How to Find the Most Profitable and Trending Products to Sell Online
With the increased digitization, access to the internet, and massive innovation all over the world, eCommerce is booming like never before.
It is by no surprise that the global eCommerce market capitalization is set to hit $24.3 trillion by 2025, indicating a CAGR of 11.1% from 2018.
Despite the increased market valuation and opportunities brought by ecommerce, the success of online vendors and sellers comes down to the seller’s ability to choose the right products and operate in a viable target market.
As an online seller, you cannot pick a product randomly and expect your online business to stay profitable. Instead, you should focus on understanding what potential customers are looking for. This means taking your time to research and explore different sources of information.
By identifying gaps in the market and capitalizing on products with high demand, you can build a scalable ecommerce brand. In this post, we will walk you through the process of choosing products to sell online, thereby laying a foundation for long-term success.
1. Monitor social platforms
A significant percentage of users share their favorite products on social media. This makes platforms like Facebook, Twitter, Instagram, and Pinterest not only a strategic marketing tool but also a great starting point for conducting product research.
If you'd like to sell golf products, for instance, checking Facebook groups related to golfing can help you discover trendy product ideas in this niche. Here, you can learn what golfers like and dislike, thereby uncovering some potential gaps and opportunities in the golfing market.
Online sellers should consider following influencers and searching relevant hashtags in their niche. Doing this can provide constant inspiration on trendy eCommerce business ideas. Wish list websites such as My Wish Board, where people save items they'd want to purchase or receive as gifts, can also be a goldmine when looking for products to sell online.
Another effective way of looking for product ideas in a specific niche is checking social sites dedicated to that industry. A website like Houzz, for instance, contains lots of valuable product ideas in the housing and interior design space.
2. Use Google Trends
Google Trends is a free tool that helps business owners identify what products their target audience is interested in.
It provides insights into the most trending and in-demand products, thereby helping online sellers make crucial decisions about their online businesses. So, if you have a product idea you'd like to dig into, Google Trends is an ideal place to start your research.
For instance, if you're looking to sell an item like Bluetooth speakers, enter the target keyword, and Google trends will show you the consumer interest over time, as shown in the snapshot below.
You can also narrow down the results to suit your business using the location, time, and categories filters. The compare feature also allows you to compare the demand of different brands or products over time, thus helping you choose more profitable items.
By identifying products and features that are more valued by your target audience, it becomes easier to improve your offerings, marketing campaigns, and ultimately, generate more sales.
3. Check marketplaces such as Amazon and eBay.
Besides using trendy publications to get a general glimpse of product popularity, you can check leading online marketplaces to discover top-selling items.
Most eCommerce platforms usually provide a list of trending or best-selling products. Analyzing this data can give online sellers an idea of products with high market demand. The good thing about data from online marketplaces is that it is highly accurate and up-to-date. Some great marketplaces to get started include:
- eBay Top Products – This provides insights into the top-selling products on eBay, thereby helping sellers understand what products are in demand.
- Amazon Bestsellers – Like with eBay, Amazon bestsellers lists the most popular items on Amazon based on the number of successful sales. You can also check Amazon's Interesting Finds page as well as Amazon Movers and Shakers for more valuable information on eCommerce products and trends.
- Etsy Trending Items – Etsy is a more niche-specific marketplace for sellers that deal with vintage or handmade goods. If these are products that interest you, then this is a page you'd want to monitor.
4. Find products that solve a problem
As the popular entrepreneurial mantra goes, always focus on solving a problem when starting a business.
eCommerce entrepreneurs should look around for products that improve or make their customers' lives easier. When choosing a product, always ensure that it addresses a specific need. Solving problems does not necessarily mean coming up with completely new and sellable solutions. No, you just need a better approach to doing things. Instead of struggling to create something new, think about how you can improve on existing product ideas.
For instance, a site like TrunkClub creates and delivers personalized styling instead of selling individual clothing products. While they are not dealing with entirely new products, their creativity solves a shopping problem for most men.
5. Analyze the existing competition
An essential skill that most successful merchants possess is the ability to outmaneuver the competition.
Like in any other market, online sellers should be smart enough to analyze the competition and adjust accordingly. If there are many sellers dealing with the same product, it becomes harder to make sales. A higher market supply results in a price war where every seller tries to keep their selling price low in order to close more deals. This in turn kills the profit levels. To deal with such scenarios, marketers should find a niche or product with fewer competitors, especially ones that aren't big brand names.
A good way of identifying products with low competition is by reviewing sold items against the most searched items on online marketplaces. If you find products with a high search volume but few merchants selling it, consider capitalizing on this market gap.
Additionally, if products with high demand aren't available online at the right pricing, then you can take advantage of this opportunity.
Online sellers should also go a step further and look for products with multiple uses. These are items that can be marketed in multiple ways. For instance, coconut oil can be used for beauty, health, or even cooking purposes.
As you might have realized, the key to staying profitable all-year-round is being proactive about product discovery and selection.
When looking for a product, ensure it is unique and that it delivers value to the buyer. An ideal product offers a healthy markup and is difficult to find in regular walk-in stores.
Additionally, keep in mind that the product demand may change over time. For this reason, online sellers should always strive to stay on top of things to ensure they have the right items in stock as seasons change. Now that you're equipped with the best tips for identifying lucrative eCommerce products, it's up to you to convert these ideas into some good online money.
Adela Belin is passionate about sharing stories with the hope to make a difference in people's lives and contribute to their personal and professional growth.