About 69% of Americans have bought goods online. In other words, 7 in every 10 Americans have purchased items from ecommerce businesses. People are more trusting and willing to buy goods from online stores.
By opening an online store, you can reap the benefits of these shopping trends. But wait. What kind of items are you going to sell in your business?
It can be challenging to know where to start in product selection. Choosing the right products to sell online forms the basis of your business’ growth. You need to select items that people will want to buy.
Starting an ecommerce business that sells the right product can seem daunting. But, fear not. Read on to find out all you need to know to choose the right product to sell online.
Establish Your Business Metrics
In the planning phase of starting your ecommerce business, you need to set business goals. When you know your business goals, you can select the right products to help you meet them.
Goals have to be measurable so you can monitor all progress against them. Think about it like this: what do you want to attain? Make sure your answer is as clear and specific as possible.
Next, create a timeline for when you want to achieve these goals. There are different phases of an online business. They include the initial phase, the growth phase, and the expansion phase.
You can use these phases as timelines for your goals. For every phase, establish a particular metric. These metrics can be market share, profits, and the rate of conversion of visitors to customers.
The best way to track the achievement of these metrics is through ecommerce analytics tools. Investing in these tools should be one of the first steps every new ecommerce entrepreneur should take.
Find Your Niche
The basis of any business is to fill an existing market gap. This is the same with online businesses. Every online entrepreneur needs to find a profitable niche.
This will help them know what products to sell to these customer groups. There are various tips you can use to find your niche. Select an activity that customers in your niche are enthusiastic about.
People are likely to spend money and time on things they are passionate about. It will also increase rates of customer engagement and loyalty.
Another way to find your niche is by starting a business that relates to your passion or professional experience. Choosing something you’re passionate about is very beneficial in the long term. It will help you stay motivated throughout the process of starting an online business.
You can also turn your professional expertise into an online business. Finding your business niche will help you find your target audience.
Conduct Market Research
Doing market research may seem like a highly technical activity. However, don’t let it intimidate you. It is a simple process that will help improve your business.
Comprehensive market research will help you understand the competition and what the customer wants. It is, therefore, a great way of confirming if your product selection will add to your business’ success.
There are easy ways to carry out market research. You can go through the lifestyle and advertisement sections of popular magazines or newspapers. The lifestyle section can help you identify market trends.
Advertisement sections let you know which products are in demand. If firms are willing to pay huge sums to popularize their product, there is demand for it. If you wish to sell a product to a specific group, take a look at certain spaces.
These can include social media groups, publications, trade magazines, and forums. In doing so, you can better comprehend your target audience.
This will help you find unique opportunities for business growth. Market research can also help you know which marketing tips will work best for your niche.
Understand the Competition
Other online entrepreneurs are likely selling the same product that you want to deal in. If not the same, they may be selling a close substitute. Therefore, scouting the competition is a good way to make sure your business stands out.
You need to research the competition with an aim in mind. Look at competitor pricing. Also, consider how they present their items to customers. The aim is to make sure your business matches industry standards while still maintaining its uniqueness.
Make sure to check how competitors market their products. You can integrate what works with your unique marketing opportunities. But, how can you know more about your audience to better curate marketing strategies?
Use google analytics on your website to understand who your visitors are. The tool can also tell you how they got to your site, and the sections they spend the most time on. This information is powerful in improving your marketing strategies.
Get the Right Pricing
The pricing of your product will determine the volume of sales. This is because price heavily impacts people’s decision to purchase an item.
Consider whether your product is targeted towards high-end, economical, or customers who are in between the two. Then set a price that matches your target audience. You also need to consider the costs involved in sourcing and shipping the products.
There are ways you can know how well your product is performing with the set price. Make use of google analytics ecommerce tracking. This feature helps you in monitoring your ecommerce data like sales volume and the average value of orders.
Correct Product Selection
Every choice you make as an online entrepreneur is largely guided by the type of product you sell. Therefore, you need to carefully choose your products early on in the business.
Avoid doing a random selection of items to sell. Instead, follow the guidelines outlined in this article. Make sure you determine your metrics and niche. Then carry out market research, know your competition, and determine pricing.
Most successful online businesses use ecommerce analytics to inform their growth. Contact us today and get recommendations on how to develop your ecommerce business using the correct product selection.