ICON_PLACEHOLDEREstimated reading time: 16 minutes
If you sell products online or plan on jumping into the business, this is for you.
Digital platforms look easy on the outside but are they? Ensure to do a thorough market research before you take the plunge.
Instagram’s biggest selling market segments include Beauty, Fashion, Health, Lifestyle and fitness, Art, Business Consulting Services, Travel, and Animals. Keep this list in mind when you think about what products to sell and make lots of money from on Instagram
Many businesses have signed cheques to fail. It is evident because they intentionally kick out the need to conduct useful market research before determining the best product to sell on digital platforms in the 2020s. Each digital platform out there attracts its own unique type of customers.
Technology, beyond doubt, has been a blessing, but ignorance about its benefits is still a problem.
Many startups and entrepreneurs delve into putting out products on digital platforms without prior knowledge about their ability to sell, nor factors that affect their ability to sell on such platforms.
Like physical locations, digital platforms provide an online space for you to sell. Truth is people are shopping online, they’re just not buying from everyone – There are specific factors that influence their buying decisions online, as well as in the real world.
Although online platforms are very flexible, the same rules of product research before sales apply here too. Before you conclude on a product to sell, there are certain factors you must consider. These factors, all make selecting products quite delinquent, but the right advice on the specific tools for productivity on these digital platforms will cancel out these limitations.
Before we go further, if you found this post randomly and want to learn about starting an online business, then read: How to Start an Online Business
OR UNRAVEL BUSINESS MYSTERIES IN: Product Marketing demystified
Contents
Table of contents
The online space has changed rapidly over the years – from a social interaction platform to a marketplace. These days, buyers tend to consult their digital devices before purchasing products.
Buyers have given up the urge to drag their feet languidly in the physical market places Some often dirty), and prefer to shop from their desk while sipping hot cocoa.
The following items can help you decide on the best product to sell and on which of the numerous digital platforms to sell on.
Types of Products to Sell on Digital Platforms
Just imagine a marketplace and think about the buying options available. Digital platforms also offer many product choices, including physical products and digital products. These products have their advantages, and it depends solely on what the seller wants or the customers’ demand.
Sadly, not all products, digital or physical, do well on all sales channels. Your understanding of the type of products that sell on the diversely available channels would help you sell effectively.
Needless to say, there are factors that affect customer buying patterns and as a seller, your mastery of these factors determine to a large extent how you succeed in sales.
1. Commoditized Products
These are general products produced by large industries and are available in stores with no price difference. Products that fall in the same categories by different competitors have fixed prices. A problem with commoditised products is that small brands often find it hard to compete with more prominent brands. Large brands like Amazon and Etsy often offer free delivery for these products and reduce the prices.
2. Niche Products
Niche products, on the other hand, are unique products made available by specific suppliers. Their unique attributes give them a competitive edge over other products because they are usually in limited quantities.
The sale of digital products is known to enhance the business’s ease of handling. Types of digital products that startups and small companies sell include;
3. Software
More recently, the use of software in the business world has tremendously increased. Different brands rely on software to work efficiently; software is a digital product worth selling. Examples include video animation or image editing, graphics design software, etc.
4. Mobile Apps
People are getting more attracted to mobile apps’ user interfaces and experiences. They would prefer to use them for their activities rather than rely on the web application. For example, most people prefer using the mobile Facebook app than the web application because of the user interface and experience. You can leverage on selling these apps if your business tilts towards making technological products.
5. Online courses
Online course creation is an efficient way of making a profit off digital platforms. The way everyone is interested in learning a new skill is great to monetise. Online courses offer the opportunity to make profits at little or no cost. Just making pre-recorded videos and selling them to your target audience at your convenience can generate the income you need, and in most cases – passively.
How To Find Products To Sell on Digital Platforms
After identifying the factors necessary for selecting products to sell, you have to carry out the research. With the influx of commercial sites on the internet today, many people are already leveraging digital platforms to make sales. It implies an increase in competition and too many choices to make about the particular product to sell. It can be quite challenging and confusing to most entrepreneurs and startups.
Imagine this scenario, where you’ve taken e-commerce courses because you are determined to sell online. Still, the specific problem you are facing is your inability to select the perfect product to sell.
You’ve brainstormed on ideas and have asked a few friends what they think about a product, and everyone’s idea seems like a journey you’re not ready to start.
Well, it is not a strange feeling. Entrepreneurs and startups at a point of their lives, often go through this process. Even before Amazon hit the charts and became a thriving online market, it started as an idea. Technology has provided valuable research opportunities with business tools that aid these more effectively and efficiently on a lighter note. Here are some digital tools available to help you identify the market gaps and capitalise for your business.
