Before you start your online business, you should be brainstorming a variety of niches, products, services and options. There are many crucial aspects to consider before moving forward.
The most common challenge is how to find a niche product to sell. A niche product is an item that appeals to a small but well-defined group of people. Finding this takes time and patience, but can be done using proper strategies and brainstorming techniques.
Sell to Enthusiasts or Those That Need a Solution
Individuals that are passionate about a specific hobby or interest will spend a considerable amount of money compared to your average customer. Between accessories and rare items, you could make a considerable profit by engaging these audiences. Avid enthusiasts and those looking for a solution to a specific problem will be happy to discover products that fill wants, desires and needs. If you captivate an audience facing a problem or one that is enthusiastic about a specific type of product, you are golden.
Sell Products that are Hard to Find Locally
If you choose to sell niche products that are difficult to find locally, you will have a better market because your customers will have no other option than to search online. If you choose to sell hard-to-find products, you will also be able to demand a higher price simply because you will have less competition. In some cases, a customer may be happy to find your product at all! This does not mean that you should overprice your product, but you probably will not have to offer many specials or deep discounts.
Examine Your Price Range
If you are offering a product or service for under $100, you should make sure that the process is easy and served to your customers on a silver platter. A considerable amount of profit can be made even with a low-cost product, but the need will have to be significant enough and the gratification will have to come quickly after.
If you are running an ecommerce store, it may be wise to consider incorporating offers on your website. For instance, if a customer orders $75 worth of products at once within one transaction, you could offer free shipping. This will entice your users to spend more at once, which will in turn help increase the average order on your site.
For products that cost more than $500, you will most likely need a qualified salesman and a more personal customer service experience. Higher-end products and services also require you to present more credibility and a proven track record.
If you sell a product that needs to be re-ordered on a regular basis, you will be on your way to building a profitable business. It is much easier to sell to customers that already trust you than a new site visitor; not to mention, you will also be able to gauge your profit more accurately.
Price competitively and keep an eye on the competition. Nothing sells well forever. If you notice your niche is saturated with too many products and/or competitors, it is time to expand your products and services or start a new niche!
For more ideas and pointers for starting online business take a look at start an online business resources