Thursday, March 10, 2016
How to Choose the Right Product to Start Online Business
Thinking about opening an online store or online business? Not sure if you have the right products to sell online? Well, it’s not always black and white but today we ’ll go over the six crucial considerations you must reflect on before investing in a specific product for your online business.
We’ll cover everything that matters including the demand, competition, profits, marketing and legal issues you should think ??
1. What’s the demand currently?
This is the first and most important question that you should ask yourself before even considering start your business , if you still feel confident then you are on the right track!
- Do people really want this product? Need this product?
- Who is your target market? What is the size of the market?
- Is this product affordable?
- Does it make sense to sell your product online?
Take a look at Google Trends and explore the search volume of your product. For the sake of an example, let’s pretend you want to start selling scarves online, let’s take a look at the interest in the keyword “scarf” in the last 12 months.
2. Research your competition,its very important
You need to know absolutely everything about your products industry and that includes your competition. Know your competition inside out by doing the following
- Sign up for their newsletters
- Analyze their website – What works? What could be better?
- Make sure to check price comparison sites if you are selling goods
Are you confident that you can beat out the competition? Then do some extra research on Google Keyword Tool and analyze the SEO competition for your product. Are you going to be able to rank as high as them on search engine results??
3. Is this a money making business,Really?
Is your product going to be affordable enough to sell? Are you going to profit once you consider all of the costs involved in selling the product? I’ve compiled a list of general costs to help you realize your profitability:
- Manufacturing Costs/ Process cost if giving any service
- Packaging Costs
- Shipping Costs/Third party cost if involved
- Credit Card Processing Fees
- Advertising/Marketing Costs
4. What kind of marketing can be done for your product, People think after product developed?
Think about all the different ways of marketing that you can market your product. Devise a plan for how you’re going to get the word out there and build customer loyalty. How will you market product/branding on social media? Will you send out newsletters? Offer loyalty rewards?
5. Will your product last?
When you’re selling online you really need to think whether or not your product will survive the shipping process. Can it break, melt or expire? Also, is your product a once in a life time purchase? Or will they need to buy more at some point? These are points to consider when it comes to the profitability of your business.
6. Do any laws get in your way?
Last but certainly not least, is your product compliant with the law? Are there any restrictions on your products to ship internationally? Think about regulatory organizations such as the FDA if you’re planning to sell a food or supplement product or TRIA Guidelines for telecom product etc. Also, keep in mind that there are different regulations for different states. I suggest reviewing government sites of the countries or states you intend on selling products in.
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