One of the first things most Internet marketers will consider is what products and services they can sell. The ideal product or service will be something that is in demand and that has a decent profit margin that will make money -- preferably something that will generate repeat business for years to come. It also has to be something with few competitors. A tall order, and entrepreneurs the world over are continually striving to find that elusive item that will make them a fortune. With some thought and planning, you can find suitable products and services, and who knows you may come up with something unique that will tick all the boxes. There are a few ways to identify products…
Sell what's popular
One way is to watch what your competitors are selling, find out if they are selling well and copy what they are doing. This way you know that there is a demand for the product at the moment and you will basically be competing on price and the level of service you offer and how persuasive you are with your web copy. There are plenty of ways of getting ahead of your competitors when you are all selling the same products. For example, you can show that you have more expertise and knowledge about your products and services, you can offer better after sales support, or you can add valuable bonuses to your offer to attract customers to you rather than your competitors.
Meeting supply shortages
Another way to identify products to sell is to find product categories where there is a shortage and supply is struggling to meet demand. When demand is high and you can manage to get hold of the latest gadget, widget or designer gear ahead of your competitors, then you can be sure of making a lot of sales -- this is accentuated around peak times such as Christmas when there is a natural time limit that creates agency.
Think about items that could be in short supply, for example in the UK someone made a nice wad of cash by selling toilet rolls at inflated prices at the annual Glastonbury Pop Festival where visitors were camping over the weekend. No one had thought to pack toilet tissue and it soon ran out, creating a huge shortage. All it takes is some brainstorming to come up with ideas like this.
Niche markets provide lots of opportunities to sell products which provide solutions to problems and specific needs from a small subset of a larger market. To find a niche, you need to come up with a problem that a large enough section of people have, to which there is very little in the way of products or services that can meet that demand. For example, gardening products that cater for left-handed people or shoes for people with extra-large feet. There are plenty of niche markets to be exploited, the trick is identifying them.
One way to develop a successful business is to pay attention to the latest trends and find products and services that are likely to be popular in the future. This can be very difficult to achieve, even for the big boys -- for example, trends on eBay are changing constantly and even with pretty precise data, it is almost impossible to predict what the latest demand is going to be and where it will come from.
However, there are some ways to get a feel for the future demand and if you can think about this when you are planning your business activities over the next six months or so, you will be ahead of the majority of Internet marketers, since most never bother to think about future trends.
Products can be identified by anticipating market trends and if you can get it right, you could develop a very lucrative business -- at least until the market moves in a different direction. Products include some of the latest technology such as iPads and mobile phones, children's toys and computer games, the latest designer fashion and so on. Identifying products in this category takes some dedication for watching trends and requires a lot of time is spent doing market research. Think about the trend for things like energy-saving products such as solar driven products and home instillation. There are trends in almost every area of business you can think of.