If you are planning to become an online merchant and have not yet decided exactly what you would like to sell, you may well be asking yourself “What would be the best products or services to offer on the Internet?” Having worked with thousands of online merchants, we would like to offer some help by giving you some points to consider in the planning stages. It is worth taking several important parameters into account before making your decision about product offerings. These issues affect your time and material costs, and by choosing wisely you may be able to retain more customers after the first sale.
Storage
Storing products usually means warehouse rental and security-related expenses, and you can avoid them by selling intangible products such as software or media files (music, videos, etc.). If you want to sell physical products, try to arrange for delivery directly from your suppliers’ warehouses.
Delivery
Transportation of large (furniture), dangerous (combustibles), or fragile (crockery) products is often accompanied by obvious difficulties. If you are not ready to deal with these kinds of problems, choose merchandise for your online store that is very unlikely to be broken and very easy to deliver to customer; e.g., stuffed toys.
The necessity to try things on
If you have ever purchased clothes in a store, you know how important it is to be able to try something on before you buy it. When operating an online clothing store, it is imperative that you have extensive knowledge about the fit and sizing of your merchandise, and that you have reliable sizing charts & instructions on the website. Even then, clothing is returned more frequently than any other item, not necessarily because of quality, but because of fit or size issues. You must be prepared to handle returns, and to factor that expense into your plans. Nevertheless, this does not mean that selling clothes online is not profitable at all. Quite the opposite: if you publish clear photos and detailed descriptions of each product including size information, as well as offer a money-back guarantee (e.g., for incorrect fit) then you can be successful, especially if you offer absolutely high-quality products (i.e., those manufactured under widely known trademarks or brand names).
Repeat orders
Suppose you have sold someone a cupboard or a sofa. Chances are very slim that the same customer will return some time later to buy the same item again. He or she might only recommend it to their friends or relatives. The situation is very different with, as an example, gum-healing toothpaste. As soon as the product is used, it is quite likely that a satisfied customer will want to buy another tube in the same place – your online store. Summary: it is a good strategy to sell consumer goods which your customers return to buy again (e.g., personal hygiene products, office equipment, automobile spare parts). Note that this recommendation will work only if you ensure high level of customer service and post-sale support and avoid delivery of defective or past-due products.
Post-sale customer support
After a customer has ordered something in an online store, he or she is entitled to expect that the seller will provide further assistance as needed in use of the purchased product. This is especially true for software or complex technical products such as personal computers. If you are not ready to establish your own customer support service, you may outsource this service to a third-party company. Otherwise, choose products for your online store which are easier to use and rarely need customer support (e.g, paper for printers).
Competition
Analyze the market. If the products which you are going to offer online shoppers is already available in dozens or hundreds of online stores, think twice before you jump in to compete with those who have already won a large market share. It is essential to remember that direct competition with large websites will probably be very expensive and not very successful. If existing online stores already offer products which you would like to sell, differentiate your store. You can easily create your own unique offerings by rendering extra valuable services to your customers, ensuring faster or cheaper delivery, or by simply giving away small gifts. You must create your own combinations of products & service which will drive more new customers to your website. Spend some time on studying competitors’ websites and use your imagination.
Planning is the first key to success. The best new merchant finds a niche that is rarely or not served at all. A product which is either poorly advertised or has minimal presence on the Internet is a good opportunity. By drawing attention of a large online audience to that product through a well-designed website, you can become the leader in the new market niche.
Limited demand on the Internet
You may already have a good idea for a product or service; however, there may be difficulties for your prospective audience to find your offerings on the Internet. This could happen if your product is intended for regions with low Internet coverage, or for older people who rarely use online services; in that case attracting attention to your products online will require significant efforts which might not be worth while. A new website must be able to ensure a satisfactory visit rate to generate adequate sales volumes. Those who want to open an online store which falls into this category should soberly evaluate their ability to have their customers find them or reach out to a related party; e.g., children of elderly parents, who might purchase your products for their parents.
Conclusion
Of course no single article can answer the direct question about which products are best for a web store! Nor have we listed every product parameter which must be taken into account, but we have provided a good basic checklist from which to begin your decision-making process.
We do hope that it will be useful for a new entrepreneur who is taking the very first step to building a successful online store.