There are many great reasons to launch an online store. Compared to a physical store, an online store is much cheaper to run. You’re also not limited to a local audience and can sell to customers from around the world if you desire.
Of course, there are a few questions to ask yourself before you start an online store. For example, what will your company name be? Will you sell through a platform like Amazon or your own website? And if you do choose to sell through your own website, how will you build this website?
These are all very important questions. But perhaps the most important question is: what products will you sell? Before you’ve even come up with a brand name or thought about setting up a site, this is the first question you will need to answer. You may already have a vague idea of the type of products you want to sell. But choosing the specific products will require a bit more thought. Below are just a few ways to help you select your products.
Follow your passion
It makes sense to sell a product that you have a genuine interest in. Not only will you have a better understanding of who the audience are, but you will genuinely enjoy selecting and promoting such a product.
Some people choose to sell products that they themselves have made. By turning a craft hobby into a business, you can make money from your hobby. Alternatively, you could have custom products designed and manufactured by other people to your (or your customers’) specs.Â
Other people choose to sell third-party products that they have a fondness for. Most online clothes stores are set up by people with an interest in fashion. Not only this, but the style of clothes is usually themed around a style that the seller themselves is into.Â
Of course, that isn’t to say that you can’t select a mundane product that you will know will sell well. However, you will need to have a knowledge of that product in order to sell the right products – which does mean having the motivation to research that product. Therefore, even if you choose to sell toilet seats or washing machine parts, there should be a genuine interest in that product.Â
Go commoditised or go niche?
There are two types of products: commoditized and niche. It’s worth considering where you’re going to focus as it will affect how you market such products.Â
Commoditized products are the type of product that everyone needs and uses. They are commonly found in convenience stores and include products like washing up liquid, bedsheets, sofas and underwear. When selling commoditized products, there’s usually no need to educate buyers with lengthy product descriptions. At the same time, there’s a lot of competition, and so offering lower pricing or exclusive deals is more important.
Niche products are those that are only relevant to a very small select audience. They include things like guitar strings, walking sticks, tractor parts and ski equipment. Such products may be too niche to center a physical store around in many locations, but in demand enough to set up a successful online store around providing they are marketed properly. Pricing does not have to be as competitive for such products because there is less competition out there, however more product information needs to be required to convert customers.
It’s possible to sell a mix of both types of product. For example, an online sofa store may sell some generic low-priced couches while also selling some unique and luxurious premium models.Â
Research and test
It’s a good idea to research and test the products you plan to sell. You can then determine if they are good quality enough. You can also provide thorough and unique information on each product.
Avoid products that you do not think are good quality enough. You may be able to sell them at a cheaper price, but the bad reviews will come back on you.Â
Determine your inventory size
How many different types of products should you sell? There is no simple answer to this: some stores sell just one product while others sell hundreds or even thousands of different types of products.
When starting out, you’ll want to keep your product range quite small, while still having enough of a range to excite customers. You could choose to sell the same product in different styles and colors. Alternatively, you could aim to provide variations in price and quality (ideally a low-priced lower quality option, a mid-priced mid quality option and a higher priced high-quality option). Just remember, the low quality option shouldn’t be too low quality.
Take into account profitability
You need to be able to price products and still make a profit. If buying or making certain products is already expensive and you don’t feel you can price these products high enough to make a sizable profit, you should consider whether it’s really worth selling these profits. Of course, there may be other popular products you can sell with a larger profit margin that can allow you to price other products slightly lower for slimmer profits.Â
Consider storage and shipping
Certain products may require more specialist storage or shipping needs. Large and bulky products may not be possible to store in your home and you may need to outsource self storage, while also considering your shipping options. Food products meanwhile may need to be stored and shipped carefully to stop them spoiling.
If products expire quickly or are typically needed in a hurry, you will need to think of ways to minimize storage or shipping time. Products that expire quickly will require hard fast sales techniques to get them to customers in time. Products that require next day delivery may need to be dropshipped – especially when selling to customers in different countries to where you are based. This guide explains more about dropshipping.Â
Make your product line unique
Overall, there has to be something unique about your product line to make people choose you over competitors. One way to do this could be to sell an exclusive product that no-one else is selling. However, there are other ways to make your product line unique such as offering a more extensive range, offering cheaper prices or simply offering more detailed information on each product. Do your competitors research to find out how you can set yourself apart.Â
