Selling products under $5 is an awful idea since that rate is relatively low for pricing a product.
But one thing you should know about eCommerce is that, whatever price you decide to sell your products at, as long as you get a considerable number of customers and sell lots of units per month, you are bound to make good money regardless of the price.
So, what are some reasons to sell products under $5?
That is a question that many people, primarily new sellers, ask.
Luckily, that is what we are going to talk about here today. Read on.
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Cheap Products Sell More
One good reason to sell products under 5 dollars is that cheap products sell more.
There is a high chance you will end up selling more units every month when selling products under five dollars, compared to selling highly-priced products.
The reason is that online buyers are known to be “impulse buyers.”
These are buyers who have not planned to buy anything at the time but are attracted to something you might be selling at a low price.
Therefore, seeing that it is a good thing that’s only being sold at a meager price, they buy it even if they hadn’t budgeted for it.
That is one massive advantage of considering low-priced products.
You end up capturing the attention of almost everyone you target in your marketing strategy.
That also helps your store and popularize your brand as one that sells affordable products.
When your brand becomes famous for selling cheap and affordable products, you will see monthly sales increase and rake in more profits.
Therefore, that is one thing you must consider, especially if starting a new eCommerce store, because it may greatly benefit you.
They Are Easy to Ship
Products under 5 dollars are effortless to ship. One thing that makes them easy to send is that they are small items with limited weight.
Regarding shipping, rates increase depending on how much the product weighs.
If you sell heavy products, you will pay substantial shipping costs, which might hurt your projected profit.
Therefore, selling large items without factoring in the shipping cost may result in huge losses.
Fortunately, that is not the case with small products under $5.
Shipping costs are meager for small products, so your profit can be pretty good as long as you sell plenty of monthly units.
Since small items sell faster than large ones, this can be very lucrative.
You must ensure you operate your store correctly, price the items accurately, and choose affordable shipping options.
Since you are selling small items, shipping them will also be faster, which is ideal for your customers.
Most customers nowadays want to receive products they ordered online quicker, and this can be a good thing for your store.
They Are Cheap to Test with Facebook Ads
Facebook ads are currently the best way to get your products to targeted customers on social media.
There is no doubt that Facebook ads can get you a lot of customers, provided you know how to target specific customers depending on the niche of products you are selling and your budget.
Selling products under $5 can be very easy and cheap because almost everyone might be able to afford and purchase the products, provided you market them well.
You need to attract customers with well-designed posters and unique products under 5 dollars, which you know are bound to attract clients and sell fast.
With Facebook Ads, you can start small and increase your budget as you continue making more sales.
For example, you can start with a daily budget of $5, getting you several deals daily.
That can be a good strategy since you may reach a few hundred customers on Facebook with that budget. If the conversion rate is reasonable, 2 – 5%, you can make much money from such a small marketing budget. You will get a low CPC.
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You Can Easily Upsell Customers
Upselling is the process of persuading a customer to buy additional or more expensive products.
For example, you may sell cheap and costly products but then choose to market the 5-dollar products.
When customers come into your store to make a purchase, you can quickly try to upsell them and get them to buy expensive items, which may increase profits.
People like cheap stuff, and the only way to get their attention first is to offer them lowly-priced items and then try to persuade them to buy other things that you may be selling at a higher rate.
This strategy has worked for many eCommerce stores and continues to work today.
Upselling is one of the best ways of getting your customers to buy more products from you without needing another marketing budget for the other products.
Profit Margin May Be Higher
Although many people think it is impossible to make huge profits selling products under $5, we operate on the notion that you can probably make substantial profit margins just by selling low-priced items.
Cheap products sell more, and because of that, you might end up selling many units a day, week, or even a month, which results in huge profits for your business.
We also mentioned above that you can easily upsell customers once they are attracted by the cheap products and decide to visit your store.
Since you can choose to sell cheap and expensive products, you can only market the cheap items and upsell customers in your store to purchase costly products.
That results in high-profit margins for the cheap and highly-priced products you sell in your store.
Conclusion on ReasonsTo Sell Products Under $5
There are plenty of other reasons to sell products under $5. However, you can still sell cheap and expensive products in your store.
All you need to do is ensure you have a good selling strategy to help you make considerable profits before the sales start rolling in.
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