Author

Luke Belmar
2020
 CONTENTS

Introduction Page 3

Chapter 1 - How Customers Operate Page 4

Chapter 2 - Primal Values Page 7

Chapter 3 - Emotional Values Page 9

Chapter 4 - Efficiency Values Page 11

Chapter 5 - Social Values Page 13

Chapter 6 - Impulsive Buying

Ch Page 16

Chapter 7 - The Seven-Figure Lie Page 18

Chapter 8 - Abide By The Law Page 20

Chapter 9 - Studying Trends Page 21

Chapter 10 - Sourcing Websites Page 23

Chapter 11 - Product Principles Page 26

Chapter 12 - Spy Tools Page 31

Chapter 13 - Establishing a Process

Ch Page 34

Chapter 14 - Find your Next Winner Page 35

 Introduction
I designed the following study to understand consumer behavior from
an anthropological perspective, tailored specifically to the Western
consumer, while also discovering the necessary tools, criteria, and
methodologies used to find products that appeal to the customer. These
products are commonly known in the eCommerce space as winning
products.

The information
in I present here is based on my personal implementation
and research. Keep in mind: this document is designed to supplement
your eCommerce business, and you should continue developing your
product research skills independently. Product research is the most
foundational element in building a successful eCommerce business that
is why mastering it will elevate your chances of success.

If you find this document to be helpful and worthwhile, please share it on your
Instagram stories and tag me at: lukebelmar

*Most images are clickable and hyperlinked for your convenience.

CHAPTER 1

HOW CUSTOMERS OPERATE

To successfully research products, we When we unpack these four groups in
first need to understand how and why Chapter Two, you will understand
people make decisions. After finding what products you should be looking
and selling dozens of products with for and how to present these
six- and seven-figure sales, I noticed products to the consumer in your
my consumer base showed certain creative offer.
behavioral patterns that led me to
believe I could increase my odds of
beli To successfully sell to consumers, you
finding a “winning product” if I took need to find a product, curate a
the time to understand consumer message, and deliver an experience
behavior. that solves their problem. In doing so,
you won’t be seen as a seller, but as a
Successful products are those that solution or a helper -which results in
customers hire to accomplish a task virality, higher conversions, and
or solve a problem. People hire increased customer loyalty.
inc
products to take care of a specific job
in their lives and to facilitate the ability Have you ever wondered why you buy
to reach the desired outcome. Take what you buy? Why did you choose an
this document, for example.You iPhone over an Android? Why did you
needed to shorten
sho the learning curve choose the newest model over a
and reduce tension to reach the previous one? Was your screen
desired outcome: mastering the cracked? Or did you want the prestige
process of product research. To meet that comes with a new device? Or
this need, I created this document you maybe, you just wanted it without
ma
are reading. As a seller, my job is not to exactly knowing why?
figure out how to get you to buy.
Instead, my job is to create a product
Instead Answering questions like these is what
that satisfies the task you need done. separates a good marketer from a
great marketer. Dissecting the deepest
For simplicity’s sake, I like to place elements of how people operate
consumer behaviors into one of four guarantees your ability to select
groups: primal, emotional, efficient, and winning products time and time again.
social. Within these four groups are As marketers, our objective is to
the reasons why people make understand how
h consumers think so
decisions to buy certain things. that we can influence what they buy
 CHAPTER 1 HOW CUSTOMERS OPERATE

and where they buy it - ideally, from The id is the primitive and instinctive
you. component of personality. It consists
of all the inherited components of
When consumers see a product at the personality present at birth. The id is
grocery store, they don’t just add it to the impulsive and unconscious part of
their cart by chance. Within our psyche which responds directly,
microseconds, consumers decided immediately, and instinctually.
whether or not the product would
fulfill their needs for one of the four The ego develops
de in order to mediate
groups I outlined above. It is your job between the unrealistic id and the
to sell products
p that provide a solution external real world and is the
to the customer’s problem. decision-making component of
personality. Ideally, the ego works
In Freudian theory, we all have a through reason, whereas the id is
conscious and unconscious mind. The chaotic and totally unreasonable. The
conscious mind oversees all of your ego operates
ope according to the reality
present conditions and things you need principle, working out realistic ways of
to be aware of. The unconscious mind satisfying the id’s demands, often
manages everything outside of our compromising or postponing
physical awareness — this is what I call satisfaction to avoid negative
our primal instincts or our innate nature. consequences. The ego considers
social realities and norms, etiquette,
Freud compared our minds to an and rules when deciding how to
iceberg. Above the water, the fraction behave. Like the id, the ego seeks
of ice we can see is the conscious mind. pleasure (i.e. tension reduction) and
What determines our behavior is avoids pain. Unlike the id, the ego is
under the water: the unconscious. In concerned with devising a realistic
addition to breaking the mind into two strategy to obtain pleasure. The ego
categories, the Freudian theory also has no concept of right or wrong;
divides the human personality into something is good simply
simp if it achieves
three subcategories: the id, ego, and its end of satisfying without causing
superego. One of these segments of harm to itself or to the id.
personality is always behind the
decisions you make. The superego incorporates the
learned values and morals of society.
The superego consists of two systems:
the conscience and the ideal self.
 CHAPTER 1 HOW CUSTOMERS OPERATE

The conscience can punish the ego The super-ego can also reward us
with feelings of guilt. For example, if through the ideal self when we
the ego gives in to the id's demands, behave ‘properly’ by making us feel
the superego may make the person proud. 1
feel bad through guilt. The ideal self
(or ego-ideal) is an imaginary picture In chapters two through six we will be
of how you ought to be and focusing on the four behavioral groups
represents career aspirations,
aspi how to (primal, emotional, efficient, and social),
treat other people, and how to the most important values within each
behave as a member of society. group, and how they should influence
2/3 Behavior that falls short of the your product research.
ideal self may be punished by the
superego through guilt.

