Thursday, October 6, 2016

The only ecommerce product checklist you will ever need

Are you thinking of starting an ecommerce business? You have the capital, but don’t know where to start and which products to choose?

We’ve created a checklist that should help you determine the right product for your new, high grossing web store. Pick a product and run it through our criteria, if there are at least two “ticks” missing, maybe you should consider another product.

Perform a keyword research
The first thing you need to focus on are keywords. Top 3 keywords should have combined 10K exact match searches. Make sure to check out Google Trends, as well as the Google Keyword Planner.

Find out do you have any competition
Many people think that having competition is a negative thing in ecommerce game. This is not always the case.

Think about this scenario:
You’ve invented a selfie stick. Nobody has ever heard or seen a selfie stick and doesn’t know that such a thing exist. This means that you will spend at least 6 months investing in marketing, only to educate the major public about the existence and purpose of a selfie stick. Sure, you will have the media coverage for such a product, but the next person that starts selling it will have it too, but won’t spend a dime investing in product introduction to the public.

The point of this example is - you should be glad if you have competitors that are just getting started or that don’t take advantage of the whole market. Otherwise, if the market is limited and you have some serious competitors, then you should probably consider another product.

Calculate the average value of your future orders
Let’s say that average order will have one high value product or two lower value products. Does this value fit in the range between $70 and 180$?

Calculate the gross margin
Is your gross margin going to be 20% or more?

Figure out how big is the need for your product
Does your product lend itself to return customers?
Does your product lend itself to multiple item orders?

Try to buy the product locally
Is the product you are considering difficult to buy locally?

Calculate the average product weight
Even though you might have a drop-shipping contract and don’t need to think about the logistics of every shipment, you should still consider the weight of your average order. If the weight exceeds 2kg, you might want to consider other products.

Find out who is your audience and when will they buy
Auditing over 100 ecommerce websites, we’ve determined that those that operate on high margins are those that have female customers and seasonal products.
Seasonal aspect is very important here, because having spikes in sales keeps you focused and determined to perform better every time.

You’ve reached the end. Now be honest with yourself and see if you have at least 6/8 points ticked. If you do, you are on to something great.

Good luck with your new – high grossing product!

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Conversion Rate

Conversion Rate
- The number of sales of a product compared to the number of people who visit a website to look at that product, or to the number of phone calls or sales visits that are made. (Cambridge dictionary)

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