Choosing the Right Product

Choosing the Right Product - When you first start your online business, the first and most obvious question you will ask yourself is…what am I going to sell? Points to consider when deciding the answer to that question are:

· Is it light and easy to ship?

· Is it a digital good that is downloaded (e-book or software)?

· Is it perishable or fragile?

· Does it have to be seen and held (designer fabrics, perhaps) 

· Is there enough demand to make your venture profitable?

· Does it have little competition from large online companies (niche products)?

Choosing the Right Product

The last two characteristics are the ones that can be hard to pin down. Here is a generally accepted method of arriving at an idea of how heavy the demand and competition is for a product.

If you have a special interest in some products that meet the above criteria, great, but don't limit your investigation just to items you like. You are looking for a niche product with relatively good demand (enough to make it profitable), but without heavy competition. 

One way to see what the demand is for products you are interested in is to look at search engines to see how frequently people search for the product you are considering. 

The result of all this research should be that one or more products will fit into a niche market - products with some demand, and relatively little supply. For the best results, focus on one niche product category, and offer a wide selection. That way, you can become the best online source for that particular category. For example, instead of offering general craft supplies, offer the widest possible selection of needlepoint kits. This strategy will also allow you to rank higher in search engines because you can optimize your pages for fewer, more specific, keywords.

The Comprehensive Guide to Finding Ecommerce Products to Sell Online: 2019

The Comprehensive Guide to Finding Ecommerce Products to Sell Online: 2019

If you're not sure what to sell online, but know you want to open an ecommerce site, you've come to the right place – this guide is designed to cover everything you need to know to pick the right ecommerce products to sell online.

Want to open an online store, but not certain what to sell?

But wait. What products are you going to sell online? Where do you start when it comes to choosing things that people will buy? How do you get the products in your hands? Do you have an ecommerce business plan? Clearly, there's a lot to think about when making this decision, as it lays the foundation for your store's success.

Fortunately, all you need is a little guidance, which is why we put together this comprehensive guide to finding products to sell online - and updated it for 2019!

Sit tight, because we'll be covering quite a bit of material. Whether you read the entire guide, or are just looking to reference specific sections, feel free to print this out, bookmark it and/or share with your social networks!

Why is it so important to choose your ecommerce products carefully?

Your online business will have many separate parts that all need to work together, such as marketing, inventory, and finances. Each part is directly affected and influenced by the type of products you're selling. This means that without a solid product line, your business faces an uphill battle before it even starts - if you don't know what you're selling, you can't plan the other aspects of your online store.

It's true that deciding what products to sell can be rather difficult, as there are literally millions of options to choose from. Not only that, you need to ensure there's a market for your products and that you can actually make money from selling them. (After all, we're all in business to make money, right?)

Even more, the products you sell are a prime factor in shaping other details that impact your online business. For example, if you decide to sell refrigerators, how will you ship this massive item across the country? Or, if you're selling wine, what legal restrictions do you face when selling to different states and geographies? Are there any additional taxes that need to be paid?

At the end of the day, the products you sell online directly impact the following:

Branding & design: If you're selling auto parts, you probably wouldn't want to give your website a pink background and frilly logo, right? Your brand should reinforce your product line, so make sure they match well. Check out your competitors to see what sort of designs they're using.

Marketing: The marketing outlets you choose, along with your marketing budgets, are dependent on your target audience, which is fully determined by your product offering. For best results, make a plan to market across more than one channel, such as advertising on Facebook and within search results pages.

Your sanity: Keep in mind that you'll be spending lots of time with these products, so only sell something if you find it interesting and won't get bored with it soon.

Figuring out what to sell online and who to target is a decision that shouldn't be taken lightly. That's why conducting thorough market research is so important, so let's look at that a little more closely.

Figure Out Your Customer Base

Now that you know what you're selling, it's time to figure out who will be buying your products. Here are some tips to help you find your niche in the market.

Target audience: Once you have a better idea of what to sell, you'll then consider who you're selling to, also known as your target audience or target market. Having an early understanding of your customer base helps you form pricing decisions, plan marketing strategies and establish your brand story. For example, if you're selling luxury handbags, the traits and characteristics of your target market would be much different from someone selling motorcycle equipment.

Try to figure out the following information about your audience:

Basic demographics: Demographics are statistical characteristics of a certain population or audience, such as age, gender, ethnicity, employment status, etc. Identifying the demographics of your target audience helps you better understand potential commonalities with this group.

