The e-commerce business is growing every day and more people want to sell products online. It is a relative cheap and easy way to distribute products. However, it is a difficult choice to know which products are the best to sell online.
This is why we created an easy sum-up of tips that you should bear in mind before choosing a product to put on the market:
1. Choose a product with a large potential market size
You want your product to reach as many customers as possible.
This is why you should choose a product that has no limitations in the market size.
If you choose a product that will only be useful for men between 50 and 60 years old, you put restrictions on the market potential.
2. Differentiate from your competitors
To narrow your competition, or to make sure the high numbers of competitors are not a problem, you should find a way to differentiate from them. Find a way to stand out and to make sure customers will choose you over your competitors.
3. Choose a long-term product
In order to be successful, it is important that your product will last a lifetime, and will not only be special for only a short period of time.
4. You can sell unique products using E-Commerce
Notice that as an e-commerce you have an advantage over brick and mortar stores: you have the opportunity to sell products with a narrow consumer target group. People worldwide are able to buy from you and you are not limited to the limited customer group visiting your store.
5. Make sure you can cover all the costs with your selling price
Before you want to sell anything, make sure you keep in mind all the additional costs and that you are able to cover them with the targeted selling price. You should be able to make a profit at the end of the month.
6. Limit the number of different products and variations
If you choose to sell a lot of different products and many different variations, your warehouse costs and purchase costs will raise. Instead, keep it simple and offer a limited set of variations.
7. Make sure the product size and weights are not too high, since people expect free shipping
These-days, people expect to have free shipping with their order.
To limit this extra cost, you should not sell large or heavy products.
8. Try not to opt for fragile products
A fragile product has the chance to break during shipping, which will then result in extra costs and extra time.
9. Seasonal products limit the revenue
If you sell seasonal products (let's say carnival outfits), it limits your revenue because there is only one season when people have the need to buy that product.
10. Choose something customers can get passionate about or something that solves their problems
If you opt for a product that people will get passionate about, or a product that solves a problem for people, they are more inclined to spend more money on the product and to re-purchase it.
11. Make sure the product line does not need to change every month / year
A store with the need to change the product line every time, will decrease its revenue.
Most time will be spent on changing the product line and before you know it your website is already out to date.
12. A product that needs to be re-ordered increases revenue opportunities
Customers that repeat their purchase are the easiest target group because they already know you and trust you.
13. Perishable products reduce the transportation options and warehouse costs
If your products are perishable, your customer group is very limited and is not worldwide anymore.
Also warehouse might cost extra because you need to have for example a temperature regulated warehouse.
14. Make sure you know all the restrictions and regulations available
Because you want to avoid a lawsuit, it's better to know all the restrictions and regulations about your product and about selling to a worldwide market.