Today, it is boom time for e-commerce and sellers are making a beeline to sell on the internet. An online store has its advantages over the traditional brick and mortar store, but please be cautious and don’t just jump in because everyone is doing so. You have to do due diligence and know how to sell online before you start doing so. Here are some tips that will help you successfully sell your products on the internet. Identify and shortlist products
The most important decision is what to sell. You will have to create a list of products that you can procure or produce easily. This involves many factors like your interests, sourcing or manufacturing feasibility, size and weight of product, perishability, shelf life and the potential to scale up. Once you have created a list, you have to find out whether you can sell the product profitably and whether a sizeable market exists for it. The best way to go about it is to research the shortlisted products. Find out if a demand exists for the product
Once you have arrived at shortlisted products you want to sell, you may research whether a market exists for them. Does your product solve a problem or fulfil a need in the market? Try to find out who are the people searching for a solution to a problem. Are there similar products/services in the market now? Do also find out what potential competitors are doing to meet the demand. Your research will help you to identify what people want. Select a product from your list that meets their requirements and make it better than the competition. There are a number of ways you can find answers to your questions including market research, focus groups, product prototype introduction and even trial and error. Ascertain if the product is commercially viable
Various costs are involved in selling online. Make a list of the costs involved like - sourcing, shipping, packaging, storage, payment gateway and marketing costs. Once you have a fair idea of the costs involved in selling online, you can do some quick calculations to find out the profitability of your product. The simple formula is Selling Price per unit - Costs per unit (Sourcing + Packing & Shipping + Transaction Fees + Marketing costs + Variable costs) = Profit margin.
If your profit margin is healthy, you can think of starting your business online. If it is not so, try to reduce your cost components.
Sell on an online marketplace
Weigh the advantages in comparison to your own e-commerce store, there are some clear-cut advantages of an online marketplace:
• Gives you access to the huge customer base of the marketplace
• Helps you create your product catalogues and list them on their site
• Marketplaces facilitate the transactions as middlemen
• Some assist you with the logistics of the process like packing and shipping
As compensation for all these facilities and activities, they take a commission from each sale.
Online marketplaces like Amazon are very popular and they are normally the choice of most consumers when it comes to shopping online. Selling on a marketplace like Amazon means that you get access to their millions of customers across the world. To sell on Amazon, please register as Seller on Amazon for free