This post will try to cover everything that will give you a different look and perspective on the drop shipping industry. We will go through two essential steps in this post- first is related to market research, and secondly, we will cover everything about pricing psychology.

Market research in a different prism 

You may say that every market on big marketplaces like AMZ, eBay or Walmart is already flooded with a big pool of competitors. First of all, competition is a growing thing. You can just restrict anyone from using those platforms, especially selling the same product. Secondly, competition is massive, and it's not a hidden fact. What should you do in this case? 

Our pro tip would be this - go and check your competitor's products. eBay and Amazon have a comment section and paid customers rate each product with five stars. Our pro tip is going to your competitor's comment sections and find what paid customers are saying about customer service or the product. It's beneficial to click on 1-2 stars reviews, so it's easy for you to find negative reviews.

Let's take a look at the 'car mats' market on the Amazon. Write 'car mats' in the search bar and look for the results. Now, let's look at the first three products you see on top of the competition. Check product pages of each seller and deep down look for negative comments (1-2 stars). Congratulations, now you have customers who were not satisfied with the product's quality, customer service or delivery time. Now you have a chance to improve those aspects and outplay your competitor (check the image below, you see that customers are not happy with the quality of 'car mat'. Some of them say it's way too little or thin. So, find the supplier that perfectly fits particular car models and are not thin).

Pricing psychology

Sometimes you see products with prices like 4.99, 5.99, 6.99 etc. You may wonder, what's going on? Is there anything magical involved in .99? No, the short answer is definitely no. So, according to psychology, our brains read numbers (so prices) very fast, so they first look at the left digit. For instance, if the product price is $20, then people see 20 right away. If you take 1 or 5 cents out from that $20, then pricing would go like this - 19.99 or 19.95 - so, our brain will read 19 as the first thing, and our subconscious mind knows that 19 is cheaper than 20. It's a little psychological trick that many vendors and brands use every day. For instance, you can check the product pages on eBay, and you'll see that many sellers are aware of this trick and use them in everyday life (check the image below - you'll see that most of the eBay sellers use .99 or .95 trick in any niche).

In the latest report from the digital company Gumroad, we see that .99 has a bigger conversion rate. So, why not implement this little trick in your daily business model? (check the image below - here is the report given by the Gumroad related .99 trick)