If you are running a dropshipping business using Savevalue2U platform, what are your biggest challenge?
No doubt Savevalue2U can sync easily and automatically with your online shop on either Lazada or Shopee, again, what do you think is your biggest challenge?
If you can with a click of a button automatically sync Savevalue2U Stock Keeping Unit (SKU) with your Lazada or Shopee online shop to run your dropshipping business, anyone with an account with Savevalue2U can do the same as well.
When everyone has the same tool to auto sync Savevalue2U to run their online dropshipping business, how would you be able to differentiate from your competitors.
Your competitors also have their online store on Lazada and Shopee and most probably they can sell the exact items you are selling on your store.
Even if you managed to located a profitable niche product on Savevalue2U, with competition spying tool constantly scrapping data from Lazada and Shopee, sooner or later, your competitors will figure out your profitable niche and start to sell the same product on their store.
How can you differentiate against your competitors who are promoting on the same online marketplace and selling the same items as yours?
The only way I can think of is buy adjusting your selling price.
The only way for you to get the sale is to sell cheaper than your competitors.
When your business strategy is to sell cheaper than your competitors, you will not be able to sustain your online dropshipping business for long.
In this section, I would share a different strategy where you can apply on your dropshipping business.
It is still an online dropshipping business model but you have to move away from selling product listed on Savevalue2U.
To be successful in running an online dropshipping business, you have to go to the basic which is product selection.
I will explain product selection for your business in a form of a story.
The idea of product selection is from the book The Blue Ocean Strategy written by Renée Mauborgne and W. Chan Kim.
There were 2 good friends name Michael and Jeffry.
Both Michael and Jeffry went to the same primary school, secondary school and college together.
When Michael and Jeffrey graduated from college with their diploma at hand, they have the aspiration to start their own business.
Both have some saving in their bank account because they worked part time when they were studying in college.
Michael took out all his saving and started to look for product to sell for his business.
He wanted to sell smartphone accessories because everyone has at least one such device at hand therefore the market is huge.
He decided to to buy the smartphone accessories in bulk from China and sell it locally with a profit.
What Michael has done trying to sell smartphone accessories is equivalent to trying to fish in a Red Ocean.
The characteristics of a red ocean are:
- Compete in an existing market space
- Beat the competition
- Exploit existing demand
- Make the value-cost trade-off
- Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost
The fact is, it is unlikely Michael will succeed in his business due to the nature of red ocean where the competition is very stiff and the only way for him to differentiate with his competitor is to reduce his product selling price.
By being cheaper than his competitor, he will slowly but surely bleed his business until he cannot sustain it anymore.
The blood of every business in the water is turning it red…thus the name Red Ocean.
Is there a better approach to choosing product for a business?
That was what Jeffry thought to himself after seeing the bad experience Michael had with his business.
A better approach to selecting a product is using The Blue Ocean Strategy.
What are the characteristic of a blue ocean?
The characteristics are:
- Create uncontested market space
- Make the competition irrelevant
- Create and capture new demand
- Break the value-cost trade-off
- Align the whole system of a firm’s activities in pursuit of differentiation and low cost
For a better understanding of The Blue Ocean Strategy, check out the 2 minutes video below by Harvard Business Review.
In the video above, it highlighted a case study on Cirque du Soleil using The Blue Ocean Strategy to grow and excel in an industry with limited growth potential.
A compelling aspect of Cirque du Soleil’s success is that it did not win by taking customers from the already shrinking circus industry, which historically catered to children. Instead it created uncontested market space that made the competition irrelevant.Blueoceanstrategy.com
Jeffry realised that to be successful in his business, he has to avoid the red ocean at all cost.
Instead, he has to find a product which is in the blue ocean of uncontested market space and make the competition irrelevant.
How do you find a blue ocean product?
How do you find a blue ocean product ideal for an online dropshipping business?
Firstly, I would suggest you get a copy of the Blue Ocean Strategy book and read it.
By reading the book, it will give you some ideas on how to identify the best product to promote in your business.
By chance, back in 2018, the company that me and my wife partnered with has a blue ocean product line.
It is a type of athleisure garment with far infrared ray (FIR) emitting properties.
Back then, there were no large or established product brands in that category in South East Asia countries.
The company that we partnered with created a new product category making competition irrelevant.
In less than 3 years, the company has dominated the category with its core product in Malaysia, Singapore, Brunei, Hong Kong and Indonesia.
We managed to grow our dropshipping business quickly with customers located locally and internationally by leveraging on the blue ocean product.
Generating sales from a dropshipping business is not difficult.
All you have to do is do lots of marketing activities to generate leads and you will be able to generate sales sooner or later.
However, if you want to be able to sustain your business with sales coming in day after day, you need to be selling blue ocean product.
Thank you for reading this article and I hope it was insightful for you.
If you are currently running an online dropshipping business using Savevalue2U platform and you would like to explore an alternative supplier with blue ocean product, please click the link below to message me on WhatsApp and I’ll be happy to share more with you.