One of the reasons why so many businesses fail at the very first year is that they don’t pick the right products to sell.
It is no exaggeration to say that the chance of success is very slim when you choose the wrong product to sell in your online store or website. Why?
Because each part of your online business is directly affected by the type of products you are selling, such as marketing, inventory, shipping and finances. Selecting products is crucial but difficult. Too many choices sometimes leave you with no choice. You need to make sure that there are enough market demands for the product you are going to sell and the net margin is high enough.
Product research is indispensable for choosing the right product to sell online or offline. Then you may want to know how to conduct product research for the beginners?
If the answers to all of the following questions are Yes, the product is the right one.
Is the demand enough for the product? No demand, no sale. And when the demand for the product is very low, the sales are low, too. So how to ensure that the demand for the product is enough? If you can get 30-500 sales per month for the product under $100, or if you can get 10-300 sales per month for the product over $100, the demand is enough and the product is a good option for you to sell. You can use a sales estimator to help you.
Is the competition for the product low? If the competition for the product is very high, you’d better not choose the product to sell. You can hardly make sales if the top 10 best sellers account for over 90% of sales. It is unwise to sell the same product that many people are selling just because it is hot selling. It is very hard to gain a place in the market when the competition is fierce.
Is it easy to source the product? Keeping a consistent supply of the product at an affordable price is a must. It is very painful that the supply of your product is suspended or insufficient when it is a best seller in your online store. Your heart is bleeding and you lose lots of money and customers. So make sure to find at least two suppliers for the product you will sell.
Is the product easily shipped? Both weight and dimension impact the shipping costs. If the product is overweight or oversize, the shipping rate is very high, especially for international logistics. And some products are easy to be damaged during transportation, such as glass, and some products are forbidden to import or export. You should be careful to avoid selling these items.
Is the product profitable enough? If the product you are selling don’t cover the costs of marketing, storing and shipping, it is not worth selling. You need to decide the net margin of the product during the process of product research. Your aim is to make money when you choose to start the online business, so the more profitable the product is, the more money you make. Isn’t it?
As long as your product meet the above criteria, you can grow your business and become successful.