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To Sell products under $5 can seem like an awful idea at first since that kind of rate is quite low to price a product.
But, one thing you should know when it comes to eCommerce is that, whatever price you decide to sell your products, as long as you are getting a huge amount of customers and selling lots of units per month, you are bound to make good money regardless how much you price your products.
So, what are some of the reasons to sell products under $5? That is a question that a lot of people, mostly new sellers, ask.
Luckily, that is what we are going to talk about here today. Read on.
1. Cheap Products Sell More
One good reason to sell products under 5 dollars is that cheap products tend to sell more.
What we mean by this is that 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 being, online buyers are known to be “impulse buyers.” These are buyers who haven’t 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 end up buying 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 popularizes your brand as one that sells affordable products.
When your brand becomes famous for selling cheap and affordable products, you are bound to see sales increase every month and raking in more profits as time goes.
Therefore, that is one thing you need to consider, especially if you are starting a new eCommerce store because it may greatly benefit you.
2. They Are Easy to Ship
Products under 5 dollars are effortless to ship. One thing that makes them easy to ship is the fact that they are small items that don’t have a lot of weight. When it comes to shipping, rates increase depending on how much the product weighs.
If you are selling products that carry a lot of weight, then you will end up paying substantial shipping costs, which might hurt your projected profit.
Therefore, selling large items without factoring in the shipping cost well may make you end up in huge losses. Fortunately, that is not the case with small products under $5.
You see, with small products, shipping costs tend to be very low, and that means your profit can be quite good so long as you sell plenty of units monthly.
Since small items sell faster compared to large ones, there’s no denying the fact that this can be very lucrative on your side.
All you need to do is ensure you operate your store correctly, price the items in the right manner, 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.
3. They Are Cheap to Test with Facebook Ads
Facebook Ads are currently the best way to get your products to targeted customers on the social media channel.
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, as well as the 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.
What you need to do is 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 have the advantage of starting small and increasing your budget as you continue making more sales.
For example, you can start with a budget of $5 per day, which can manage to get you several sales in a day.
That can be a good strategy since, with that kind of budget, you may reach a few hundreds of customers on Facebook, and if the conversion rate is reasonable, between 2 – 5%, you can end up making a lot of money from such a small marketing budget. You will get low CPC.
4. You Can Easily Upsell Customers
Upselling is the process of persuading a customer to buy additional or more expensive products.
For example, you may decide to sell both cheap and costly products, but then choose to market the 5-dollar products.
When customers come into your store to make the purchase, you can quickly try to upsell them into buying the expensive items, which may get you even more profits.
People like cheap stuff, and the only way to get their attention first is to offer them the lowly-priced items, and then try to persuade them to buy other items that you may be selling at a higher rate.
This strategy has worked for many eCommerce stores and continues to work even today.
Upselling is one of the best ways of getting your customers into buying more products from you without the need to have another marketing budget for the other products.
5. Profit Margin May Be Higher
Although a lot of people think it is impossible to make huge profits selling products under $5, we operate by the notion that there is a higher possibility you can make huge 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, and this results in huge profits for your business.
Another thing which we mentioned above is 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 both cheap and expensive products, you can choose to market the cheap items only and upsell customers in your store to purchase expensive products.
That results in high-profit margins in both the cheap and highly-priced that you are selling in your store.
Conclusion on ReasonsTo Sell Products Under $5
There are plenty of other reasons to sell products under $5. However, that doesn’t mean you can’t sell both 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 once the sales start rolling in.
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