EGO
conscious
SUPER-EGO

ID
sub-conscious
CHAPTER 2

PRIMAL VALUES
Social media is just the newest channel we can use to leverage consumer sales.
With Freudian theory as the theoretical framework, our goal is to objectively
understand why people buy new products.

I have categorized six values that are commonly found in the products that we
offer and have placed them in the first of the four groups. These values focus on
both conscious and subconscious behaviors that are prompted by external
influences.
Six Primal Values:
1. Survival - People buy things to help As long as we have these things, we
them survive the physical world, such are very open to anything that will
as food, water, weapons, and shelter. increase the possibility for us to fulfill
These primordial tendencies are those desires. Products such as
instinctual and tend to be with us from vitamins, cancer preventatives, or
the time we are born. The fundamental radiation neutralization are just a few
need for survival is always a driving extremely good sellers. However, this
force in our decision-making process.
fo space is often full of fraudsters and
Our primal behaviors mean we will requires a brand with extensive
always do things like maintain customer trust and loyalty.
adequate body temperatures, sleep,
and stay alive. If you can provide a 3. Reciprocity - This basic instinct of
product that can keep someone warm cooperation is commonly found in the
when they are cold, facilitate their animal kingdom. Someone does
next meal,
meal or help them sleep you are something nice for you, which means
providing value to one of the most you reward them with a similar or
basic human inclinations. positive action. Based on Robert
Cialdini’s ideas in his book Influence:
2. Lifespan Longevity - The desire for The Psychology
Psy of Persuasion, we are
a long life is driven by things that give intrinsically wired to return favors or
us intrinsic meaning. Apart from show mutual kindness. Creating or
survival, humans seek lifespan longevity finding products that let individuals
to fulfill their desires for happiness, show benevolence and affection to
such as traveling the world, raising kids, their counterparts will always be in
or having hobbies. demand.
 CHAPTER 2 PRIMAL VALUES

I have found that products focusing on you have a list of similar products that
altruistic values do very well when allows them to continue indulging.
delivered with clever offers.You see
products push this value point during 5. Pain Avoidance - People will do
Valentine’s Day, Christmas, or when anything to avoid pain. Products
someone has a birthday. focusing on self-preservation and
physical pain prevention are usually an
4. Pleasure
Pleasu - Have you ever noticed easy sell. The goal of this value is to
how indulgence-based products prevent pain by providing
advertise to their audience? They something that will balance the
rarely focus on the product feature. odds in the customer’s
customer favor.
Instead, they focus on showing people Popular products in this niche might
enjoying themselves, smiling, and having help prevent theft, help contact
a good time. These types of products emergency authorities, and help
speak directly
di to our id, which is prevent or alleviate ailments such as
driven by the pleasure principle. It is in back pains or arthritis. Some of the
our nature to seek pleasure, but best dropshipping products of all time
overextended pleasure can lead to work to alleviate and avoid physical
guilt. Consumers associate a particular pain.
feeling with a specific product. Once
this product/feeling connection occurs, 6. Fear - Fear is a natural reaction that
the psychological phenomenon known kn encourages self-preservation or
as repetition compulsion takes place. survival. In the course of human
This is when a person repeats an existence, those who responded to
action or event with the goal of the right fear in the right way usually
re-experiencing a certain feeling. That survived. Guns can be purchased out
is why you want to buy a new car of fear for safety. Wearing facemasks
before your old one wears out, or why during COVID-19,
C or even buying out
people want the newest
n smartphone all the toilet paper in the grocery
every year. Selling products that trigger store, are done out of fear. We
this repetitive, positive feeling is a great experience fear when we are about to
way to build audience longevity and a encounter pain or when something
base of repeat customers. I would threatens our lifespan longevity.
highly recommend this value point for Alleviating fear isn’t so much about
brands with extensive product lines. FOMO, but rather providing a product
FOM
The objective
objecti is to make sure a whose value calms someone’s fear.
first-time buyer has the ability to
become a repeat customer because
CHAPTER 3

EMOTIONAL VALUES

70% of buyers purchase a product out of emotion, which means your product has a
better chance of selling if you can appeal to the customer’s heart. To make this
happen, your offer needs to enhance the value of the product and appeal to the
customer’s emotional needs.

If you can appeal to someone’s need for emotional fulfillment, you can build insane
loyalty and extremely high AOVs.If your product delivers on the emotional
gratification the customer is looking for, then you are sure to increase the lifetime
value of that customer.

There are four emotional values that products can fulfill in order to increase
conversion.
Four Emotional Values:
1. Personal Wellness - This value can 2. Empathy - Showcasing empathy
be broken down into physical, spiritual, towards the suffering of others usually
or emotional well being. For involves emotions like compassion,
dropshippers, physical well being is the sympathy, tenderness, championing,
easiest to tackle. According to GWI, and the feeling of being moved.
the global health and wellness industry
is now worth $4.2 trillion. People’s Mirror neurons activate when we
desire to feel good can also be
desi observe an emotional reaction in
exploited by selling fat burners, another person, and so provide the
steroids, or products with sketchy neuronal basis of empathy. Mirror
guarantees and no scientific backing. neurons thus help to create the
When selling feel-good products, contagious behavior that is so integral
ensure the post-feeling or long-term to social life—the shared grief at a
effects of the product are also funeral, the shared joy at a birthday. 2
fune
beneficial to the customer.
custome Selling Regardless of the price/value, humans are
alcohol or drugs is usually a mega-hit as wired to choose a product that allows
they make the customer feel good, but them to feel empathy towards another
they reduce wellness in the long run.You being or situation.That is why we say
can find a massive market in products “yes” to products that give a percentage
like essential oils, hemp, anti-aging of earnings to causes and charities we
creams, at-home fitness, and even CBD. might not be able to help directly.
 CHAPTER 3 EMOTIONAL VALUES