All the Amazon Methods:
Most people have frequented popular e-commerce markets like Amazon to shop. As a result, more retailers go on the platform to buy and sell. To know the best products trending on the platform as a newbie seller, you should check Amazon’s “Movers and Shakers” or the “Best Sellers Rank (BSR)” pages. This information can show you how well a product performs when compared to other products in its category. The Amazon Movers & Shakers section specifically provides you with the kinds of products currently trending on Amazon. These tools can help you decide on the type of product you want to sell depending on what people ask.
eBay Sales Data:
Another place to carry out your product research is on eBay. Unlike Amazon, eBay has less traffic from people and retailers. However, it has the search data that can also know what products are likely to turn heads in the marketplace. Its sales data can help your product research and help calculate profit margins for the product you plan to sell.
Comparison Shopping Engines:
CSEs are websites that use search engines specifically for products. They function similarly with Google search bar but are quite different. Their results focus on the features, reviews, prices and other criteria customers use to find products that interest them. Comparison Shopping Engines also aids consumers to find multiple retailers offering the product they want to buy. Using these websites gives you access to a wide range of products options currently on sale.
Perform Keyword Research
When people or your potential customers want to inquire about products online, the specific words and phrases they input into their search engines are the Keywords. Keywords work well with search engines, because the more frequently a particular keyword is used, it increases its ranking on the web. Which, in turn, informs you of the interest of your potential customer. Researching keywords can save you from getting random products and stocking your e-commerce site with it. It will guide you on the right product to sell.
To make use of the Google Keyword Planner tool, type in the word or a string of words and then keep pressing “more like this.” it will help you know the best combinations to make with the products you’re about to sell. Maybe you wanted to sell a wristwatch; after using the Google Keyword Planner, you might have to add a necktie to the wristwatch idea.
Look Through Product Reviews
Social proofs have magical effects on recommending the next hot product. There are many e-commerce sites with product reviews, and you can get inspiration from these sites about the next jaw breaking idea that can smash the market. There are other areas, including social media pages which are excellent sources of online reviews and can give you an idea of selling products.
What is the Best Digital Platform for Sales?
Leveraging digital platforms to sell your products has gone beyond owning an e-commerce site and uploading your sales pictures. For you to be able to succeed, it depends on your passion, experience, grit and marketing strategies. Several business tools can help you achieve your business success goals.
There is a bevvy of options to choose from when leveraging digital platforms to sell. You do not have to spend too much or go through the stress you would typically encounter when starting a physical store. The online marketplace can be a great digital platform to join when launching your business career. There are different online marketing platforms, including Alibaba.com, Amazon, Jumia, Konga etc.
You can leverage Social Media. The transformation of social media from a messaging app to now a marketplace has improved online selling. Social media tools have become great outlets for marketing and selling your products. All you need is an excellent digital device with mobile data and great choice on the media platform to leverage. There is a pool of social media options, including Facebook, Twitter, Instagram, Pinterest, Whatsapp and more to get a better market experience.
Lastly, you could add a shopping cart to your website. If you already have an existing website, you could leverage it for your sales by adding a shopping cart and placing pictures of the products you desire to sell.
The best choice for you may depend on your experience handling these digital platforms and your business goals.
FOR MORE, SEE: Top-Selling/Hot Businesses in Nigeria
Why Should You Sell on Digital Platforms?
Making an increased profit as a business owner without leveraging digital platforms has become wishful thinking. Seasonality and recent happenings have contributed to the increased use of digital media for transacting business. Despite the struggle that you might face adjusting to this way of life; you sell various benefits online.
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1. It Increases Your Reach
Leveraging on the use of digital tools and platforms to sell your products online, increases your reach.
An online store removes the barrier of being constrained by the number of customers visiting your physical store. It also removes geographical barrier limitations, selling across different towns, states and borders have become possible.
Various digital platforms have specified uses and advantages; an online site helps your products reach international shoppers. Social sites can enable you to reach new demographics. Online marketplaces like Amazon, and Jumia give access to broader audience coverage and allow you to find specific niche markets.
2. Saves Time
Comfort and convenience are standard terms in the use of digital platforms for sales. Leveraging these tools and platforms allows you to cater to shoppers who have no intention of visiting your physical store to make purchases. Online shopping offers your customers’ product options to choose from when your physical store is not open. The specificity of online shopping makes room for saving time, unlike the usual brick and mortar store where customers make phone calls about availability, specifications and working hours. Online shopping rules out their need because people can find the information on their social media pages and website pages.
3. Customers Insights and Analytics
A great feature on digital platforms is the availability of the analytics and insights feature. The analytics helps you make sense of your data, consisting of your customer’s information, including demographics, behaviour, and activity information, to uncover meaningful trends. The insight feature is the result obtained from the use of the analytics. The analytics and insights tools are essential in tracking your product’s progress on the internet to see how it is doing in the store. It can also monitor your customers and derive sufficient data from knowing how they interact with the site, what purchase they left incomplete, and how to retarget them. It also provides opportunities to learn about your customer’s interests, desires, pain points, and buying traits. They provide valuable metrics that allow you to make better decisions that meet your customer’s needs.
