Browsing Posts in Product

How do you know what products to sell?  Do you just decide to sell what you like or do you decide based on what people are looking for? Even if you have a unique product from the start, it is best to do some market research before you invest your money in the product. 

The concept behind niche market research is that Google keeps all the keywords that are being searched in its database. This allows you to know how many searches for a particular keyword/niche  are done on a daily or monthly basis. Then, you will need to know how much competition is out there for that niche and how strong is the competition from Google’s search engine optimization point of view. The strength of the competition is one of the most important consideration in choosing to sell a product in a certain market niche.

Here is an example to illustrate the concept of niches and micro niches - You start with a broader market like “Silver Jewelry”, then you drill down to a niche  “Turquoise Silver Jewelry” and then you can drill more down to “Turquoise Silver Watches”. You will be surprised to see what you can find.

Luckily there are tools available that make niche market research relatively easy and provide you with both keyword traffic information and competition information:

1) Google Keyword Research tool - free tool that provides number of searches for the keyword monthly and a high level sense of competition. For highly competitive niches you will need more information on the strength of the competition.
2)  Traffic Travis – free tool you can download at  http://www.traffictravis.com/2/
3) Market Samurai – you can download a free trial copy at  http://www.marketsamurai.com/
4) Micro Nich Finder – http://micronichesfinder.com/

Market Samurai and Micro Nich Finder are both very good tools that cost around $99 and each has its own pros and cons. I am currently using Market Samurai because of the extended free trial and free training to find niches within the market that I have chosen.

Knowing what people are searching for and knowing the strength of the competition gives you the necessary insight on what products will be commercially successful. This is a highly recommended step before you decide on what products to sell or to find specific micro niches that will sell better within your current market. It becomes increasing important to specialize around a micro niche in today’s competitive marketplace on the web.

Click here to visit my store – www.musebazaar.com.

Doba has a business model that sounds great. They provide you with product pictures and descriptions. You post the product on your website. Once the customer buys the product, you place the order with Doba, who then ships the product to the customer. Sounds easy, right! I have signed for their free trial and spend a lot of time going through their product catalogue. They only had 3 major suppliers for the jewelry category and their wholesale prices where close to the retail price or sometimes higher. I have also checked the prices for selected camera equipment and found once more that the prices were higher than what you can buy these products on the Internet.

If you are considering using Doba, I suggest you sign up for their 7 day free trial offer and check the catalogue and prices for the products you are interested to sell. If you decide that Doba is for you, I suggest you don’t sign up right away. A salesperson will most likely call you after you signed up for the free trial and will try to give you discounts. From their advertised $50-$60 per month he came down to a special of about $20 per month. Good Luck!

Click here to visit my store – www.musebazaar.com.

Sourcing your product is probably the most valuable activity in your business and for the most part will determine your success and the profitability.

Most popular ways to source your product are:
1) You create your own product – you have total control over the cost and quality of the product. 
2) You work with a manufacturer who creates the product – you buy an inventory at an attractive wholesale price. The more you buy the better the price you can get. The downside – you have to invest a lot of money in inventory and you assume all the risk if the product doesn’t sell.
3) You work with a supplier who provides you with product pictures and descriptions and you show the products on your website. The supplier will ship the product to you after the customer placed the order. In this case, you don’t need to have a large investment capital but your wholesale price is not as good because you buy in small quantities. So you profit margin is lower in this model. In addition, since others can buy the same product there is a tough pricing competition that further lowers your profit margin.
4) You work with a supplier that provides you with product pictures and descriptions and sends the order to your customer. That is called drop-shipping. You don’t invest money in inventory but the wholesale price in some cases is as high as the retail price. So your profits can be really low or you might not be able to competitively sell. In addition, if you process customer returns instead of the supplier you might end up with a lot of unwanted inventory that you have to pay for.
5) You can work with artists/designers on a consignment basis where they provide you with the item (or item’s picture and description) and the payment is only after the product is sold. You pay more for the product this way but you don’t have to invest money in inventory.

In all cases, the more unique is your product the better is your ability to sell it and make a good profit on it.

Click here to visit my store – www.musebazaar.com.