Five Ways To
Find the Right Product to Sell Online
By Jimmy Bibs
TABLE OF CONTENTS
Introduction 98% of all ecommerce businesses fail. Many reasons of these failures can be contributed to work ethic, lack of commitment, and ignorance. Ignorance in business can be deadly, and must be dealt with by the thirst of knowledge. Many of you who are reading this hold the knowledge that there is money to be made selling products online. The thing you do not know is the criteria one uses on deciding the type of product to sell online. Using this eBook we can discover five ways to help us refine and search for the most profitable products to sell online. The first way is to find a Product Directory. The website Directory I use which is also a Wholesaler Supplier Directory is Salehoo website. “Two birds with one stone,” even though finding a wholesale supplier directory is not part of the 5 ways to help find the most profitable product, when a product is chosen, it will be very nice to have a directory of suppliers who are certified safe to work with. The eBook will also outline “Who are the competitors selling this product.” A good measure of competitors is Data analytics and eBay listings which we will be getting from the Salehoo website. Competition is important but the tools from Salehoo will definitely help us find the most successful products to sell online. This eBook will also outline “How to find the profit for a product.” Profit is a very important aspect and we will determine how to find the profit margin in dollars and in percentage, by using specific types of prices and supplier websites as references. The website we are using for reference of the price is the Salehoo website. Another thing this eBook will have is “How to check for the demand.” Demand has always been an interesting factor because it gives a vivid picture as to how many people are searching for this product, and how well it sells. We will be using Data analytics and tools from the Salehoo website. We will be also taking a look at the importance of comments
Do you have a Database of Products to Search through?
How to Find the Right Product Product Directory The first thing you need to do before even starting this process is begin finding over 10 products you can see yourself selling. I like to use Salehoo to search through there directory of products. The trick with this part of the process is not to be too picky. Try to find the stuff that is in your niche. Do MININMAL research for this part. Many people like to spend 2 hours looking up only ONE product to find a dozen problems they can’t solve so they give up. You want to start off nice, and simple, no more then 10 minutes for each product.
Who are your competitors
How to Find the Right Product Who are your competitors The people who compete with your product are just as influential as the amount of demand in your product. Finding your competition may seem like a vague objective at first, but after you narrow down the tasks, it seems pretty simple. The first thing I do when I find competition is look at the amount of eBay listings there are for the product. To get a quick number I use the Salehoo website. The greater the amount of listings the more people you can clearly see are trying to sell this product or something like it. EBay is a huge platform for people to sell their products on, knowing how many people are selling in this platform is our first indicator of the amount competition and where the competition isÂ for this product. Salehoo also gives a graph of competitors who are also looking for this product as well.
Are you making enough Profit for a Sustainable Business?
How to Find the Right Product How much profit are you making? Profit is always something very hard to estimate accurately. I mean how much profit each sale is very important, but depending on whether you are getting your product from a manufacturer or wholesaler the price can vary. If you are ordering a product, the amount of product you order will also change the price. Another factor that people need to look at is dropshipping. If wholesalers or manufacturers are prepared to dropship for you they will take a higher amount of the profit margin pie to cover the costs of shipping. All things that you can find and discuss at the Salehoo website platform. When calculating the profit amount in dollars we must first find the costs of the product. To find this, we must use supplier websites such as alibaba or aliexpress just to get a rough estimate. I like to find the lowest supplier value when determining costs . I also need to find price value that I will be most likely selling close to. One thing I like to use that is nice and simple is salehoo, which gives me the average price of the product.
How to Find the Right Product How much profit are you making? I do not concern my self too much on the exact price because depending on your actual cost or perceived product value and quality you may increase or decrease your price. If you find cheaper prices on amazon does not mean you can necessarily sell it at that price as well. Some people have processes that allow them to undercut and sell it at these low prices. It is also pointless to estimate selling something at its highest price because most stores probably already have a brand trust, product quality and other things that allow them to sell at that price. Now that I have the cheapest cost of the product and the average price I can determine a very realistic profit margin I can expect to have when selling this product. Profit = Average Price - Lowest cost. Now when calculating the profit it is always good to keep in mind all of the things that can take chunks out of the profit margin pie. Things like shipping, weight of the product, and marketing can really eat up the percentage of your pie. That’s why I always put my profit margins in both dollar and percentage amounts. These will be useful when you begin to talk to suppliers. Do not forget to record any particular comments about a product that may affect your profit.
Do people even care about your product
How to Find the Right Product Do people even care about your Product? people even care about your product? Well just because you and a couple of your Do friends and family care about your product, doesn’t mean that there is a large enough amount of people to sell this product to. Today we are going to learn how to calculate the demand for the product. Using Salehoo we can easily find the sell rate of a product and the trend of demand as well.
These tools from Salehoo market research lab gives us the insight of how exclusive a product is, the times it is expected to sell most, and if it is indeed gaining popularity. Make sure to record any anomalies within the trend.
Do not forget about the comments
How to Find the Right Product Comments Comments can be a very helpful factoway in deciding whether or not a product is profitable. I mean sure we can run the numbers and make fancy graphs on which product will do the best but I think the individual comments of each product should . also matter in the overall decision. Comments should be written down throughout the whole process of the product competition, profit, and demand analysis. Every feeling, hunch or doubt should also be documented thoroughly. Sometimes its hard to decided whether or not a comment is helpful, especially in determining it's success. Some comments may bring ambiguity pertaining to a product's success probability making the overall comment inconclusive, but remember any comment at all is better than no comment. It is always good to answer as many concerns one has about a product within the research phase. Although some question cannot be answered until actually going through the full process. The more you know about selling a product the less surprises you will receive and in this businesses surprise are usually no good. The one thing I look for in the comments is my overall confidence and excitement in a product. This can be very helpful down the road when you actually have to market and sell this product. It is easier to sell a product when yow believe in it.
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