To be able to find products sell online, we must first know the people’s needs-what they already want to purchase. Looking for a great product idea requires that we determine the demand for the product in the present market and if the product will have a reasonable share in the market or with less competition in the long run.
Why Market Research is Important
“What should I sell? What products are hot selling?” These are the questions most people try to answer before making a definite decision. Research has to be conducted in order to find an answer. Various factors may make you think that you have a high demand idea.
We need to understand and meet the needs, wants, and expectations of our customers for the product they would want to buy. These three are the basic needs or minimum requirements in a purchase. Needs are the basic reasons or minimum requirements consumers look for in a product or service.
Wants are the determining factors among many choices, and expectations are the values or intangibles associated with a product or service. Expectations become crucial when products or services are not differentiated.
Applying Market Concepts to Internet Sales
For instance, if any university student wants to buy a logic book, he or she will look for pertinent logic ideas, simple English, easy comprehension, and low prices. All these same principles can be applied when selling on the Internet. The basic principle of demand is no different over the Internet than it is anywhere else, and it always has been.
Market Share and Competition Analysis
The second factor in finding “hot” products to sell is the level of competition or market share your product will have. Market share refers to the ratio of your brand’s sales versus total market sales. While companies define their target competitors, consumers ultimately decide the competitive frame, or the list of related products or services they consider when making a purchase.
We must choose markets where we can hold especially advantageous position, preferably leader, or at worst a strong challenger role. This business will not be content just to meet customer needs and wants; it has to do so more profitably than the competition. Otherwise, our competitors will be more effective at meeting customer needs than we are.
Measuring General Interest
The third factor in finding hot selling products involves determining the general interest level in the product. It would help to gauge where generally the demand and competition numbers fall. If there isn’t much demand for the product and also not much competition,
then it may not be a good product to sell. However, research doesn’t just stop here; we need to see how others are advertising those products. A large number of advertisements might indicate that it is a good product to get into.
Data Analysis and Evaluation
We need to now take a look at all the information gathered and analyze and evaluate it. Data on demand versus competition versus advertising should be viewed in order to maintain a balanced decision. There are a number of factors to be gauged:
- (a) low demand—there are not enough buyers.
- (b) high competition—there is insufficient profit.
- (c) too much advertisement—not only does it increase cost, but also competition because of pay-per-click ads.
- (d) low general interest—when combined with low demand, that shows a poor market even in case of existing competition.
