Sell what you know
A second theory about product selection is to sell what you know. Start by thinking about your hobbies, your interests, and your current job, then identify products that you understand. For example, if you are working as a nurse, you may want to think about home medical equipment. If you love to garden, you may want to sell garden tools or lawn ornaments. If you scrapbook as a hobby, you may want to sell scrapbooking supplies.
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This approach makes a lot of sense because you have a much smaller learning curve in terms of understanding the products, their uses, and the people who tend to buy them, because you are likely to be part of that marketplace as a consumer. You will also understand pricing better and, when it comes to providing content for your site, you will be in an excellent position to either write articles yourself, or advise a freelance writer about article content.
Finally, if you know the subject, that's a pretty good indication that you enjoy it (unless you grew up in your parent's hardware store and while you understand hardware, you never want to have to stock another bolt as long as you live). You will spend a lot of your time dealing with your products so having a passion for your business helps a lot.
The downside to selling what you know is that you may limit yourself to a product or products that do not sell well or, your own thinking about your product may limit your opportunities. For example, if you are a quilter and you want to sell fabrics and quilting notions, that's terrific. You'll write articles about quilting patterns and piecing techniques. Sounds like a good business for you. But there are a lot of ways to expand that business. Will you think of them? Yes, you probably thought about expanding into other needle crafts since many of the products are the same.
The downside to selling what you know is that you may limit yourself to a product or products that do not sell well or, your own thinking about your product may limit your opportunities. For example, if you are a quilter and you want to sell fabrics and quilting notions, that's terrific. You'll write articles about quilting patterns and piecing techniques. Sounds like a good business for you. But there are a lot of ways to expand that business. Will you think of them? Yes, you probably thought about expanding into other needle crafts since many of the products are the same.
But how about selling handmade quilts, wall hangings and bedding online? Handmade quilts may be much more profitable than small sewing notions. You can still use your expertise to judge quality and create content. Your target market is likely to be more affluent, and willing to pay for quality and visual appeal. You might reap the same profit from one quilt sale that you would achieve with 500 small sewing items. Or, how about selling clothes that are comfortable for at-home sewing? You keep the same target market, crafters, but you switch to clothing lines that feel good when you're sitting for long periods of time, are devoid of textures and trims that catch fabrics or pins and so on.
If you are aware of the limitations, selling what you know can be a great strategy.
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