You must conduct market research for your eCommerce business ideas before it goes live. This action enables you to discover whether or not there is substantial demand for the products or services around your idea.
Fortunately, this article will provide you with several methods and techniques that are necessary for successful market research. Keep in mind that these strategies might require some special online tools and little financial commitment.
Part 1 – Profiling: (How To Do Market Research For Dropshipping)
If you’re asking yourself “How do I start a successful e-commerce business” multiple times, know that the first step is profiling.
Profiling is the art of decerning all the characteristics of your ideal consumer. In other words, it’s the map into your audience’s mind.
This process is necessary if you’re looking for how to sell dropship items successfully.
Keep scrolling to learn more.
Determine The 5 Demographic Factors Of Your Clients
In a marketing context, customer demographics are statistical data that reveal the unique identities and qualities of your target audience.
This information makes it easier for you to create a personalized marketing experience that’s similar to Amazon offers and Netflix’s custom queues.
This level of personalization naturally pays off since personalized offers receive more interactions in a marketing crowd. In fact, statistics reveal that customized emails receive 26% higher click-through-rates. At the same time, segmented campaigns provide marketers with a 760% increase in revenue.
So, what five demographic factors do you need to know about your client? These might include:
- Necessary information: education, age, gender, marital status, etc.
- Location: zip code, postal address, country, etc.
- Purchase intent: furniture, electronics, clothing, books, etc
- Buyer Type: online shopper, deal seeker, etc.
- Lifestyle: DIY-er, cord-cutters, etc.
You can acquire your target audience’s demographics with some online market research tools like TowerData, Web forms, and online surveys.
Determine The 5 Psychographic Factors Of Your Clients
While demographics provides essential information about your target audience, psychographics tells you about their buying behavior.
You can define psychographics as an analysis of the customer’s lifestyle to produce a detailed profile of the individual. This information will provide insights on how to choose dropshipping products that will attract your audience. Here are some dropshipping products ideas.
So, what five demographic factors do you need to know about your client? These might include:
There are many ways to decern your audience’s psychographics. Some of these strategies include:
Ultimately, combining demographics with psychographics will help you reach your audience more efficiently and make your marketing expenses worthwhile.STEP 03:
Identify Your Audience’s Core Problems
1 out of 26 unhappy customers will complain, while the rest will try the nearest competitor.
One primary ingredient for answering the age-old question “How do I succeed at dropshipping?” is identifying your audience’s core problems. By problem, I mean issues that your target audience might have with your services or other competitors.
Dedicating time to solve this problem will undoubtedly attract visitors to your store and also provide an increase in revenue.
So how do you identify the core problems of your audience? Some strategies include:
- Send Surveys Regularly
- Save and Organize the Feedback
- Strive to understand their confusion
- Permit customers to leave private feedback on your eCommerce site.
One unfortunate mistake that most successful eCommerce stores make is expecting the customer to leave a complaint once they’re dissatisfied. However, studies reveal that 1 out of 26 unhappy customers will complain, while the rest will try the nearest competitor.
In other words, take the time to interact with your customers and uncover their struggles.STEP 04:
Behaviors That Might Reveal Your Audience’s Core Problems
Although your customers might not verbally relate their frustrations, they will exhibit traits that you can detect. These behaviors include:
- Abandoned Shopping Carts
whenever your customers leave their order before completing the purchase, it’s usually a significant warning sign.
It could be that they aren’t satisfied with the pictures/videos on the product or your policies are challenging to understand
- Low user Engagement
if your site is bulky and hard to navigate, users will leave the page immediately. Shoppers are most likely to order from a platform that’s easy to navigate.
If your site takes forever to load or it’s clogged with numerous pop-ups, it will discourage prospects from engaging with your store.
Therefore, I recommend you increase user engagement by optimizing your site. Read ecommerce growth hacking tactics to improve your store performances.
- Low Patronage
Numerous factors make a dropshipping business experience low patronage, but the most significant one is “over-priced products”.
Customers are rational thinkers, and if the price exceeds their budget, they will leave the store immediately.
I recommend understanding the demographics and psychographics of your audience before trying out your products ideas.STEP 05:
Identify Potential Answers To Their Problems
Now that you’ve done your research and identified the primary problems of your customers, it’s time to think of potential solutions.
The first step to solving the problem is performing an analysis. This process requires you to ask specific questions like:
- What might be the cause of the problem?
- How does the problem affect the customer?
- How long has it been going on?
After performing a detailed analysis of the problems, come up with multiple solutions to each issue.
Irrespective of how unique your first solution might be, ensure you come up with alternative scenarios. Assess their pros & cons, then choose the best option.
*Note: Solving your audience’s core problems will reveal how to find a niche for dropshippingSTEP 06:
Identify The Primary Influencers Of Your Audience
Influencers are a valid option If you’re still learning how to do online market research online. They play a vital role in the lives of your audience by providing them with what they might consider relevant.
Therefore, a sure-fire way to understand the mind of your audience is via their most visited sites and favorite social media influencer.
