Launching an online business may seem like a quick and easy way to cash in on the fact that more and more people are doing their shopping on the web. No matter how much entrepreneurial experience you have, though, growing a profitable eCommerce business is no easy task. There is a lot of competition, and the market is already heavily saturated with just about every type of product imaginable. Combine that with consumers demanding fast, free shipping, and it is easy to see why many eCommerce companies fail.
It takes much more than a good idea to build a successful online store. It takes careful planning, deliberate strategy, and the willpower to keep going even when it seems like the odds are stacked against you.
If you are serious about jumping into the eCommerce game, it all starts with choosing the most profitable e-commerce niches. Whether you are making products to sell yourself or you are purchasing something like bulk t-shirts to resell. You need to stock your online store with products that people want and are willing to spend their hard-earned money on.
Learn to avoid some of the most common pitfalls of starting an online store by checking out. This guide on how to choose the right products to sell for your eCommerce business.
Decide Between Niche and Commoditized Products
No matter what industry you are in, products that can be sold fall into two broad categories: niche products and commoditized products. Niche products belong to specific categories and serve certain customers. Think things like handmade goods, customized high-quality blank hoodies, and unique jewelry.
Commoditized products, on the other hand, are the things that everyone needs. Personal care items, food, paper products, etc. are all examples of commoditized goods.
In many instances, selling both niche and commoditized products is the best way to turn a profit. If you are opening up an online clothing boutique, for example, consider selling garments and accessories from popular brands alongside your own creations.
Sticking to one or the other is possible, too. But keep in mind that, as a small business, you will likely struggle to compete with large online retailers – like Amazon – if you choose to focus solely on commoditized products. Niche products tend to be a better option for someone who is just getting started in the world of eCommerce.
Find (or Create) Products that Solve Problems
When trying to come up with product ideas, think about the problems that impact your daily life or the lives of people around you. Products that solve some sort of problem tend to sell better than those that do not. And if you can come up with a new product that solves a previously unsolved problem, that could be your multi-million-dollar idea.
Online shoppers are inundated with potential products to buy. If your product doesn’t stand out and provide a solution to a problem they face in their daily life, they are unlikely to buy it. It’s that simple.
Follow Your Passion
While it is important to sell products that solve problems for your customers, it is also essential to follow your passion. Very rarely is starting a business the glitzy, glamourous experience portrayed in movies. It is a lot of hard work that requires a lot of literal blood, sweat, and tears.
If you are not passionate about your products, you are going to have a really hard time making it through the difficult times. A lack of passion also diminishes your ability to craft an authentic brand message.
When you are driven by passion, though, you can speak to potential customers in a way that is genuine, meaningful, and engaging. You will also have the fuel needed to power through your most challenging days. Having an emotional connection to your products can help set you apart from your competitors, too. Which is crucial in the crowded eCommerce space.
Serve Niche Markets
For small eCommerce businesses, serving niche markets is often the key to success. When you identify and source products for a niche audience. You are marketing to highly engaged and highly converting customers who are likely to become loyal to your brand. Solving a problem for a niche market is highly profitable, and it is an excellent way to build brand awareness.
Find a niche that aligns with your passion, and you are golden. A few niches that are performing well in 2021 include pet products, subscription boxes, craft beverages, and cruelty-free beauty products. Do your research, though, to find underserved and popular niches where your business can have a big impact.
Stay on Top of the Latest Trends
If you are someone, who keeps up with all the latest trends, you already have a huge advantage over a lot of folks who try to start online businesses. And if you are more of a trendsetter than a follower, that is even better!
When trying to decide what products to sell, pay close attention to trending products and services. Watch out for new things that are quickly growing in popularity. And carve out a spot for your brand before the market becomes too saturated. Another option is keeping an eye on trends and figuring out how you can make them better. If, for example, you notice a particular spa treatment becoming increasingly trendy, coming up with a product that provides. That spa experience at home could be quite lucrative.
Never Stop Researching
Once you have chosen a product – or products – for your business, your work is far from over. In most cases, you need to constantly be on the lookout for new products to keep your inventory fresh and interesting. Even if you build a brand around selling one particular item. You will need to continually research different color/design options, partnership opportunities, etc. To keep your loyal customers coming back for more. Running an eCommerce business is not easy, but, with patience and dedication. You can fill your online store with profitable, high-demand products.