Starting up an online business is a big endeavor with many decisions that need to be made. However, once up and running you will be taking a part in the 266 billion dollars of projected sales in 2012 on an ecommerce site, according to Forrester Research. Practical Ecommerce has three great tips on figuring out what to sell, which will bring you that much closer to opening up shop.
Find Your Niche
First off you have to figure out the market you want to be in. Some markets take more capital to get into others do not. Many online start ups are small businesses so the lower the cost of entry to a market the better. Pick something that interests you. The more you can relate to what your selling the better you will be able to sell those items because you’ll know everything about them. Try to find something that few others have thought about selling.
Know Your Market
This is a biggie. Once you have found the niche you want to be in, it is time to take a good hard look at the potential market. You don’t want to invest your time and money into a market that won’t give you the volume of business you need. Take your time here, and research the potential market. Is there enough of a customer base in your desired market? Is an online shop the best method to reach your customers? These are important questions that you must ask yourself. Analyze your results and if they aren’t as good as you hoped you may need to find a different niche. If it works out, move on to the third tip…
Know Your Margins
Operating a business is about making money. If you’re not making money, then something isn’t right. The more money you make off a product the higher your profit margin. Obviously, higher is better. So take a look at the products that you a going to offer and see if they offer a margin that allows you to stay in business. If you sell a lot items the smaller margins are fine. If you don’t the higher margins are a must. It’s all in finding a balance.
Well there you have it, three awesome tips to help you decide on what to sell. Again, take a look at the Practical Ecommerce article for more information.
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