If your store’s audience consists of gamers, their favorite social media influencer would include Pewdiepie or Shroud. At the same time, their most visited websites may consist of Niche Gamer, TechRapt, or Gematsu.
Visiting the websites or Influencers will undoubtedly provide you with insight into the mind of your audience.STEP 07:
Ponder On The Top 3 worst-case Scenarios That Might Result From Using Your Offerings
Predicting worst-case scenarios is an essential part of running any eCommerce or brick and mortar business. It requires you to put yourself in the position of your customers and predict the worst outcomes.
Keep in mind that predicting adverse effects will require you to draw from your well of experience and skill. Although you might not anticipate every possible negative outcome, you will be ready for most of them.
After predicting a series of potential negative results, take precautions to prevent them from happening. Consider changing your offering or preparing a response in case the worst-case scenarios are inevitable.
What product you gonna offer is matters the most. You can use product research tools to identify what’s trending in the market.STEP 08:
Ponder On The Top 3 Best-case Scenarios That Might Result From Using Your Offerings
While worst-case scenarios prepare you against adverse outcomes, Best-case Scenarios encourages you to keep going.
Not every endeavor should be geared to pleasing your customers. You must be confident that what you do is worth your time and money. So, access your services and identify the best possible outcome that it might bring.
If you’re sure that it’s a worthwhile endeavor, keep going. However, if you’re struggling to see the benefits in your offering, rethink your services.STEP 09:
Relate The Advantages Of Engaging With Your Business
Ultimately, the primary duty of a business is to solve it’s customer’s problems. Therefore, before going live, you need to identify the benefits that your online store presents.
An online skate shop helps enthusiastic skaters find reliable gears like shoes and helmets. The customer can opt for a brick and mortar skate store, but the convenience of ordering online and receiving it in a few hours beats a long drive.
Keep in mind that the benefits that your store provides must be consistent with the expectations of your audience. If you only offer advantages that aren’t significant to your customers, your store won’t matter.
Part 2 – Surfing The Web (How To Do Market Research For Dropshipping)
After profiling, the next step is to do some additional market research by surfing the web.
What is market research in business? Market research is the steps taken to determine if your offering is valuable to your audience. The process might range from performing online surveys to one-on-one interactions.
Below are some sure-fire ways to see if your audience will value your product.STEP 10:
Obtain Information From Your Audience’s Favourite Website And Social Media Figures
Visit your audience’s favorite website and influencer to understand what catches their attention. This strategy is significant because the influencer knows the consumers inside-out.
You can consume their content to get a feel of what makes your potential customers tick. For example:
If you plan to dropship skating boards and their gears, you should binge websites and Influencers like Tony hawk, Mike Mo, and Mikey Taylor.
These influencers will provide you with the necessary information to understand your audience’s preference.
Influencer marketing became a trend in marketing. But there are many scammers who use the strategy through bots. As a marketer, you need to spend time identifying the correct influencer for your business. It’s critical to find the right influencer . You need to be smart about this process.
I usually talk to many influencers daily and get their demographical analytics and see which country has the most audience for them. If analytics shows the most audience comes from countries where has less buying power then I ignore the influencer. Always choose an influencer who has an audience from the big 5 countries.(USA, UK,Canada,Australia,New Zealand)That makes your ROI higher.STEP 11:
Know What Media Is Relevant To Your Audience
Naturally, you must structure your online store to make it easier for consumers to find you. However, this process requires some research instead of guesswork. One option is to visit the popular media of your audience and take note of the keywords.
Keywords are essential because they make it easier for prospects to locate your store via Google. For example:
If your online store sells virtual goods like programming tutorials and assets, your audience will most likely binge coding tutorials. Therefore, sites like Brackeys or Github will do you good.STEP 12:
Identify 5-10 Figures That Influence Your Audience
The purpose of influencer cannot be overemphasized since they’re the doorway to your audience’s heart. They possess the power to direct people to your product because customers trust their opinion.
You can capitalize on this method by requesting a mention from one of these influencers. If you can’t afford the shout-out,
identity with that influencer.
Visitors are most likely to patronize your store if it resonates with them in one way or another. Here is the list of Instagram influencers.STEP 13:
Conclude Your Research
Ensure that you summarize your research after it’s complete. You can use your favorite presentation software to attach diagrams, clips, and quotes.
If you need assistance with a summary, try using the method below:
- State the goal of the research
- Present details on the source of your research.
- Detail the things you learned and your plans towards them
- Describe the triggers that prompt evaluation
- Provide the central theme that you uncovered
- Briefly outline your conclusions based on the research.
- Detail the complete action plan for your eCommerce store
- You can improvise and conclude in a way that’s easier for you to understand.
Ultimately, performing market research is an eye-opening endeavor. It reveals that you don’t know your customers as much as you think. Additionally, it uncovers the flaws in your marketing techniques, enabling you to advertise efficiently.
Ensure you implement this process effectively before taking your dropshipping business live. It’s the next step after ask yourself “how do I start a dropshipping business“.
Thank you for reading my post about How to do market research for dropshipping and hope it will help you to jump-start your dropshipping business.