How to choose the right products for your retail business?

Choosing your first few products to sell for your retail business is like being let loose in a store to buy whatever you want. You have a budget to spend and you get to choose the products you think will sell well. It can be exciting.
But if you let the excitement get the better of you, the stock you buy could be sitting around for a long time to come. You have to have a method in mind and a process to go through with every product, to ensure you are able to buy the products that will sell and keep on selling.
Here are some crucial pointers to help you choose the right products.

How profitable are they?

Profit is one of the most important things to think about. If you buy something for £1 and you sell it for £1.50, you will need to sell a lot of them to make any real money. Sometimes you may buy a cheap item that will sell cheaply as a loss leader, to generate more interest in your business and encourage people to buy more. Ikea does this very well in its stores; how many times have you walked in for one thing and come out with a trolley load? This is loss leader marketing at its best.
However most of the time you should look to double your money at the very least. If you can find products with an even larger profit margin, so much the better. You can see why it is vital to do your sums before you buy anything.
One final point – remember that the amount you buy a product for won’t be your only cost. You will also have listings fees and final value fees if you are listing it on eBay. Factor in delivery costs as well if you are being charged for the delivery.

Do people want them?

It doesn’t matter how much you might like something; if no one else does you won’t sell it. This is a hard lesson that many new sellers learn very early on. But if you follow the advice given here you can learn the lesson before spending any money on stock.
Regardless of whether you are selling on eBay or not, use the completed listings feature on the site to find out how many of the items have sold recently. If you see lots of green sales figures you will know the item is a hot seller. Conversely if all you see is a sea of red figures, you should steer clear.

Will people come back for more?

Some items naturally stand up well as consumables. For example batteries fall into this category. Printer inks would be another example. You can probably think of plenty more.
If you can find a few good sellers that people will keep coming back for and you can sell them at a good profit, you will have steady lines you can rely on. These will go alongside other items that perhaps don’t sell as steadily, but still bring in a good income for you.

Will people pay the asking price for the item?

When you buy stock at wholesale prices, you will often see a recommended retail price given with it. For example you might pay £2.00 for an item that sells for £4.99.
But this is where research comes in handy. You should never assume that you will get the recommended price for it. If you have your own website you can list the item for sale at the recommended price because you have no direct competition on your own site. However if you are intending to sell it on eBay you should look to see what other sellers are selling it for.
You may find people are only buying the item when it is sold for £3.50. This cuts into your profit margin by a severe amount. If you factor in the fees you pay to list and sell the item, you may find it isn’t such a good deal after all.
Compare the product price with prices on ebay or other retail outlets and sites…text needs to be added by us.

Is the product good quality?

It is possible to sell cheaper items that are of lower quality because people will expect to get what they pay for. But this does not mean you should sell shoddy items.
When you place your first order with a new supplier, always opt for the minimum order value and the smallest amount of each item first. Not only does this mean you won’t be left with lots of unsold stock if an item doesn’t sell well, it also means you can check the quality before ordering lots more in.
Top quality goods are always worth paying more for, so it will affect your profits in a good way too if you pick good products. If you choose cheaper items that fall apart quickly, you will be far more likely to get negative feedback. This will harm your reputation and career as an online seller, so it makes sense to ensure you only buy what you believe in.

Does the product fit in with your overall business?

If you look on eBay, it won’t take long to find a handful of sellers who sell anything and everything. Their business motto seems to be to sell anything that will make a profit.
You can run a business like this, but it is far easier and more appealing to focus on a niche. When you have chosen your niche you will have to find wholesalers and products that fit in with that niche.
Sometimes you might come across an item that is a hot seller, has a great profit margin and the potential for repeat sales. But if it doesn’t fit in with your overall business niche, don’t buy it. If you do, you could well find that it doesn’t sell well for you – because you are known for selling other products instead. People often judge and buy from you based on your expertise and it is very important to keep this factor in mind.
If you focus on all the different aspects of buying products that are touched on above, you will have far more success in making successful purchases from your wholesalers.
www.elesplusclothing.co.uk and www.elesclothing.co.uk always helping new business customers.