The key to success when selling online is offering products that someone else wants to buy, whether it is for aesthetic value or offers to make their life easier, better or more comfortable. Just because you sell something of interest to you doesn’t mean others will feel the same.
You might think that argyle socks are the greatest thing since sliced bread, but unless there’s a real, under-served market for them, they are unlikely to be a product that will propel you toward online success.
With a nearly unlimited supply of informational and physical products you can offer on your online store, how can you determine which will be a best seller? There are no guarantees, but there is some research you can do before opening your online store that will greatly increase the odds of your success.
What Can Your Product Do For the Buyer
This is called the value proposition. Consumers are looking for items that will do one of five things for them: save them money (or make them money), increase their knowledge or offer valuable information, entertain them or offer aesthetic value, save them time or benefit their health and well-being.
All products fit into at least one of these categories. Each satisfies a “need” or a “want”. The trick to finding one that will sell well is identifying your unique niche market.
Supply And Demand
The well known principle of supply and demand relates not only to global economic indicators, but to the business of selling a product. Go back to the first paragraph; if no one wants to buy argyle socks, then you are left with a large supply. If argyle socks suddenly become the latest fashion trend, then demand will quickly outstrip your supply.
So, how do you find out what people are demanding to buy? Take a look at what consumers are searching for online. There are several ways to do this:
• Check the popularity of keywords on Google Adwords.
• Take a look at several large retail websites, usually they have their most popular products listed or will return results for a search based on popularity.
• Visit several bricks and mortar stores, what shelves are bare?
• Join social networking site fan clubs and online groups and forums about a topic of interest. Spend some time conversing with the other members. Chances are you will find out what types of products they want – and can’t find, without even asking.
• What’s popular in culture? Do an online search for merchandise related to the latest blockbuster film, book, or television show and see what results are offered.
The other side of the equation is supply. Researching demand will give you a good start on determining supply. Going back to Google Adwords, if there are lots of bids on particular keywords, that also means there are lots of suppliers for those products.
This is where niche research comes into play – and you can further use your demand research. Do a customer profile of your target market and determine what needs are not being met. Maybe the latest craze is for a high-tech golf club. If you can offer it at a cheaper price, or customised, or with a pink shaft to attract women golfers, or in a left-handed model, then you are filling a niche.
Once you figure out what consumers want to buy, and what is currently not being offered to them, you have largely won the battle in the war to compete with other online stores and make a profit online.
About Sean Rasmussen
SSean
How would you do a customer profile?
I suspect one way that Sean does that Gee, is that he’s extremely active on social media and he gets to know his customers that way. He reads about their concerns, hopes, fears and dreams. He asks the right questions and he incentivizes people to tell him their problems. For example, when he was in the process of launching YOTA, he offered the chance to win free scholarships/memberships for a whole year. In return for this opportunity, people poured their hearts out to him. He does research – is one way he profiles them (if not the main way), would be my answer. He finds out what the market wants, and delivers that.
Would I be right, Sean?
Yes, all these scenarios come into play Lina. Listen to your current customers, ask for feedback, ask questions… there are many things you can do to find out what your customers want and where you are lacking in what you have already provided.
Hi Sean,
This is why I love the ‘Steal this Niche’ video series in the forum. You get to see exactly how to find out if there’s a market for your product before you set up a site.
Sometimes the things you think won’t sell are actually the ones that sell the best.