s the world’s softest blanket I bought last week. And yeah, there are things online that’s… New trends.
There was also the fidget spinner online. And if you check up this site, and yeah, I check up every second day, and if you see one product, you see trends in the first step and you can research cool products. And there is crazy stuff online and if you check up this site you can see products, you can see high products in the first step and you can pick it out searching on Oberlo, and then you advertise it, yeah.
Andreas: If you know that site, you’re always one step in front of your competitor.
Jessica: Well, Alexander, I’ll let you keep shopping on your favorite site. But I just wanna thank both of you guys for being on the show, and if you’ve got comments for Alexander and Andreas, leave them below and they’ll check them out and do their best to respond. And until next time, learn often, market better.
Andreas: And sell more.
Alexander: And sell more.