Strategies for finding your first profitable products

15 Feb

Finding profitable products for your niche is the hardest challenge faced by entrepreneurs. Coming up with ideas that are unique yet trendy is a bit tricky. As there is plenty of competition in the most popular product categories. Therefore, choose your products wisely.

Here are some strategies discussed for finding profitable products.

Places to find profitable product ideas

Let’s take a look at each of these strategies to find products in more detail.

1. Solve a customer pain point

The first step to creating a great product is figuring out your audience’s everyday annoyances, which will help you determine possible solutions. Solving a customer pain point will always be an effective way to develop a product people want.

If you manage to solve even the tiniest problem, you will have tons of people willing to invest in the solution. A good way to find a pain point to target is by being more attentive during your everyday life situations.

Try to keep a close eye on everything you are doing throughout a given week and note what annoys you while you are performing basic tasks. Once you are able to focus on something that can be improved or have a better solution, you can create a product.

Also, being keenly aware of the pain points and small annoyances you come across in everyday life could be just what you need to come up with your next profitable product idea.

2. Enthusiastic approach

Create a product that builds enthusiasm in people. If you can create a product that people want to invest in, you have a much better chance of building a fan base around your product line. Even if a person is passionate about a particular thing or hobby they are usually more willing to invest in your product.

Additional benefits can include higher levels of engagement and loyalty with your brand, as enthusiastic customers are generally more involved in the industry and get more value out of the products they purchase.

3. Go with your personal passion

Though there is risk in choosing your own niche based on your personal interest. But using your know-how and creating a unique product can be profitable. Products that fit into market matters because building a business is a lot of hard work, and you’ll be better equipped to stay motivated and overcome the hurdles if you are deeply invested in what you are selling.

4. Consider your professional experience

Turning your expertise into your own online business is a smart way to enter the market with some unique ideas that can’t be copied or duplicated by others. Your professional experience can be in a particular industry which can help you in bringing up something new and different from others.

5. Capitalize on trends

Recognizing the trend is a clever step to win for new business. It will allow you to make your place in the market and establish yourself as a leader before others take this place. And thanks to the nature of digital marketing, your paid spend will probably be lower and opportunities to build long-term SEO traffic may be more abundant.

Here are a few ways to keep an eye on what’s trending so you can act quickly on potential opportunities:

Social listening: This can be as basic as looking at the trending hashtags on Twitter or topics on Facebook, or as advanced as using social listening tools to identify and monitor trends over time.

Google Trends: Look at the popularity of topics over time, and see what’s hitting a spike in interest.

Trend Hunter: The “world’s largest, most popular trend community” uses data, artificial intelligence, and real humans to identify consumer insights and new opportunities.

Reddit: “The front page of the internet” showcases forums about pretty much every topic under the sun. Visit the popular page to see what people are buzzing about.

6. Read customer reviews on existing products

If you already have an online store, read the customer review and see what they are saying about your existing products. If there are any trends or interesting bits of feedback that can be used as an inspiration to develop your next product. Also, pay special attention to shortcomings and complaints being shared.

Whereas, If you don’t currently have a store, have a look at customer reviews for other brands and products in the industry you want to explore. What “wishlist” feedback is being shared about potential improvements to already successful products? What add-ons or additional products do customers consistently bring up? But if you’re not sure of the industry or product category to explore, consider a specific demographic and focus on brands and products that those individuals gravitate toward.

7. Find product opportunities in keywords

Keywords are a great help. Searching for keyword opportunities means strategically looking for a product based on the search queries people are using, the number of searches per month, and overall competition for those searches. Which can help you launch the product that people are looking for.

This approach can be fairly technical and requires an intermediate understanding of keyword research, as well as search engine optimization. The advantage is that pairing product demand to existing keywords can be an effective way to capture consistent organic traffic from Google, but it comes with its own set of risks, namely that if you rely on search engine traffic you’ll be overly exposed to changes in Google’s algorithm.

Google isn’t the only place where people start their search, and as such isn’t the only place to mine for keywords. Online marketplaces also have their own search functions, which means lots of keyword data as well. Here are a few tools you can use to uncover popular search terms, which may help you find the next product to sell:

8. Test before you launch

Even great products can flop when they launch to no one. If you already have an idea, but you’re not quite ready to invest heavily in it, minimize your upfront investment and test the market by building a landing page to promote your potential product with a way for interested customers to leave their email and run a few paid ads to drive traffic to it.

9. Browse what trending in online market

If you prefer to sell products on your own online store, you can still gather inspiration by checking out what’s popular and trending on other marketplaces. Browse sites like Amazon, Etsy, and eBay, and browse lists like ‘What’s hot,’ ‘Most wished for,’ and other categories that showcase current customer demand.

10. Research products with higher profit margins

Products with little overhead provide a low-risk way to get started because it’s easier to attain higher profit margins compared to products that are more expensive to produce. When pricing your products, you need to account for the total resources that you’ve put in to sell the product or your cost of goods sold (COGS).

You have to factor in not only how much it costs to create the product, but also how much it costs to promote, hold, and even ship. Look for low-cost items that can generate a high return on investment (ROI). Remember, lightweight items will be cheaper to ship. And just because a product is inexpensive to purchase wholesale, that doesn’t necessarily mean you can turn it over for the highest ROI.

11. Start your search with related product

Check out related items or products that customers frequently purchase together. Amazon is a useful resource for this, as there are several locations where the site displays product affinity.

Conclusion

It’s on you to choose whatever product opportunities you want. All you have to do is to keep an open eye and an open mind. Choosing the right product or product category can be a great success for your business.

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