e-Commerce doesn’t have to be so complicated, especially when you specialize
Many people believe that it takes a huge amount of hard work and effort to make money from e-commerce, but this really is a myth. Don’t get me wrong, there’s still plenty of work to be done, but it is wholly possible to start generating a profit in e-commerce without having to quit your day job.How to find profitable products for your online niche @myecommercetips #Webgility Click To Tweet
People who really want to make a go of e-tail would be looking to set themselves a target of a 6-figure sum in monthly sales, with a decent profit margin (minimum 30%). This will give you more financial freedom and the option to scale up your business even further. The process of generating a handsome profit all starts with choosing and testing the right products to sell from your online store. Here are some tips for beginners looking to source and market profitable items for their niche customers.
Open A General Store
When you’re just getting started, you will need one central web store from which to run your new operations. Using a paid subscription service like Webgility will help you automate payments, sales, analytics, and inventory across different channels—everything you need to run a successful online business from one platform.
Your general store will be the testing ground for your profitable product choices. Once you have identified some winning products, create separate niche stores and start to work on your marketing and branding.
Remember: Before you pay any money toward your new business venture, please ensure you look up the tax and legal implications of starting your own e-commerce business. It is your responsibility as a business owner to pay the correct amount of tax and comply with government regulations, wherever your customers and suppliers are based in the world.
As an extra tip, whichever e-commerce store platform you use, make sure that you are able to integrate accountancy plugins like QuickBooks or Xero. This will streamline your business’ bookkeeping process and give you advice and support when you need it.
Many people believe that choosing your niche is the most important aspect of turning a profit in e-tail. However, this is not the case at all, as any niche can be successful. You just need to dig deep and research your chosen area thoroughly to find the ‘diamond in the rough’ products you can generate a good profit from.
If you’re unsure of where to start looking for ideas, conduct some market research on sites like Amazon and eBay. Take a look at all of the different categories and explore within the subcategory pages of the product lines that appeal to you the most. If you find products that generate lots of sales, think about the number of competitors you could be up against. Could it be that the market is saturated, as the prices for these products are at their lowest already?
Ideally, the items you pick for your own store need to be products that you have permission to rebrand, mark up, and market effectively. For this, you may want to target products that are the perfect mix of unique, customizable and rare.
Think About Reviews
The products you sell could also turn a greater profit if they’re simple and have few specifications and details, for example, wool mittens. As long as the designs you pick look eye-catching and unique, potential customers will be interested. And they won’t have to look up product reviews to check that what they’re ordering meets their expectations.
Simple products will also save you time in writing product descriptions. Although, do still ensure that you optimize your product descriptions to emphasize the features and benefits to your customers.
Sourcing the Goods
Finding a reliable supplier for your products takes some planning. Sites like AliExpress give you a diverse marketplace of sellers to choose from—and they offer dropshipping agreements to vendors, as well as a host of other benefits.
Dropshipping allows you to test and change products easily, with little up-front investment. Your third-party supplier handles your storage and shipments. In choosing profitable suppliers for your goods, make sure that you test their product quality and timeliness of delivery. Read reviews and reach out to these companies before parting with your money.
Create A Branded Niche Store
In terms of branding, investing in a graphic designer or illustrator to help with customization of graphics and images will be hugely beneficial, as it will set you apart from your competitors. Make sure that your niche webstore looks great by using an e-commerce platform that contains all of the tutorials, pre-loaded templates, and support you need to get started quickly.
Don’t Forget About Marketing
Once you have identified your products to sell and have found a drop shipping marketplace to source these products, it’s time to start marketing to your new online store to millions of potential customers.
Facebook’s ad platform is a great place to start – and the built-in tools and tutorials help you target specific niches so you have complete control over your advertising spend. Also, don’t forget about Instagram. This Facebook-owned social network enjoys massive brand engagement with fans, and influencer marketing campaigns can be fairly easy and inexpensive to run.
Choosing the perfect products to sell from your online store takes some time and experimentation. However, the process can also be quite enjoyable, as sticking to your interests will inspire you to make the most profitable purchases in your niche. Remember the 80/20 rule: 80% of the products you try may fail to bring in a solid profit, with 20% of your products bringing huge successes. Whenever you feel disheartened that your shop isn’t generating as much profit as you’d like, make a switch until you find a niche that really works for you.