We assume direct responsibility for I find that products that offer

something that is indirectly taking reward-based value have a continuous
place, such as Australian wildfires. So stream of customers who are
we purchase Koala pendants from constantly chasing gratification.
companies who promise to give a
percentage of their earnings to help 4. Nostalgia - People buy products
the cause of wildlife preservation and that help them re-live past
restoration.
restoration experiences. Companies that have
mastered and refurbished old
Human survival is dependent on products to focus on nostalgia
coexistence, which is why we join continue to attract customers.
forces and rally for causes or products Consider the Pokemon franchise:
that showcase empathy. Nintendo refurbishes the same game
year after year because they know
3. Reward - Incentive theory suggests people want to relive the experience.
that people gravitate towards Nostalgia is driven by things or events
behaviors that result in rewards while that impacted who we once were.
staying away from actions that have a When experiencing nostalgia,
negative outcome. People like to be customers are connecting with past
rewarded, period. Products that emotions they
th associate with the
grant a sense of “you earned it” product. I have found that
consistently sell. After a long workout,
consistent dropshipping products focusing on
reward yourself with a chocolate bar. nostalgia have a high virality factor, as
When you exceed your income goals, people are eager to relive moments
buy a new watch as a reward for your that they cherish.
hard work.
CHAPTER 4

EFFICIENY VALUES
In a western society infected with high expectations and a desire for instant
gratification, consumers seek products that will make them more efficient. Ever
since the industrial revolution of the late 1800s, companies have strived to make
products to help consumers to streamline every aspect of their lives.

As human beings,
beings our nature to sustain life has driven us to become more efficient,
effective, and adaptive. As societies continue to develop, the consumer will demand
products that provide more efficiencies. I have broken down the third group of
behavioral tendencies into five values we constantly seek in the products that we buy.
Five Efficiency Values:
1. Friction Reduction - We want to partake, Stripe for payment processing,
find products that help reduce any Apple with a cheap iPhone alternative,
hassle or inconvenience. Taxis are too or even Corvette with the first-ever
expensive, and you don’t want to wait ‘exotic car’ priced under $60k are just
for one in the rain? Get an Uber. a few examples. Products that give
Sweeping is too tedious and customers easy access can appeal to a
time-consuming? Adopt vacuuming massive group of people and are often
robots. The examples are endless.
robots the go-to option for the masses.
Operational efficiency is a constant
product selling point. New and 3. Targeted Information - People want
innovative products that help people easy access to accurate information.
save time, money, and energy are Products that provide this value tend
harder to sell in the beginning due to to monetize through small fees,
the adoption phase. However, when minimal subscriptions, or transaction
accepted as a mainstream
mainst value fees. Most of the companies that have
provider, they become a widely mastered targeted information include
accepted, must-have alternative to the likes
li of Google,Yelp, and Expedia.
the current options. Whether the product is online or off,
it usually requires a foundation in tech,
2. Simple Access - Products that lower and requires proficiency to properly
the barrier to entry or acquisition are navigate the space. I have seen too
highly valuable. These are products or many projects turn sour when they
services that counter the current are outsourced to companies that
status quo and allow customers to exploit your lack of understanding,
 CHAPTER 4 EFFICIENCY VALUES

resulting in nightmares such as slow

delivery times, hidden fees, or even
code theft. Physical products that offer
this value are usually accompanied by
other values that help sustain it, such
as personal wellness for a product like
P90X, or friction reduction for a
product like this document.
pr

4. Financial Savings - People will

spend money to save money. Whether
they instantly use the product or not,
customers are willing to buy a product
that saves them money. The provision
of this value is a MUST for people in
the dropshipping space, as it helps
entice consumers into making a quick
decision. If you are a brand who does
not want to condition customers into
feeling like your brand is all about
discounts, make sure this value is
expressed in other areas such as
“Spend X and get free shipping” or by
using Holiday
Holid sales.
CHAPTER 5

SOCIAL VALUES
We buy products every day to help us look a certain way to others. We are
constantly in need of validation. Even the most mature people still struggle with the
inclination for acceptance. In some way, shape, or form everyone cares about how
others perceive them. In a society influenced and exposed to public opinions, social
values are highly effective to sell against, if channeled the right way.

I have broken down the three social values that I find most important to consider
when searching for a product and crafting a message for said product.

Three Social Values:

1. Social Hierarchy - Consumers buy a Thousands! Look at the white FILA
product to win the “prestige badge.” shoes, the fidget spinner, or even face
They want others to believe that they masks. They pass like a shooting star,
are doing well and appear successful but extremely profitable if you catch
and accomplished. If you have a good them at the right time. Creating a
year, you buy a Rolex.You don’t care trend is complicated, riding a trend is a
whether or not it tells time, you care lot easier. This is one of the most
about the perception
pe of those who important values to provide or
impo
are around you. The Rolex screams “I consider when dropshipping: trends
MADE IT!” and that is the only thing result in virality and that attention
you want people to know. No one translates into sales. When looking for
needs $300 Gucci slides, the only products to sell, take the time to see if
reason they buy them is to show they there is a trend you can associate with
have money to drop $300 on some to help you elevate your conversions.
uncomfortable plastic slides. People
uncom On the other hand,
hand do not become
buy prestige, elitism, and high social the kind of entrepreneur who builds a
standing. Social hierarchy completely real brand only to ride the wave of a
neglects the quality/value relationship, trend. I have seen countless businesses
people are willing to overpay just to suffer unsold inventory, high volatility,
be perceived in a certain way. and even bankruptcy for trying to
build something sustainable on the
2. Trends - People will buy trending shaky foundation of trends.
products simply because they are the
new thing. How many trends and fads
have you seen come and go?
 CHAPTER 5 SOCIAL VALUES

