Do you want to start an ecommerce business? Are you ready to start generating passive income and get in on that six-day weekend? Online stores can be a great way to generate passive income, because once you get a store going, it pretty much takes care of itself. Still, most people who want to start online stores have one big issue—what should they sell? Because it makes more sense to focus your energies on one type of product at a time, it can get intimidating trying to decide on a product. Here are some strategies to help you narrow it down.
Lots of Accessories
Sure, big ticket items seem like the way to go, but people rarely consider the huge markups available on accessories. HDMI cables, USB cords and hubs, things of that nature are already cheap as it is, so it’s easy to mark up the price and raise your profit margins significantly. Find an area of interest to you and start googling. People will often panic at a large purchase, but will not even blink at the accessories. Let the big guys handle the TVs and big box purchases—you handle the rest.
Something Hard to Find Locally
In the age of Walmart and other huge, mazelike department stores, most things are fairly close at hand. But if you are looking for specific niche products, let’s say crafting equipment, hobby items, or rare accessories, you are almost certain to go directly online and have a lot more success finding them. Others are experiencing the same problem, and you can be there to fix it for them.
Of course, before you go filling a local need, make sure there’s an actual demand for them. Demand is key in ecommerce, because people will not just walk into your store and find something that takes their fancy—if you are doing your job right, they will not find you unless they look you up.
Something Local That’s Hard to Find Nationally
Do you live in an area with a special industry or product that isn’t available nationally? Do you live in a place like Hawaii, with access to exotic tropical goods that can’t be gotten on the mainland? Is there a high demand for it? Do tourists come back every year and exclaim about how they missed this thing, look forward to this thing every time they come back? There is a real market out there for specialty goods that only come from certain areas of the country. Source your stock from local vendors and manufacturers, and hire only local professionals to help you run your operation. Your area will benefit greatly from your community-based thinking.
The ideal products to sell online are going to be useful pretty much all year round and have a low turnover rate. High turnover is your enemy, for both your employees and your products. You want products that will endure, so that when you create informational product pages for them, those pages will still apply a few years from now.
Of course, low turnover is no excuse for a static, boring website. Make sure you update your site fairly frequently, both with new product, descriptions, and SEO content, as well as to fit changing style and taste. Always remember your brand when you do updates to your website’s look to stay consistent with your marketing efforts.
Consumable or Disposable
The best product to sell online is going to be the product that you have to sell over and over again, and the best customers are going to be the ones that come back to buy it. It’s easier to convince people to come back than it is to convince them to show up in the first place, and the same rule applies to sales. Disposable and consumable products are great because they can generate constant demand—getting you one step closer to that passive income goal.
High Demand and Trends
If you find a product that everyone is clamoring for, jump on it. High demand is every entrepreneur’s dream. If you can, try to find a new spin on something ubiquitous and useful. Key in on trends as early as you can in order to ride the wave all the way to the end. While a fad is trending, it is useful to start scoping out your next big product. Use your time—and income—wisely.
High Profit Margin
This is easiest to do with accessories and other relatively cheap product types. People balk at the price of a TV or fancy computer but have no trouble whatsoever dropping hundreds of dollars on the accessories to go with it, like cables and wires.
Choose something you are passionate about
This seems like a no-brainer, but if you are passionate about something, it’s easier to translate that passion into sales. Passion is often considered a no-no in professional ecommerce circles, but because you are likely to hit some bumps in the road as your online retail journey unfolds, it helps if you really care about the product you are trying to sell. Consider your own needs, interests, and hobbies.
Small and Light
It doesn’t hurt to consider the little things while you are choosing a product to sell online. How much will it cost to package and ship your product? Customers are often taken aback by the cost of shipping for larger products, especially as prices rise. This is particularly important at the holiday season, as people are spending a lot of money on many people, and don’t want to lose all their money in shipping. If you are a forward thinking sort of person, you might consider these little details when trying to choose a new product to sell.
Consistent Buyer Stream
Along with high demand, consistent buyer streams are important to a sustainable online business. Make sure that whatever you sell will always have customers in that niche so that you don’t have to worry about dry spells. As tempting as it may be, do not go buying into Christmas decorations just because the holiday season will be wildly profitable. You want customers all year round.
It can seem so overwhelming to choose just the right product, and the stakes are pretty high. With these tips and tools at your disposal, finding a great product to sell will be much easier, getting you straight to work building your business.