Effective product research is crucial to your business, whether you want to discover the greatest products to dropship through your online store or you want to create a new product of your own. The time you invest today in research can pave the road for profitable business later.
Don’t know where to start and needs identification solution? Continue reading to discover some of the finest techniques for determining which items are the best fit for you and your consumers.
1: Use Several Sources to Conduct Research
Researching things from several sources allows you to get a more complete picture of how a product will work. We recommend combining multiple selling platforms, such as Amazon, eBay, and AliExpress, with online forums, such as Quora and Reddit.
While you may find product ratings and popularity on selling websites, Reddit, Quora, and other internet forums can provide more customized research. Look at what people are talking about, what problems they’re having, and what questions they’re asking to see whether you can address their requirements with the products you sell.
2: Know What to Avoid
As you conduct your research, bear in mind the following characteristics of products that you should avoid due to low profitability, low demand, or other problems that may impact your sales progress:
- Shipping is too expensive due to the size or weight of the item.
- Products that sell for $18-$20 or less frequently have a low-profit margin.
- Products that are only available for a limited time and are unlikely to sell throughout the year.
- There is little to no demand.
- There is a lot of competition from other vendors.
- Products that are trademarked or patented, as well as those that may cause legal problems.
3: Determine Profitable Pricing
When it comes to purchasing products in a price range that will be profitable for you while keeping customers satisfied, there’s a tight line to walk. Many seasoned online sellers choose items that can be sold for $25 to $75.
A $25 price tag will entice shoppers while still allowing you to make a profit. A $75 item can make you a lot of money while yet being affordable to your clients. Going above that level may be profitable for you depending on the item, but you’ll pay more on each product, so it’s not the best pricing bracket for new sellers who want to keep their initial costs modest.
4: Scope Out the Competition
You can research your rivals after you’ve decided on a niche for your items. It may sound strange, but it’s a standard marketing strategy for increasing sales and brand exposure.
You can also look at your competitors’ product descriptions, marketing strategies, and product photos to see what they’re doing right and how you might improve your products.
5: Find the Unicorn
There’s something to be said for marketing things that are specifically targeted at a specific audience. People adore one-of-a-kind items that they can’t find anywhere else, so don’t underestimate the potential of oddball stuff.
Exploring online groups, such as Reddit, can aid in the discovery of oddballs. You may also see what people like and want.
6: Track Trends
Keep up with the latest trends in your field to be informed on what people who are interested in that niche are looking for. Google Trends is an excellent tool for this, as it allows you to track trends dating back to 2004.
7: Consider Future Growth
When you begin selling, keep in mind what the next several months or years will entail for your company. What direction do you think it’ll go? What is your company’s ultimate goal?