3. Clan Incorporation - Also known as If everyone else is buying something,

mob mentality, this value is ingrained in the reasoning goes, there is a good
our DNA. Whether logical or not, we chance the item is worth our
want to be part of something bigger attention. 3
than ourselves, even if it means buying
There are hundreds of other values
something that we don’t necessarily
that can convince a customer that a
need.
certain product is the solution to their
needs. However, I strongly believe what
If you can create the perception of
I have just outlined is the most
clan incorporation you can build a
fundamental and important to consider
massive base of customers who will
as an eCommerce entrepreneur. Below
back you on anything.
is a breakdown chart you can use to
cross-examine every product you want
Spo teams, for example, sell
Sports
to test or release and see how many
merchandise to let fans feel like they
values it provides. The more values you
are a part of the team.You don’t buy
can check off, the higher the likelihood
the jersey out of need, but because
customers will buy your product or
you want to identify with and show
service.
support for the team.You want to feel
like you belong, and you want others
to know
kn as well.
In his book Influence, Cialdini shows
how advertisers inform us that a
product is the “fastest-growing” or
“best-selling.” Advertisers don’t have
to persuade us that a product is good,
they only need to say others think so.
Cialdini notes that consumers often
use a simple heuristic:
heu Popular is good.
Following the crowd allows us to
function in a complicated
environment.

Most of us do not have time to

develop our knowledge of the stuff we
buy and research every advertised
item to determine its usefulness, so we
rely on signals like popularity instead.
 PRODUCT VALUE POINTS

Primal Values
Survival
Lifespan Longevity
Reciprocity
Pleasure Emotional Values
Pain Avoidance Personal Wellness
Fear Empathy
Reward
Efficiency Values Nostalgia
Friction Reduction
Simple Access
Targeted Information
Financial SFavings Social Values
Social Hierarchy
Trends
Clan Incorporation
CHAPTER 6

IMPULSIVE BUYING
Impulsive purchasing has often been impulsive, but in reality, the decision is
equated to unplanned purchases. rooted in primal instincts seeking
However, we cannot neglect that physical and emotional ease, also
‘impulsivity’ is driven by a known as the pleasure principle.
psychological process that is easily These less-analytical
less-ana decisions we
influenced by external circumstances. make tend to be labeled as “impulsive”
because they appear to be sudden and
While some claim an importance
impo to not predetermined.
finding products and curating offers
that drive consumers into making These purchases
pu are usually
impulsive purchases, other marketers accompanied by a rush of emotions
argue how there is no such thing as an people often describe as a dopamine
impulse buy. Whereas homo hit of excitement, only to have them
economicus (the economic man) leans frequently followed by a sense of
towards making rational purchases
to regret for having acted in an
based on cost vs value, most “impulsive” manner. We often describe
individuals rely on their primitive this feeling as “buyers remorse.” This
behaviors and tend to be guided by remorse is the super-ego kicking in to
the subconscious decision-making establish the boundaries that are
process driven by the id. Because less usually influenced by societal standards
thought goes into the behavior, it may and one’s past experiences.
be perceived
pe as

Attitude Toward
Act or Bahavior

Behavioral Bahavior
Intention

Subjective
Norm
 CHAPTER 6 IMPULSIVE BUYING

When looking for a winning product, I

follow a formula that considers the
theory of planned behavior outlined in
the chart above. My objective is to
make sure tendencies are aligned with
subjective norms to reduce friction for
the buyer. I want to ensure my product
appeals to primal instincts, but provides
enough value so they can justify the
purchase from a logical stance.

I believe that the more value your

product provides the easier it is for
someone to make a quick decision to
purchase.

** On a side note, establish follow up

campaigns with customer happiness
reviews and quick customer service
response times to reassure the
consumer’s decision. Working quickly to
reinforce the good feeling they had in
buying your product will guarantee a
reduction in returns
retu and disputes.
CHAPTER 7

THE SEVEN-FIGURE LIE

I believe every dropshipper is one In the past, I’ve stopped selling
product away from changing their life. products simply because they don’t
This doesn’t mean the one product work well, even though they proved
will last forever, or that selling one profitable. Finally, the net margins are
product will make you tens of millions something specific to my own
in sales. However, one good product business. I want to make sure I have
can give you the necessary enough wiggle room to deal with for
momentum, capital, and confidence to
momentum payment processor holds, chargebacks
pa
continue building your eCommerce or refunds.
business. The big lie most dropshippers
buy into is how they need to find the Most people will find a winning
“next big thing” to be successful. In product if they have the proper
reality, very few people have found strategies and focus on consistency. As
groundbreaking products that sell for soon as you have a product that is
years. Instead, I like to focus on one doing well, I advise building a small
winner per store with the objective of team to sustain its growth while
scaling in a linear fashion. I classify a focusing on launching another store
“winner” as a product that shows an that lets you direct your attention
uptrend in its advertising campaign, towards finding the next winning
clear customer satisfaction, and sees a product.
margin of at least a 20% net profit. I
have killed off many products that In the past, I have made the mistake of
were producing seven-figure sales focusing on one specific product.
because these criteria were not met. Eventually the winning product
stopped converting and I found myself
I like the advertising campaign to be back at square one. This is what I like
on an uptrend so I can leverage to call the seven-figure lie. Regaining
organic shares and get an ideal ROAS, momentum is difficult, so make sure
so I can ease off the gas and focus on you are
a always working towards a
testing new products on new stores. I linear build. Focus on consistency,
hate selling products that don’t work linear scalability, and testing religiously
and I want to make sure customers to prevent having a short run.
have a good experience with
ha
dropshipping as they can easily stop
buying from us if the trust is breached.
 CHAPTER 7 THE SEVEN-FIGURE LIE

If you are focusing on building a brand,

make sure you are working on the next
quarter’s product line while enjoying
the fruits of this season’s labor. Your
next product line should complement
the previous one, customers should
feel refreshed when they see it. The
seven-figure lie for brands is in believing
se
that if they focus extremely hard on a
product line it will convert. Facts don’t
care about feelings, make sure you have
done your due diligence before
committing to a certain line. Run polls
and ask your customers what they
might like to buy. Leverage social media
to see what your audience wants from
you and then execute.

