 Hey what's going on guys welcome back to another video. So today I want to have a discussion with you about saturation. I just got off some calls with some people and the topic of saturation came up. It seems to be quite a common topic as well that keeps cropping up at the moment so I thought why not do a YouTube video where I can take you through my logical kind of understanding and show you how to identify the saturated areas of drop shipping and also how to avoid them. So today I'm going to be talking about whether drop shipping as a whole as a business model is saturated I'm going to show you how to kind of identify those products that are saturated so you know which ones to stay away from and I'm also going to be talking about niche saturation as well. So if you put me on the spot and you said Jack is drop shipping saturated unfortunately it's not as black and white as a yes and no answer. Ultimately it depends so let me explain. To fully label something as saturated you must this is unavoidable unforgivable you must understand four things. If you don't understand these four things about certain products about certain niche about drop shipping as a whole then it's impossible to understand whether it is saturated. So number one is how many new people are coming into the market. This is very very important because every new person that comes into the market will be looking to buy a certain item or buy a certain product and if that's in a niche that you're in they'll be interested in that product. It doesn't matter how many people are advertising in a certain space the second a new person comes into that market the bear purchase there buy is essentially up for grabs and everybody's going to be competing for it. Number two is what is your market size and strength. If you are going to try and target a super niche down niche of birdwatchers that love basketball and want infrared binoculars something random like that obviously that's super super specific it's a tiny tiny market whether it even exists you're probably not going to have much chance of success in something like that whereas if you're targeting a massive market I'm going to show you the dog niche as an example because that's typically the most popular one in the drop shipping space. I'm going to show you that market size is super important but also how strong is the market as well so we'll be talking I'll show you some data and some numbers in a second. Number three how much of the market has been covered I'm going to show you some different ways of identifying whether a product is saturated by looking at the number of advertisers and the more advertisers and the level of success of the current advertisers versus the size of the market again I'll be showing you some different side-by-side comparisons it will help you understand where the saturated areas are and how to avoid them. And then number four how is the product being advertised this is super super important because you will succeed if you can do things better than everybody else so if you see a product that is heavily advertised but it's using recycled content from online from suppliers and Chinese suppliers whether that's Aliexpress or other ones if that's the only method that advertising people are using there's definitely an opportunity there to go above and beyond that and outdo them and outperform them with better creatives and a better Shopify store so that definitely comes into play as well even in the most saturated of markets or products or niches. So just because a lot of people are selling the same product it doesn't necessarily mean the product is saturated however there is kind of like a but the more people selling the same products the more difficult it is to become successful of course it's going to require a lot more work. So a brilliant example I like to use is that if you want to know how difficult it is to sell a product or whether you have a high chance of success or not perhaps I'll do a video on this actually is you need to ask yourself how replicatable is your business and when I say your business I mean your product so how easy is it for other people to sell I mean your Shopify store how easy is it for somebody to create a Shopify store looks very similar I mean your supplier can people deliver it as quick as you can and then number four is your ad creatives can people replicate your ad creatives and if all of those things are very easily replicable so you're selling their products that's on Aliexpress that anybody can get hold of number two of course your Shopify store if you're just using a default template and you're not really customizing it at all then with somebody with my level of experience certainly you could build a Shopify store probably in a couple of hours that looks exactly the same as yours how can you expect to be successful at anything if somebody can beat you and do a better job than you in less than 24 hours work it's just not it doesn't work like that it doesn't stack up like that I'm afraid. Number three supplier for using Aliexpress and it's taken two to three weeks anybody else can use Aliexpress suppliers but do you have a supplier that's better than everybody else put yourself in the consumer's mind if they're considering a few different companies or businesses to choose from and they have somebody who can deliver it in a week somebody who can deliver it in three weeks who are they going to go for it's pretty obvious they're going to go for the shorter delivery time and then number four obviously ad creatives if you are just using recycled content I can go to viral e-commerce I can go to band of ads and within 24 hours for less than $20 I can have an ad that looks exactly the same as yours so within 24 hours spending less than $100 I can be the same as your business you cannot expect to succeed if you are the same as everybody else and you're easily competed with if you have to go above and beyond past what most people are willing to do and most people aren't willing to put in the extra hours or spend or invest that extra money into their business so let's try and stay on track it's going to require a lot more work perhaps I'll do like a live stream I'll try and get a live stream once a week where I can just kind of talk you through things in a bit more detail perhaps that's the sort of thing you guys would like who knows point number one then how many new people are coming into the market so we'll use the dog niche as an example the UK alone one million dogs are adopted per year in the UK four million dogs are adopted per year in the US if you tag it both these countries that's five million dogs that have been adopted and therefore that's five million dogs that need a dog color they need a dog bed they need dog bowls they need dog food they need dog toys they need dog treats they need dog training they need health they need so many different things and being a brand new dog that's been born has been adopted it needs all of those things so there's an argument there to be made that there's potentially up to five million brand new customers every single year between these two countries now obviously some of these dogs are going to get adopted into homes that already have dogs so they might share a dog bowl might share a dog bed but nonetheless there's still opportunity there for certain products and also when somebody adopts a new dog there's that novelty and when somebody is super excited and something's brand new and fresh they want to spoil it they want to buy it a brand new bed they want to get it some new toys to play with so they're not using the old hand-me-downs so there's definitely definitely definitely a lot of potential every single year this is why the dog niche is brilliant as well by the way because there is so many new