Due to the popularity of online sales, more and more people are clamoring to open an Internet retail shop. One of the biggest hurdles in starting an online store is finding the right merchandise to sell. It’s difficult to enter an online selling market that is already saturated with a particular type of merchandise. The trick is to find a unique product for which demand is high and supply is low.
Brainstorming is one part of finding the right niche, but it is certainly not the only step. Hoping that the perfect idea will magically pop into your brain is a pipe dream. The most effective way of finding your niche product is to rely on computers and data to study trends, current market supply, and consumer appetites. Here are a few tips from industry pros:
- The product should be durable and easy to ship – Selling online is different from selling in a brick-and-mortar store. Since you will be shipping purchases, avoid items that are prone to break.
- The product should not take up much physical space – Some online business models will require you to carry inventory of the products you sell. You should avoid bulky products and focus instead on small items that may convenient box sizes.
- The inherent value of the product should be ambiguous – Stay away from items like electronics that have a set value that most people are aware of. Instead, choose to sell items such as keepsakes that have a more nebulous value.
- The product should be timeless – Opt to sell products whose value will not deteriorate much with age. Electronics lose their value quickly because new iterations of the products come out almost every few months.
- Avoid seasonal goods – Seasonal items are great for a brief period, but few people buy them the rest of the year. Avoid items that have a time limit on their appeal.
- Sell goods in the $15 to $200 price range – This is the sweet spot for online products. Anything lower or higher runs into tougher competition based on volume or price points.
To expose yourself to more ideas for choosing the best products to sell online, consider attending PROSPER Show, an Amazon seller conference.