Most people today have at least considered the idea of starting an online business selling products on popular platforms such as Amazon, eBay, and Shopify among others, but often don’t really know what to sell. Choosing the right product is key, so let’s dive into the three most important factors to consider.
1. High-Profit Margins
The main goal of any business is to make a profit when selling its products. The sum of costs involved from manufacturing to reaching the end consumer must be lower than the price the consumer is willing to pay for your product. When starting a new venture, your aim should be to look for products that are fairly cheap to produce but able to fetch a much higher price from potential buyers. Having a large profit margin is instrumental in first product lines as it is often hard to consider all additional costs such as marketing, shipping, and other selling fees. Even after these expected and unexpected fees and costs are absorbed if the margin is large enough the business will remain profitable.
Accessories, electronics, decorations, garments, tools, and medical supplies are some of the many industry options readily available today. And can be cheaply sourced from all over the world including suppliers from Asia, Eastern Europe, and Africa.
2. Fast Shipping and Easy Storage
Many new entrepreneurs don’t realize that there is a full logistical flow to consider before any new venture can be successfully undertaken. Even if you want to start off very small, you still need to gather inventory and store it, so the product is ready to be shipped to buyers. The best course of action here is to choose products that are simple to ship, lightweight, and easy to store. This is especially true with home-based businesses
Starting off, business owners generally do not know how fast their business will grow or how many orders they will be shipping on a daily basis. Small, durable, and lightweight products are advisable here, compared to heavier bulky products. This will also help you save on time and effort if you are self-fulfilling that you can otherwise use on revenue-generating activities. If you are using a third-party fulfillment center or FBA smaller lighter products will still save money on storage or shipping as you can store and ship more product in a smaller space
3. Scalable and readily available
Any product you plan on selling should be readily available to source and produce. These products should also have room for expansion. If they have various differentiating factors such as size, color, quantity, and function you can rapidly expand your product lines and introduce new SKUs will minimal effort. More offerings mean you are able to cater to a wider market while keeping costs low, crucial for any startup. Startups should offer products that are quick to produce in several varieties that are readily available as this is the quickest way to grow and scale your business. Finding your own niche that people need or want should be the end goal here.
The right product requires serious research and deliberation. Understanding what your business can manage and sustainably handle is just as important when selecting a product or newline as the products themself. Look for a product that will have good profit margins, that is easy to ship or store, and is scalable. A good mix and match of these factors will lead to overall success for you and your young product business.