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The 3 Ways To Pick A Winning Product To Sell On Your E-commerce Store

A man and woman browsing an e-commerce website on a laptop in their new home, searching for products to sell.

Starting a store these days means getting into e-commerce.

As more and more people shop online, there is an opportunity to reach a broad audience and make a lot of money. The trick is to find the perfect products to sell online. Choosing the right product to market is essential for success

The right product is one that people are searching for online, is not too expensive to buy, and is well made. When it has these characteristics, it will be easy to sell and for you to make a profit. How do you find products like that? This article will review several ways to pick a winning product for your e-commerce store. 

1. Demand analysis

You may think you’ve stumbled upon the perfect product to start selling, but if there is no demand for it, it won’t sell. To know if a product has a shot at sales, you need to analyze the market to see if there is demand for what you want to sell. There are tools and other methods to gauge the demand for a product. 

First, using a tool that provides data on the product can provide insights into what consumers are currently interested in. They provide anything from online search trends to sales data in similar market segments.

Visiting a trade show is also a good way to see what products are out there to sell. You can walk around the space looking at the trade show displays to find the product you think your customers will love. 

2. Calculate profit margins

If you feel that your product has enough demand to sell regularly, you still need to determine if you should sell it. Another factor to consider is how much profit you will make from each unit. 

Calculating profit margins involves more than just subtracting the cost of goods from the selling price. Besides the cost of the product, you must add the shipping costs to the warehouse, the overhead costs, marketing expenses, and various fees to run the business. Add all these up, and then see if you can still profit from the product. Some of these costs can fluctuate so please be sure you are looking out for that.

3. Competition analysis

Your next job is ensuring your product can be seen and cut through the noise. There might be a lot of competition that prevents it from selling. 

Start by identifying your direct competitors who offer similar products or target similar customer segments. Analyze their pricing, marketing tactics, customer service, and product range. Once you’ve done this analysis, try to find a gap in the market.

This could be a product related to the main one your competition doesn’t offer. Maybe you’ve noticed in your research that many competitors struggle with customer service. This could be a way to stand out. 


In my journey of starting an e-commerce store, I've learned that the key to success is selecting the right product. It's about more than what you want to sell but what the market demands. Through my experience, I've discovered that a winning product is in order, affordable to source, and high-quality. In this article, I share my insights on identifying such products, focusing on demand analysis, profit margin calculations, and competition analysis. These strategies have been instrumental in my e-commerce journey, helping me to not only choose products that sell but also to understand the nuances of the online market.

Frequently Asked Questions

How do I determine if there's a demand for my product?
To determine demand, use online tools to analyze search trends and sales data and consider attending trade shows to gauge interest in similar products.

What factors should I consider when calculating profit margins?
Consider the cost of goods, shipping to the warehouse, overhead costs, marketing expenses, and various operational fees.

How can I stand out from my competitors?
Identify gaps in the market, such as offering related products that competitors don't or excelling in areas like customer service where others may need to improve.

Would you happen to know if attending trade shows is necessary for demand analysis?
While not necessary, trade shows can provide valuable insights into current market trends and consumer preferences.

How often should I review my profit margins?
I'd like you to regularly review your profit margins to account for fluctuating costs and ensure ongoing profitability.

Can I rely solely on online tools for demand analysis?
Online tools are helpful, but combining their insights with real-world observations, like trade show visits, can provide a more comprehensive understanding.

What should I do if my chosen product has high competition?
Consider differentiating your product or service, focusing on unique selling points, or targeting a niche market.

How important is customer service in e-commerce?
Excellent customer service can be a significant differentiator and drive customer loyalty in a competitive e-commerce market.

Should I adjust my product range based on competition analysis?
Adjusting your product range based on competition analysis can help you fill market gaps and meet unmet customer needs.

How do I keep track of fluctuating costs affecting profit margins?
Regularly monitor market trends, supplier prices, and operational expenses to stay updated on cost fluctuations.

How can I accurately predict the demand for a new product in e-commerce?
Analyze current market trends and customer feedback and use predictive analytics tools to estimate the potential demand for a new product.

What is the best way to source products for my e-commerce store?
Look for reliable suppliers with good track records, compare prices and quality, and consider factors like shipping times and supplier reputation.

How do I price my products competitively while maintaining a good profit margin?
Research competitor pricing, understand your cost structure, and use value-based pricing strategies to set competitive yet profitable prices.

Is it better to focus on a niche product or offer a wide range of products?
This depends on your business model; niche products can lead to a more targeted audience, while a wider range can appeal to a broader market.

How important is branding in the success of an e-commerce product?
Branding is crucial as it helps differentiate your products, builds customer loyalty, and enhances perceived value.

What role does customer feedback play in product selection?
Customer feedback provides insights into what consumers like and dislike, helping you refine your product selection and improve offerings.

How can I use social media to gauge product demand?
You can monitor social media trends, customer inquiries, and engagement to understand what products your audience is interested in.

What are some common mistakes to avoid in e-commerce product selection?
Avoid ignoring market trends, underestimating competition, and neglecting customer preferences and feedback.

How can I ensure the quality of the products I sell online?
Work with reputable suppliers, request samples and implement quality control processes to maintain high product standards.

How often should I update my e-commerce product offerings?
I'd like you to regularly review market trends, customer preferences, and sales data to keep your product offerings fresh and relevant.

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