Picking a good product to sell right from the start will make your chances of being successful quite a bit higher. For this business I want to try and sell a product that will be sourced from overseas. I also want to get something I’m somewhat interested in & a product I’d actually use. The reason for that is because since you’d be a buyer of the product it’ll help you market it better. Also if you’re interested in the product it’ll help you stay more excited and be more open to telling people about it. If you’re a 25 year old guy, don’t try to start selling quilting kits, pick someone that you and your friends would use. Something you won’t be embarrassed to post all over your Facebook page and tell all your friends and family about it.
1. Make Sure There Is Demand For The Product
You’d think this one is a no-brainer but you’d be surprised how many people pick a product or service that doesn’t have any demand for it. I’m not saying it’s not possible to build up a business around something new and creative; but if you want the past of least resistance pick something that people are already out there looking for.
The easiest way to do this, is to use a Google AdWords account (if you don’t have one it’s free to sign up for one). Once you’re logged in, go to where it says “Tools & Analysis” from there pick the “Keyword Planner Tool”. Then pick the option that says ” Search For New Keyword And Ad Group Ideas”.
From there just start putting in ideas of products that you’re interested in possibly selling. On the results page click the tab that says “Keyword Ideas”
and look at the “Avg. Monthly Searches”. This will tell you approximately how many people search Google for that specific keyword each month. Try to pick something that gets 5,000 – 10,000 searches (including variations of the product).
So for example, I’ve been on this GoPro kick shooting video all over the place. Because I’m all over the place I’d like a good case for it when traveling and just around town. if you search for “GoPro Case” you’ll see it gets 5,400 searches a month, not too bad. So start looking at variations:
“go pro case” – 1,300 searches
“go pro carry case” – 90 searches
“go pro carrying case” – 50 searches
All together this is a pretty decent little niche. You’re looking at about 7,000 people a month looking online for GoPro Casses.
2. See How Much Profit Margin There Is For Your Product
Alibaba is a great place to find suppliers for products to sell. I’ll talk more about it later on, there are definitely some issues you’ll have to deal with between language barriers, shipping, etc. However hands down it’s the best place I’ve found to connect directly to manufacturers and get products made.
So head over to Alibaba and search for “Go Pro Cases”, you’ll see all the manufacturers showing the various cases they make. Now load up Amazon & Ebay and look around on both of those sites to get an idea of how much of a profit margin there is. I see a case on Alibaba that can be bought for around $5 and then one pr
etty similar selling on Amazon for $29.90. Keep in mind that $5 probably doesn’t include shipping and possibly other things but overall that’s a solid profit margin most likely. That’s a pretty good sign.
3. Pick Something Easy To Ship & Not Fragile
I personally like products that are easy to ship and not fragile at all. This way you cut down on packaging materials as well as dealing with returns of broken items or any shipping related issues. Ideally you want something that’s pretty small and lightweight. Also if your item is cheap enough to ship you can always tout “Free Shipping” all over your site which is a nice little frosting on the cake when selling to customers.
4. Check For Any Legal Issues Or Patents
Definitely spend a little bit of time digging around and make sure you’re not infringing on any patents of products or goods. For example the GoPro case you’ll need to double check your wording when selling it. Spending a few bucks up front talking to a lawyer or consultant if there’s something questionable will save you a huge hassle later on down the road.
Spend a lot of time on this step, make sure you find a product that you have a good gut feeling with. I’ve got my product picked out, next post we’re heading over to Alibaba and going to start finding manufacturers and getting samples sent over.