A similar system is the use of keyword research , for example with the Google Keyword Planner . The tool is designed to advertise and set prices with Google Ads, but you can use it as a research method. The positive thing about this tool is that after entering your product, you get a whole list of search terms, which are also equipped with the search volume. This will help you figure out which niches are more profitable than others.
In order to be able to evaluate a niche , you should include the following aspects in the analysis:
- How big is the demand for the product?
- How big is the competition?
- How strong is the competition?
Use tools like Keywords Everywhere and Sellics to answer these questions about your product. Take enough time, look at the shops, advertising measures and, above all, the response from customers, for example in the form of ratings.
To Do: Create a mind map around your product ideas, go into detail and specify your niche. Use the free online tool “Mind Mup”.
WHERE CAN I FIND INSPIRATION FOR NEW PRODUCT INNOVATIONS?
Most people have had a product idea that came out of nowhere. For me it was a low carb cookbook when low carb wasn’t even a trend. If I had really written this cookbook, who knows what my path would have been like. However, most product ideas don’t just come flying in, you have to be proactive in searching for them.
Consumer trends, online marketplaces and reviews are a good place to start in developing the ideal product.
Observe current consumer trends
Observing current consumer trends is a good way to develop new products . Shops that realized early on that yoga and sustainability were becoming mega trends were able to create suitable products, such as cork yoga mats or recycled yoga pants.
You can spot consumer trends by looking at niche-specific boards on Pinterest, for example. You can also find inspiration and get direct feedback on product ideas in Facebook groups that fit your niche.
You can also use Google in the classic way for your research. Just type in “Consumer Trends Forecast,” read through each page, and take notes. This is how you find your product step-by-step.
The large online car parks can also be helpful in product development. If you already know which category your product should be in or even have a rough idea, you can search for suitable products on Amazon. By reading reviews, both positive and negative, you can find out which aspects of a product have worked well and which ones need improvement. From this you can derive what the unique selling point of your product could be and accordingly incorporate it into product development.
As soon as you have decided on a product or even several, it is not only about creating the online shop but also about getting them or having them manufactured.
PRODUCE YOURSELF, HAVE IT MADE OR DROPSHIPPING?
The hardest part is done, you have decided on a product, but now there are more questions that need to be clarified. How do you want to produce your product? Here you will find an overview of the most common methods along with their advantages and disadvantages.
Produce your product yourself
Your hobbies are handicrafts, DIY, developing your own cosmetics or something else? Then this method is the right one for everyone. Producing your products yourself has many advantages: on the one hand you save costs and long waiting times for shipping and do without a supplier, on the other hand you have control over the quality and flexibility of production.
This method is more suitable for very small businesses, since you need to put some time into production and can only produce small quantities in relation to the other methods.
To Do: Do you want to sell a product that you have developed yourself and that you are passionate about? Then test demand on marketplaces like Etsy . If the demand is already there, then outsource your production .
Have your product made
If you still want to bring your own product onto the market, but do not want to invest the time, or if your online shop should also be suitable for large orders, then rely on the make-to-order variant. You save costs for bulk orders, are independent of other providers and have control over the price and quality.
The disadvantages of this variant are the time-consuming organization, the investment of capital by ordering a minimum number of products and the possibility of being cheated by the dealers.
Buy your product from wholesale suppliers
If you buy your products from wholesale providers like Alibaba.com, then you take the opportunity to sell an already established product and can orientate yourself to other retailers.
However, selling established products can also prove to be a disadvantage as you are at the mercy of the competition, have no influence on prices and you may find it difficult to differentiate yourself from the competition.
Use the dropshipping method
With dropshipping, you sell products that you don’t physically own. In principle, you act as an intermediary between the supplier and the customer, because they are sent directly from there without you as a retailer coming into contact with the product. The biggest advantage of this method is the fact that you as a retailer do not have to buy, import, pack or ship any products. The whole process takes place online, so you save costs for storage, product costs and, if applicable, customs costs. You can start with a small capital and the risk is relatively low.
However, this is also the reason why you have to reckon with a lot of competition when it comes to dropshipping. In addition, the profit per sale is very low.
HOW DO I FIND THE RIGHT SUPPLIER?
In order to find the right supplier, it is advisable to get an overview using common search engines. You should ask yourself whether you want to rely on a local supplier or on a foreign one.
The advantage of local suppliers is, on the one hand, the time factor. Deliveries arrive faster, the quality standards in Germany are higher than in Asia, for example, and communication is easier. On the other hand, the payments are more secure than abroad.
These many positive side effects have their price. The CPU (cost per unit) is significantly higher than in Asia and the product selection is usually smaller than that of Asian providers. Nevertheless, the trend is back towards Made in Germany , customers value good quality instead of being attracted by cheap prices.
Here you will find an overview of the most well-known online wholesalers .