When starting an online business, how do you decide what products to sell?

The options are literally unlimited and there are many schools of thought when considering what exactly to sell. Almost anything WILL sell online, but there are others factors that play into how WELL it sells online. I have a few universal guidelines that I follow when selecting product.

First, if the item or service is readily available in every community then I typically will not sell it. However, if you are specializing in the item or service and offering a comprehensive selection then the first rule may not apply. For example, do not choose products that are available from your local Wal Mart unless you have a comprehensive selection. For instance, do not sell four kinds of model aircraft just because you know they sell through Wal Mart. Wal Mart will be more convenient and probably cheaper. If you sell two hundred kinds of model aircraft and wish to become a destination for model aircraft enthusiasts, then go ahead.

Another rule of thumb I use is to try to find a niche. Find products or services that you allows you to virtually corner the market online. This idea helps when it comes to optimizing your site for search engines. For instance, if you are selling something totally unique and someone searched for it on Google, then you are more likely to show up at the top. If you are selling something as commoditized as books, then you are already climbing a steep mountain because companies like Amazon have a huge head start. Focus your offering so that you can stand-out in a very crowded marketplace.

Sell what you know or know what you sell. If you are an expert or enthusiast in a subject, then use that expertise when selecting what to sell. If you are not an enthusiast, then research what you want to sell and become an expert. Knowledge helps you narrow your focus and better anticipate what your customers will be looking for in terms of products and information.

Research the companies you depend upon for your business. If you rely on wholesalers to provide products, ask the hard questions. Are products always in stock? How long does it take to ship items? Does the company guarantee their products? Are customers generally pleased with a product after buying it? You will make a sale online based almost entirely on images and descriptions. Do the images and descriptions accurately illustrate what the product is?

When starting, keep in mind your intended customer. when attempting to attract the general public as a customer, I try to sell only simple products. If an item requires too much expertise to assemble or use, then I know my returns will be too high. Customers generally do not return simple items that work right out of the box. If your intended customer is specialized, then be sure your offering adequately communicates what is involved after the purchase so your customer knows what to expect. You do not want to have to handle tech support for every sale.

In summary, create a market for yourself that is unique. Know what you are selling and present it properly for your audience. Partner only with companies that will not hinder your business. Finally, make it as simple as possible for customers to know what they are buying before they buy and make it simple for them to buy it.