What is the Best Product to Sell?
It is important to spend some time thinking about your product. If you have a definite interest in something, such as jewelry or DVDs, follow it. You can specialize in a certain niche areas that will bring in the most sales, as both of these are large product lines. Too many people just jump in and go with a product they think will sell well and find that they do not understand the product, or do not enjoy selling it.
Also, give thought to finding a product that is always needed and will provide a steady stream of income over a longer period of time. You may not make huge sales at the beginning, but over time, your business will grow. It is best to decide on a product that genuinely interests you or provides a significant amount of enjoyment; by doing this, you will enjoy spending the time it takes to learn about your product, your customers, and your main competitors and their prices. The product should fit well with your interests, and, at the same time, it should match with the product or niche industry.
Ask yourself these questions before starting:
- Do you have a basic skill, personal passion, or interest that can readily be sold online?
- Is there anything in your past career path that may help you sell a present product?
- Do you know of a product that you can readily obtain from your local area?
- Are you considering a fad item that will sell hot and then disappear, or one that will be needed for years to come?
- Is this an item that can be sold on Amazon? Have you carefully researched this product line on the site?
- Is your potential product only of interest seasonally, or throughout the year?
- What do you expect will be the profit margin for the product ideas you are exploring, and is there any room for future price negotiations?
- Can the items be readily and easily drop-shipped, stocked, handled, packaged, and shipped out again?
- How difficult is it to purchase the item from a vendor?
- Are you going to make the product, assemble it, or purchase as-is? How are you going to brand the product as your own?
- Do you have a location to store products and prepare them for shipping?
- Is the product easily marketed because it is well-recognized? Or, is it a more unique item that will take additional marketing efforts?
- Who is your target consumer, and what are some of the different types of people who are most likely to buy the products you will potentially sell?
- How competitive is the potential product market or industry? Is it open for additional sellers, or is it saturated?
- Is there a special niche to this product that will give you a way to market the product differently from the major competitors?
The main reason that you should have a passion for — or at least an interest in — the product is that you have to know what you are selling inside and out. To purchase, market, sell, and respond to consumer questions, you will need to know everything there is about your product. You also need to keep up with the product as it evolves, especially if it is electronic. When dealing with merchandising companies, you want to make sure that you are being treated fairly and that the prices you pay are accurate. Keeping abreast of the industry also makes you an expert in the field, and from a marketing and public relations standpoint, this is what consumers want to see. As it is universally accepted in present-day business, knowledge is a product in and of itself. Later in this book, this concept of product knowledge will once again be covered.
As noted above, there is a considerable amount of information online. Granted, you have to separate the good Web sites from the bad, and those that are selling a product from those that are actually providing relevant information. There are many business publications and organizations that provide sound information, and there are also books, trade journals, and newspaper articles. Social networks, communities, blogs, and forums offer valuable information. Do not forget about the traditional means of obtaining information, such as courses (now many of which are online) and mentors (for example, SCORE) or counselors. Most of these counselors have had brick-and-mortar companies, but they can provide a wealth of information. Again, you will hear comments from several different viewpoints, and it will be up to you to take what is relevant to your own needs. The decisions you make will be based on your own personal resources of time and budget.
You do not want to sell a product on Amazon that is totally saturated. Yet, you do not want to sell one where there are few products in demand. Competitors in this respect are a good thing. They are actually doing the marketing for you, as they are acquainting the consumers with the product. If there were no competition, it would be up to you to create a need, which is quite difficult. It is essential to know whether or not your products are in demand and to what extent. Unless it is a fad and you expect a fast change in supply and demand, you do not want to start selling a product where the sources will start to dry up because of a lack of ongoing consumer demand.
For many reasons, you need to clearly define your target audience and learn as much about these individuals as you possibly can. Knowing your potential customers not only helps when finding products to sell; it also helps when you are designing your Web site, developing a blog, and marketing the product down the line. Remember that interests are always changing. Reviewing Amazon’s Web site may provide some help with your product choice. Although you may be able to determine your wider interest, such as electronics, jewelry, or pet products, perhaps you have not been able to decide on a niche or smaller area. Through several different vehicles, Amazon provides insight into what is “hot” and what is not. A word of caution: Just because an item is hot today does not mean that it will retain its popularity over time. Once you see which products are selling best, continue to do your homework regarding future trends in the marketplace.
Let us say, for example, that you were considering the area of small kitchen appliances. You may have always enjoyed cooking, may even have taken some classes in cuisine, and have noticed the increased interest on television about this subject. However, the area of small kitchen appliances is very wide. Go to Amazon and click on “Kitchen and Dining,” and then on “Small Appliances.” On the top menu, click “Best Sellers.” This will bring up, on the left panel, “Hot New Releases,” “Most Gifted,” “Most Wished For,” and “Movers and Shakers.” The best-selling new and future releases in small appliances, as with other products, are updated hourly. At the time of this writing, this brings up several different blenders, yogurt makers, deep fryers, and microwave ovens. Reading the customer reviews about these products will provide additional information. At the end of the year, Amazon also releases the highest-selling products. This market research is also a valuable tool in helping you make your decision.
