When starting a Shopify store, one of the most critical decisions you’ll make is choosing the right product to sell.
Without a product, there’s nothing to market, nothing to ship, and ultimately, no business to run. But how do you find that perfect product? It’s not an easy task, but with the right approach and tools, you can uncover a winning product that sets your store up for success.
Why Choosing the Right Product Matters
The choice of product can make or break your Shopify store. A well-chosen product can attract a dedicated customer base, generate consistent sales, and build a strong brand. On the other hand, a poor product choice can lead to wasted effort, unsold inventory, and frustration. So, how do you ensure you’re picking the right product? Let’s dive into the steps to find the perfect product for your store.
1. Identify Market Demand
Before you can sell anything, you need to understand what people want. This involves researching market demand to ensure there’s an audience for the product you’re considering.
- Research Trends: Explore tools like Google Trends to identify what’s hot now. This tool allows you to see how search interest for a product has evolved. Social media platforms, like Instagram and TikTok, are also gold mines for spotting emerging trends. Pay attention to what influencers are promoting and what products are gaining traction.
- Focus on Niche Markets: Sometimes, the best products aren’t in the broadest categories but in niche markets. Niche products cater to specific interests or solve problems, often leading to a more passionate and engaged customer base. For instance, eco-friendly products or items targeted at specific hobbies can perform exceptionally well.
2. Analyze the Competition
Once you’ve identified potential products, it’s time to scope out the competition. This will help you understand the landscape and assess whether your store can thrive.
- Competitor Research: Research other successful stores within your chosen product category. Analyze what they’re selling, their pricing strategies, customer reviews, and marketing tactics. This can provide valuable insights into what works and what doesn’t in your chosen niche.
- Avoid Market Saturation: It’s crucial to avoid overly saturated markets. If too many sellers offer the same product, it becomes challenging to stand out unless you have a unique selling proposition (USP). Look for gaps in the market where demand exists, but competition is low.
3. Evaluate Product Viability
Even if you find a product with demand and manageable competition, it must be viable from a business perspective.
- Profit Margins: Calculate all potential costs associated with the product, including sourcing, shipping, Shopify fees, and marketing expenses. Aim for a product that allows you to maintain a healthy profit margin, ideally between 30-50%. This ensures you have enough revenue to cover costs and reinvest in your business.
- Size and Weight Considerations: Smaller, lighter products are generally more accessible and cheaper to ship, which can help you maintain higher profit margins. Additionally, consider whether the product is durable enough to withstand the shipping process without damage.
4. Leverage Online Tools
In the digital age, you have a wealth of tools at your disposal to find and evaluate products.
- Product Research Tools: Platforms like Oberlo, AliExpress, and SaleHoo are excellent starting points, especially if you’re considering dropshipping. These tools provide insights into best-selling products, supplier ratings, and pricing information. They can help you discover trending products and reliable suppliers.
- Social Media and Influencer Marketing: Beyond research tools, social media is a powerful platform for spotting trends and validating product ideas.
5. Contact Reliable Suppliers
Finding a reliable supplier is crucial if you’re dropshipping or sourcing products from platforms like AliExpress.
- Vetting Suppliers: Before you commit to a supplier, take the time to review their ratings, feedback, and response times. Look for suppliers with a solid history of positive reviews and high order completion rates. The last thing you want is to deal with unreliable suppliers who deliver poor-quality products or delay shipments.
- Test Orders: Place a test order to evaluate the quality of the product, packaging, and shipping speed. This allows you to ensure that the supplier meets your standards before offering the product in your store.
6. Validate Your Product Idea
Before going all-in on a product, validating your idea with a small audience is wise.
- Gather Customer Feedback: Use surveys, focus groups, or a pre-launch campaign to gather feedback on your product idea. This can help you gauge demand, identify potential issues, and refine your offering before a full launch.
- Run a Small Campaign: Launch a small marketing campaign to test the product’s performance. Use Shopify’s analytics tools to monitor key metrics like traffic, conversion rates, and customer engagement. This step helps you determine whether your product resonates with your target audience.
7. Consider Branding Potential
The product you choose should also have strong branding potential, allowing you to build a unique identity for your store.
- Develop a Unique Selling Proposition: Select a product you can brand effectively. Whether through custom packaging, unique features, or a compelling brand story, a strong brand can differentiate you from competitors and attract loyal customers.
- Think Long-Term: Consider the product’s long-term potential. Can you scale it over time? Is there potential to expand the product line or introduce related products? A scalable product ensures your store can grow and evolve without constantly finding new products.
Conclusion
Finding the perfect product for your Shopify store is challenging but essential. You can uncover a product that aligns with your business goals by identifying market demand, analyzing competition, evaluating product viability, and leveraging online tools. Remember to validate your product idea and consider its branding potential to ensure long-term success. With the right product, your Shopify store will be well-positioned to attract customers, generate sales, and build a strong brand.