Ecommerce in 2020 has boomed even more than and is one of the most emerging and fast-growing sectors in the world. Only $3.5 Trillion was made selling online in the USA alone.
However, the success of an individual eCommerce brand relates to factors of product selection criteria, quality, market, and buyers of it. Many eCommerce brand startups fall flat on their faces in the first months of business because they don’t focus on sourcing in the early months of their business.
Product validation is, therefore, essential to ensure that your items do have the demand in the market and a sound number of committed buyers who will support your product along its path to success and help you (seller) achieve your eCommerce goals.
What validates your idea (Product selection) to ensure its success?
We will cover some points here:
Confirm that there is a need:
Once you have seen a product and noticed that it could be even better than this. Look around the local and on the internet. Interact with different groups or communities that might cross over into your target audience & gain their reviews and feedback on what they think of it that can help in coming up with a new idea. Look for ideas and reviews on social media and subreddits you can get motivation from and eventually build the brand.
Finding Good Ideas:
Read bad and negative reviews and find a way to improve that targeting product in that category. Look at trends using Reddit, google trends, and other channels to learn what’s trending and in demand right now in the market these days. Once you have a hold on where the order is at, consider asking these communities how you could best solve the problem your product would one day meet for them.
Proves that your buyers will indeed purchase that product you manufactured:
Once you have chosen the product, look for a market if the people will indeed buy it upon launch. A sound number of buyers means it will hedge the risk of placing an order.
How to Protect Your Idea?
It’s more comfortable to mimic and make products ever due to this massive boom in the eCommerce field and ever-growing competition hence bringing lower pricing in so many countries. But remember that sometimes large reach competitors can push you out of the industry or category if you don’t protect your brand idea.
(i) SEO Competition:
When you want to go and protect your brand, you need to come up with a brand name that is not in use already by any other firm in your class of business which would be eCommerce. So the first thing that should be done is to look at certain keywords or future brand names of your business on google and confirm if your idea is in fact being used by any other market giant.
(ii) USPTO Search:
Do the same search with USPTO and verify if there is anything listed as a business with them. If not then you can begin the registered, which will cover you for a year once it’sits approved.
(iii) Niche Specific:
The best brands follow niche-specific targeting methods instead of juggling around a lot of categories.
It prevents others from creating the same product and selling anywhere. It can range to protecting similar products or any future ideas that are to bring to life in the future. Remember that there are two types of patents: (a) Utility Pattern (b) Design Pattern.
(a) Utility Pattern:
Covers the functions of the product.
(b) Design Pattern:
Covers the design of the product.
Protects the words, phrases, logo, symbols or other ID factors more specific to marketing and services.
NDA (Non-Disclosure Agreements):
Holds the other party or seller liable for the information shared regarding a product.??
How to successfully source your product?
Work with a factory:
Finding the factory that manufactures the goods instead of looking for a wholesale, distributor, or trading company is better because they can offer more customization options when it comes to other sourcing options. Not to mention the best pricing options available as well because of enormous competition.
Where should they be based?
Learn about the area of product manufacturing because mostly specific areas have a set of expertise where a particular product is manufactured. This will help you create your desired or tailored outcome to your expectations because they will possess the skill set.
Take change; for example, it’sits best known for the watch industry only.
validate their capabilities:?
Try to gain as much information from them as possible such as:
- How efficient are they?
- What is their manufacturing capacity of production in total?
- Who are they associated with or working with the right bow in terms of brands?
If you aren’t sure that the sales rep you are talking to has access to that particular facility or factory, then have him write your name and date and take images in different areas of the factory to prove his legitimacy. This is a neat way to validate the factory remotely and not to have to go there.
It’s recommended that you manufacture the sample with the actual factory instead of having it built locally to avoid other logistical and equipment expenses.?
Now that you have the factory for sourcing and the idea in place, are you at peace?
Peace of mind is essential when it comes to sourcing goods. If you aren’t confident with the product you are creating in any way and still have doubts about its success, you won’t be at peace with it.
When you think of the successful sourcing, it affects your bottom line such as COGS:
Without successful sourcing, even the profits can be cut off and have a big difference in benefits. Above mentioned is just an example of the difference in successful supply affecting the profit margins.
To sum this up, here are the steps you need to follow to have a successful product launch.
- A validated idea
- Healthy sourcing margins (good profitability)
- Niche focused brand