Create Your Wish List
The “Wish List” is a personalized list of everything a person or organization would like to own that is now being sold on Amazon. “Movers & Shakers” tracks products that have significantly increased in sales. It is also updated hourly to reflect real-time buying trends and tells you a great deal about collective buying habits of Amazon’s shoppers.
Finding the Right Source
When deciding on a product line, you also have to consider the way that you will be purchasing the items. Many products are sold primarily overseas, and there are few or no U.S. distributors. That can be problematic, even though the prices may be lower. Also, the sources you contact to purchase existing products should offer the items at a price that will enable you to remain competitive with others who may sell the same or similar products. Find the best possible prices from as many reputable sources as possible and narrow your choices from there, based on time in business, track record, customer service, shipping time, and bulk discounts. You need to do some deeper research into who manufactures, distributes, and sells the products to retailers. Who are industry suppliers, who are their usual customers, and how does the purchasing system work? At first, you will want to purchase from the distributor or wholesale supplier, or even from other retailers.
Once you get your feet in the water, you may want to set up an arrangement directly with the manufacturer. When you cut out the middleman, the cost will naturally be lower. Conversely, there are a lot of filters that a vendor goes through to get the product that saves you possible aggravation. Rather than have product sent directly to you for storage, you can use Amazon to store it for you; there will be more information on this strategy later. A drop-ship is when the products you purchase from the vendor go directly to Amazon; they then store the product for you and package and ship the product when it is sold. Of course, you can create or manufacture the item yourself. This adds considerable work, but you are carving out a customized niche in your product line.
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Trying to choose the right product is not easy, but the most important thing is to decide on one that is the right fit for you personally and for your business mission and goals. Pick a product that is affordable and accessible to you and also has a competitive price. Success in an online business not only is based on how well you sell your product; it also depends considerably on your ability to find and purchase the product at the right price. You may start your Amazon business with merchandise from local liquidators, closeout sales, government auctions, newspaper classifieds, or even leftovers from garage sales. To start a real niche business, with the same product line all the time, it is important to locate a reliable source supplier, which could be a manufacturer, distributor, or wholesaler. You can find the contact information online.
A number of suppliers are unable to fulfill small orders and will not provide service to small retailers. Especially for those just starting with Amazon, the minimum amount of products to buy is way too large to handle. Yet, although the manufacturer will not directly service retailers, it will give you product information and the names of its wholesalers and distributor companies, which can better help meet your needs. For some types of items, you are better off going to a trade or industry show to find a supplier. This will also allow you to see what is coming down the road.
Search for Web sites of exhibition centers in large cities near you and sign up for a couple of trade shows in your product line. You want the participants to be distributors and wholesalers, not manufacturers. Again, not all suppliers will work with small orders, so this will allow you to meet a large number of contacts in a short period of time. It considerably cuts down your research time.
Do not forget about the traditional trade journals in your related field. Suppliers are normally listed, or are selling merchandise in these books. Many trade journals actually publish an annual book of products and also the associated manufacturers and suppliers. They have reports on trends in the industry and the latest information on new products, major players, industry events, and classified sections. Your local business and trade associations also have meetings and materials, in addition to exceptional networking opportunities. You may find suppliers who are actually looking for individuals such as yourself to help them promote their products. There are also companies that are marketing their services to meet the needs of small business retailers. For example, www.Importers.com is a major online business-to-business (b2b) trade company that provides a searchable, online directory of more than 200,000 international firms and Internet resources to buy and sell products online. The company helps buyers and distributors find new international suppliers, manufacturers, and wholesalers to help promote their products.
Most of the consumer products you will get from suppliers will be made in another country. Today, with the reach of globalization, importing products is a great deal easier than it was in previous years. Large global sellers are located in most major countries.
Here are some tips for successfully importing products:
- Find several suppliers through online sources or by contacting a specific country’s trade commission.
- Contact the suppliers to see if they carry your product and the quantity you have to purchase. Remember that many of these suppliers may also sell through Amazon or with other retailers through Amazon, and may be competing with you.
- Before making any final deals, have them send you several samples to make sure that they meet your exact specifications. You do not want to be surprised when you open up that first shipment.
- The fee will include the cost of the product, as well as packing, shipping, insuring, covering customs and excise duty, financing, and handling charges.
- If you can, go to the supplier’s outlet. Get to know the company firsthand. Ask for the names of references of retailers who are presently working with them. Once again, through forums, you can do your due diligence. You do not want to be burned.
- Learn all you can about shipping and the specific rules for exporting goods in the country that sells your product. Talk with a customs broker to learn about necessary regulations for shipping and exporting.
- Find out information on seasonal production changes, possible reasons for a slowdown of products, and shipping times. Have a backup plan in place if an emergency arises and you cannot get the product when needed.