Starting an online business is certainly very exciting. On the other hand, for new and inexperienced entrepreneurs it means swimming in uncharted waters and can be difficult and intimidating at times. The biggest challenge when starting an online business is, of course, choosing a product or multiple products that belong to a certain market niche.
Find a Product Niche and Start Business Online
When you start looking for a product to sell it always seems like everything is already being sold and that competition is overwhelming. Nowadays, potential customers are already accustomed to working with online giants like Amazon or Walmart who are surely very difficult to compete with.
Even though the internet is crowded with online businesses selling various products you shouldn’t be discouraged. There is still room for more. Successful online businesses are being launched every day. The opportunities are there and you just need to find them and grab them. After reading this article you are definitely going to be a step closer to starting a profitable online business yourself. Here are some of the best techniques you can use to come up with an idea for your product:
Analyze customer passions:
As we all know passionate people tend to spend more money to support their passion. There the price of the merchandise doesn’t mean anything. It is important to show results. For example, passionate gamers will spare no money to acquire an expensive mouse or keyboard if it helps them improve their gaming performance, even slightly.
Pay attention to customer pain:
Products that relieve people of pain almost always turn out to be a profitable business. It is simply because customers that are in pain are always are constantly searching for solutions to their aching. Remember that the mentioned pain doesn’t necessarily have to be physical. There are various kinds of pain such as mental and spiritual.
Find opportunities by examining keywords:
This technique requires a certain level of technical and SEO (Search Engine Optimization) knowledge, but at the same time presents maybe the best way of picking your product. It means studying and analyzing the keywords that people search in search engines like Google and identifying the terms that have high volume but low competition. This approach will definitely provide you with the best findings of potential customer needs.
Use your own expertise:
If you are an expert in some field then you should use that to create your own unique and quality product. For example, if you are an expert programmer you can write a book or a course for beginners or if you are a dance instructor you can make tutorial videos and offer them to people online. This technique is the best from the investment side since it will not take you a lot of money to create the mentioned content..
Scout for a trend that’s just starting:
Investing in a trend in its beginning can turn out to be the most profitable in the long term. This way you can position yourself as the leader in the consumer minds before the competition has a chance to do so. Early trend investing will also have a great impact on your SEO since your website will be the one of the first with that topic.
Use your own passion:
Although some think that following your own passion is a path to disaster, because passionate people can sometimes be unreal in their expectations, it doesn’t necessarily have to be like that. The upside of selling a product you are passionate about is the extensive knowledge and experience you have on that product, as well as the will and tenacity to make it work.
No matter which one of these techniques you use to find your product it is important to remember a couple of things. When analyzing your potential merchandise, it is crucial to ask the following questions:
What is the market size?
It is important to not go with a product that only a small number of people can use. For example, a product for women in their forties is ok, but a product for women in who are in their forties and are 5.11 might be too narrow.
Who am I competing against?
It is important to scout your competition and act accordingly. If you are the first one on the market you will have to do extensive marketing research to find out if there is a need for your product. On the other hand, if the competition is high you will have to come up with how to differentiate your product from your competitors.
Is my product available locally?
When you pick your potential product, find out if it is available locally. In case it is there is a chance that people will not have the need to order it online.
Who is my target audience?
One of the most important things you need to analyze is your target audience and their habits. For example, if your target audience consists of people in their seventies and eighties it is less likely that they are going to order online. They simply aren’t used to it.
What is my product weight?
Since you are planning to sell your merchandise online and ship it to your customers, bear in mind that the weight of the product significantly affects the price.
Is my product consumable?
It is always better to have a consumable product since that way you get an army of repeating customers who will come to you when they need a replenishment.
At the end, you must understand that there is no perfect product. Some people spend their time looking for a perfect one in a sea of millions of products online and that way never get to actually start working.
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- How to find a product niche and start business online? - July 6, 2017