Having your online business can be an exciting adventure but every adventure has its challenges. Most of the time, new entrepreneurs have the problem of identifying what specific products they should sell online. There are millions of options but the competition is very strong, too, so no wonder if you feel overwhelmed.
Of course, your goal is to offer hot-selling products that will bring you high profits. The secret is in pinpointing which products will keep on selling. You will waste a lot of time if you constantly need to find new products to sell. It's better to create a group of products that are almost guaranteed to stay high in demand, which will give you more time to focus on other aspects of your business. The following tips will help you identify those types of products and how to sell them successfully.
1. Identify the type of products you'll sell
There are many types of products, so the best is to start with what purpose your product will have. According to purpose, there are three types of products:
1. Candy-like products - they don't solve any problems, they are just nice to have. People buy them to get immediate pleasure and they are very profitable while they are trendy. When the hype is gone, the sales will eventually go down. In short, there is no long-term gain.
2. Vitamin-like products - they solve a certain emotional need and have long-term benefits for the buyer. However, it's difficult to determine the benefit quantity. Best products of this type create a psychological need in buyers, forming a habit.
3. Painkiller-like products - they solve an immediate need and are the best type to be sold online. The benefits are clear and can be felt immediately.
To conclude, the perfect choice would be to sell a product that helps the buyer solve an immediate problem. In the majority of cases, you will opt for a product that's somewhere between a vitamin-like and a painkiller-like product, which is also fine. Still, if you execute it properly, you can sell any product you want.
2.Product guidelines to narrow the search
When you choose the type of product, you'll probably get some ideas on various products of the same type. This is where you need to narrow your options through general products guideline. They are not set in stone but they could help you minimize the risk and make the product more attractive.
- how easy is it to ship the product/is it robust?
- is the product small/lightweight?
- is the retail price between $15-$200?
- is it a seasonal type?
- is it fairly simple to source locally?
- is it in a trending or a stable market?
Again, an ideal product would the one with very few moving parts, can be placed in a shoebox, with the price ranging from $15 to $200 and a profit margin between 20% and 40% throughout the whole year.
Of course, there are always some exceptions where some seasonal products (like Halloween costumes) bring a lot of profit during a short period of time or certain products have profit margins of 100% or even more.
Additional questions to include when narrowing down your choices are:
- Who are my potential buyers?
- How big this specific market could get?
- What are the potential sales, as well as profit margins?
3. Consider dropshipping
In the majority of cases, online selling doesn't have to include you having the products in your possession. When it gets clearer what products could be potentially hot ones for sale, entertain the thought of finding a vendor that will handle the shipping and delivery of the product to the buyer.
The first aspect of dropshipping is the companies and means of transport you'll need to use in order for the buyer to get the product. Most online retailers opt for going internationally and not just sticking to their home country because there's the chance to get a much higher profit. For example, countries like Australia are a great market, where 25 million citizens buy products from other countries but also sell their products online internationally. So, if you, for example, identify Australia as a profitable market, you should consider finding reliable cargo charters there to speed up the delivery process. The same goes for any other big market on the planet. The point is this – the easier and faster it is to deliver a product to the end buyer, the more popular the product will be and will stay that way longer.
The main advantage of dropshipping is that you don't have to physically deal with the products but it will be your job to take orders and handle customer service. So, it's necessary for the vendors to be absolutely reliable, which is the second aspect of dropshipping. The best way to find reliable vendors is through WorldWide Brands service. There, you'll find a list of pre-verified drop-ship wholesalers that are also legit.
4. Use a research tool for more information on the product
In order to narrow your search for the right products even more, use a research tool such as SaleHoo Labs. Through it, you can research the sell-through rate or a specific product, its average price, and competition across more than 20 categories. The information is used from eBay, which is the best reflection of the current demand across the globe. The sell-through rate and the average price are given based on the data from the previous month, while the competition is based on the analysis of the total number of sellers and listings. A tip: avoid high-competitive markets if you are just starting your online business.
The art of choosing products that you could bring you the most profit takes time to be learned completely. Still, following these steps will provide you with enormous help at the very beginning of your online adventure.
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