Online marketplaces like Amazon have made it possible for individuals to create businesses selling products online. There are millions of products you can source and sell online, but the real challenge is determining which ones are in demand and profitable.
Product sourcing is an important part of eCommerce. If you want to be a successful seller, you need to learn how to research products you are interested in. Anyone can source a product, but it takes a knowledgeable seller to find out which products will actually sell.
What should you look for in a product?
- Competition and demand levels: Is the product in demand, and what kind of competition exists for it?
- Expenses: How much will it cost to source and ship the product? What kind of marketplace fees will you have to pay?
- Competition quality: Is your competition established, or new?
- Monthly sales volume: Does your product sell every month, or will you get stuck with dead inventory?
- Profit: How much profit will you make on every sale? Can you afford to accept returns and still make a profit?
The easiest way to find products that satisfy these requirements is to start with niches that you are familiar with. Analyze current trends, think about problems your customers have, and ways you can solve them. Use a product research tool like Algopix to help you determine if a product meets the above criteria.
That’s not all you have to do.
In order to make consistent profits on Amazon and eBay, you need to become a reliable seller that has a solid reputation. That means generating positive reviews and feedback for the majority of your transactions.
If you put in the time to learn how to properly source products, you’ll be well ahead of the competition.
Algopix simplifies the product sourcing process. Sign up for an account today, it’s free to get started.
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