For the fanatics of white-labeling

general products, don’t overdo the
branding aspect until you can guarantee
that your product has legs, the quality is
reliable, and that your offer is unique
compared to other dropshippers
selling the same thing.

Not every product will sell seven

figures, and that is okay. However, make
sure your focus is on linear growth and
not just the vertical scaling of one
store.
CHAPTER 8

ABIDE BY THE LAW

Unless you are spending millions per Big platforms do not care if they lose
month on paid traffic or generating you as a customer. They prefer losing
tremendous amounts of volume, you over putting themselves in a
platforms do not care about you. The compromising situation. Do not try and
first criteria for product research is circumvent policy or attempt to sell
compliance. If you are not completely anything that can get you blacklisted.
confident that your product is
compliant with the platform’s
plat policy,
do not run it.

NEVER sell products that go

against platform policy. Whether it’s
Facebook’s advertising policy, Shopify’s
terms or the rules your payment
processor has, make sure you play
within the boundaries. If you find
yourself having to finesse these
platforms, chances are high that you
plat
are selling something sketchy.

Abide by the rules. Shortcutting the

wrong way to success will result in a
lot of headaches. If Facebook says ** Please note these hyperlinks are active as of
“Don’t sell face masks,” do not sell June 1st, 2020, and may be changed or
face masks. Making a quick dollar on disabled at any moment. These policies are
products that platforms do not allow applicable to the United States and may vary
is not worth the headache, risk, or for other regions of the world.
potential ban.
ban

I have attached policy links to the

most popular platforms. Review them
on a regular basis to ensure your
products are compliant.
CHAPTER 9

STUDYING TRENDS
Understanding the importance of trends and how to easily spot them will allow
you to select products, craft offers, and tailor your ad delivery so you can scale
more effectively.

Most of our winning products have done well because they were launched when
the product’s value was congruent with relevant or up and coming trends. In this
chapter, we will cover the platforms my team uses to search for trends.

Google Trends is one of the popular application to see what gets people
choices for finding potential product talking.
niches. In my eCommerce business, we
use Google Trends to identify seasonal Pinte
Pinterest boasts over 330 million
trends that emerge consistently every active monthly users and has been
year. consistently growing for the past two
years. This app is popular among
If you focus on seasonal offers, I women ages 25 - 44. For eCommerce
recommend testing and perfecting entrepreneurs who understand the
your creative four weeks prior to the importance of this audience, Pinterest
expected uptrend to ensure your should be at the forefront of your
operations are stable and your trend research.
campaigns are optimized for delivery.
You can also use Google Trends to
keep a close eye on your competitors
and what their customers are taking One of my favorite trend searching
interest in. tools is Social Mention. This search
engine allows you to quickly see
trends on specific keywords, recent
mentions, public sentiment, similar
Pinterest is one of the hottest keywords, and more. This search
platforms to find emerging trends and engine is largely focused on Reddit and
tracking internet chatter. Pinterest Flickr activity.
activit
thrives on people sharing stuff they
love, which is why I enjoy using this
 CHAPTER 9 STUDYING TRENDS

This tool is highly recommended when focusing on environmentally-friendly

looking for current events that are products targeted to audiences in cities
very hot. However, note that this tool where the strikes had just taken place.
is not https secure so make sure that We curated an organic message on
you use it at your own risk. people's news feeds while providing a
solution (with our product) to their
desperate desire to act on climate
change.
chang

This website focuses more on the Including trends in your product

gossip side of trends and can give you research will greatly improve your
a proper sentiment for what people chances of success. On the other hand,
are focused on right now. I like to some of these trends have short life
quickly glance at this website once per spans, so you need to be well
day to see what, if anything, catches my structured to quickly get your cost of
attention. goods (COGs), creatives, and offers in
place before that trend becomes old
My objective
objecti with What’s Trending is news.
to watch the trending videos of the
day to gain an understanding of what
people will be talking about online in
the days to come. Think of this website
as intentionally finding what you will
eventually come across by scrolling the
explore page on Instagram.
explo

Our objective as dropshippers is to

incorporate trends and current events
into our product selection, advertising
creative, and landing page offers. If we
can curate an experience and sell a
product that has organic momentum
behind it, then there is a strong
possibility for conversion.

During Greta Thunberg’s international

walkout strike, we capitalized on
people’s need to take action by
CHAPTER 10

SOURCING WEBSITES
Newbies to the dropshipping space often find themselves sourcing from Aliexpress.
We are usually left in the dark about the websites top-level eCommerce experts
use to find potential winners. In this chapter, I’ll share the websites my team and I
use to find products and what I like most about each of them.

Most of these websites are lackluster as they have very complicated user
interfaces, and some of them are entirely in Chinese. However, many times these
are the websites that have winners listed before anyone else. If you can get around
the complicated UI and use the robust Google translate option, you will find
yourself finding a lot of untapped products that have a great potential to be good
sellers.

