To flourish in e-commerce, you'll need to navigate through various stages. With an abundance of new products constantly appearing, it can be challenging to find the perfect quality-price ratio, or products that live up to their promises. That's why selecting the right product is essential to kickstart your e-commerce venture.
What do you want to sell? What do people want? What are they looking for? How do you find out?
Discovering the perfect product requires research and testing, and we will delve into the crucial steps needed to select a standout product.
Explore the market
To kickstart your e-commerce venture, start by identifying an underserved niche. Avoid selling products that the market is already saturated with, and instead, look for unique and innovative products that provide real value to customers.
For example, if you are interested in selling garden furniture, consider offering furniture made from eco-friendly materials, recycled plastic, or reclaimed wood. In the home and decor area, consider offering lamps made from unique and innovative materials. By offering something truly unique and different from your competitors, you will stand out and attract customers more easily.
Scour social media networks for the latest ads to uncover top-performing products with desirable profit margins that will boost your e-commerce business's profitability. The key is to identify trending items that are in high demand and generate substantial returns.
Tip: Consider creating an Excel spreadsheet to list potential items and sort them by factors such as quality, price, brand, number of Google searches, and product features. This will help you analyze the factors that influence purchasing decisions and make an informed decision on which product to pursue.
Research industry trends to find out what product is in high demand
To discover the latest trends and hottest products, explore Google Trends, Amazon's Bestsellers lists, Facebook groups focused on your product niche, Instagram, and eCommerce-dedicated Reddit groups. Also, scour popular marketplaces such as Amazon, Etsy, and eBay to find out what customers are searching for and what products are in high demand.
Look for sections like "Most searched for" and "Most desired" to get inspiration and identify current customer demand. Additionally, on Amazon, you can gauge a product's popularity within its category using the "Best Sellers Rank" section.
Here are a few ways to keep an eye on what’s trending so you can act quickly on potential opportunities:
Social listening: This can be as basic as looking at the trending hashtags on Twitter or topics on Facebook, or as advanced as using social listening tools to identify and monitor trends over time.
Google Trends: Look at the popularity of topics over time, and see what’s hitting a spike in interest.
Trend Hunter: The “world’s largest, most popular trend community” uses data, artificial intelligence, and real humans to identify consumer insights and new opportunities.
Read customer reviews
Customer reviews are a goldmine for discovering profitable business ideas. They can reveal customer satisfaction and dissatisfaction, as well as their needs and preferences. If you already have a market presence, ask your suppliers for suggestions on how to improve your products based on the feedback mentioned in the reviews. For instance, if you are selling Christmas tree installations, you can request a version that can withstand temperatures as low as -30 degrees.
Identifying market needs and addressing customer dissatisfaction can be the backbone of your business. You may be wondering how a new online business can solve these problems. The answer lies in offering products that cater perfectly to these needs.
Test up to 30 new products each season
After choosing the product you wish to sell, it's time to assess its potential. Start by capturing high-quality images and creating detailed descriptions. Then, research your competitors to find out what sets your product apart. If you're facing stiff competition, don't fret - there are always ways to make your offering stand out from the crowd.
Find your competition and pay attention to how they market their products.
Set yourself apart from the competition by highlighting the genuine advantages of your product. Honesty is the best policy - avoid exaggeration as it will only damage the trust and credibility you're trying to build. Emphasize the positive aspects of your offering while staying true to the facts.
It's important to consider not only the potential profit but also the seasonal trends and consumer spending habits when selecting a product to sell. For instance, if you plan to sell coats, keep in mind that the demand for winter coats is highest in December and typically lower in other months, except for unexpected cold spells. Therefore, it's crucial to choose a product that aligns with the market demand and trends to maximize your e-commerce business's profitability.
Identify flagship products
It's interesting to note that only a 5% of an online store's catalog represents flagship products. However, these products can be discovered unexpectedly, and can stem from various sources such as addressing customer issues, catering to hobby enthusiasts, pursuing personal passions or leveraging professional expertise. The possibilities are endless!
Calculate the profit margin roughly: It is essential to find a product with a decent profit margin. Calculate how much it would cost to produce your own version of a popular product. Don't just focus on the product's price; consider the shipping costs, packaging, and fees associated with selling on your website or marketplace. Look for products with a higher profit margin, so you can make a profit while maintaining a competitive price.
Consider storage and logistics costs
It's important to factor in storage and logistics costs when assessing the profitability of your products. Take into account the weight, dimensions, and storage requirements of each item to accurately estimate costs. Don't overlook this crucial step in ensuring the success of your e-commerce business.
Validate your product
To ensure that your product will sell, it's essential to conduct surveys with potential customers. You can list your product on social media groups and marketplaces to discuss with people who are interested in buying it to gather as many details as possible, including how much they would be willing to pay for it.
Seeking feedback from industry experts before investing too much time in developing a product is also crucial. Additionally, participating in industry conferences and events can help you build relationships with potential customers and partners. It's important to understand what customers truly want, as their reasons for buying may not necessarily align with your own.
List offers on multiple marketplaces
As online shopping continues to grow, marketplaces have become a dominant force in the e-commerce industry. It's becoming increasingly common for retailers to expand their online presence by integrating with various marketplaces, allowing them to sell on multiple channels with ease using the right software. This means that retailers can reach a wider audience and increase their sales without having to put in extra effort.
Crafting a profitable e-commerce business requires patience, extensive research, and rigorous testing every season. However, the key to success lies in understanding and catering to the customer's needs. If you fail to do so, your competitors will. Therefore, consider your personal preferences and passions when selecting the right product and strategy. With the right approach and a customer-centric mindset, you can build a thriving online business.
With easySales, you can take advantage of the product structure and information to seamlessly list your products on various marketplaces and start generating sales from the very next day.
Some benefits include:
- Simplified and fast listing on popular marketplaces: eBay, Amazon, eMag (Ro, Bg, Hu), Pepita, Altex, Flanco, Doraly, Elefant, Okazii, Cel, OLX, etc,
- Increased control through real-time automatic synchronization of stocks and bulk price updates across all channels. Extra and advanced functionalities:
- Automated translations in any language
- Automated SMS and email notifications
- Automatically generated invoices and AWBs
- White Background Photos
- Complex filters
- Accelerated platform developments. API Key.
By utilizing the easySales platform to manage your online business across multiple sales channels, you can experience a substantial increase in traffic from the very first month. Within just three months of listing your offers, you may be pleasantly surprised to see a boost of up to 70% in your order volume. Don't miss out on the opportunity to maximize your sales and grow your e-commerce business with easySales.