Selling the right product online
Starting your business online isn’t as easy as it was 5 years ago. Not only is competition fierce, but consumers are also savvy enough to fish out the best prices for their products. Despite this, there are still entrepreneurs who enter the market and succeed. So how do you achieve success in the e-commerce market too?
Most of the time, it comes down to selling the right product. In this article, we’ll go through everything you will need to know about selling the right product online and getting your business started.
What kind of products to sell online
The first question that you’ll probably ask yourself is what product to sell online. Firstly, choose between a niche or commoditized product.
Niche products are services or goods that cater to a specific customer base and target audience. Custom-made products and handmade jewelry are some examples of niche products. More often than not, these products are made in small batches or on-demand.
On the other hand, commoditized products are essential, high-demand goods that everyone will need. They can be either goods or services. For example, food and kid’s toys are considered commodity products.
Though commoditized products make up most of the online sales, many online sellers sell a combination of both to increase their profit margin. This is as selling only commoditized products makes it hard to compete with existing sellers online.
Hence, it’s best to offer both commoditized and niche products while delivering an on-brand experience to succeed.
How to choose the right product
Truth is, it’s hard to come up with unique product ideas nowadays. However, here are a few tips that you can use the next time you’re brainstorming ideas.
- Solve a problem
Reflect on problems in your life. Often, many product ideas come from small annoyances that people find in their life. For example, take the founders of Kydra, a local activewear brand. The idea for their first pair of shorts came after an unfortunate incident in the gym that led to a cracked iPhone screen.
They realized that there was a gap in the activewear market – functional shorts with pockets. Since selling out their first release in 2016, they are one of Singapore’s most popular activewear brands.
Some other tips that you can consider would be tapping into a new market unrealized by your competitors or unique product positioning and marketing.
- Find products that you or others are passionate about.
We all know by now that starting your own business won’t be a smooth journey – you’re bound to hit some bumps along the way. When those moments come, you’ll need to have the determination to carry you through these tough times.
Often, your passion for the product that you’re selling will make it easier for you to push through those long hours. Plus, it’ll help you create an authentic and engaging message for your target audience.
This emotional investment will not only help you better deliver the value of your product but help you stand out from competitors in the market.
- Branding potential
Now we’ve come to the marketing side of things. Creating a brand image and message will surely elevate your online business to the next level. To do this, you will need to conduct research on your target audience and understand what they are looking for.
You want to build loyalty based on audience identity. Consider these few questions when you’re doing your research:
- How does your target audience like to be addressed?
- How will you position your product?
- How should your website look like to communicate these details and your brand image?
These steps will help create a community and purpose behind your brand.
How to make commoditized products niche
Creating and identifying niche segments in the market is one of the ways for you to achieve success with your business. This is as niche segments often resonate with a highly engaged audience who will be most likely to convert to your product.
Creating a niche product will help build brand awareness, online traffic and encourage existing customers to return to your store.
An example of a commoditized product turned niche would be Stasher’s reusable silicone bags. Unlike your common Ziplock bags, these Stasher bags are reusable and non-toxic. They champion the preservation and rehabilitation of oceans, with a portion of their profits going to high-impact organizations with the same values.
Stasher provides a solution to environmentally-conscious consumers by providing a niche product that has not been created yet in the market. Furthermore, the values on which the brand was founded allow consumers to relate and engage with the brand too.
Starting your online store
Now that you’ve got your product idea down and research done, it’s time to move on to starting your online store. Firstly, you’ll have to incorporate your business. It’s a common misconception that online stores do not need to be incorporated.
If you aren’t sure about what incorporation entails, simply reach out to us at Margin Wheeler where we’ll help you sort it out in a jiffy.
Here are a few extra tips you can follow to get you started:
- Begin research on what e-commerce platforms you would like to sell on
- Start manufacturing a small batch of your niche product
- Test out your products before investing further
- Conduct surveys and focus groups to get feedback
- Create a marketing strategy to target both existing and potential customers
Before you jump into any business, be sure to plan everything from start to finish – it pays to be detailed! Be a hundred per cent familiar with your product. If you aren’t, do your research! Every country also comes with its own rules and regulations for corporations. Ensure that you know about the requirements you will need to file and the tax exemptions you are eligible for.