Finding products to sell is not easy. Sometimes the product looks good on paper, but when you try to sell it you find that there is too much competition or not enough demand or it's just too expensive and you don't have the money to buy the inventory. What should I sell there's the question I asked far too often and in this section I'll try to answer it the most important part of a product is to understand what a niche product is.
A niche product is one that targets a very specific group of people.
For example, take this Toyota Camry a very traditional family sedan popular all over the world and compared it to this Ferrari both are costs both have engines steering wheels and four tyres, but that's where the similarities end. The family sedan appeals to everyone but the both the supply and demand for this vehicle is high especially when you compare it to the Ferrari. The family sedan appeals to the masses the Ferrari is not for us very specific group of people, namely automobile enthusiasts with a lot of money who don't mind paying a hundred thousand dollars for a car.
The Ferrari has far less demand and even less supply than the Toyota, the Ferrari is therefore a niche product, whereas the sedan is a mass product. niche products are in limited supply because there is less demand. The target a specific group of people and for the customer they are a bit harder to find. If there is one thing you remember from this article is this: don't sell mass products - sell niche products.
Why sell niche products?
To answer this question that's using more practical example. Say you wanted to buy sunglasses
If you live in the United States chances are you would stop or shop at one of these places but what if you wanted wood sunglasses for sunglasses, where would you buy those amazon has a few shopify suppliers but Walmart, Target sunglasses that they don't sell wooden sunglasses. Why? Because what sunglasses are a niche product, the demand isn't high enough for these places. Now think about it from seller’s perspective:
If you wanted to start a business selling sunglasses traditional thinking suggest that you bulk buy a product that everyone wants to buy the problem. With this is that if you sell products that everyone wants you are going to have loss of competition and the last thing you want is to have to compete against a big national brand who has millions of dollars to spend on marketing and inventory, but if you were to sell wood sunglasses your competition would be very limited and therefore you would profit margins would be higher. Also you wouldn't have to work as hard to get customers because they would come to you since they don't have all the other alternatives.
I can tell you first-hand that I have tried to sell mass products and after a few months I found that the profit margins were too low and it took too much work to sell the products and I eventually gave up but when I started selling niche products it was a lot easier, because I didn't have to work as hard to find customers and the profit margins made it worthwhile.
When you start out I would recommend looking for products where you can earn a thirty to fifty percent profit margin and eventually work your way up to hundred percent profit margin.
So how do you find these niche products? This can be a bit challenging and requires a bit of our research generally speaking I look for a product that is really popular and trending and then I try to find variants of that product.
Case in point, regular sunglasses and boots and glasses regular sunglasses are popular mainstream product and wood sunglasses target a very specific group of people who are looking for an alternative. I also use these three tools to help me do research k-dubb defined her Google Keyword planner and Google Trends.
Let's try kW finder to see how it works now I am NOT going to show you the details of using these tools I just want you to give an introduction to them. I've used the examples of cars and sunglasses let's look at another product yoga pants.
Yoga is really popular activity these days and lots of people are buying and selling all things yoga is related to let's research yoga pants so in the search bar here I'm going to type in yoga pants
And the tool tells me there are about 200,000 people searching for yoga pants in the United States every month and the average cost to advertise for your co-parents is about one point $1.95 per click
Now if you're not familiar with PPC advertising and how search marketing works I recommend you take some time to learn the fundamentals of digital marketing and search marketing. For now this is very crude example to give you an introduction to the basics so you’re thinking that yoga pants are a good product to sell – the demand is really high, the industry is trending. Problem is everyone sells yoga pants including Walmart, Target and even Nordstrom's but what if you sell a variant of yoga pants.
How about maternity yoga pants the demand for maternity yoga pants is almost nothing compared to regular yoga pants but 3,600 people is still significant and I can capture even 1% of those 3,600 people that's more than a sale a day - not bad for a new business.
Finding niche products isn't easy, if it were everyone would do it so take your time and use tools like kW finder and Google Trends to help you do the research, you'll find tons of free tutorials on using these tools.