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Guide to finding the best niche products to sell online
First, your product should solve a problem for your audience. It must also be specific to a niche, unique, respond to a desire and have brand image potential.
1. Carry out a market study.
First of all, limit your options by choosing a sector of activity. What type of products do you want to sell? Are you interested in fashion, technology, health, food or fitness? There are products that you can sell across industries.
Once you've decided on a business sector, focus on the problem you want to solve.
Once you have your problem and your solution (your product), start conducting market research.
There are lots of ways to study the market - Google, Quora, forums, and social media channels are a good, free way to get started. If you do some research and think your product is still right for your audience, dive deeper.
Send an online survey to your potential customers to find out what solutions they are looking for and better understand their buyer profiles. Then, try interviewing some of the respondents to get more in-depth answers, or organize a small discussion group in your community.
Talk to people who give positive and negative answers. Those who respond negatively may be able to formulate what they are looking for and inspire an entirely new product line.
2. Research your competitors.
If your product niche has some competition, that's actually a good thing.
It's better to see other people in your niche who are active and selling rather than trying to sell something completely new that no one might want. Competition is healthy.
In addition to looking at what your competitors are doing right, look at what they are doing wrong. Read their feedback and see what customers say they can improve.
- Can you take advantage of these negatives by producing a similar and improved product?
- Or can you offer better shipping options? A better price?
- Are there potential customers that their market is not reaching?
- Can you beat them when it comes to SEO?
Use a combination ofSEO tools and software, price studies, customer studies, and your own instinctive feelings about finding competitive gaps in the market.
3. Your products need to solve problems.
The surest way to find a successful product is to look for something that solves problems. People want convenience; if you can offer a product that makes things easier, people will line up to give you their money.
Start by thinking about your own problems. If you find something frustrating, it's likely that other people feel the same way and are willing to pay for a solution.
That doesn't necessarily mean you have to reinvent the wheel. You can make improvements to existing products or introduce an existing product to a new audience.
Take the example of Larq.
Water bottles have existed for centuries, but Larq has created a niche by launching a self-cleaning bottle. With this simple improvement in the basic design, they created a successful business.
4. Your products should be specific to a niche.
Look for product ideas that could excite a specific target audience. Start with your own passions; if you're working on something you love, chances are you're familiar with the niche and the issues involved.
A niche audience makes it easy to market your product. You know who you're talking to and can create a consistent brand voice on your product pages, in your emails, on social media, and everywhere you interact with your customers.
If you can identify and serve a niche market segment, you'll find a highly motivated, high-converting customer base.
5. Your products need brand image potential.
Today's consumers are buying brands that are authentic and that resonate with them on a personal level. Your products should be inspired by your brand's overall mission.
For example, Green Geeks Is more than one website host ; its mission is to have an environmental impact. GreenGeeks has a positive energy footprint on the environment because they replace, with wind energy credits, 3 times the amount of energy that a website will use.
Your products should inspire a brand story, a vision that goes beyond the products themselves.
6. Look for products that are trending.
While not a great long-term or sustainable business model, it can be beneficial to jump on a trending product idea.
If you can identify a topic that is becoming popular, you have the opportunity to own the SEO keywords, to be seen as an expert in the market, and to capitalize before the trend peaks.
It's not just about fashion, like face masks in 2020. Trends can also refer to political or social movements that you can capitalize on, such as the environmental movement that drives demand for sustainable products.
Start by going to the places your customers frequent, whether that's online forums, popular industry blogs, Facebook groups, or subreddits.
These online spaces for passionate fans will often tell you about the latest technology and trends that customers are looking for.
You can also see where the market can move through online tools. Type a subject in Google Trends, and the tool can show you the interest over time and which subregions are most interested.
Amazon also produces a trend report that can show you what's selling well, and the site highlights its best sellers, the hottest new releases, and the people who are on the move.
Catching a trend in advance gives you the opportunity to take ownership of SEO keywords and become a market leader.
7. Find products that meet your desires.
Look for opportunities to satisfy guilty pleasures.
Buyers often want to buy things that make them feel good. It's not for nothing that Spanx is more popular than workout clothes: feeling good is easier and faster than long-term goals. And that's true for e-commerce.
