How to find a profitable product to sell online ?
A guide to selling products online that bring profit to you
Everyone who thinks of starting a business of their own, plans to do something different, to create a distinct brand in the market. But there are already lakhs of sellers selling lakhs of products and making profits in India. Especially in the online business, where for example, on Amazon India there are around 6 lakh sellers running their businesses. So to start a new business online means finding that one product that will stand out from the rest and dominate the market.Starting a new business online
is a better decision due to all of its advantages. This is true particularly for a marketplace like Amazon, where you get support at every step - right from the thought of having a business, to turning it into a brand. The first step of your online selling business is deciding what to sell on Amazon. Filtering and narrowing down to the final product category needs some research. So here’s a stepwise guide to land on the right product for you.
Step 1: Find out what buyers are looking to buy online
You need to know a few things about what qualifies a product to be "good" for selling online.
Sell products that have demand throughout the year – Small sellers should look for products that have chances of being sold throughout the year. Let’s take an example of an iPhone 4 – this product will probably have an ever decreasing base of buyers over time. To be precise, it would be great if you could stay away from selling seasonal products.
Specific, niche products – Pick a product so that you can stand out from your competitors in the market. Being a small seller, selling specific/unique products like “Owl pendant with clock necklace” or even “Butterfly pendant with tassel necklace” would be easier and probably more profitable than selling just ordinary necklaces.
Small and light product – If the product is big and heavy, it will probably cost more to ship both in and out. For small sellers, it would be better if they sell small and easy-to-pick and pack products so that they can save not only on shipping but also in the case of returns or storage.
Think about the big picture – Think about your 2nd, 3rd, and 4th product. Think about the bigger picture, the market, the opportunities it has for you as a seller, and ultimately the brand you want to create. You should have a long-term plan so that you can make proper use of the resources and have a clear picture as to how you want to grow your business.
Step 2: Research to find what is already selling on Amazon
One of the fastest ways to find a profitable product to sell on Amazon is to look through the list of bestselling online products
in India to find out what is already selling on Amazon. You can also have a discussion with other sellers on our Facebook group. Apart from this, you could look into your important reports on the Seller Central and its mobile application. Once you’ve found few products that are selling on Amazon, you’ll want to make sure that it’s a profitable enough market for you to potentially sell such products.
Step 3: Analyse the competition
Once you’ve verified that certain products are profitable to sell online, the next step is to analyse the competition. To analyse the competition, you can look at the reviews of the product. For example, if your competitors selling the same product has got thousands of reviews, then selling such product may be very challenging for you to compete with. To be precise, you need to be confident that you can compete with the competitors in selling online.
Once you have identified the product that can probably be profitable for your business, you can register to sell on Amazon
. All you need to do is create an account and list your products
on Amazon. You can also use our services
to sell better & delight your customers.
How to choose a product?
To decide what to sell on Amazon, you need to look at various factors that play an important role in growing your business. Here are some of those factors that will help in finalizing a product. A product that you like selling and also earns you money.
Step 1: Your product should solve a problem
The first thing to keep in mind is, whatever you choose, it should solve a problem. Be it clothes, electronics, kitchenware, or anything else, your product should be useful to people. Selling products that do not help solve any problem can be risky, as only a small group of buyers might find it attractive and that may impact your sales and profit in the long run.
Products like home organizers, books, health products, etc. add value to people’s lives. You can also look for products that are trendy and in demand but are not easily available, like customized items. Selling in such categories will help in capturing the market and business growth. But one thing to always remember is, to sell products that people need.
Step 2: Focus on your interests while deciding on a product
The business works best in the long run only if the businessman pursues it passionately. It’s important to do what you love. A business run with complete dedication will grow to new heights of success. So while you are deciding on the product category you’re going to sell, you also need to look where your interest lies.
The most valuable benefit of selling products you love is that it keeps you inspired even during the rough phases of the business. It also helps a great deal in passionately building your product line and your brand.
Step 3: Analyse the market and audience for a good start
A good seller knows the target market and target buyers very well. Every product has its target customer base. Like high-heeled sandals draw the attention of teens and young women or new parents will be the ideal buyers for baby products. So you need to identify who your target audience is. Research on the internet, talk to people from that field, and learn from those more experienced than you.
Understanding how the market is performing and what the audience is looking for help in evaluating what is missing from the product. Your aim should be to provide a better product than the existing one. Providing additional or new useful features in your product can astonish buyers and get their attention immediately and help in establishing your brand quickly. This may also lead to a significant increase in sales.
Step 4: Choose products with a high-profit margin
Does your product have a high-profit margin? The answer to this question should be yes. Because, the ultimate objective of any business is to earn money and make profits. Selling products that may be interesting or eye-catching but do not have enough margin for sizable profit limits the growth of the business in the long run. For example, the top-selling product category of 2018 on Amazon India was toys and games
. So it makes complete sense to start your business by selling toys and games if your interest lies in this category. Making good profits while selling what you like, a win-win situation!
So make sure that the margins in your products are good enough to keep your business running and growing. A small tip: Setting a good margin is also helpful during sale periods so that even after offering a discounted rate, you get sufficient profit with more sales.
Let’s start selling
A strategically started business will always flourish. A product selected keeping in mind all the above factors may have a good chance of winning the market and people’s hearts than the one chosen without any planning. We hope this guide helps in picking the ideal profitable product for your business. Once you’ve narrowed down your unique product, it’s time to start selling online
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