Everyone would love to get rich online. Perhaps you are one of the many individuals considering opening your own e-commerce site but you don’t know what you can sell. There are many questions you will need to answer before you decide. The purpose of this article is to help you whittle away at the many options available to determine what products are best to sell online.
The first step to product selection is to survey online competition. If you have a product or service in mind, go online and search for that product. See how many sites are already selling that product. I can tell you right now, that, while electronics are hot, there is a lot of competition out there. Take notes on how many sites are competing for the keywords you just searched for to determine if you can fit in somewhere. The best place to be in online is a niche market.
There are many people successfully selling items in niches, they are focused on one product for example and just do that one thing really well. This works particularly well if your product has demand online. If your product has no online demand, you should not consider trying to sell it online. It will be very difficult to market it and to make money. To determine if your product is being searched for, you can use Google’s external keyword tool at https://adwords.google.com/select/KeywordToolExternal.
Offline competition should be surveyed as well. If you can find your product easily at a local retailer, you may not be able to compete on price or easy availability. Remember, you are competing with all retailers. Many people research products online and still purchase offline. A common product will be difficult to market and advertising against established stores is often difficult and expensive.
Price is very important. Many people who are starting a business select a product with a low price point. If you have a niche market and you are selling one product at $20 each, your average sale will actually be pretty much $20. This might be ok if you aren’t advertising and your costs are very low. But if your product price is high and your advertising is high and the chance of repeat customers is low or the purchase cycle is too long, you will most likely not make much money.
If you have a niche site selling one item, that item should have very little competition online or offline and the price of that item should be as high as possible. But, if you want a dollar amount, I would say $100 per item is the lowest. I say this because a certain percentage of visitors will buy something no matter what, and it might be only 1% to begin with. By the time you pay for the product and advertising online, you will still have something left over for yourself.
In essence, to do well online, you will need to locate a product that you purchase for a decent price and sell for a much higher price, has little online and offline competition, and has a high enough price that sales can help pay for advertising and other costs. If the product is something that a person might only purchase once, your price should be higher to succeed because you will need to find new customers constantly. Besides all of this, you better love your product, because you will spend a lot of time with an e-commerce site. But, if you make it, you can be one of the many people who thrive in online business.
Starting an E-Commerce Web Site
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