Drop Ship Home Businesses should have a Customer Retention Strategy

If you plan to start a home based business based on drop shipping, make sure you choose the right niche product to sell. There is a tendency to think that niche products are drying up, but that's not exactly true. Yes, some of them dry up and no longer are 'niche' (or they disappear completely) but there are always new ones taking their place.

But don't just pick any 'cool' product. Pay attention not only to the product's market potential, but also to its customer retention value. What do I mean by 'customer retention value'? I'm referring to the product's ability to attract repeat business.

Some products are one-time purchase type products. They might be 'niche' products but there is little chance for repeat business if the customer might only purchase one ever few years. If you are looking at a product like that, are there add-on products that can be sold later? Or are there replacement parts that wear out and need to be purchased again? You can look for opportunities in that scenario. Another approach is to sell products that need replenishing - perhaps something that is purchased every 30 days or so.

This kind of approach will help you get repeat business from your customers (versus one time business). Going after just one time sales requires a lot of energy and expense while just serving your past customers is easy and natural to do. So don't just go after the latest greatest cool product without considering its customer retention value. How to find niche products for a drop shipping home business? Try the Worldwide Brands Online Directory.