Finding the right product has always troubled business owners. Nowadays, businesses implement all kinds of different product research campaigns before they decide to tackle a new market. Product research is significant for eCommerce owners and online sellers on websites like Amazon.
Finding the “Right” product is not that easy. You have to anticipate trends, market size, competition, costs, and profit margin before you decide to go for it. A lot of today’s business owners learned this the hard way through trial and error.
In order to set your mindset the right way, we are going to start with some basics.
If you are new to the eCommerce business, it is essential to know that you should aim for products that are from a $20-$75 price range. There is a good reason for that since products lower than $20 might have profitability issues and products over $75 might be too much to start with.
Shipping is paramount in eCommerce business, and you should apply it to your product selection method. Go for more durable products that are not over-sized and avoid fragile products that can be damaged with shipping.
Seasonality is the starting point in your product research analysis. You need to find a product that is sold at the right time.
However, sorting out these three things will not give you the right product to go for. You need more in-depth analysis in order to determine a winning product.
You need to pay attention to additional things such as:
- Finding a product with consistent and sufficient demand
Before you choose your products, you need to know their potential. Verifying their demand is essential just because it will directly implicate your business model. Your goal should be to search for a product with more than 400 sales per month.
- Find less competitive product niche
Choosing a product without analyzing your competition can ruin your product launch. This means that you need to research your competition and stay away from products that have many sellers. Look for products with fewer reviews, which will implicate that there is lower competition.
- Go for high-profit margins
New business owners fall for the same trap of placing a price on their products lower than it should be. This means that they do not calculate costs and fees, which can make your business fail. It is important to implement the right profit margin strategies.
- Find products with high sales but low ratings
When you scout for a new product, always look for the rating of the product. If the product sells well with over 300 sales per month and has a lower rating than 3.8, it is the right product for you. There is a good reason for that since you will have a better chance of establishing a better rating than your competitor, and more users will buy your product.
- Research your competition
You should always be aware of what you are dealing with. Spying on your competition is a great way to find new product opportunities by identifying their top-selling products.
- Less competitive niche
Obviously, the bigger the niche, the more difficult the sales will go. Usually, in mature niches, there will be a lot of competition to deal with, making it impossible to establish sales. Try minimizing your target group and focus on specific products that are in a less mature niche. It makes your job much easier since you will have a better chance of targeting specific customers.
- Anticipate trends
It is always good to stay informed on the latest trends. Google Trends is a handy feature to track some of the latest trends online. However, you have to be extra careful just because not every trend is long-lasting. Remember the times with the Fidget Spinner? – It was trendy in the beginning, and people made a lot of money, but the demand quickly disappeared and people were left with a huge stock of unsellable products.
These are some of the ways to find the best product to sell for your business. If you have done things correctly, you will select a victorious product and come out on top like a Super Bowl winning defender. Research is vital for finding the right product, and you need to be careful but still taking on some risks in order to make huge profits.