In today’s digital age, selling products online is an increasingly popular method to reach customers and grow your business. With over 2.64 billion online shoppers searching for solutions to their needs, there’s a vast market just waiting to be tapped. However, navigating the world of e-commerce can be challenging, and costly mistakes can be made along the way. Thus, knowing how to sell products online is essential.
Source: eMarketer
This article will explore how to sell products online and the different platforms available, including e-commerce stores and popular consumer marketplaces like Amazon, eBay, and Etsy.
Finally, we’ll highlight common mistakes to avoid when finding products to sell. By the end of this article, you’ll be well-equipped to establish a successful online business and maximize profitability.
Let’s get started.
How to Sell Products Online: 4 Different Ways
You’ve just come up with an amazing new product that you think the world would love. How do you get people to buy your product? Here are some tips on how to sell products online.
Private Label
With today’s technology, it’s easier than ever to set up your own private label business especially if you’re just starting out without a lot of capital investment needed upfront. The term “private labeling” involves the manufacturing of a private label product by a third-party manufacturer under the seller’s brand name. You specify all features and details of the product, its packaging, and label design. Then, you pay for its production and delivery to your store.
Image Source: ecommerceceo
Private label products are an excellent way to build your brand and get started selling online. They are often cheaper than other brand products.
Private label products also give you more control over your product line, allowing you to create unique products. You don’t have to worry about dealing with a distributor who might go out of business or change their policies (e.g., by raising prices).
Dropshipping
As a dropshipper, you don’t actually buy inventory or store it at your warehouse. Instead, when a customer places an order through your website, your supplier sends the items directly to them. You then invoice your supplier for each order and pay them after they ship out the product(s).
The benefits? There are no upfront costs associated with starting a dropshipping business as you don’t need to purchase inventory or storage space and hire warehousing staff until you make sales. Plus, your supplier handles all shipping concerns and returns, so there are no additional overhead expenses.
Wholesale
Wholesale is selling products to retailers, who then sell them at a higher price in their retail stores. There are many benefits of wholesales, including:
A larger market
Many retailers prefer to buy in bulk. Wholesale sellers can sell their products to multiple retailers at once. They can also handle smaller orders while maintaining a relationship with each type of buyer.
The ability to earn higher profits
Wholesale sellers can sell their products in bulk, which means greater incoming cash flows, reduced time for handling orders, and cut down shipping costs (when calculated per item).
A greater sense of satisfaction from helping others succeed
As a wholesaler, you will be able to help others succeed in their businesses by providing them with the tools that are necessary for success – whether this means selling them an entire inventory or just a few items at a time. You’ll see other people’s businesses grow and prosper because of your efforts, which will make you feel good about what you’re doing.
Selling on Demand
Print-on-demand means that the product is printed only after a customer orders it. This type of product is a great way to sell your designs without having to make and store inventory. This helps you avoid the cost of storing and shipping unsold inventory, which can be expensive. Examples of such products include t-shirts, posters, mugs, hats, and more.
Platforms to Sell Products Online
This is another way to sell your products. What are your options under this category?
Ecommerce Store
Ecommerce stores are websites that sell products directly to customers. They can be easily set up, and there are many platforms available for creating them. This type of store is perfect for people who want to resell or sell their own products online.
Platforms like Shopify, BigCommerce, and Magento offer a wide range of features including payment gateways, shipping modules, and inventory management systems.
Consumer Marketplaces: Amazon, eBay, Etsy
Selling on Amazon, eBay, or Etsy can be a great way to make extra money from home. The marketplaces have millions of customers looking for products every day, so even if you don’t have a lot of sales at first, it’s likely that your product will eventually be seen by someone who wants it.
Mistakes to Avoid When Finding Products to Sell
When it comes to selling products, there are a few mistakes that can be made.
Not Testing Products Before Selling
If there’s one thing that can ruin your reputation as an online seller, it’s selling products that aren’t up to par with your customers’ expectations. Make sure each item you list for selling is working properly.
