Choosing the right niche is critical in business! And if you’re smart about your choice, you can get away with starting with a $0 budget!
Can your product get free traffic? Find out on this episode of The eCommerce Lifestyle podcast.
This podcast is also available in video form. Click ‘Play’ below to start watching. Make sure to subscribe to our YouTube Channel for weekly updates and insights!
Hey, what's up everybody? Anton Kraly here from ecommercelifestyle.com, and welcome back to the podcast. So in the last episode, if you've been following along, you know I was talking about how you can get traffic to your store for free. And I gave you three specific examples that you can use if you want short term, immediate traffic, again, for free. And then I gave you two longer term plays that also work well. But what I realized after I recorded that episode is, even though the methods I shared work regardless of what you're selling, as long as it's not a prohibited category they work, but they can work better depending on what type of products you're actually selling with the methods that I shared with you.
And what I mean by that is if you just wanted to start a store for free and you thought, "I'm going to sell these insulated gym water bottles that keep beverages cold for 48 hours," yeah, you can do that. But if the product is cheap, and if it's not something people go to a marketplace for, and if it's something that's super competitive and you can't rank organically for, then you're probably wasting your time, or at the very least severely under cutting of the value of your time. So what I'm going to share with you in today's episode of the podcast are four different things you should look for when choosing products to sell, if you are starting with a zero dollar budget and still looking to actually make money for the time that you invest into building this business.
So the first thing that I want to talk about is your average order value, meaning how much is your customer going to spend with you on average at a time? And if you're starting with a zero dollar budget, using the free traffic methods that I already recommended to you, my advice is to have your average order value be $500 or more, ideally $700 or more. Now, I've talked a lot about price points and why we sell items in the price ranges we do in previous episodes. But the short of it is that if you're going to sell an item for $700 on a marketplace, let's say, even if your shipping cost is $100 and your cost of goods sold is $300, at least you're going to be making hundreds of dollars net profit every time somebody buys from you.
Because the thing with free traffic methods, especially the short term ones, is you're not going to get a rush of orders when you do one of the things I recommended to you in the last episode. Yes, you're going to get orders, but you're not going to get a thousand in a day on day one and then be like, "Whoa, I made all this money." Not if you're selling an inexpensive product. So if you focus on those more expensive products, again, average order value of at least $500, ideally 700 or more, that way, even if you only get one sale a day or one sale every couple of days, you're literally making hundreds of dollars in net profit, which of course then my advice would be to invest that into paid traffic, so you can grow even faster.
Now the second thing you want to look for if you're getting started with a zero dollar budget and trying to pick products is brand loyalty. You want to sell in niches where customers have no brand loyalty. So I'll give you the perfect example: I was living in Austin, Texas for about three years, and I had the view out of my window and my balconies on the lake. And every day I saw people out there on standup paddleboards, and I thought, "I want a stand up paddleboard." So I went on Craigslist and I went to For Sale, and I typed in "standup paddleboard".
And I did not care what brands popped up, I did not care if it was from brand A, or brand B, or brand C, because I just wanted one so once a month I can get out there and have fun with it. I'm not some pro paddle boarder that needs this specific brand. And you know what? Most people that are out there messing around in the Lake, most people that are on the Facebook marketplace, or Offer Up, or Craigslist, they're not either. So you definitely want to pick products that appeal to the masses, and where customers don't already have one brand stuck in their head, like, "I need this product for this thing."
An example would be if I wanted a new tablet, guess what? I'm going to buy an iPad. And if I go on Craigslist, even if I want a used one I'm going to buy an iPad. I'm not just going to find some random thing and be like, "Oh this looks like a good tablet," because I wouldn't trust it.
So find the niches, find the product types that customers are comfortable with buying from any brand, as long as the actual product features and benefits meet what they want. That is how you will do well with the free traffic methods, and that's the type of product you should select.
So the third thing that's extremely important to look at when picking products to sell, starting with a zero dollar budget, is finding things that are available from at least 20 different suppliers, AKA brands, meaning the companies that you're going to get approved with whose products you will then sell.
So let's go back to the standup paddleboard example. I would recommend you sell them if you can go on Google and find at least 20 different manufacturers that make these things. And the reason I want that number to be so high is because if you're starting with literally zero dollars, when you reach out to these brands to become an authorized retailer you're not going to have a real marketing strategy you can tell them about to get them excited. So the top tier brands, the really good ones, they're not going to approve you from day one. And if you choose a niche or a product type where only five different companies make these things and you're starting from nothing, it's going to be very hard for you to get approved with enough of them to actually have products to sell from the beginning.
That's why you want to find something with a very wide product offering, not saying you find 20 brands that all sell the identical paddleboard, but find 20 brands that find standup paddleboards. If you could find at least that, that is a good sign because even if your approval rate is super low in the beginning, meaning you get approved by 20% of the brands, you still have four brands then that you can sell for, which is a great starting point if you're coming to this thing with no real marketing plan and no budget.
Now the fourth tip that I want to give you if you're choosing products to dropship and starting with zero dollars is that when it comes to product options, less is more. Because of how we're driving traffic to our store with no money, we can't offer something that's extremely customizable where somebody can go to a webpage, for example, and choose from 10 different dropdown menus of what size something should be, what color it should be, all of these different things that go into some specific products, you should not be doing if you're starting with no money.
So an example could be if you were selling, let's just say swing sets for the backyard. If they had all these different options, like how many swings do you want it to have, how many slides do you want it to have, should it have a rock wall and all these other things that could be part of building up this product, while that would be great if you were using paid traffic, if you're sending people from free traffic methods like I talked about, it's going to be more of an impulse buy thing, and you're not going to be able to have them come to your website and choose all these extras and add-ons, because it's just too confusing. And then that conversion rate that I spoke about earlier in this video, where you might get a sale every day or every other day, that's going to really plumb it and it's only going to hurt you.
So a perfect example would be something like that standup paddleboard. Let's just say you found from your best supplier you get approved with what their most popular color is, what the most popular size is, and then that is the product that you start promoting. That's the product you use all of the free traffic methods that I shared with you in the last video on, and that is how you start getting those consistent sales that are generating you hundreds of dollars of net profit per sale, that you can then invest into paid traffic and really start to blow up your business.
So I hope you found that helpful, guys. If you want a list of 237 product ideas, like actual niche ideas, then look for a link in the description, and that's going to take you to a page where you can register for a free training I put together where I also give you a full PDF report, it's basically an ebook that contains 237 profitable product ideas that you can use on your own business. They would all be great even if you were starting with no budget. So check that out. And as always, if you got value from this video, definitely subscribe to our YouTube channel, subscribe to the podcast, and definitely leave a review if this helped you in your journey. So thank you, I appreciate you and I'll talk to you in the next episode of the podcast. See ya.
Enter your text here...
Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.