Finding the right products to sell online is the foundation of any successful e-commerce business. Whether you’re just starting or looking to expand your offerings, identifying products with high demand, competitive pricing, and profitability is critical.
This guide will walk you through the steps to find the perfect products for your online store, using data-driven methods and proven strategies. Let’s walk through the exact steps you can take to identify high-demand, low-competition products to sell online.
Understanding the Online Market Landscape
E-commerce Growth and Trends
Today’s buyers value convenience, fast delivery, trust, and user reviews. Understanding these preferences helps you tailor your product selection for success.
According to Statista, global e-commerce sales are projected to hit $8.1 trillion by 2026. The opportunity is massive, but it’s also competitive. Trends like mobile shopping, personalized products, and fast shipping are driving consumer expectations sky-high.
Types of Online Selling Models
Before finding your product, decide your selling model:
- Dropshipping: No inventory needed, easy entry
- FBA (Fulfilled by Amazon): Amazon stores and ships for you
- Private Labeling: Customize and brand a product
- Wholesale: Buy in bulk, sell at a markup
- Print on Demand: Custom designs printed and shipped per order
Why Choosing the Right Product Matters
1. Competitive Edge
The online marketplace is crowded. 42% of failed startups attribute their downfall to a lack of market demand (CB Insights). Offering unique or in-demand products gives you an edge over competitors.
2. Profitability
Choosing the right products ensures you can maintain healthy profit margins while keeping pricing competitive.
| Example: A small boutique focused on sustainable fashion can charge a premium due to its unique value proposition, maintaining profitability. |
3. Brand Alignment
Your products should align with your brand identity and resonate with your target audience.
| Example: A fitness-focused online store offering home workout equipment aligns well with its audience’s interests and needs. |
7 Essential Steps to Discover the next Product to sell Online
Finding the right products to sell online can make or break your e-commerce journey. It’s not just about jumping on the latest trend — it’s about taking a smart, strategic approach. By researching market demand, analyzing the competition, and understanding your target audience, you can uncover products with real profit potential.
Below are 7 essential steps to help you confidently discover the best products to sell online and set your business up for success.
Step 1: Identify Market Trends
1a. Identify a Niche You’re Passionate About
Conduct Personal Interest Brainstorming
Start with you. What hobbies, problems, or needs do you have? Jot them down—it could be fitness gear, pet accessories, or tech gadgets.
Validate Passion vs. Profit
Not every passion pays. Validate with market data to ensure there’s actual buyer demand.
1b. Leverage Google Trends and Keyword Tools
Google Trends and the Google Keyword Tool help you analyze search volume for specific products or niches over time. This tool identifies seasonal demand and emerging trends for free!
| Example: Searches for “yoga mats” spiked by 78% during the pandemic as people embraced home workouts. |
1c. Explore Social Media Platforms
Platforms like Instagram, Pinterest, and TikTok are hubs for discovering trending products. 54% of social media users purchased a product they discovered on a social media platform like Instagram (GlobalWebIndex). Look for viral posts, hashtags, or influencers promoting specific items and see if you provide a better product.
| Example: A surge in demand for reusable water bottles followed viral posts on eco-friendly living. |
1d. Analyze Best-Seller Lists
E-commerce giants like Amazon and eBay have best-seller sections that provide insights into high-demand products.
| Example: Reviewing Amazon’s “Movers & Shakers” section reveals trending items across categories. |
Step 2: Conduct Market Research
2a. Understand Your Target Audience
Develop detailed buyer personas to identify their needs, preferences, and pain points. Companies with well-defined buyer personas generate 124% more leads (HubSpot).
| Example: A tech-savvy audience may appreciate portable chargers with advanced features like wireless charging. |
2b. Use Keyword Research Tools
Use tools to provide keyword data, helping you gauge product demand based on search volume. Check out the most popular tools used for Keyword Research:
- Google Trends: See keyword search popularity over time.
- Google Keyword Planner: To get more rich keyword data, and get search estimates on specific keywords.
- Jungle Scout: Analyze Amazon product sales
- SEMrush: Uncover keyword volumes and SEO opportunities
- Ahrefs: Find keyword search volumes with detailed reports, including country reports, device usages analysis, etc.
| Example: A search for “weighted blankets” reveals high monthly search volume, indicating strong demand. |
2c. Spy on Competitors
Analyze competitors’ product offerings, pricing strategies, and customer reviews to identify gaps you can fill.
| Example: A competitor’s customers frequently mention “lack of size variety” in reviews. Addressing this issue can differentiate your product. |
Step 3: Evaluate Product Viability
3a. Assess Profit Margins
Calculate the potential profit margin by considering product costs, shipping, and marketing expenses.
3b.Cost of Goods vs. Retail Price
Aim for at least a 30-50% profit margin after costs. Use spreadsheets to calculate everything from product cost to marketing spend.
3c. Shipping, Returns, and Fulfillment Costs
Factor in:
- Packaging
- International tariffs
- Return handling fees
| Example: Selling phone cases with a production cost of $5, a shipping cost of $2, and a retail price of $25 yields a gross margin of 72%. |
3d. Test Product Durability and Quality
If your products are substandard, customer dissatisfaction will harm your brand. Always test samples before committing to bulk orders.
| Example: A dropshipping business orders test samples of smartwatches and discovers compatibility issues, prompting them to find a better supplier. |
3e. Validate Market Demand
Use crowdfunding platforms like Kickstarter or pre-order campaigns to validate interest before committing fully. Products that hit their crowdfunding goals are 89% more likely to succeed in the market (Kickstarter Data).
