How to know if a physical product will be successful before you start selling it
When it comes to selling physical products online, you never really know what will be profitable unless you do some research prior to jumping all in. I'm here to help you through the process of figuring out what will be a good product to sell online by doing a few simple steps. Obviously it will vary slightly, but this will be a good starting point to figure out if something will work out for you.
When I started out working online I never thought of selling physical products. I was more focused on being an affiliate and making passive income streams that would continue to send income every month without me having to invest dozens of hours each month. Now I'm slowly getting into selling physical products and I've figured out a few ways to figure out what works well when wanting to sell it online and that's what I'll be sharing with you.
6 ways to figure out if a product will be successful
Do you PPC research first
What you'll want to do is set up a dummy adwords campaign to figure out your estimated monthly spend and how much traffic you'll be getting. If you're spending $1.00+ per click and only making a few bucks per sale, then that's a really good indicator that you don't have a successful product on your had, at least for an adwords campaign. Look over how much it would cost to run a bing ads campaign and if it would be worth putting up an ad over there. If Bing ads isn't your outlet, move over to facebook and get super targeted with your targeting. Some items that don't sell well on Adwords and Bing Ads will make a killing on facebook because it's a different atmosphere
Figure out your ROI based on a 3% conversion rate
This step goes well with step 1, and that's whey it's step 2 What you'll want to, after you pass step 1, is figure out your estimated ROI. Basically you'll take the total amount of estimated clicks, let's say there are 5,000 clicks in total for $500, and then multiply that by 0.03 which is 3%
Example: 5,000 x 0.03 = 150
This means that you could be getting around 150 sales for the $500 investment. Now that means you need to be profiting $3.33 per sale in order to break even. If you're making anything over that $3.33 estimate then you're profiting Now this is just an estimate, you may be in a more expensive niche that will cost $0.50 per click and it could have a higher success rate. My estimates were just that, an estimate. You'll need to do your own math, and you'll want to use a 3% conversion rate when figuring everything out.
If you're almost breaking even, don't think that's a failing campaign. If you're capturing emails and having a newsletter send out every 2 weeks then you can usually get a lot of shares and recurring buyers each month
Figure out what your competitors are doing
For this I like to use SEMrush because it will show me what my competitors ads look like and I can mimic or make them better for my own gains. I can combine this with step 1 and 2 to figure out the PPC cost and then optimize my campaigns to get a higher quality score which will drop my CPC gradually Having a lot of competitors can be a good and a bad thing. If you don't have any competition, it could also be good or bad. Having a lot of competitors means you could be spending a premium for your PPC campaigns and if you don't have any competition you could be in a dead niche that won't make you any money, which is never good.
I also like to use ahrefs for backlink research, but that doesn't really come into a factor when figuring out if a product is going to be successful or not.
Make a product higher quality than your competitors
I've recently been getting into physical products and one of my niches has a decent amount of competitors. The thing about my competitors is that all the top sellers are Chinese brands that were bought at wholesale. Usually a Chinese product that is mass produced will lack superior quality, which I can output since I'm the small guy in the niche.
What I did was order my competitors product and had it shipped to my house. I studied the quality of the product and figured out how to make everything myself, for a cheaper price than what my competitors are actually buying their products at wholesale for lol.
Source your materials or products from China
If you know your competitors are getting their products and materials from China, then you can likely find something of the same quality or even better. What I did was find my competitors product, then I contacted the distributor and figured out the pricing. I used that as a price point to get under when I made the product myself using aliexpress and alibaba to source my products or materials.
After extensive research for around 2 months I figured out a way to get my price per piece down to below what I could get it for at a wholesale price and having to buy 100 at a time Now that I have a product that is actually cheaper than what I can get it for at wholesale, I can now price it less than my competitors and make more sales. Essentially I will be taking over the niche out of no where before my competitors can react to the new guy on the block
Don't forget about Amazon
Sourcing products on amazon is also a good thing to think about. Now this has only worked with one part of the machine that is a physical product, but it reduced my pricing dramatically because I re-purposed the item to do something it wasn't intended for lol. You have to think outside of the box
You will have to do a lot of research to figure out if an item is going to be a good seller online, but it's worth the time. Would you rather be investing hundreds into a websites advertising only to figure out the item isn't going to sell the way you had hoped and now you have 100 items sitting in your basement taking up space? I know that my girlfriend would kill me if I had 100 hoverboards sitting in my basement lol (yes, I was going to sell hoverboards). Think outside the box a little bit and you can usually find something that will sell well. Figure out your profit estimates and if they're worth the chance to profit well, go for it