In This Edition
In today’s edition of the Niche idea Series, we’re looking at Competition research. We’ll discuss a few things you need to know about current competition research online and what we found out with our initial competition research for “Camping Chairs”. Would it be difficult to sell them in the current market? This is why we research, first.
In the previous Newsletter we went over the basics of researching a products demand online. We briefly discussed the need to research multiple keywords and create a strong ‘keyword list’ for any product you are researching. Estimating a products demand online must be cumulative based on *many keywords* not just 1 keyword. Using research steps from the Sell Niches Bundle and the next Sell Niches Research Sheet, this week we’ll be taking a look at Competition Research.
Don’t Be Scared Of Competition
Some new sellers get discouraged when they’re trying to find a product to sell because it looks like ‘everybody is already selling everything’. They keep looking for a product that has no one selling yet, a product with no competition. This is a big mistake and the wrong way to think about competition online. Finding a good niche product to sell online is NOT about finding a product with no competitors. In fact, there is no such thing as a product with no competition. If there was, it wouldn’t be a product you would want to sell. You don’t want to be scared of competition, you just need to know how to determine if YOU can compete with them online.
Competition Is Normal For Any Product
So don’t get discouraged when you see other people selling the product you are a researching. There can be multiple online sellers, each one selling the same product and each one making money. The reason for this is pretty simple. The internet is a HUGE, MASSIVE marketplace bustling with activity and shoppers. and there are lots of different ways to get from ‘point A to point B’ online. Not everyone ends up in the same place when they search online. People don’t go to the same place online to shop all the time.
Think of competitors like gas stations along the interstate. There are lots of gas stations in different places along the interstate because people need multiple ways and locations to buy gas because people are going in lots of different directions using lots of different roads to get there. They don’t just travel 1 road that leads to 1 gas station. It’s the same online. There’s lots of customers looking up a product to buy and there are lots of different ways they are searching for that product. Not only that, they are not all using one search engine or shopping in one marketplace to get that product. As a result, there can actually be a lot of different online sellers selling the same product and each one making profits because they are attracting customers in different ways.
3 Things To Watch Out For
When you perform competition research, you’re trying to determine if YOU can compete in the current market as a new seller. While some competition is OK, there are products with way too much competition. So much so, that trying to be a new seller for that product will be exceedingly difficult and expensive. When you’re researching competition you want to look at a few key factors…
- Oversaturation: Some competition is fine, but there are products that have way too much competition for new online sellers to handle easily. You don’t want to start selling online by trying to compete with the most difficult product markets to compete in. You want to find markets that have competition you can handle as a new seller.
- Quality: The quality of your competition is more important than the quantity. For some products, you’ll start seeing that other retailers don’t really have websites that look that good. They’re old, out-dated and look untrustworthy by todays standards. That’s great news for you! A good niche market has competitors that aren’t very good at selling that product giving you a great opportunity to become the “go-to store” for that product online.
- No Profit Margin: For some products (especially if you use a Drop Shipper) you’ll see your wholesale price being MORE than what other sellers are selling that product for online. There’s no money to be made UNLESS you do what they’re doing and buy in large volume from the Wholesaler so you can get deeper discounts and lower your prices to compete with the current market. Since there are ton’s of niche markets with a good profit margin you CAN compete in with drop shipping, it’s best to just leave the “no profit products’ alone and move on to researching a better niche.
Did You Know?
The Sell Niches Bundle contains Competition Research Sheets to make collecting and organizing research on your competitors simple. In the Sell Niches Lessons you’ll also learn how to do a “7 Point Inspection” on your competitors to determine quickly if they are competitors you should be concerned with or not. With Sell Niches, you’ll learn exactly which product markets you can compete in by doing easy, step-by-step product research.
What we found out…
We began, once again, by opening up our Sell Niches Research Sheet we started for “Camping Chairs” and then clicked on the Competition Tab along the bottom. This brought up our Competition Research Sheet which contains entry fields designed to make organizing our competition research much easier. It allows you to quickly enter relevant competition research such as retail prices, shipping costs and even the ‘quality’ of your competitors you find. ( For step-by-step details on performing all of your Competition Research you need to preform be sure to refer to your copy of the Sell Niches Bundle.)
Shown here is the competition research Summary. We researched 3 different places online (Google, Bing and Yahoo) and gathered information on 6 competitors in each location. Once completed, the Sell Niches Research Sheet summarizes the information into a nice chart like the one seen here and automatically shows what the average prices were and even indicates which market might be the most profitable to start selling in.
Don’t have the Sell Niches Bundle yet? While we do give step-by-step videos and instructions in the Sell Niches Bundle on how to do ALL of your niche market research for a product, if you don’t have a copy yet, then be sure to gather the following information about your competitors when you’re doing your competition research…
- Competitor Name and Website: You want to be able to refer back to their website later on if needs be. Plus, you want to keep a tally of who your top competitors for any product you end up selling.
- Quality: You need to assess how ‘big’ is this competitor to you in the grand scheme of things if you start selling that product. Are they a competitor you need to worry about or are they one you can probably beat out pretty easily based on how they’ve put their store together. Ultimately you want to have a market that has ‘weak’ competitors so you can dominate that market more easily.
- Retail Prices: This one is a ‘no-brainer’. You need to gather what price they are selling that product for.
- Shipping Price: Always grab the shipping price too! Some retailers hide their retail cost in with the shipping (or visa versa when they offer “free shipping”) so you get the shipping cost too.
Competition research is an important part of finding a good niche market to start selling in. In the Sell Niches Bundle we cover a lot of detail on how to fully research your competitors to determine whether or not they are a retailer you need to be concerned with (and even how to learn from them.) The competition section of our Research Sheets they are setup to allow you to organize your competition research for multiple retailers and up to 3 different online markets. You can always do more later on, but for doing a quick study of the current market, looking at multiple retailers from 3 different markets gives you a good idea of what to expect for that product online.
Once your competition research is gathered, the Sell Niches Research Sheets will automatically use that information (along with all of the other research you’ve entered for Demand, Your Costs and etc..) to Summarize all of your research into one big summary sheet that displays your profit potential, cheapest ad costs, demand and more so that you can see clean, well organized display of your research which makes comparing product research so much easier.
In the next Newsletter we’re going to bring all of our research together on Camping Chairs and look at the Sell Niches Summary Sheet. The Summary Sheet is automatically generated by the Sell Niches Research Sheets and makes reviewing your research very easy.
5 Ways Sell Niches Will Help You
- Find out if the products you want to sell are a good idea (or not.)
- Find out which products are ideal for Beginners to sell online.
- Discover untapped niche markets that most people miss.
- Get access to FREE online research tools.
- Use exclusive Niche Research Sheets (made for Beginners!)
The Sell Niches Bundle has everything you need to help you pick the best products to start selling online. With Sell Niches, you don’t have to buy any tools or pay for any monthly fees or services. We show you (step-by-step) how to pick products to sell online using the same FREE product research methods used by the pro’s. Don’t wait any longer, find your niche today!