According to the U.S. Census Bureau, e-commerce sales amounted to just 15.1% of total retail sales. Yet they amassed a value of over $200 billion.
This just proves that an e-commerce business is a good way to make some extra cash without having to leave home.
One of the first steps in determining whether you could succeed in an online business is monitoring the product demand for items you wish to sell. Keep reading for some tips on how to get started.
Why Is Product Demand Important?
Simply put, product demand refers to how badly people want to buy the products you’re selling in your small business. Product demand is never fixed; rather, it fluctuates depending on several unavoidable factors.
Thus, it’s important to keep track of product demand to assist with product choices and inventory management for your e-commerce store.
What Is Product-Demand Analysis
Product demand analysis helps you understand consumer demand for the products you want to sell online. This process helps you:
- Figure out who the product is for
- Validate and market your product
- Determine a profitable price for your product
- Introduce new products for your e-commerce store
How to Carry Out Product Demand Analysis
The first step toward determining product demand is figuring out which niches it belongs to. For instance, if you’re selling books about fishing, they might appeal to anglers or outdoor enthusiasts.
Approaching people with an interest in these niches and marketing your product directly to them is the best way to gauge interest in it. Your next step is to figure out how many people might buy your product via an online store.
Keyword research is an effective way to do this. For instance, you could look up how many people use the search term ‘buy books about fishing” or ‘fishing books for sale”.
This will give you an idea of how many people could visit your online store to buy your book.
The Google Keyword Tool is a helpful online platform for determining the monthly number of searches for products like yours. It can also help you find related keywords for marketing your goods online.
Google Trends can tell you the demand for products based on search inquiries in different areas.
You can use information about online searches to help you come up with keywords to use in your product descriptions and marketing efforts.
Another way to use the internet for product analytics is by comparing the prices of goods you want to sell and looking for online reviews about similar products. These reviews can help you identify new uses for your products and find out what people like or dislike about them.
Maintaining Profitable Sales
Finally, you can set up a test site to trial your new e-commerce store or use established platforms, like eBay or Amazon, instead. According to Inriver digital shelf analytics tools are essential to keep the momentum going once your products start to sell.
These tools help you keep track of your inventory as well as any shortcomings in the information you’re displaying online.
Making the Most of Your Online Business
Running an online store gives you all the power when it comes to making decisions about your business, but there’s not much you can do about product demand except keep it on your radar.
Once you’ve mastered the skills necessary to find the right products and market them effectively online, you can fully enjoy the convenience, flexibility, and profits associated with an e-commerce business.
Are you interested in discovering more ways the Internet can help your business thrive? Keep browsing our blog for all the best information.