people coming into the market each year and what it also means is that products that sell this year will sell well next year will sell well the following year that's why you see the same products kind of cropping up every single year number two what's the market size and strength so we use the cat and dog niche and the UK size there's approximately 10 million dogs in the UK and 11 million cats in the UK in the US there's 65 million households 65 million houses that have a dog most of them are going to have a dog bed in most of them are going to have dog bowls most of them are going to have dog leads dog collars dog toys dog food dog treats and 46 million households have cats that is frigging massive so the average dongle now spends approximately three grand per year that's a lot of money and the average cat owner spends um it was somewhere between sort of like a thousand and fifteen hundred so i went for the lower end it is a growing market every single year as well so these things by the way they don't just apply to the dog and cat niche do your own research spend it took me like 10 or 15 minutes to find this information do your own research about your own niche about your own products so this is the US pet care market we have the different colors we have dog catfish bird and others will focus on dog and cat they're the largest ones and we'll go all well we'll start at 2020 and 2021 because there's specific numbers on there well you can see number one is it's predicted to carry on growing year on year as the population increases even if the percentage of dog owners stays the same as the population increases that means more and more dogs as well as cats of course so if we go all the way back to 2020 41 billion dogs was approximately half so we can give or take it's about 20 billion dollars a year 20 billion dollars if you think that you can't make just a few hundred grand in a 20 billion dollar market industry if i said that the right way around then you're a bit naive no matter how competitive it is half a million pounds or a million dollars sorry half a million dollars or a million dollars it's such a tiny tiny tiny tiny bite of that overall market that everybody with the right product and marketing strategy is capable of achieving that into three and four so this is the difficult bit really so how much of the market has been covered and how has the product currently been advertised this is a difficult bit so there's no so with this numbers don't lie right they're very black and white however with this then you do kind of there's a bit of a gray area you have to make your own judgment so number one is just start looking do some searches across the different social media platforms for the product in question for the niche in question look at the views and the amount of advertisers and see if it's working now you can also check google trends so go into google trends in fact i can show you and you can search for a particular product so if we put in here dog bed just as an example united kingdom 2004 to present and we can see this clear kind of times of year where it spikes in popularity and ideally you want to get in near the bottom near kind of like may or june time for this particular search term because then you know more and more people are going to be buying this is more and more interest around your products and it will be growing so that's how you use google trends super quick easy and free way and free method of doing that look at the views and amount of advertisers then so if you did want to consider dog beds and it was the right time of year go into different social media platforms search for dog beds use the key terms like buy now or dog bed or today only those sorts of things to try and find the drop shipping ads you can use tools as well of course like minor or drop us by shop hunter those sorts of things to find the specific product or store selling certain products and look at the amount of views that that adds half if there's like half a dozen advertisers that all have 10 million plus views around your product then obviously it's going to be quite difficult to kind of break into that and make a difference and outperform those guys whereas if you see maybe a couple of different advertisers between them they only have say half a million views and they're in the dog niche where there's every single year around five million dogs being adopted and there's 65 million households half a million people even five million people seeing a particular ad about product that's not a lot of people in comparison to the overall market size so that would indicate there's definitely opportunity there as well look at the ad copy that they're using then are they all using similar recycled content from these cheap and cheerful ad creation softwares if they are and they're being successful using those sorts of things imagine how successful you can be if you use user generate content that's original that nobody has seen before it's going to spark a lot more interest versus the same clips on repeat that everybody else is using so just look and think when you see those creations ad creations is there room for improvement can you outdo them can you do something better than them overall then here's the key takeaway from the video it's about making a judgment considering all of the things I showed you in this video and deciding whether it's going to be worth your time or not if in doubt whatsoever even if there's the tiniest little bit of doubt just test it no dropshipping is a amazing business model there isn't many business models out there that you can test to see if it's going to work before having to invest thousands of pounds with dropshipping for approximately 300 pounds 300 to 400 pounds you will know if you have a business that can potentially make you hundreds of thousands of pounds if not millions if that initial test spending three 400 quid goes really well when you see a returning you see a profit the more money you put in the business the better it should perform if you put it in the right places if you put it into your marketing if you put it into private label in the product and it can grow into something that makes your considerable amount of income for many many years to come on that note guys thanks for watching the video before you go though a very very very quick message if you are interested in having somebody's help guide you through the saturation process or guide you from the very beginning so those four steps I showed you in the beginning I can help you find a product that can help you build a shop for the store can introduce you to the agent i use in china and I can help you launch your business to 10k and beyond if you aren't looking for a mentor somebody to hold your hand through the entire process then what you need to do is jump on a call with me and let's have a chat about how I can help you to do that what you need to do is go below this video and check out this mentorship link this hidden call link if you click that it's going to take you to this page here so what this page is essentially is a series of six or seven questions it only takes three or four minutes to fill out it's super quick it's more of like a gateway a barrier to keep the time wastes away I only want to be working with those people who are super serious and fully committed to this so there's a couple of questions in there like what's your current level of experience what do you want me to help you achieve what your goals are that sort of thing so it lets me know kind of where you're at now and where you want to get to and if it's realistic and I feel like I can help you get there then you'll get through to my calendar where you can book a time and date for us to jump on a call and have a chat I'll see you there thanks