This website was built for the This may be one of the more
merchants from the city of Yiwu and complicated websites to maneuver if
Dongyang, south of the popular you do not speak Chinese. 1688 is the
manufacturing city of Hangzhou. B2B domestic online market of
Alibaba. Even though this website was
Even though it may not be popular designed for wholesalers, you can
with most US ecom entrepreneurs, usually find a lot of the suppliers on
you can find almost anything on both Alibaba and 1688.
Yiwugo. With over 70,000 merchants
on the platform, you are sure to find I like this platform because I can often
new and innovative products. find better pricing on it.Yes, Alibaba
inflates their prices for European and
If you are looking at working with a Western customers, so consider using
merchant who can withstand high this website to negotiate your COGs
volumes of orders, then this website is rates. The low prices were so
a good place to start scouting for worthwhile, I hired an employee who
good wholesale prices. spoke Chinese, and his only job is to
spo
find products for me and put them in
direct contact with my Chinese
supplier to get the best price possible.
 CHAPTER 10 SOURCING WEBSITES

This is a great way to get competitive

rates from day one.

Apa from potentially finding better

Apart This is a great place to search for
prices, you can also find a lot more manufacturers that specialize in
products in 1688 than Alibaba. Alibaba, custom products. What I like about
just like Aliexpress, focuses on product this market place is that different
quality due to our high standards on manufacturers have the ability to bid
products. So with a less regulated and compete for your job.
online marketplace like 1688, you can
find a bigger selection of products
p - MFG is one of the biggest custom
albeit at a potentially lower quality. manufacturing marketplaces and the
platform is very user friendly. I have
submitted some projects in the past
and realized that since you are dealing
For entrepreneurs focused on building with a lot of international
strong relationships with their supply manufacturers you are also looking at
chain, I highly recommend visiting a potentially
potential higher cost of product
Made-In-China. This website is development. Unless you have prior
exclusive to Chinese manufacturers custom manufacturing knowledge, I
and has over 10,000 different factories recommend skipping this site until you
across 25+ niches. know all of the necessary elements to
successfully developing a product.
What I like
li about this website is they
have secure payment methods and you
can usually find verified sellers with
representatives who speak good We’ve always feared wondering what
English. I have made several trips to happens if we pay the supplier and the
China to visit manufacturers that I product never arrives or having what
found through this website. we ordered arrive in complete
shambles. DHgate offers a solution to
I would highly advise starting here if that problem, which is why they are
you are ever interested in making a worth considering while researching
custom product. Once you establish a products or when you want to test
pr
relationship, make it a priority to go to out a new supplier or manufacturer.
one of their tradeshows to check the
legitimacy of the manufacturers and
their factories.
 CHAPTER 10 SOURCING WEBSITES

DHGate keeps the payment you make Regarding payments to merchants try
to the merchant in escrow until you and stay away from Telegraphic
confirm the receipt of the purchase. Transfers in advance (advanced
When testing suppliers with bulk payments) and make sure you are only
orders, protecting your payments is a buying from verified sellers who
massive risk management tactic you accept small orders as test batches.
need to implement.
When hunting for your next winner, it
Apa from that, they are global, they
Apart is important to cross-reference
accept multiple payment methods, and multiple sites for the best possible
their UI is very similar to that of price, shipping times, and quality. Once
Aliexpress.You may overpay for safety you have found something that you are
and reliability (just like Aliexpress or satisfied with, make sure your supplier
Alibaba), but it is a good tool to have is informed about where you are
at your disposal while you find a getting your COGs and never accept
reliable supplier.
supplie the first price they offer you. The more
volume your store produces, the
greater negotiating power you have.

I like this platform for their hassle-free If you see it on Aliexpress, there is a
payment protection. Global Sources is good chance you can find it on
based out of Hong Kong, so be another B2B Chinese marketplace for
cautious of any up and coming changes cheaper. A 5% difference in COGs will
in their Terms and Conditions because make an impressive dent in your
of China's desire to take back the bottom line at the end of the year, so
city-state. be sure to fight for every percent
while maintaining good risk-mitigation
My team does a lot of product
p and product integrity.
research on this platform, and we have
noticed many products listed here
were nearly impossible to find on
other sites. They are very user-friendly
and probably the most
Western-friendly site from the entire
list.
list
CHAPTER 11

PRODUCT PRINCIPLES
All of the products we test need to Before we discuss how we determine
abide by our set principles. In this a product's virality, let's get the smoke
chapter, we will be discussing the and mirrors out of the way. Not every
“must-have” principles, why they are post with high engagement equates to
important, and why we refuse to scale a winning product.You need to look at
any products that do not pass these the quality of the engagement and
highly critical standards. realize that a lot of dropshippers run
price per engagement (PPE) campaigns
The seven
s principles apply to general to boost social credibility before going
dropshipping as it is where I have into a conversion campaign.
found most of my success. Not every
single principle needs to be met in It is acceptable to run a PPE campaign
order to determine if the product has along with a conversion campaign, but
potential. We do not like playing stay away from PPE ad spend unless
guessing games, instead, we prefer you have determined the product to
stacking the odds
o in our favor so that be a winner.
we can have a higher success rate.
We determine virality by analyzing
Once we set these principles as the competitor ads where we consider a
standard for our products we saw a few factors. We look at the
massive increase in our winning engagement-to-share ratio, if your
product ratios. Do not be the product has equal or higher shares
entrepreneur who tries to justify why than engagements, you have a strong
a product could work, instead, do sign that people are liking what they
everything in your power to find out see. Then, we look at the recent
se
why it can fail. Do not be an ally of the
wh engagement on their post to see if
product, be a cautious skeptic and people are actively commenting about
make sure that you intricately probe the product. Finally, we look at the
each product before choosing to run main country they are advertising too
it. and find out if the comment section
language matches that of their main
Virality - Can your product go viral? Is source of traffic or if they are getting
sou
it the type of product that people want cheap engagement campaigns coming
to share because they are in awe of from third world countries.
how many values the product meets?
 CHAPTER 11 PRODUCT PRINCIPLES

