How to validate your e-Commerce product idea
Suppose you’ve got a great e-Commerce idea and you’re ready to start building a new online business plan. But, before you can design and manufacture your product, you will need to check some serious facts.
Before a company introduces a new product, it conducts a market demand survey for that product and then starts working on a new product based on the survey analysis.
Jumping into your new life as a businessman can be just as exciting. On the other hand, there is nothing more painful (or expensive) than to spend all your time and energy on a project that cannot succeed. Did you know that the lack of hungry and interested customers is the first reason new companies collapse and disappear?
Learning how to justify interest in your e-Commerce product before launching it on the market gives you an incredible opportunity to save money and build better trust with your target audience.
So, where would you like to start?
E-commerce Validation Basics: Understanding Your Products
Before you start testing the verification strategy we are outlining below, you need to start with the right information. One of the biggest problems business owners have today is that they don’t fully understand what they’re trying to sell.
To get started, sit down and answer some questions about the supply of your product. These questions include:
- Who are you trying to sell to: Who is your target audience? What are some of the disadvantages of your new product idea? And are you offering the easiest solution on the market?
- How Are You Selling: What’s Your Marketing Strategy? How do you get your target audience to your website? Maybe it’s targeting people on Facebook or maybe you want to attract users looking for your e-commerce products through search engines?
- Are there any special needs to think about: How are you going to store and ship your product? Does your product need delicate and extra packaging? Which companies will you use to send products to your customers?
Once you have enough information about what kind of product is going to be sold and why you are selling it, you can start the verification process.
Step 1: Analyze a competitor
Research is at the heart of any validation strategy. Finding out what’s going on in the current market helps you understand what your customers are looking for, as well as the solutions they already have.
Competition analysis is one of the most important piece of research you can do. With competitive analysis, you can see if there is already a demand for what you are selling. You can also see if there is too much saturation in the market. For example, if you are selling fidget spinners in a world where there are billions of fidget spinner companies, you will have a hard time.
During your competitor’s analysis, look at things like:
- Pricing: What kind of revenue and most important profit can you expect from this new idea?
- Popularity: Are you currently looking for the best sellers to sell to your competitors?
- Gaps: Is there anything in your product or service that your competitors can’t offer?
The easiest way to find competitors is to find your competitors on search engines.
Step 2: Check Business Trends Tools
Business Trends Tools like Exploding Topics, The Trends Community, ProductHunt, they are very valuable tool for business owners validating their e-Commerce product ideas. It can give you insight into how popular your products are by showing you things like top-ranking pages, and keyword search volume.
Step 3: Get customer feedback
There are two ways you can get customer feedback during the initial verification phase.
First, you can leave user reviews and testimonials on review sites for your competitors. This is a great way to see what other companies are doing wrong with a particular product, so you can put your offer forward.
The second option is to send samples of potential products to a few stakeholders and people you trust. Pro Tip: Try not to gather feedback from your friends and family – you need the information you gather here to be as objective as possible.
You can also see how it works when you type “best online [product]” into Google to get feedback from thinkers and thought leaders.
The feedback you gather in all of these areas will help you decide whether:
- People regret buying the product in question.
- You can provide better product than your competitor.
- If there is enough demand and interest in the product.
Step 4: Create a landing page to accept advance orders
Here’s a great thing about creating online landing pages.
You do not have to invest in a product before you can use it. You can decide on an eCommerce product idea that you want to design your own website, design, and then buy supplies only after you get an acceptable response.
You can even run online ads to get people to your landing page and then retrieve them without making a very initial investment.
Running a landing page gives you a basic insight into what kind of response you will receive from customers when launching your new product. Keep in mind that different things can affect the performance of your landing pages, including your words, layout, and even your CTA buttons.
One of the best options to start generating interest for your product is to add a button to the page that allows customers to sign up when your new product is ready for purchase. This will give you a list of customers that you can expect to launch and sell immediately. At the same time, you get the most insight into the types of people who are interested in your product.
Step 5: Do the math
Lastly, fixing your e-Commerce ID can be a daunting task, but it can also be a daunting task. You need to know how profitable your new product will be. If you do not make good profits and maintain positive cash flow, you will lose your enthusiasm and interest in the long run.
Initial cost for product
If you are not sure how much you charge for your new product, check out the competition. You just have to be more discriminating with the help you render toward other people. Then, based on your financial calculations, check if the competitor’s price can cover all your expenses and that you can still make a profit. If not here’s a new product just for you!
There are even places where you can find online case studies from other growing businesses that can potentially help you make a formal pricing decision.
Finally, once you understand your finances. So, calculate your start-up costs, like how much money you need to get started. Remember that creating an e-commerce website can be expensive, especially if you decide to hire a professional company. Don’t forget the costs like branding, graphic design, photography, content writing, all these will need to increase your start up costs.
Once you have the right numbers, ask yourself how much money you need to start and how much money you will save when you reduce the cost of making and selling products in the profit of purchases.