One of the greatest challenges for an eCommerce store is finding that right niche. I think it's safe to say that you can buy virtually anything on the Internet if you look hard enough. Whether or not that niche sustains itself and remains profitable is another matter. You can fail in both the saturated market or the niche market if you don't study the marketability of your product. For instance, you may be a passionate hockey fan, but if your marketing dollars can't broaden your reach beyond the 110 degree heat of the Arizona desert, good luck (even if Phoenix does have a hockey team).
Ecommerce Optimization poses four questions you need to ask yourself before you even consider starting your own online business:
1. Marketability - Is the product marketable online? In other words, does it make sense to sell hockey skates, refrigerators, or alligator teeth?
2. Availability - Is there a source available to obtain the product? Will selling alligator teeth force you to search the deep waters of the Florida swampland?
3. Cost-Effectiveness - Is there profit potential for the product? Will your business enter the vertical market and provide alligator teeth for denture manufacturers? Or is there consumer demand for alligator teeth?
4. Transportability - Is the product easy to ship or transport? In the case of alligator teeth, it doesn't seem too bad. If you're shipping whole live alligators, then that may not be so easy--or that may just limit your market.
Many small online retailers start off selling their hobbies. In my case, one of my passions is music. But, I have to start thinking to myself "What kind of music will sell?" But if my answer is Acoustic Rock, then that's still hitting the bigger market. You can do a search for "Acoustic Rock" on Amazon and get a wider selection than I could ever possibly supply with my meager budget.
If I think hard enough, and narrow it down to a near-singularity, I could become a specialized reseller of low to high-end Acoustic Rock equipment, rentals, and sheet music. That could work.
The general rule of thumb is that once you have an idea, you make sure it's plausible, practical, and profitable.
Like alligator teeth.
Posted
Jul 09 2008, 06:58 PM
by
Richly Chheuy