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How to Source the Right Product

A bad product from a good product can be there difference of millions of dollars in your bank account.  Sourcing the right product is an absolute must.

If you hear nothing else that is written here, please here one thing. Finding the right product to sell online is the single most important part of starting a business online. A bad product from a good product can be there difference of millions of dollars in your bank account. Below, I have listed some of the most important factors in finding the right product.

The product must be somewhat difficult to find

It is absolutely imperative that you find a good balance here. When people first ask me the question, “Why isn’t my product selling?” I ask all of them the same question. “Are you selling toilet paper?” Most of them come back with a puzzled look on their face or simply answer the question and say “No, I’m selling rubber bands.”

Do you see the problem here? Anyone can probably drive within 5 miles of their home and find toilet paper for near nothing in price. Unless it is like ultra-sensitive with designs on it, toilet paper will not sell online. No one cares to buy it and then pay for the shipping costs, or have the patience to wait for the duration of having it shipped. Rubber bands are in the same category at toilet paper.

You must find a product that people can not go directly down the street and buy. This defeats the purpose of buying products online and you will find it very difficult to compete with local markets on a wide variety of products.

The product must be in demand

On the opposite end of the spectrum we have the requirement for demand. Another question I am frequently asking is, “Does your product solve a problem?” Often times I hear the word, “No”.

You have to find products that people want and need. I do not care how well you market purple ceramic frogs with pink polka dots on them, there is such a small market and demand, you will certainly find it difficult to market. Almost no one would want to put a two foot tall pink and purple ceramic frog in their living room. Nor do people really need that product.

Instead, your product must serve a purpose as well and solve a problem of some kind. Think of your most needed products in the world. We can even go back to toilet paper. People need toilet paper. There was a need for it. Find products along those lines.

Factor in Shipping Costs

The one downside of working online is that everything is shipped. The benefit is that there are no taxes online unless you are buying from someone in the same state. Therefore, the taxes and shipping costs kind of balance out if you are selling the right product.

At the same time, a lot of extremely heavy and large products simply do not sell well online. When you are selling a product such as thisScience Articles, you may have to charge a hundred or more dollars for an item that sometimes only costs forty or fifty dollars. This is a huge problem when trying to sell things online and compete. You should always keep this in mind when thinking of products to sell.

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