When it comes to e-commerce, you want to sell products that are popular or on the verge of becoming popular. Picking hot products means it’s easier to make a sale and you have to spend less time marketing because the product often sells itself.
But how do you find these hot products and tap into these up-and-comer ones? That’s where a little research can come in handy. The first place to look is on Google Trends.
Google monitors various keywords and can tell you how popular they are at any given time.
You can even use trends to compare what’s popular now and what was popular a few years ago. This can give you plenty of insights into the niche you’re targeting.
Another way to research hot product is to use Amazon. You may not know this but Amazon has best-seller lists for each product category. These lists allow you to see what the top 100 products are and it ranks them for you.
To find these lists, go to Google and type in ‘Amazon Best-Seller List for (Product)’ without quotes. Use a general niche to get the best results. For example, try ‘Amazon Best-Seller List for Makeup’ in Google. You’ll see best-seller lists for Best Face Makeup, Best Eye Makeup, Best Makeup Sets and more.
You can also find what the newest releases are on Amazon. Go to Google and use the phrase ‘Amazon Hot New Releases (Niche)’ without quotes. For example, you might look for ‘Amazon Hot New Releases Toys’. This will show you the newest releases in toys and games.
But that’s not all. Amazon also keeps a list of ‘Most Wished For’ items according to niche. You can find these lists by searching for them. Use the phrase ‘Amazon Most Wished For (Item Category)’ without quotes. So you might look up ‘Amazon Most Wished for Women’s Shoes’. This will give you plenty of ideas about what products your niche really craves.
Obtaining Your Products
When it comes to creating your products, you have a few different options. The first option is to make it yourself. This is a good choice if you’d like to be involved in every stage of production and you can get the materials to create your product.
You’ll also need the knowledge and experience to do it yourself. You can either learn through online videos or by taking classes locally. Products you may want to make yourself include jewelry, lotions, soaps, cosmetics, and other items.
The second option is to buy wholesale. When you buy wholesale, you purchase a product that’s already been made but you buy it in bulk. If you purchase a lot of the product or if the product is big, you may have to rent a space to store it in.
The disadvantage of buying wholesale is that you need a significant amount of cash in advance. But you do save money since you’re paying in bulk. This savings can translate into bigger profits for your business. However, it’s risky because if your product doesn’t sell then you’ve lost a lot of money.
The third option to consider is drop-shipping. When you get a customer’s order, you collect payment and send the information to the drop-shipping company. You pay the drop-shipper and the company puts your customer’s product in the mail.
The advantage of drop-shipping is that you don’t have to worry about inventory or associated costs. You can simply focus on marketing and advertising your e-commerce website.
However, the disadvantage of drop-shipping is that your profit margin is smaller. You also have less control over your product. If there’s a problem, you may not know about it, until your customer lodges a complaint.
Evaluating Wholesale Suppliers & Dropship Vendors
If you don’t want to be responsible for making products yourself, then you’ll need a wholesale supplier or dropship vendor. But you don’t want to pick just any supplier or vendor. You want a company that’s going to be reliable and trustworthy.
You can start your search by looking at the manufacturer of the items you’d like to stock. Call the company and ask if they offer wholesale or drop-shipping services. If they offer one or both of these services, ask about a minimum order.
Most large manufacturers prefer to do business with large companies and have strict minimum order requirements. If the company isn’t right for you, thank the representative you’re speaking with and move on.
Keep in mind that when it comes to suppliers, the price you pay depends on the size of your order. If you only order 100 units, don’t expect to get rock bottom prices. The way it works in wholesale and drop-shipping is that the bigger your order is, the bigger your discount will be.
You can find plenty of suppliers and distributors by attending trade shows, searching directories like Worldwide Brands, or looking in trade magazines. If you already have contacts in the wholesale or drop-shipping industry, reach out to them and ask for guidance.
If possible, arrange a face-to-face meeting with your supplier. This lets you get to know the people behind the company and gives a chance to get a feel for their personality. Remember, you’ll be working closely with your supplier in the coming years. This means you need to be polite and professional in all of your dealings with each other.
Steer clear of companies or individuals that have a constantly changing business name. If your supplier re-invents themselves every 2-3 years, it’s a sign they may not be using the best business practices.