Step 4: Source Your Products
4a. Manufacture Your Own Products
Ideal for businesses with unique product ideas or proprietary designs. 63% of millennials prefer buying from brands that offer unique, custom-made products (Statista).
| Example: A wellness brand formulates its own line of organic skincare products made from locally-sourced raw materials, differentiating itself from generic options. |
4b. Partner with Wholesalers
Buy products in bulk from suppliers and resell them. Wholesalers like Alibaba or Faire offer competitive prices.
| Example: An online toy store partners with a certified and well-known wholesaler to source eco-friendly wooden toys, targeting potential buyers looking to move away from plastic toys for their kids. |
4c. Use Dropshipping
Dropshipping eliminates inventory management by shipping products directly from suppliers to customers.
| Example: An e-commerce entrepreneur uses Oberlo to dropship trendy fashion items without holding inventory, keeping costs down and maintain opportunities to pivot. |
4d. Top Tools and Resources for Product Discovery
Product Research Tools
- Helium 10 – A powerful all-in-one software suite designed to help Amazon sellers find high-ranking keywords, optimize listings, and boost sales.
- Jungle Scout – A leading product research tool for Amazon FBA sellers that simplifies finding profitable products and tracking market trends.
- AliExpress Dropshipping Center – A free tool by AliExpress that enables dropshippers to discover trending products, analyze seller performance, and estimate shipping times.
- Thieve.co – A curated product discovery platform that showcases trendy, high-quality AliExpress items recommended by creatives and entrepreneurs.
Social Listening Platforms
- BuzzSumo – A content marketing tool that helps users analyze what content performs best across social media and identifies influential creators.
- AnswerThePublic – A visual keyword research tool that uncovers questions and phrases people are searching for around a specific topic.
- TrendHunter – A leading trend research platform offering insights into emerging consumer trends, innovations, and market opportunities.
4e. Where to Source Your Products
Domestic vs. International Suppliers
- Domestic: Faster shipping, better quality control
- International: Lower cost, more variety
Popular Sourcing Platforms
- Alibaba – A global B2B marketplace that connects buyers with manufacturers and wholesalers for bulk product sourcing at competitive prices.
- Etsy Wholesale – A curated platform within Etsy that once connected independent artisans and designers with retailers looking to buy handmade goods in bulk.
- Faire – An online wholesale marketplace that enables retailers to discover and order unique products from independent brands with flexible terms.
- Printful / Printify – Print-on-demand platforms that let entrepreneurs design custom products and automate order fulfillment without holding inventory.
Step 5: Test Your Product
5a. Create a Minimum Viable Product (MVP)
Launch a simple version of your product to test market interest, commonly known as Most Viable Product (MVP). To understand what features to include or exclude you can use either the MoSCoW Method or the Kano Method.
| Example: A food subscription box service launches with a limited menu to gauge customer preferences before expanding. |
5b. Use Online Marketplaces
Platforms like eBay, Etsy, or Amazon allow you to test products without creating a dedicated store.
| Example: A candle maker lists a small batch of handmade candles on Etsy to assess demand. |
5c. Collect Feedback
Analyze customer reviews, surveys, and sales data to refine your offerings. 76% of businesses use customer feedback to drive product improvements (Forrester).
Step 6: Optimize Your Product Listings
6a. Write Persuasive Descriptions
Highlight features, benefits, and solutions your product provides. Use keywords for SEO optimization.
| Example: A fitness tracker description emphasizes its waterproof design and compatibility with popular fitness apps. |
6b. Use High-Quality Images and Videos
Visual content enhances trust and engagement. Showcase your product from multiple angles, in use, and in context. Listings with videos convert 80% more than those without (Wyzowl).
Step 7: Scale Your Offerings
7a. Monitor Sales Data
Identify top-performing products and allocate more resources to marketing and inventory for these items.
7b. Expand Product Categories
Once established, introduce complementary products to increase average order value.
| Example: An online coffee store adds mugs, grinders, and filters to its product lineup. |
Mistakes to Avoid When Choosing Products
Following Fads Without Research
Don’t fall for hype. Fidget spinners, anyone?
Ignoring Market Saturation
Avoid markets that are flooded with nearly identical items.
Misjudging Shipping and Storage Requirements
Bulky or fragile items can kill profits. Always calculate total logistics cost.
Frequently Asked Questions (FAQs)
What is the easiest type of product to sell online?
How do I know if a product will sell?
Can I sell the same product as others?
Where do I find trending products?
How much money do I need to start?
Is it better to sell one product or many?
The Bottomline on Selecting Products to Sell Online
Finding the right products to sell online requires a combination of market research, trend analysis, and testing. By leveraging tools like Google Trends, studying competitors, and validating demand, you can identify products that align with your business goals and customer needs.
Whether you manufacture your own goods, partner with wholesalers, or opt for dropshipping, a well-informed approach ensures you choose products that resonate with your audience and drive profitability.
Start your journey today—apply these strategies to build a thriving e-commerce business!
