For many new entrepreneurs, selecting a product to sell is one of the biggest challenges when starting out an e-Commerce. If this initial step of selecting the right product is executed correctly then you have won the half battle. However, coming up with product ideas can be challenging and sometimes you may feel like everything has been done already. But, there are plenty of opportunities out there, you just have to know where and how to look for the right product that you can sell online.
While selecting a product that can be profitable, you need to ensure that there is a market for your product and you can actually make money by selling it because one of the most crucial reasons you are starting a new business is to make money.
In this guide, I will go over all the strategies that you can follow in order to select a profitable product and higher your chances of being successful in an e-Commerce industry. Let’s dive in!
Understand how your product solves a problem
When you are in process of selecting a product that you can sell online, you are basically looking for a solution to a problem. A problem or a need that customers have and for which they are willing to spend money. Start by choosing an industry in which you will be selling your product. Once you know what industry your product belongs to, try to understand how your product solves a problem or delivers what customers need in that specific industry such as:
- What are the most common problems (or needs) in your industry?
- What problem your product will solve?
- How your product is going to solve that problem?
See what's trending
This step can significantly enhance your business (if executed correctly) because looking into the market trends can give you a better understanding of the overall competition and customer’s insight.
Whether you are selling products/services or building your brand, it is important to understand the behavior of your target audience. But, how do you do that? A good understanding of analytics can help you in keeping a track of detailed information on what are the trends in the market and what to focus on in order to draw customer’s attention.
If you have an idea about a product, see how that particular product (or a similar product) is already doing in the market.
These days many business owners and entrepreneurs make use of Google Trends tool to keep an eye on the market trends. This tool uses real-time search data to help you gauge consumer search behaviors over time.
Selecting a niche
Now that you have selected an industry for your product, understand how your product solves a problem and what’s trending in the market for that particular category of the product. It’s time to take it to the next level by selecting a niche. By niche, I mean narrowing down the focus of the product to target a specific audience.
No matter what category/product you choose to sell online, the chances are there’s a lot of competitors out there in the same (or similar) industry and you will face a stiff competition. So, in order to stand out from the crowd in this competitive e-Commerce market, it is quite important for you to select a niche that will differentiate you from other competitors.
Selecting a niche might put you in a place/market that consists of a very small population of customers but that is totally fine because that customer will be very much involved in your product/brand. Once you are successful in that small market, you can always expand slowly in future and step into other markets to increase your profit margin.
According to 2012 census data, there were 5.73 million employer firms in the U.S. Firms with fewer than 500 workers accounted for 99.7 percent of those businesses, and businesses with less than 20 workers made up 89.6 percent. Small businesses continue to be incubators for innovation and employment growth during the current recovery. Small businesses continue to play a vital role in the economy of the United States. They produced 46 percent of the private nonfarm GDP in 2008 (the most recent year for which the source data are available), compared with 48 percent in 2002.
This means that there is a lot of competition out there and when every business tries to go big, small businesses continue to be successful because of selecting the right niche and not doing the same thing what others are doing in that market/industry.
The products you select to sell online will be the foundation of your online business. So, try not to rush in selecting any product. Take time to sit back, think strategically and come up with a plan that increases your chances of being successful in an e-Commerce industry.
Author: Lavish Kumar
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