So you’re unsure about how to find a winning product?
Don’t even trip, we’ve got you covered 🧞♂️✅
In todays installment of Ecom’s Genie insights we’re going to be exploring one of the most important facets of building a successful e-commerce business.
Finding a Winning Product 🏆
So firstly, what is a winning product?
A winning product is the foundation you want to build your online business around.
It’s the one core product that you’ll be promoting through advertising to attract new customers.
Every business has a winning product, think of Apple… they have the iPhone 📱
This winning product must be something unique in the marketplace that solves a problem, adds value to the customer and INSTANTLY grabs their attention 💭
In addition, a winning product should always have high perceived value and be cheap and easy to ship 🚢
Some factors to consider when searching for a winning product include:
✅ Does it have a ‘WOW’ factor?
- Sell a Unique Product, not a basic commodity.
✅ Can it be bought in stores?
- If someone can easily purchase the product in stores, and it’s been seen hundreds of times, why would they purchase from your website?
✅ Does it target a specific niche and customer?
- Success in e-commerce comes down to market research and customer avatars.
- Understand your customers pain points, needs and desires.
✅ Does it have broad mass market appeal?
- The size of the potential customer audience you’re serving with the product should be large enough for you to acquire customers profitably without running out of customers to serve.
✅ Does the product solve a problem or add value to the customer?
- Super Important. This is why someone would purchase your product.
- Does your product save someone time, does it improve their quality of life?
- People only purchase things that improve their life, if your product solves a problem or adds value, they’ll be more likely to purchase.
✅ Does it have a high perceived value?
- For every product you sell, you have to consider if it can be resold for a 3-5X markup.
- If it looks cheap, chances are others will think the same.
- Search for products that you can buy cheap that have a high perceived value, think jewelry 💍
✅ Can you sell your product with a 3-5X markup if you’re using paid ads, or a 2X markup if you’re using an organic promotion strategy?
- Ensure that the products you select are lightweight and easy to ship.
- If a product costs $10, and the shipping cost is $5, you want to sell it for $45-$75, if you’re running paid ads OR $30 if you’re doing strictly organic promotion strategies.
- Ensure your customers will be happy to pay the price you list it at, understand the market and what competitors are selling similar products at to get a gauge for product price elasticity.
- Research can be done Amazon and other competitor stores.
- The reason for the 3X-5X markup is margin so you can afford to run paid ads. Paid ads are becoming more expensive by the year, and if you don’t factor this in, you will not be able to grow and scale your e-commerce business.
Keep these questions in mind, when doing product research and you'll be one step closer to making sales on your Shopify store and building a successful e-commerce business!
Until next time!
-Shay
CEO of Ecom's Genie 🧞♂️
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