This is the third post in our Sourcing for Independence series! Welcome back! Did you miss the other two? I put them on our blog for you to read. Check them out here in the blog.
In the first we talked about what sourcing actually is and the second, the importance of getting legal. This one, it’s all about Choosing What to Sell. This is very important to the success of your business and it honestly doesn’t really matter where you want to sell. The methods are still mainly the same.
Most online businesses fail, because the seller immediately wants to sell products that are already saturated online or have their heart set on products they can’t legally get to resell. Don’t make this mistake!
Two of my more popular blog posts: “Do Your Homework before Deciding What to Sell Online” & “Just Because Someone Else is Selling it, Doesn’t Mean You Can!” has opened many online sellers’ eyes as to why they should avoid many things that they love or things that they just have this gut feeling would sell well. You can’t trust your “gut” on this and often times you can’t sell what you love. You really have to do product research!
Market Research in a nutshell is deciding if a product will:
1. Make you money and
2. Fit your budget
You have to do keyword research, competition research, profit research and advertising research.
– Keyword Research is how customers will find you.
– Competition Research is checking out the other sellers in your space and checking to see if you can compete with them and learn from them.
– Pricing Research helps to identify your profit margins, inventory requirements and break-even points.
– Advertising research helps you to understand traffic costs like the cost of keywords to use if you decide to pay for advertising.
All of these things help you determine if a product is a good idea to sell and if it will fit your budget to sell them. Many new online sellers have to rely on paid advertising for customers to find…