Psychographics: Unlike demographics, psychographics move away from basic traits and focus on interests, activities, personalities and more. Once you understand the attitudes and behaviors of your target audience, you'll be better equipped to appeal to their wants and needs.

Price sensitivity: Do the prices of the products you plan to sell fall in line with the budgets of your target audience? In other words, do your products force you to focus on high-end customers, more economical shoppers or somewhere in-between?

There are lots of additional insights into your target audience that you'll discover, but starting with these are of great help in making sure your products meet your customers' needs and expectations. Here are some other factors to consider when defining your target audience:

Customer motivation. Why is your customer searching for this item? What's going to make them buy it? Are they concerned with price or retailer reputation? Are they purchasing a practical item, or a luxury good? Run through as many questions as you can while developing your customer profile.

Your value add. There are probably plenty of retailers out there selling the exact same items as you. So how are you going to make your store stand out? Customers want a value, but they also want an experience. Find out what kind of experience they should have. This could be excellent merchandising, free shipping, stellar customer service or something else. Once you know what it is that you do better than the competition (such as being the only ecommerce store in your niche to offer free shipping), make sure to let your customers know why they should choose your store!

Connect With Prospective Customers

Once you have a better idea of what sort of customers you want to attract, it's time to connect with your target audience. If you're already familiar with the industry you're building a store in, you'll have a much easier time understanding your customers' wants and needs and meeting them. To become more familiar with your target customers, you can like the Facebook pages they like, subscribe to the same newsletters, join the same clubs, attend the same conferences and events, hang out in the same online discussion forums, and so on. For niche or specialized markets, like scuba diving or vintage sneaker enthusiasts, having a thorough understanding of the lifestyle is absolutely critical to connecting with your audience.

Listen for problems and pain, which are often signs of unmet needs. After identifying an unmet need, try to find products that meet those needs and then work toward making those products easier to get. By providing solutions to problems, you go beyond selling products and establish yourself as an expert in the field, which helps earn customer trust and loyalty - which means more sales.

Market and Competitor Research

While you may feel intimidated by the thought of conducting market research, you really shouldn't be. In fact, this exercise is a great way to enhance your business, as it gives you a better understanding of the overall competitive landscape and unveils important customer insights. And while you won't have to create massive spreadsheets with pivot tables to guide your decision (bonus points if you do), using market research to help confirm your product selection only increases the chances of you launching a successful online business.

Here are some areas to investigate when figuring out what to sell:

Market trends

If you already have an idea of what to sell online, start by seeing how well your idea is already performing. Or, if you're unsure of what to sell, look at new trends to help inspire your decision. Keeping your finger on the pulse of the marketplace helps you gauge demand and recognize the various needs of your market.

Here are some quick resources to begin your research:

Newspapers and magazines: Look at the lifestyle section of major newspapers and thumb through advertisements of popular magazines. If companies are paying big bucks to advertise these products, they've likely already identified a demand for them.

Trade journals: If you're looking to sell products that pertain to a specific industry, take a look at the social groups, publications, and professional organizations unique to that industry. Social media groups, forums, trade magazines and journals, conferences, and speaking with experts will all deepen your understanding of what your target audience thinks and feels. The more you understand your niche, the more opportunities you'll be able to find.

Product directories: Go online to see product listings for various dropshippers and wholesalers. These directories often have a wide selection, with filters, to help you isolate different product ideas. Even more, most include product photos and pricing information to give you a better idea of what you'd be selling. If you're using a Volusion store, you can use our easy dropshipping plugin to find thousands of ready-to-ship ecommerce products.

Other stores: On your next shopping trip, step into brick-and-mortar retail stores that sell similar products to your idea. What items are they promoting? What are their prices? What similar or related items are featured next to what you're wanting to sell? Try to pretend that you're a member of your target audience, and that you're trying to meet a common need - e.g. "Today I'm an RV owner looking for the best lightweight folding patio furniture." Once you've got a feel for the in-store shopping experience, browse various ecommerce sites to see if there's anything that makes the in-store experience better. For example, if a friendly salesman helped you find the right item that you wouldn't have known about otherwise, perhaps an instant chat platform on your site that allows customers to ask questions in real-time can help recreate that feeling of personalized service.

Competitive landscape

Unless you're selling something that no one one has ever heard of, chances are good that there will be other websites that sell very similar, if not the same, products. This means that you need to have a firm understanding of your competition that you can stand out from the crowd.