If there are no competitors running product so that you can determine if

the same product, we focus on gaining you have room for substantial net
traction and engagement from margins and volatile cost per
conversion campaigns alone. At the acquisitions (CPAs).
end of the testing phase, if the ROAS is
sustainable, we will introduce a small The formula we use on our Excel
PPE campaign to boost social proof. spreadsheets is extracted from the
equation:
Large Audience - Why settle for a
highly-niched product when you can Price X Quantity =
sell products that have a mass-market Total Fixed Costs +
appeal? (Variable costs per unit X Quantity)

We like to direct our attention to We measure our break-even ROAS in

products that have a generic appeal. units, not in dollars. The lower the
Ask yourself, who is my audience? Will breakeven ROAS, the more wiggle
this product be appealing to a high room we have for volatile ad
percentage of that audience? Is this performance.
segmented group big enough to scale
profitably? Your cost of goods should not account
for more than 25% of your total retail
The main resource we use to price. Make sure you constantly test
determine the size of an audience for your retail price, as you may find that
a product is the Facebook ads increasing it will not affect your
platform. Once we have selected the conversion rate.
product, we create a bogus campaign
in Facebook’s ad manager to find all
the potential relevant interests in this
niche. We only select products that
nich
have a potential reach of more than 50
million people.

Low COGs - Make sure you know

your break-even return on ad spend
(ROAS) for the product you want to
test. The way to find out your
breakeven ROAS is to know how
much you will be paying for your
 CHAPTER 11 PRODUCT PRINCIPLES

In order to ensure a low break-even If your cost of goods accounts for 25%
point (BEP), you need to work on of your sales price, you have mitigated
reducing your total fixed cost (TFC) substantial risks while trying to scale. If
which is a number that you can we cannot negotiate a price point with
somewhat predict and control. On the our supply chain that meets this
other hand, your total variable cost principle, we do not test the product.
(TVC) is somewhat volatile as it has
variables that are hard to calculate I have
h attached a link to a ROAS
(such as paid traffic or disputes). Allow calculator Google Sheet that you can
for a higher margin of expenditure duplicate and begin using. Be sure that
which can be accomplished by reducing when you duplicate it you set it on
your COGs. private for safety reasons and do not
edit or adjust anything on the original
sheet.
 CHAPTER 11 PRODUCT PRINCIPLES

Limited Competition - We try to stay As mentioned above, you can check

away from products if they are mass the Facebook ads library to find prior
run by multiple dropshippers. There product ads run by a competitor and
are enough products to go around, analyze them for clues to how it
and I don’t think chasing behind performed.
competitors is the best strategy to
maximize your profitability. If you see a product that is doing well
and think you are too late to jump on
I recommend checking the Facebook it, revisit it and test it in a few months.
Ads library to see who is running the We found that many people who saw
same product, how long it has been the competitor’s ads and did not buy
running, and whether their campaign is eventually bought from us. A lot of
on an uptrend or downtrend. Focus things can get in the way of a potential
on products that have space for a new customer who wants to buy the
seller to come in and claim a piece of product, all they may need is a friendly
the prize.
priz You do not want to be the reminder to buy later.
dropshipper that is always picking up
the crumbs. Compliance - As mentioned in the
compliance chapter, ensure your
Many customers will use Amazon as a product will not land you in trouble
price-checking platform. Many times a with the platforms you are using. Many
client will land on your store, add the of these companies give you the
product to cart, and then price-check benefit of the doubt when starting off.
with Amazon to see who has the However, if they sense that you are
better deal. If Amazon is loaded with pushing their boundaries,
boundaries they will ban
listings for the same product, you may you without hesitation. If the products
find your informed buyers dropping off we think about running might not be
to buy from someone else. compliant we automatically cross
them off our list.
Product History - Know the history of
the product before you start running Customer Feedback - We want to
it. Find out how customers reacted to know how customers felt about the
the product by reading your product in the past, so we analyzing
competitor’s comment sections.You competitor feedback. But we also
want to know the quality of the want to give the product a fair shot
product and if the customers were for the next run, and for that, we will
satisfied with their purchase.
pu need people to tell us what they think
about the product.
p
 CHAPTER 11 PRODUCT PRINCIPLES

If we come to a unanimous conclusion not rule it out simply because you saw
that the product does not meet the it “fizzle out.”
customer’s expectations, we stop
running the product on principle, Remembe you never know why a
Remember,
regardless of how profitable it may be. competitor stopped running a certain
product. If you believe that it was
If you damage the dropshipping saturated in the past, let a few months
experience for a customer, they might pass and revisit the product to see if it
stop buying from any dropshipping can be rekindled.
websites. Do not be the entrepreneur
who makes a front end dollar at the
expense of longevity, integrity, and
consistency.

On many
ma occasions, you will be
confident in a product’s potential. The
product meets your standards, maybe
it had a good run, but it fizzles out for
some reason. There are so many
variables in play for a product to
become a winner that not allowing it
to have
h a second run may be a foolish
decision. If you’ve had a winning
campaign that has dried up, make sure
to revisit it again in the near future.

We keep an intricate log of past

products and creatives that we revisit
after they cool down from possible
market saturation. I have seen several
instances of a product that was run
years ago, was ruled “burnt out,” but
now yields seven-figure returns.

If a product
p did well in the past, it is
possible that it may perform again in
the future.You may have to test a new
offer, creative, or demographic, but do
CHAPTER 12

SPY TOOLS
Many eCommerce “experts” speak realize how several small slices of pie
negatively about using spy tools. They amount to a beautiful bottom line at
ask: “why would you settle for a piece the end of your fiscal year.
of the pie when you can have the
whole pie to yourself?” The fallacy in I have selected a free and paid spy
this belief is that many dropshippers tools that my team uses on a regular
lack the resources, infrastructure, basis to supplement our product
supply chain, or experience to outright
supp research process:
catch fresh winning products all the
time.

