Finding the right products is a crucial step for the owner
of any retail business, whether it is conducted online or in physical
locations. Therefore, it is only natural that research on the product needs to
be done, and it needs to be done correctly.
How well are you able to anticipate
whether or not a product will be profitable?
What are some ways that you can predict what the next big
\”it\” product will be?
There is no way to know for certain. However, there is a
method to the madness; all that is required of you is the willingness to put in
the effort.
In this section, we are going to discuss some fundamental
and more advanced strategies for locating the best products on the market that
will give you the highest return on investment possible.
Is It Necessary to Conduct Research
on Products?
To put it simply? Yes.
Developing a successful online storefront requires a lot of
effort. In the long run, it won\’t do you any favors if you don\’t conduct
research on the products you want to sell before selling them.
The process can be intimidating for new business owners, and
it may cause you to wonder, \”How much of an investment is it really
necessary for me to do research on these products?\”
In a nutshell, conducting product research on each and every
item you plan to sell calls for some additional attention and care, but it is
absolutely necessary and critical to ensuring that you get off to a good start
in your new endeavor.
A product list that has been thoroughly researched can not
only bring you a steady stream of profits from evergreen products, but it can
also point you in the direction of unexplored niches or products that are on
the verge of becoming the next big thing in the marketplace.
6 Pointers to Help You Conduct
Efficient Product Research
After going over the reasons why you should conduct product
research, you are prepared to get started with the work that needs to be done.
Keep in mind that as you begin to build out your product list,
you might begin with a couple of surefire products that you are settled on
selling. This is something to keep in mind as you work on expanding your
product list.
You shouldn\’t restrict your product research efforts to just
your personal preferences or any hunches you have about the current market,
even though your personal preference in products can be a good starting point.
You could be right, but it\’s also possible that you could be
wrong. You should just make sure that you put in the time to research it and
that you are able to recognize when you should admit that a product might not
be a good fit for you.
1. Define your area of specialization.
All of your future product research will be based on this
foundation, so it is important to pay close attention to it.
If you don\’t choose a specific market for your product,
you\’re just going to create more work for yourself in the future.
Different Categories of Product
Markets
Product niches can either be quite general or quite
specific.
Selling Items within a Category Selling items within a
category is an example of a broad niche.
Examples include
·
Fishing Equipment
·
Outdoor Clothing
·
Equipment Pet Supplies
·
Lawn & Garden Tech
Consider the following example:
You are out doing some shopping for your dad in preparation
for Father\’s Day.
He enjoys fishing, but you are at a loss as to what gift to
give him.
You conduct a search on Google for \”fishing gear.\”
You perform a search for \”fishing gear\” and are
presented with a variety of results from which to choose.
You look through a variety of products until you come across
a fly fishing rod that triggers a memory of how much he enjoys fly fishing.
So you go ahead and buy the rod.
While this was going on, the proprietor of Scottflyrod.com,
who specializes in fly fishing rods, missed out on making a sale due to the
fact that you did not visit his website.
The appeal of a broad niche lies in exactly this aspect. You
are able to sell a greater variety of products and cast a wider net.
Particular Specializations
In most cases, a single category of product will fill a
particular niche.
·
Off-road bicycles are a good example.
·
Tables for Billiards
·
Running Shoes
·
3-D Printers
·
Longboards
Advantages:
You will have an easier time making headway on the products
you want to sell if you target specific niches.
You will have an unparalleled understanding of your
specialized market and of your target audience.
You will have an advantage when dealing with customers who
are aware of what it is that they want.
Can typically charge higher prices or offer a greater
variety of premium products, both of which wouldn\’t sell on general niche
websites.
2. Carry out an evaluation of your product leads
It\’s natural to be drawn to the products that have the
highest demand, but you should dig a little deeper.
First, you want to make sure you\’re not falling for a
passing trend.
The search volume for \”Fidget Spinner\” is
displayed in the chart below, which was compiled using data from Google Trends.
Source: Google Trends
They began to see an increase in the number of searches in
March of 2017, but saw that increase level off by September of the same year.
There is no question in anyone\’s mind that there were a
number of extremely disheartened trend-surfers out there who were sitting on
warehouses full of fidget spinners.
Products that have a consistent demand have been around for
a long time and have proven to be something that the market requires or wants,
regardless of the trends or other market factors that may be at play.
When thinking about products, you should keep your
\”break-even\” number in mind and consider whether or not the demand is
both consistent and high enough to support the initiatives you want to take
with your company.
3. Peruse the Feedback from Other Customers
Researching a product should always begin with reading
reviews written by previous purchasers.
You can learn what other people think of the products you
are considering selling by conducting market research in this manner.