You can do this by testing the product yourself or asking friends or family members to do that. If everything works fine, it’s a green light to sell the product.
Lack of Demand or Audience
Before you start selling a product, make sure that there is demand for it. There are many ways to do this.
You could use Google Keyword Planner, which will give you an idea of how many people search for a particular keyword each month. You could also use Google Trends to see if people are talking about the term.
Low Profit Margins
The profit margin is the amount of money that is left after you have sold your product and paid for all costs. It’s important to know how much profit you make from each sale because it will determine how many sales you need to break even, or how many sales you need to cover your costs.
One of the most common mistakes that new sellers make is buying products with low profit margins. This can lead to lost profits at best, and financial ruin at worst.
So, make sure that your products are profitable. The cost of the item needs to be low enough so it doesn’t eat up all of your profits.
Working with Non-Reputable Vendors
Sometimes, finding good manufacturers can be difficult and time-consuming.
If you work directly with a manufacturer overseas, for example, you could end up spending hours on the phone negotiating prices. You could also waste ages trying to find someone who speaks English well enough to understand your needs as an entrepreneur.
And here comes working with vendors. It’s much easier and cheaper to use an established vendor that already has relationships with manufacturers all over the world and knows exactly how to negotiate the best price for their customers.
However, working with non-reputable vendors can lead to problems like:
- Counterfeit products
- Not shipping the product on time or failing to deliver what was ordered
- Mismatching product quality
All of these can damage your brand and reputation.
Final Thoughts on How to Sell Products Online
It’s all about finding the right niche to grow in and identifying the customer pain points you’ll address. Based on that, brainstorm what products can help solve that particular problem you’ve picked out.
Once you’ve stocked up on product ideas, you can move on to research and study the competition.
Keep your budget in mind. The key to making money as an online seller is buying low and selling high.
Also, don’t be afraid to modify products and tactics if your research uncovers different demands and better opportunities.
Remember, there’s nothing wrong with running a business that isn’t exactly what you envisioned initially…just so long as it’s profitable. And most importantly, don’t give up!
Out there, over 2.64 billion online buyers are looking for the best solution to their pain points. You only need to feel their pulse and be there for them.
Frequently Asked Questions on How to Find Products to Sell Online
What are the Different Ways to Sell Products Online?
- Private labeling
- Dropshipping
- Wholesale
- Selling on demand
What is Private Labeling?
Private labeling is the process of manufacturing a product by a third-party manufacturer under the seller’s brand name. The seller specifies all features, packaging, and label designs, and pays for production and delivery to their store.
What is Dropshipping?
Dropshipping is a business model where the seller doesn’t hold inventory or store products. Instead, when a customer places an order, the supplier ships the items directly to the customer, and the seller invoices the supplier for each order.
What is The Difference Between Selling On Demand and Private Labeling?
Selling on demand, such as print-on-demand, means a product is created only after a customer orders it. This model helps sellers avoid costs related to storing and shipping unsold inventory. Private labeling involves manufacturing a product under the seller’s brand name, giving them more control over the product line.
What Platforms Can I Use to Sell Products Online?
You can sell products through:
- E-commerce stores (e.g., Shopify, BigCommerce, Magento)
- Consumer marketplaces (e.g., Amazon, eBay, Etsy)
What are Some Common Mistakes to Avoid When Finding Products to Sell Online?
- Not testing products before selling
- Lack of demand or audience for the product
- Low profit margins
- Working with non-reputable vendors
How Can I Determine If There is Demand for My Product?
You can use tools like Google Keyword Planner to see how many people search for a specific keyword each month, and Google Trends to check if people are discussing the term.
How Can I Ensure I Have Healthy Profit Margins for My Products?
Make sure the cost of your items is low enough so it doesn’t consume all of your profits. Calculate the difference between the selling price and the total costs associated with the product, aiming for a comfortable profit margin.
