Does the success of your online business entirely depend on the product you sell?
Hello! People often ask me what is the best product to sell online? A lot of people think that their online business success depends greatly on the product, which they are selling.
But it’s not always true. Industries, which account the greatest part of Internet sales like apparel or gadget, are highly competitive and it’s incredibly hard for small businesses to get through and make it worldwide. Unless we’re talking about some niche products or local businesses, innovative marketing techniques.
So the point is that the product is important, but the overall success consists of more than just the product.
What are important components of success?
I would say that important components of success are: niche business approach, local businesses, consistent marketing approach, customer loyalty.
Niche businesses approach means that you sell a product that is a lot less competitive in the industry, it has a lot fewer barriers. In this industry you can afford to have a bigger profit margin.
Local business is also less competitive industry. You can utilize location-specific marketing techniques. Also you are able to acquire new clients and generate sales just because you were there. This is one of the biggest advantages of local business.
The next crucial component is the consistent marketing approach. It’s as much important as the product. You have to make a marketing plan – a plan for your activities for the month.
You have to maintain planning daily activities and operations, advertise your business, measure the results and refine your techniques.
The fourth crucial component is the customer loyalty – you have to build relations with clients in order to generate repetitive sales (so-called customer retention). Re-engaging with existing clients is a great way to build the loyalty. It’s a lot easier and cheaper to re-engage with existing client than to acquire new one. Furthermore, you have to keep track of retention and live time value.
My point is that in addition to the product that you enjoy, you just have to stick to the plan, be inspired, consistent and test alternative options if you fail for some reason. Do not be sad if you do, because it’s pretty much the normal thing and a lot of people go through this.
What is my favorite thing to sell online?
If you ask me, my favorite thing to sell online is a service, because when you’re selling services, you get increasingly better selling these things with every duration. This means that for the next client that you’ll have, you’ll be able to provide service with a greater value and the growth of this sort of incremental value is fascinating. However, the downside of this model is that it’s not very much scalable, because there is only 8 hours of work each day and no matter how hard you try there is a maximum you can deliver.
Remember that Internet remains full of opportunities and possibilities, that’s why keep trying and working, sell staff, build relations, be consistent and I am sure you will succeed.