Customers’ needs and wants differ every year. If you aim to become a successful entrepreneur, it’s important to develop the ability to choose the right products and services you can offer to your target audience in a very competitive market. Business decisions when it comes to choosing the most profitable product involves careful planning and analysis.
In this post, you’ll learn how to choose the best products in every industry.
Market analysis refers to the process of collecting information about what makes customers take action and making analytic studies on a market’s dynamics within an industry. While the market analysis may sound complex, this step is crucial to attaining success, most especially for new product formulation.
Here are the things you need to learn when conducting a market analysis:
- Your potential customers
- Your customers’ buying habits
- Size of your target market
- Spending capability of your potential customers
- Your competitors, including their strengths and weaknesses
- Self-analysis of the product or service you want to sell
Finding and Serving A Niche Demographic
Niche products are important to a successful eCommerce business. Business owners resonate with a highly profitable and highly engaged demographic targeting a niche demographic. Also, serving a niche makes it easier to do the following:
- Increase brand awareness
- Build a loyal customer base
- Drive online traffic
Measure Customer Satisfaction Levels
When determining the most profitable products in every industry, a useful guide is the customer satisfaction level. The most commonly used metrics to measure customer satisfaction are CSAT, CES, and NPS.
Net Promoter Score or NPS is a customer satisfaction metric used in determining how customers are satisfied with a product or a service. It reflects customer loyalty and how likely customers recommend a company’s products and services.
Product Finder Tools
There are many tools available today to find the best products to sell through e-commerce platforms. For instance, in the dropshipping business, you have to determine the best products to sell that customers love.
Here are some examples of product finder tools for dropshipping:
- AutoDS Finder: It’s a product finding tool you can use to scan sellers automatically and help find the best-selling products on major marketplaces, like eBay. In just one click, you can find and upload up to 100 product results.
- Zik Analytics: Using this tool, you can search the name of products to check whether or not they are worth selling through dropshipping.
- Terapeak: It’s a pioneer market research tool acquired by eBay that helps you find hot products to sell on eBay.
While brainstorming was theorized in 1953 by Alex Faickney Osborn, the SCAMPER technique appeared in numerous texts. It is a helpful tool in generating ideas and a creative approach to choosing the best products to sell in every industry.
It’s a great tool to use when creating a new product without exactly developing an original product from scratch. Using the SCAMPER technique, you can generate better ideas on what products to choose for your business.
The acronym SCAMPER stands:
- S for a substitute: Replacing some of the features of a product
- C for combine: Combining the product with something else.
- A for adapt: Making a product more functional.
- M for modifying: Modifying some product features
- P for Put to Other Use: Changing the intended product use
- E for Eliminate or Delete: Deleting some product elements.
- R for Reverse or Rearrange: Evolving a product into something new.
Know the Product Trends
For an eCommerce business, one of the best ways to find the most profitable products is knowing the latest niche product trends. By taking advantage and being one of the first businesses to offer a new product in the market, you’ll increase people’s awareness, trust, and confidence in your brand.
Trendy niche products this year include subscription boxes, cruelty-free beauty products, health-conscious foods, and phone accessories. Determining the trendy products in your industry can help you increase your sales.
Use Google Analytics
You can use Google Analytics to find top-selling products. Make sure to set up an account with Google to be able to use this tool.
- Upload custom Product Analysis report in Google Analytics view.
- The date range should be for the last three months.
- Navigate the table wherein your top-selling products are listed.
- Sort the data via revenue metrics.
When it comes to selecting the best products to sell in every industry, knowing what customers need and want is important by determining customer satisfaction. Also, using product finder tools is a good idea to know the most profitable products to sell, most especially for eCommerce dropshipping businesses.