To begin your competitor analysis, try these approaches:

Make a list of competitors: The first step is identifying who your competitors actually are. You can do so by performing a basic web search for the products you intend to sell. From there, you can see what other businesses exist in your space.

Categorize your competitors: Once you have your list together, break it into logical categories. For example, you'll have direct competitors that offer the same products as you, and larger competitors, such as big retail sites. You typically won't want to go head-to-head against your biggest competitors at first - you'll want to find gaps and opportunities that they've missed or are too big to compete for, like local search terms.

Visit their websites: By visiting your competitors' ecommerce sites, you'll get a quick glimpse into the products that they prominently feature, along with information on their price points, branding, customer reviews, etc.

Sign up for their emails: If your competitor has a place to subscribe to their emails, go ahead and do so. This allows you to see what promotions they're running, and on which products. If they don't have an email signup, try referencing their social media channels instead. If a large competitor posts a quick fact on their social media that generates a lot of interaction, perhaps an in-depth examination of the topic would do well among your audience.

The main idea here is to understand how your competitors are pricing and presenting their products so you can find a balance between meeting industry standards and differentiating your products from everybody else. Don't hesitate to identify and imitate what's working for your competitors, but always make sure your store retains its own unique identity and voice.

Niche market vs. general market - which works better for your store?

No matter what type of product you choose to sell online, you'll be facing some pretty stiff competition from major retailers in your industry, likely including big ecommerce sites like Amazon. And while your online store can definitely succeed despite this competition in the general market, you might opt to target a niche market instead.

In a nutshell, a niche market consists of a much smaller population of a general audience for a product. For example, instead of selling socks to everyone, you could focus on selling socks that are specific to those affected by diabetes.

Although niche markets are comprised of a much smaller pool of customers, these shoppers tend to be much more involved with the products you're selling. For this reason, they can be easier to reach and engage with, especially through targeted niche marketing efforts. For example, although there aren't swarms of Star Trek fans out there, Trekkies are extremely engaged with the Star Trek brand, often buying large amounts of memorabilia, attending conferences and participating in user forums.

Number of products offered

This part really boils down to one question: How many products will you be offering in your online store? This number could range from a single product to hundreds of thousands, which makes a big impact on the time and effort placed into building your site. Depending on what you're selling, you'll want to research the breadth of products that are available to you, including whether you'll be offering any additional accessories or variations, known as product options.

Product costs

As with most things in life, securing your inventory will come at a price. That's why determining the cost of sourcing your items is another important component in choosing which products to sell. Naturally, the cost of getting your products will be a big factor in the price you charge your customers, which we'll cover later in this guide. The sourcing cost of your items will also affect the types of customers you're trying to sell to, since it will affect your final retail price.

Three ways to get ecommerce products

For most merchants, there are typically three ways to obtain products, with varying costs associated with each:

Self-made products: This approach is common for many craftspeople or hobbyists, or those who create products on their own. The primary product costs in this situation include the purchasing of materials and the storage of inventory, along with any labor and shipping costs. This method can be great for smaller 'cottage industry' ecommerce stores, but a plan to scale production to keep up with demand should be created early.

Drop shipping: Acquiring products from a drop shipper allows you to sell products without storing inventory. In this arrangement, your product costs will often involve "drop fees," along with any monthly or transactional fees incurred by your product supplier. Volusion has made it easy to choose from among thousands of ecommerce products, ready to ship straight from the warehouse to your customers without ever passing through your hands.

Purchase products outright: You can also purchase products directly from a manufacturer or wholesaler. If you choose this option, your product costs will include the price of acquiring the product, the cost of storing it as inventory, as well as any upkeep and shipping.

While there are lots of areas to consider when it comes to market research, embrace the opportunity to learn as much as you can about your products' marketplace and overall industry. Doing so will only improve your chances of successfully selling online – as they say, knowledge is power!

All right, now that you've taken the big step in deciding what products to sell, it's time to figure out how you'll actually obtain those products.

How do I order or create the products I'm selling online?

The next step in picking what products to sell online involves getting the products in your hands so you can sell and ship them to your customers. Depending on how you go about it, you could potentially never touch or see the products you're selling. On the other end of the spectrum, you can fully manage your inventory by storing it in a warehouse (or even your garage). Always make sure to plan on how to scale product creation/storage/delivery to keep up with growth - after all, you're reading all of this to make more sales!

