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Page 5 of
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What Sells Online
As e-commerce enters its second decade, certain patterns have
emerged about what sells well on the Internet. The product you sell
might not be in this mold, but if not, you'll need a good rationale for
going outside the norm.
Hot online sellers:
-
It's Niche If you're Wal-Mart,
you don't have to be niche, because you have the deep pockets to
carry everything. But if you're mom and pop, you better pick one
product and sell it better/faster/cheaper/more interestingly than
anyone else.
Selling women's clothing isn't a niche, but "women's vintage
clothing" is a niche (although it's a crowded niche). Even more
niche, sell only vintage evening gowns — sell nothing but vintage
evening gowns, and have a better selection and more product tips
than anyone else.
Along this same line, personalized items are good - something you
customize for each customer, or anything that is rare and difficult
to find. Or, something that isn't available in your customers' local
areas (like fine French perfumes or hand-painted porcelain dolls)
that you have easy access to.
-
It's Convenient Busy shoppers are
willing to pay more if you simplify their lives (and online shoppers
are still more affluent than their offline brethren). It's a hassle
to drive to the store to buy it - but if you sell it hassle-free
online, you've got yourself a customer. For example, the owner
of CoffeeCakes sells her coffee cakes and gift baskets at above
grocery store prices. Owner Sherry Comes knows that her customers
are people who don't care about saving three bucks - but they want a
gift basket sent quickly and reliably. CoffeeCakes, using a highly
efficient fulfillment system, does a brisk business.
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It's a good deal Okay, this
contradicts the "it's convenient" point above, but there are many
types of online shoppers. In short, people want it cheap - and the
Internet makes comparing prices as easy as click-click-click. With
the help of comparison shopping sites like Shopzilla and Nextag, and
other tools like Dealio's shopping comparison toolbar, people
compare prices day and night. This hunger for a cheaper price could
benefit a mom and pop operation: in some cases, a small merchant who
operates with a skinnier margin can undercut a big player with a fat
infrastructure to maintain. (But there's always someone who's
willing to undercut that small merchant!) How low are you willing to
go?
-
It's small, and easily shipped There's a
reason that books and CDs were the first big sellers on the Net -
you can mail them easily. (That's also the reason it's hard to open
a new book or CD site - it's a saturated market.) People get very
excited by low shipping charges.
Of course there are now plenty of exceptions
to this - Overstock sells queen-sized bed frames. You might find a
less-crowded market by selling larger items.
Speaking of Overstock... (and the difficulty
of online business)
By the way, Overstock's shipping charge for
that full-sized wood bed frame, which it sells for $330, is $2.95. So
that's essentially free shipping for an item that is already
competitively priced.
No, this is not an ad for Overstock, but a warning before you start your
online business: You'll be competing with merchants who have huge
marketing budgets - Overstock runs TV ads, for goodness sakes - and have
rock bottom prices.
In short, there's no way to compete in this environment without a cogent
and inventive business plan. It's rough out there.
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Page 6
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Online Money-Making Opportunities
Several Systems to make real money via
Internet
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