4. It is Scalable
Another important reason why you should leverage digital platforms to sell your products is that it allows you to scale. Using analytics and insights, you have an idea of the products that are doing well on the market, products that need restocking and products that aren’t working. Scaling reports are essential and can guide you in making choices that can interest your customer base. There has to be a growing demand for the product for the seller to restock. Restocking a physical store can be a pain in the neck. Still, an online store removes all stress and makes it an enjoyable activity.
5. No Opening Time Restrictions
Digital platforms eliminate the need to postpone activities or conditions due to its convenience in its operation mode. There are no closing hours on digital media; businesses can generate income at all times, and customers have the freedom to shop as they deem fit.
Digital Product Research (Howto)
Before deciding on a product to sell, you must consider certain factors before jumping off the cliff. You have to research what products will succeed in the market and understand how it aligns with your brand’s goal or vision. There are essential factors that you must consider before choosing a product to sell on digital platforms.
Market /Product Trends
During the pandemic that changed the global world’s operations, certain products’ demand increased rapidly. Products like face masks and shields, hand sanitisers, tissues and other toiletries topped demands. People could let go of the things they wanted for these other things they needed because of the season and the market trends. Before choosing a product to sell, ensure you have taken a good look at the trending products to determine what next to sell.
If you own a blog read: How to Do Affiliate Marketing for Bloggers
Product Demand
You’re not going on a wild goose chase. I believe you would not want to jump into the market with just any product popping into your head. You’d have to check how the product is doing first in the market. You should ask real questions like, how are people perceiving the product? Does it look like it has the potential of becoming a hotcake? Is it easing any customer pain point?
The use of sales estimators (JungleScout) or shopping websites can help you find the most demanded products. It helps you understand the frequency of sales your dream product makes in a week month and determine your profit margin.
Product Source
You cannot dash into selling a product without knowing who your significant suppliers will be. If you manufacture the product yourself, there are questions about where you’ll get your consistent supply of raw materials. Ensure your wholesale product suppliers are reliable before you delve into the product. Failure to do this might bring unnecessary hold to your operation as you begin to build momentum.
Search Engine Friendly
One advice most digital entrepreneurs give startups and new businesses is that they must be discoverable. After you decide to leverage the digital platform to carry out your business, you must ensure that your product is search engine friendly. Insist on the use of keyword research, Google AdWords to know what products are commonly searched for to be able to situate yourself as a solution to these problems.
Product Shipment (Order Fulfillment)
Before you decide to take that advice you got from your friends seriously to become productive, you should consider if your product is shippable. Despite the complexities a product might possess, your customers expect free shipment or low freight cost. However, to avoid losses and cost buildup, you can set out time to consider your product’s properties. These properties include the product’s weight and dimensions to know how you’d price the product to offset shipping costs.
Target Market
Determining the niche of audience your product is going to is vital. Assuming you want to sell a line of handbags, don’t be aloof of your target audience when running your social media ads. You wouldn’t just send the ads running on just anybody’s feed, which will lead to waste of money. You’ll have to specifically target young women within the ages of eighteen and above. Knowing your target audience eliminates the chances of putting your products in the faces of those who do not understand and need them.
Competitor’s Research
Before you swim, you must test the waters. Similarly, in business, you have to know and understand your competition. You need to know other brands who are selling similar products you sell. You need to monitor their activities, progress, strategies, and objectives to better position yourself. There is a need to review their plan to know how it works for them, and then you’ll have a better way to improve yourself and learn how better to acquire their customers. You can do this by research, scouring the marketplace, checking reviews and feedbacks, surveys etc.
Pricing
Some people find it challenging to define the price of their products. And as a result, they settle for any figure that gives them profit. Before setting off to the market with your desired service, you must consider your product’s cost. High prices put people off except your product proves to be very valuable. Customers will pay a premium for gold but will not pay a premium for a pen because they perceive that the later is of lower value. Before you set out to launch a product into the digital space, you must consider its cost and then set its price.
Profitability
The goal of every business irrespective of the market is to make profits. It would be unwise to invest your time, money and energy into products that will not bring profits to your business. You have to clearly state your profit on every product to help you figure out the markup you’ll need on every product to succeed. You have to calculate all the costs you’ll incur in production, storage, shipment, and marketing and estimate your profit margin on each product.
SEE: How to Create a Digital Product that Generates at Least a Million Naira
Conclusion
Determining the best product to sell on digital platforms might be challenging, like fighting the wind. Careful consideration of the factors that affect the selection of these products will determine if your business will succeed or not. In reality, the entrepreneurs and brands who succeed in online marketplaces are the same ones who have the tenacity to do well in physical stores. They are always ready; they master the rules and succeed in the markets.
