Opening a new online business is exciting but the competition is extremely fierce. So, your first step will be to choose the right product, which will affect other decisions. It includes forgetting –
- Pretty theme
- Catchy company name
- Shipping options you wish to offer.
These decisions are crucial but it is even more vital to get foundation based correctly like what product to sell and how to price them.
Significance of selecting product strategically for selling online
Online business is comprised of multiple parts and each one gets affected and influenced directly by the kind of items you choose to sell. Without solid product line there will be plenty of uphill battles and struggles before your business starts.
Choosing a niche is very difficult because there are countless options available for choosing. Make sure there is a potential market for the chosen product and you actually earn profits.
How product selection affects other business parts?
Product you choose to sell online will directly impact business –
Branding and design – For example, if you choose to sell auto parts then you will not wish to select a frilly logo or website with pink background. Your brand needs to support your product line therefore make sure they blend flawlessly.
Marketing – Marketing budget and outlets you select will depend on your targeted audience. Target audience will be determined on what your chosen product has to offer.
Your judgment – Remember you will b spending more times with these products. Therefore, sell a product, you find interesting and not get bored soon.
Decision on what to sell as well as who to target online must not be taken lightly. Therefore, conduct a thorough market research. For this let’s look at other aspects more closely.
How to determine your target audience?
Once you determine what product to sell, you will need to consider target market or target audience. Identifying your customer base early helps to plan marketing strategies, set prices, and establish brand story.
For example, if you are choosing to sell motorcycle equipment then the characteristics and traits of your target audience will be totally different than those selling luxury handbags. You can read Zippy Passive Income blog post to get an idea of identifying your target audience.
About your target audience
Basic demographics – It will include statistical characteristics like gender, age, employment status, ethnicity, etc. Getting to know your audience helps to understand potential commonalities of this group.
Psychographics – Psychographics focus on personalities, activities, interests and more. Understanding their behaviours and attitudes empowers you to fulfil their needs and wants.
Price sensitivity – Does your product line fall in synch with target audience budget? Does your product compel you to stay focused on economical shoppers, high end consumers or in-between?
Customer motivation – Develop a customer profile using questions like – why is your consumer searching this product? What will compel them to buy? Are they buying practical things or luxury goods? Are they worried about seller’s reputation or price?
Extra perks – Countless online retailers sell the same product as you. It is crucial to make your business stand out. Consumers find extras appealing like stellar customer service or free shipping.
After getting an idea of your target audience, it is time to connect. Use or join same social channels, forums, clubs, online discussions, etc. Offer solutions to their issues besides selling products. Establish yourself as an expert, which allows building trust and credibility amongst consumers.