How to find the best products for your retail business
Finding the best products to sell for your retail business is like being set free in a store to get anything you want. You've got a spending budget and the opportunity to select the products you believe will sell fine. It could be exciting.
To get the products that will sell and that will keep on selling you need to have a strategy in your mind. If you let the excitement overcome you, the stock you buy might be laying around for a long time.
Below are a few important guidelines to assist you buy the right products.
How profitable the products could be?
Profit is just one of the primary points to keep in mind. If you purchase an item for $2 and you sell it for $2.50, you will surely have to sell many of them to earn any a real income. In some cases you might buy a low-cost product which will sell cheaply as a loss leader, in order to create additional curiosity about your business and motivate people to buy more. Many perform this tactic very well in their stores; how often have you walked in a store for a single thing and come out with a trolley load? That's called loss leader marketing.
Of course in most cases you will want to aim to win double at least. If you're able to get a hold of goods with an even bigger margin of profit, so much the better. You will learn the reason why it is important to complete your sums before you purchase anything.
Keep in mind that the amount of money you buy a product for will certainly not be your only expense. Additionally, you will have listings fees and final value fees for anyone who is selling on e-bay. Consider shipping costs too if you're going to pay for the delivery.
Do buyers want the product?
It doesn't matter how much you might like a product if nobody else does you will certainly not sell it. This is usually a tough lesson that a lot of new sellers learn very early on. However, if you stick to the tips provided below you can learn the lesson before wasting any money.
No matter whether you're going to be selling on eBay or not, try using the completed listings feature on the website to see what number of the products have sold lately. If you notice a bunch of green sales figures you will understand the item is a hot seller. On the other hand if all you can see is a lot of red figures, you will want to stay away.
Will the consumers come back for more?
Many products usually stand up well as consumables. For example batteries go into this category. Printer inks could be one other example. You can think of many more if you want.
If you're able to find a number of good sellers that people will continue to come back for and you may sell them at a decent profit, you will have regular lines you can rely on. Most of these will go along with other products which probably won't sell as steadily and still make you a good profit.
Will I get the asking price for the product?
Whenever you buy stock at wholesale rates, often you will notice a recommended retail price provided with it. For instance you could pay $1 for a thing that is selling for $4. This is where researching comes in useful. You should not assume that you'll receive the recommended price for it. For those who have their own internet site could include the product for sale at the recommended price as they do not have direct competition on their own website. But if you're going to be selling the product on e-bay you might want to investigate how much the other sellers are offering it for.
You might find out that customers are only purchasing the item when it's sold for $3. This trims your margin of profit with a significant amount. You may learn that is not a very good bargain in the end, once you take into account the fees you have to spend to list and sell the item, plus any additional costs.
Compare the product price with prices on e-bay as well as other stores and websites.
What is the quality of the products?
It's possible to offer less expensive products which are of lower quality as buyers will be prepared to get what they've paid for. But it doesn't mean you have to sell sloppy products.
If you are ordering from a new supplier, you should buy the minimal order value and the smallest amount of each item. By doing so you will not be left with a lot of unsold products if the product does not sell very well and also you can examine the product quality before ordering larger quantity.
High quality products are often well worth paying more for, thus it will also affect your income in a great way if you choose quality products. In case you pick cheap products which break down easily, you would be way more likely to get negative feedback. This will certainly damage your business reputation, therefore it is a good idea to ensure you only buy what you have confidence in.
Will the product integrate with your business as a whole?
Many sellers offer all sorts of products, just about anything they can make a profit from. You could have a business like this, but it's much easier and more appealing to concentrate on a distinct segment. After you have chosen your niche you'll need to locate wholesale suppliers and merchandise which fit in with that niche.
Sometimes you could stumble on a product that may be a top seller and has a fantastic profit margin along with the potential for repeat sales. However if it does not fit in with your overall business niche, do not purchase it. In case you do, you may well find that it does not sell well for you – simply because you're famous for selling other products instead. Buyers typically determine and buy from you based on your expertise and it is vital to bare this aspect in mind.
If you concentrate on all the various aspects of buying products that are described in this article, you are going to be much more successful in making effective buys from your wholesale suppliers.