Regardless of choice, take into consideration the upfront and ongoing communications with your product provider, whether it's a manufacturer, dropshipper or someone else. Even more, think about how that relationship will continue to work as your business grows.

Take a look at the breakdown of the common product sourcing methods below to help find which option best suits your needs:

Make the products yourself

This is entrepreneurship in its most fundamental form: you have a talent for crafting a product, and then you sell it to customers who have a similar appreciation for your work. Fortunately, thanks to the digital revolution, you can now sell your handcrafted goods across the world, all from the comfort of your living room.

When creating products on your own accord, you have full control and flexibility regarding the number of products on your shelves, as well as their pricing. On the other hand, you're also fully responsible for storing your inventory and ensuring that the items are shipped correctly. Common handmade ecommerce items include crafts, jewelry, art, textiles, and other crafts.

Even though you may be making your products, there are still some important business factors to consider, including:

Who supplies the raw materials I need to make my products, and how do I buy and store them?

How much do these materials cost, and how does that impact my product pricing?

How much time does it take to make each product? Can I make them fast enough to meet demand? How do I plan to increase production if I get a huge order all at once?

What partners will I use to help ship my products? How much will that cost and what's the process involved?

If offering made-to-order products, what's the communication process with my customers?

The good news about creating your own products is that you don't have to worry as much about managing multiple relationships with multiple vendors – again, you have full control over your products. The main thing to keep in mind, however, is that you'll be wearing two very important hats: a craftsperson and a business owner. Those roles often take two very different mentalities, so be excited to tackle both!

Choosing a Product or Service to Sell

 

To succeed as an entrepreneur, you must develop the ability to select and offer the right products or services to your customers in a competitive market. More than any other factor, your ability to make this choice will determine your success or failure.

Fully 80 percent of the products and services being consumed today are different from those that were being consumed five years ago. And five years from today, fully 80 percent of the products being used will be new and different from those being used today.

There are thousands of products and services available to consumers today. And there are unlimited opportunities for you to enter the marketplace and compete effectively with a new product or service that's better in some way than what's already being offered by your competitors. Remember, your skill at choosing that product or service is critical to your success.

The most important thing you can do before deciding what to sell is to think. And the more you think about a product or service before you bring it to market, the better your decisions will be.

So how do you start? To make a product successful, you must be personally and emotionally committed to its success. Once you've got a product or service in mind, you need to begin with a self-analysis:

What kinds of products do you like, enjoy, consume and benefit from?

Do you like the product or service you're planning to sell?

Can you see yourself getting excited about this product or service?

Would you buy it and use it yourself?

Would you sell it to your mother, your best friend, your next-door neighbor?

Can you see yourself selling this product or service for the next five to 10 years?

Is this a product or service that you intensely desire to bring to the marketplace?

Then analyze the product or service from the customer's point of view:

What does the product achieve, avoid or preserve for the customer?

How does the product improve your customer's life or work?

What kind of customers will you be selling the product to?

Do you personally like the customers who'll be buying this product or service?

Imagine that you've hired a management consultant to get advice on introducing this new product or service. They're going to cut right to the chase and ask you these very objective, bottom-line questions about the product:

Is there a real demand for the product at the price you'll have to charge?

Is the demand large enough for you to make a profit?

Is the demand concentrated enough so you can advertise, sell and deliver the product at a reasonable expense?

Dig even deeper into the potential success of your product or service by determining the answer to the following critical questions:

What is to be sold, exactly? Describe the product in terms of what it does for the customer.

To whom is the product going to be sold? Describe your ideal customer.

What price will you have to charge for the product for it to be profitable?

Who's going to sell the product?

How is the product to be sold? What method of sales, or process of promotion, will you use?

How is the product or service to be manufactured or produced?

How is the product going to be paid for and by whom?

How is the product or service going to be delivered to the customer?

How is it going to be serviced, repaired, guaranteed or replaced?

And you're not done yet. There are a series of additional questions you need to ask before you make a final decision on a new product or service offering.

Is there a real need for the product or service in today's market?

Is your new product or service better than anything else currently available?

What are the three ways that your product is superior to your competition?

Is your product lower priced or of better quality than anything else that is available?

Do you think you could become the number-one supplier in the market for this product or service?

For a product or service to succeed, it must be the right product, being sold at the right time, to the right customer, in the right market. It must be produced and sold by the right company, and the right people. What you have to decide is this: Is this product right for you

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