Whether it's a small luxury like chocolate or a high-end luxury car, people buy things that fulfill their desires.
Does Rolex have the best watches? People don't care, they buy Rolex for its brand image and their desire to feel successful wearing such a watch.
You don't have to cover these four categories, but keep them in mind when selecting your niche product.
8. Find products that have passionate fans.
Passionate fans bring two benefits to your business. First, they make purchases, which is exactly what you want customers to do. Then, they promote your products to others. These big fans become brand ambassadors and help you sell your products to their friends and family for free.
What types of products have passionate fans? Look for things that are part of a person's identity. In general, grocery shopping is not something people are passionate about.
However, if a particular diet, such as the Paleo diet, is part of a person's identity, food becomes a subject they are passionate about. Business owners can make money selling grass-fed bone broth.
Comic books, video games, sports teams and marathons are all topics that people are passionate about. People are willing to spend money on products that help affirm their identity or belong to a group.
Is Fortnite a revolutionary game? No not really. Many people play it simply to be part of a community.
Happy customers are full of praise for them, and many make videos on YouTube to show the product's capabilities. The company encourages its fans by organizing events like concerts or creating competitions and teams that play best.
9. Consider your profit margins.
All industries have different profit margins, and customers will accept a higher margin for some products.
For example, luxury products have a higher profit margin because customers are willing to pay more for the brand and the customer experience. While food and commodity products have a low profit margin and depend on a high sales volume.
To calculate your potential profit, you need to consider all of your costs, including the cost of goods sold (COGS), employee salaries, e-commerce marketing costs, site hosting fees, payment processing, storage, and order fulfillment.
Your e-commerce business model will play a big role in your final profit margin, so be sure to pull out these spreadsheets and determine the MSRP of your products to maintain a healthy margin.
Types of products for sale on the internet
There are two main decisions to make when choosing what to sell on the internet: commodity product or niche, and physical or digital product? The core product or niche is linked to the market you are trying to enter, while the physical or digital product is the type of product you plan to sell.
1. Basic products.
- Definition : Commodities are commonly used and must-have items, or brands that are popular in a specific niche.
- Potential Market : Generally high with continued demand.
- Challenges : Strong competition from major retailers and reduced profit margins.
2. Niche products.
- specifications : Unique, targeting a specific audience with items such as handmade or personalized products.
- Benefits : Ease of targeting a specific audience and higher profit margins.
- Disadvantages : Smaller market and less frequent demand.
3. Digital products.
- Examples : eBooks, video games, applications, online courses.
- Benefits : No physical storage or shipping costs. Immediate delivery.
- Challenges : Need for own creation and restrictions on certain sales platforms.
4. Physical products.
- Considerations : Production management, storage, packaging and shipping.
- Business models : Dropshipping, outsourced or in-house manufacturing.
- Specificities : For invented products, it is necessary to invest in prototyping.
In summary, each option has its advantages and challenges. The key is to choose a product type that matches not only your target market, but also your management and distribution capacity. The rest of this guide will discuss other key elements to help you refine your product choice.
Factors to consider when selling products online.
You should also take logistical decisions into account when deciding on your products. These include where you will sell your products, your e-commerce business model, and delivery methods.
These last factors should not be forgotten and will help you feel more confident in your small business plans.
1. Where to sell your products.
First, decide where you are going to sell your products. The top three options are marketplaces, social media platforms, and your own e-commerce site.
Online marketplaces.
These are existing retail platforms that offer easy ways for you to add your own product listings, like Amazon, Etsy, eBay, Facebook Marketplace, Bonanza, or Craigslist.
They have an existing audience and site structure for selling online, making it easy to sell products online. However, you don't have as much control over your brand, there are registration fees, and you're also competing with lots of other people selling on the site. If you plan to use local pick-up and delivery, you can also create local listings for your business in order to gain visibility in small local markets.
Social media channels.
These social media sites have a lot of limitations and benefits. Selling on Facebook, Instagram, Google Shopping, and Pinterest includes tools that allow your audience to buy directly on the platform.
