Are you thinking about starting an ecommerce business as a side hustle or even to replace your 9 to 5? If so, you’re not alone.
Many people have become entrepreneurs in the past few years, realizing the relatively easy and profitable transition.
The good news is that there is so much information out there to get you started on this journey. The bad news is well, you guessed it-there is so much information out there.
How do you sift through it all to figure out what matters most to the success of your online company? It can prove to be a cumbersome process.
First thing’s first-you’ve got to find the right product to sell in your ecommerce store. Should you offer multiple products or just focus on one?
You’ll need to find merchandise to sell at an affordable price for customers that will still provide a decent profit margin.
When it comes down to it there’s a lot of data to consider. Maybe you’ve already done research on this or maybe you have no idea about where to start.
Below we’ve compiled some tips that will guide you in finding the best product(s) for your online store and get you selling merchandise on your ecommerce site.
WHY CONSIDER ECOMMERCE?
Ecommerce businesses are popular because they offer the freedom that traditional jobs don’t. They also have the potential to make you a millionaire.
But first you need to consider what it is you’ll be selling. What types of inventory are you working with? There are a few things you should take into consideration when deciding on merchandise.
It’s also important to understand the ecommerce order fulfillment process so you know what you’re getting yourself into.
CONSIDER TRENDING PRODUCTS
Because trends tend to shift over time, it’s important to stick with selling products that are in consumer demand. With the pandemic, a lot has changed that’s directly affected buyer behavior and much of that looks like it could stick around for a while.
That being said, when a product is trending it means it’s popular. Even if the market is already oversaturated, there’s money to be made.
Currently, products that cater to hobbies, business, home improvement and office, health and personal care are all trending as top sellers since everyone is still mostly stuck at home.
Determining which product(s) to sell can become a big obstacle-the decision for which can have great success or consequences for your ecommerce business, so choose wisely.
PROFITABLE NICHE PRODUCT IDEAS
Deciding on a niche such as handmade items, pet products or T-shirts, can provide you with a competitive market advantage. You can choose a general niche item like the ones mentioned above or one that’s seasonal, such as summer accessories.
Targeting an audience with a niche product shrinks the competition because the demographic for sales is smaller. Doing this narrows the focus and reduces the cost of social media marketing, which you will ultimately use for advertising purposes.
If you decide to go niche, you can always branch out to add related products that attract and convert new customers once you’ve gained a decent following.
COMPETITOR PRODUCT RESEARCH
Good ‘ol Google is still one of the best resources when it comes to searching for in-demand ecommerce products.
Always research your potential competitors to note what they are doing and not doing with the products they sell. Did they miss something that you can capitalize on? Practicing due diligence allows you to stay one step ahead and take financial advantage of any missteps.
Take note that while it’s good to be thorough, this research shouldn’t take all day. It’s easy to find information through a Google Search and click around from there.
JOIN AN ECOMMERCE COMMUNITY
Another idea is to search what are called “social shopping” websites to generate product ideas.
These are ecommerce platforms that live on enabled sites where the experience of shopping is within a shared network, which uses the influence of others to ultimately get more sales.
The act of ‘sharing’ can include a like, comment recommendation or share with others.
Examples of these kinds of sites include Etsy, Pinterest, Poshmark and eBay. If you don’t already have an account, sign up for one or two to see how they work.
Another way to find out what items are popular is to join a forum or some type of online community to check out high-demand products.
Facebook Marketplace is one social media platform that ecommerce retailers can take advantage of that breaks down the demand and need for certain products.
PRICING YOUR PRODUCT
Products bought at the lowest price and sold with the largest profit potential is the way you want to go. This ensures you’re getting the best ROI.
A general rule is to sell a product for three times the price you paid for it. For example, if you bought a product for $6, sell it for $18.
Doing this typically allows you to cover the supplier pricing, shipping rates and marketing costs, leaving you with a good profit margin in the end.
DETERMINING A SUPPLIER
Because ecommerce sites today are so popular, there are a ton of suppliers to choose from. But it’s important to ask yourself which of them are reliable and offer high-quality products with reasonable delivery dates and shipping costs within your budget.
Remember, whether your company’s just starting out or already established and successful, partnering with a third-party logistics provider (3PL) creates more efficiency, reduces cost and allows your business to scale quickly.
Fulex is a 3PL that helps streamlines the process for online marketplaces while growing your business. It also helps in easing the strain of storing product and shipping to your customers, providing the service and reliability you need to succeed.