Leveraging spy tools is important, but For people who lack financial
it should only supplement, not resources, this is a great Chrome
substitute your product research extension to start with. It allows you
process. If you are new, I recommend to filter out all the posts on Facebook
leveraging spy tool software as except for your ads. The only caveat is
frequently as possible, as they can give that you may need to create an alias
you insight into competitor products, profile that focuses on reproducing
pricing, creatives, and their landing
pricing online purchase
pu behavior so you are
page structure. fed relevant sponsored posts filled
with competitor dropshipping
There are hierarchies and ranks in the products. With all free tools, you get
world of eCommerce. If you are at the what you pay for so please be mindful
bottom of the food chain, you need to that this tool may get buggy from time
use every tool at your disposal to to time.
understand how the sharks behave,
hunt, and grow. If you need capital and
can’t afford the luxury of testing
hundreds of products, make sure you
hund While this tool scans ads more
leverage spy tools. effectively than other free options, it is
not on the cheap side of monthly
There is no shame in only getting a subscriptions. The image below is the
piece of the pie. If you have the proper specific filter system we use when
structure set in place and your focus is trying to find products on Ad Spy.
on a linear scale, you will quickly
 CHAPTER 12 SPY TOOLS

Some dropshippers give Ad Spy products pop up when using a more

extremely specific filtration criteria, lenient set of requirements.
but, we have seen a lot of great

1 - Focus on products created over the last 30 days.

2 - The Ad should have at least 1,000 likes, but make sure you check the quality of
the traffic as well.
3 - Select the US, Canada, Australia, and top European countries. (If it sells in the
United States, it has potential to sell anywhere).
4 - Select Shopify as your platform of choice and make sure it is set to English and
Spanish.
CHAPTER 13

ESTABLISHING A PROCESS
One of the foundational elements that qualitative and quantitative data
allowed me to effectively find and sell collection.
winning products was documenting my
actions and establishing standard Consistency is a big issue for any
operating procedures that could be dropshipper. Being able to establish
replicated at scale. standard operating procedures (SOPs)
to duplicate your success is a tedious
Your business decisions should be process but once established will
supported by facts and evidence. The streamline how your business is run.
objective is to reduce what you
believe to be true of a product and The negative
negati impact of not knowing
what the customer really wants and what factors played a role in you
feels. finding a winning product can be very
high. If you did something right, why
If you are building a brand, knowing wouldn’t you record the flow of those
your audience is pivotal to the actions to then duplicate them at
development process of your product scale?
line. If you wait until the last minute to
know what your key demographic is Building your product research
looking for, you are increasing your systems is crucial to saving training
risk of failing. costs, maintaining quality and
consistency throughout your process,
Quick surveys
su can allow you to know increasing productivity, and upping
how your customer is feeling, what your odds of replicating the same
they want, and what expectations they outcome.
have. Data collection will allow you to
research and develop products As you grow in your eCommerce
tailored to what the consumer wants business it is of utmost importance
and not what you as a seller “feel” is that you document the whole process
best.
best if you intend to scale.

If you do not have an internal team

that focuses on the market research
you can always outsource it to a third
party company that specializes in
 CHAPTER 13 ESTABLISHING A PROCESS

Building your product research

systems is crucial to saving training
costs, maintaining quality and
consistency throughout your process,
increasing productivity, and upping
your odds of replicating the same
outcome.

As you grow in your eCommerce

business it is of utmost importance
that you document the whole process
if you intend to scale. Document your
product research process, perfect it,
and create detailed steps on how to
follow it.
CHAPTER 14

FIND YOUR NEXT WINNER

Information is only valuable if you use You must always be a student of
it. The common pain point I notice product research, consumer behavior,
amongst dropshippers is how they ongoing trends, and the marketplace if
cannot find a product that converts. you want a chance of making this
All the evidence points to the lack of business model work for you. I hope
dedication, minimal product research that this was as much of a joy for you
effort, or misguided tactics. to read as it was for me to write it.

I truly
tru believe if you apply the Thank you for trusting me in this
information I presented, you are well process; I hope your expectations
on your way to having success in the were met. If you have any ongoing
eCommerce space. My hope for you is questions regarding product research I
that you understand that this process am in the process of launching a
is long, tedious, and only those who Facebook group where you will be
persevere will see the fruits of their able to join and continue growing and
labor.
labo learning as an eCommerce
eComme
entrepreneur.
No single piece of information is ever
useful unless it is internalized, For more details about this private
personalized, and applied. As you begin group, message me on Instagram and
to search for your next winner, use I’ll make it a priority to respond.
what you have learned, and revisit this
document regularly.You will not make
it very far if you run your eCommerce
business like
li a side hustle. Focus on
building a sustainable, long-term
business and I guarantee you will meet
your goals.

I believe product research is the

cornerstone of any successful
eCommerce business, and you may as
well throw in the towel now if you
overlook its importance.
lukebelmar
 REFERENCES

1. McLeod, S. A. (2019, September 25) Id, ego and superego.

Simply Psychology. https://www.simplypsychology.org/psyche.html

2. Robert Sylwester (December 7, 2006). My Brain Connection

Brain Connection. https://brainconnection.brainhq.com/2006/12/07/social-intellige
nce/social-intelligence/

3. Rob Henderson (May 24, 2017). The Science Behind Why People Follow the Crowd
Psychology Today. https://www.psychologytoday.com/us/blog/after-service/201705
/the-science-behind-why-people-follow-the-crowd
Luke Belmar - 2020