This allows you to show your products to your followers, and the convenience of buying right away helps convert to sales. However, you don't have control of your own online store, including your brand image and payment experience.
E-commerce site.
The last (but best) option is to create your own e-commerce site atusing an e-commerce platform like Shopify or BigCommerce.
You can use their website builder to create your own online storefront, set up shipping and taxes, create product pages, and take advantage of fast loading speed, SSL certificates, etc. Using such a platform also allows you to collect and analyze customer data, which facilitates your online marketing efforts.
The best idea is to use a combination of different sales platforms. This mitigates the risks in case your own website goes down or social media algorithms don't work in your favor.
With a presence on social networks and in the marketplace, you can attract consumers to your site and obtain email addresses so that you can contact customers directly.
However, your own site does not have existing users, which involves digital marketing costs to attract customers to your site, as well as monthly platform costs. There are also credit card transaction fees and monthly fees for other payment processors and payment gateways.
2. Business models
In the e-commerce universe, there are mainly four types of business models, but for businesses considering selling their own products, the most relevant models are business-to-consumer (B2C) and business-to-business (B2B).
Business-to-consumer (B2C) model:
- The B2C model relates to the direct sale of products or services to end consumers.
- It is characterized by shorter sales cycles, a high frequency of orders, and the importance of brand awareness.
- example : An online retail site that offers clothing, electronic devices, or toys to individual consumers.
Business-to-business (B2B) model:
- The B2B model involves selling products or services from one business to another.
- It is distinguished by high-value orders that are often recurring, requiring a more complex sales process and more demanding customer service.
- example : A supplier selling raw materials to a manufacturing company, or a software company offering B2B solutions.
In summary, the B2C model focuses on selling to the general public, while the B2B model focuses on business-to-business transactions. Each model has its own specificities and requires an adapted approach to succeed in the e-commerce sector.
3. How to deliver your e-commerce products
Your e-commerce business model includes the exact details of how you're going to source and deliver your products. There are lots of different options out there, and the right one depends on the type of product you're selling and how much control you want to maintain.
Directly to the consumer.
D2C business owners sell directly to consumers, cutting out intermediaries. They can manufacture their own products or outsource production. Direct selling allows the company to maintain control of the brand, prices, and customer experience, allowing it to build a loyal customer base.
Private label or white label.
White label products are those for which you put your name, brand, or images on a generic product. With private label products, a manufacturer creates a product that you sell exclusively. These models allow less time to be spent on design and production, leaving you with more time to sell the product.
Wholesale.
Wholesalers sell products in bulk at a price that is lower than the retail price. The opportunity to make a profit comes from large orders. In general, wholesalers sell to retailers who then sell to consumers; however, some wholesalers sell in bulk to budget conscious consumers.
Dropshipping.
Dropshipping is a popular model for online sellers. In this model, the seller sources, markets, and sells items that are then supplied, packaged, and shipped by a dropshipping supplier, like AliDropship or Printful. In fact, dropshipping suppliers are intermediaries.
While this may lead to a lower profit on each item, you don't need to worry about storing or shipping the products, which is appealing to business owners who don't take care of everything. Many e-commerce platforms have built-in integrations that allow you to easily set up a dropshipping business.
Subscription services.
With subscription services, consumers pay a monthly or weekly amount and receive new products on a regular basis. Box subscriptions are a popular form of this model, where a range of related products are sent to customers every month. The boxes can be linked to anything from craft projects to clothing to wine.
This model can also work with digital services. You can ask your customers to pay regularly to access software, or provide them with music, ebooks, meditation, or other products on a regular basis. This model ensures a steady income and you can take advantage of seasonal sales to choose which items to add to the box.
However, it can be a lot of work to source and pack items regularly, and you need to think of new things every month to keep customers interested.
How do I start selling on the internet?
Now that we've covered a few tips to consider when choosing your product to sell, it's time to start selling.
1. Do a market study and choose your products to sell.
Follow the steps above to do your research and choose the products you want to sell. Remember to find a product that solves a problem, is specific to a niche, fulfills a desire, and can be marketed.
