Thinking of starting your own online business?
Here’s a few things that you need to consider:
If You Have A Product To Ship
- Does your product need to be shipped or Is it a digital product that can be downloaded?
- If your product needs to be shipped, how much will you charge for shipping? Keep in mind that there may be a big demand for your product but you don’t want the price of shipping to ruin the sale.
- If your product is fragile, you may need to invest in extra packing material and pay for insurance on shipping.
- Is your product available through any of the big online retailers? If so, can you compete with them?
- Is there a big enough demand for your product to make your website profitable?
Items #4 and #5 are very important in your decision to sell a product online. If you are thinking about competing with a big company like Amazon, I suggest you think again. Many large retailers offer free or reduced shipping charges. They also have big bucks to market their products through major advertising campaigns.
How To Find Your Competition
- Use your search engines. Type in your product, how many websites offer your product?
- Use the free Google Keyword Tool. This will help you see how many people search for your product. It will also show you the various rates of competition.
Your aim is to find a product that has heavy demand but low competition. By using the Google Keyword Tool will find different ways that people search for your product. Let me give you an example: You want to sell accessories for men. Time to break that down, let’s say belts. What kind of belts are they, leather, cloth, embroidered, personalized, custom made, etc. You are now breaking down your product into a niche. Now go back to the Google Keyword Tool and search for those particular niches, leather belts, cloth belts, and so on. You have now narrowed down your competition. If there is still high competition, try adding the name of the manufacturer to your search, i.e. Gucci leather belts. If the competition is low then you can offer the product, if not, you may want to consider another product.
The object of using this strategy is to find a product that will get your site ranked higher in the search engines. Let’s face it, you want your website to rank on the first page of the search result. Most people will only look at the first couple of pages in the search result. If you are not sure what product you want to sell, this strategy can help you narrow down the possibilities. Try searching for things that are of interest to you and see if there is a demand with low competition. Sometimes you may find a great niche that you know nothing about. That’s okay because you can learn all about that product, promote it, and have a better chance of making sales.