Analyze the numbers to make sure your idea has healthy profit margins and a good chance of success. It's also a time to define your target keywords, start building your brand story, and connect with your potential customers.
It's possible to build your brand before deciding on a product to sell, which can give you a head start when it comes to starting your business. Spearmint Love, for example, started as a baby blog.
When owner Shari Lott decided to open her own store, she already had a dedicated audience ready to try her products.
2. Choose your e-commerce platform.
There are many players in the e-commerce market, including BigCommerce, Wix and Shopify. The options you choose will depend on your needs, but Shopify is a great choice because it can grow with you as your business grows.
Learn with this article: How to create your Shopify store.
All the features you need are included in the monthly price and there are plenty of website design templates to choose from:
Setting up a store with BigCommerce is easier than you think, especially thanks to thelanding page creation tool by drag and drop. It's easy to add your categories and products, and you can select a theme to customize, helping you get the right look for your brand.
BigCommerce also guides you through back-end settings, such as currency, shipping, taxes, and order processing, so your store is ready to launch. If you're having trouble, their help center has documentation, guides, and a community of other users ready to help.
3. Create your product content.
Your product pages are the most important on your site because that's where customers make buying decisions. Your product page has two key elements: descriptions and imagery.
Both are as important as each other. While quality images help convert sales, it's the description that draws customers to the page, especially since it's the description that is indexed by search engines.
When writing a product description, tell a story.
Don't just present the features and benefits, but talk about the emotional appeal of the product, the problem it solves, and how others benefit from it.
Your description should clearly state what your product can do for them. More importantly, it should be unique and written with appealing sales text.
Watch how the furniture retailer Burrow Write the text for his Bento side table. Although it's just a table, they don't just say, “It has four legs and you can put things on it.” They tell a story and use captivating language:
As for images, include multiple photos of each product, starting with the image of the hero on a white background. Show the product from different angles and take more high-quality photos when it's in pieces.
Also include a few photos of the product in use, but these should not make up the bulk of your images. Ensure images are clear and in high resolution, then use a photo editing tool like PhotoShop to save them in a web format with a smaller file size.
Also, don't forget to add alt text to each image to help Google crawlers index images. If you really want to be successful, do some research on best practices for product pages in order to understand the different strategies for creating product pages with a high conversion rate.
4. Start promoting and selling your website.
When you launch your e-commerce site, promoting and selling your products is crucial to attracting traffic and increasing sales. Here's a simplified approach to get there:
Search Engine Optimization (SEO)
- Keyword Research : Use SEO software to find long-tail keywords.
- Contents of the Site : Focus on product and category pages, as well as relevant blog posts.
- Backlinks : Get links from reputable sites in your niche to improve your domain authority.
Content marketing
- Blog posts : Create blog content that attracts a target audience and leads to your products.
- Product and Category Pages : Optimize to rank on specific product terms or categories.
Social media
- Social Media Presence : Choose the right platforms for your target market.
- Commitment : Participate actively and establish yourself as an authority in your niche.
Email marketing
- Email Collection : Install pop-ups to collect email addresses.
- Email campaigns : Send out a series of emails to engage your subscribers, including discounts and brand information.
Paid advertising
- Remarketing : Target people who have already visited your site.
- Facebook and Google advertising : Use targeted ads to attract new customers.
- Google Shopping : Synchronize your catalog to attract customers to specific products.
By implementing these strategies, you can significantly increase traffic to your e-commerce site and improve sales. However, keep in mind that the consistency and continuous adaptation of your strategies based on the results obtained is essential for long-term success.
Summary
E-commerce success starts with an exceptional product.
It's the product that becomes the core of your brand story, supports your marketing efforts, and determines the audience you sell to.
When choosing a niche product to sell on the internet, it should solve a problem, be specific to a niche, respond to a desire and have brand potential. You should also consider your profit margins, competitors, and e-commerce business model.
All things considered, the product should arouse a passion in you. The idea that others like your product should create the impetus needed to catapult you to e-commerce success.
Selling your own product and becoming an online entrepreneur takes a lot of work.
But imagine the feeling of changing the lives of thousands (or millions) of people with a product idea that only you created.
