Are you searching for ways to make some extra cash but are struggling to do so?
You’re not alone. Many people wonder how to sell a product as a side business.
It may seem complicated at first, but it gets easier when you know what to do.
In this detailed guide, we’ve provided all the information you need to know when launching your store.
After you’re done reading, you’ll be ready to start your journey as a merchant.
Why You Should Consider Selling a Product
If you’re looking for ways to boost your income, selling products is a great way to go.
Here are some of the benefits of this type of venture:
- You have a plethora of options to choose from: There are many product categories to consider selling, each of which is in high demand in a certain niche. Through thorough research, you can capitalize on this and make a lot of money.
- Low startup capital requirement: If you don’t have large funds when you’re initially starting out, you have the option to start small and grow your scale gradually. Of course, this doesn’t apply to all product categories since some are expensive.
- It’s a good business to start from home: Since consumers are doing their shopping online now more than ever, the viability of e-commerce is at an all-time high. As a result, you can sell products and turn a profit without having to set foot outside.
- You’ll be your own boss: Since you won’t be reporting to anyone, you’ll have plenty of flexibility in your working hours. This is ideal if you’re selling a product as a side hustle in parallel to other ventures.
Problems With Selling a Product
Sure, selling products offers a lot of perks. But, you may also face some obstacles when doing it.
Here are some of them:
- High market competition: No matter the product you’re selling, chances are there are many others offering the same one. It can be rather difficult to set yourself apart from the competition in this situation.
- It can lead to liquidity issues: When selling a product, you’ll need a steady supply so you can satisfy all the orders coming in. This means that you’ll have a lot of cash tied up in inventory at all times.
- There’s a risk involved: Even if a product has historically been a great seller, there’s still a risk that the demand for it will drop. If you have large quantities of the product in stock when this happens, you’ll have a hard time offloading them.
- Economies of scale: When you’re initially trying to break into the market for a certain product, you’re up against established entities that are already operating at a large scale. This means that their costs are lower than yours and that they can offer lower prices.
What You’ll Need to Sell a Product
Before you get your product sale venture running on all cylinders, there are some aspects you’ll need to get in order.
They include the following:
- Consistent inventory: When the orders come pouring in, you want to be able to capitalize on the opportunity. As a result, you should aim to have a reliable supplier that allows you to always have a steady stream of inventory.
- A platform to sell through: Another factor to consider is where you’re going to sell. The platforms you can sell through include Amazon, eBay, Etsy, Instagram, Craigslist, and your physical or online store.
- A suitable pricing strategy: One of the primary aspects that potential customers will base their decisions on is price. In turn, you should conduct thorough research to better understand the average going price of your product and position yourself around it.
Where to Sell a Product
The platform you decide to sell your product through can be a key factor in your success.
Here are some of the best platforms to use when running your e-commerce business:
Amazon
We can’t discuss e-commerce platforms without mentioning the world’s biggest one.
Whether you’re selling a digital or a physical product, Amazon is a great choice.
What Makes This Option Great
There are many reasons why you should strongly consider selling on Amazon. Amazon has millions of prospective customers passing through every day.
This level of traffic means that potential buyers are more likely to be exposed to your listing.
Fees/Commission: Between 8% and 15% is deducted from the amount due to the seller, depending on the product category
Payment Methods: Direct deposit into an ACH-enabled checking account
eBay
eBay is another excellent choice for reaching target customers.
Established in 1995, this platform has been a market leader since the beginning.
What Makes This Option Great
Like Amazon, eBay gets immense user traffic every day. It’s also a well-established platform.
As a seller on eBay, you benefit from the platform’s credibility by association. Not only that, but eBay is also super easy to use.
Fees/Commission: No more than 13.25% of the amount due to the seller, plus $0.30 per order
Payment Methods: Credit card, debit card, Apple Pay, Google Pay, and PayPal
Etsy
You can also sell products on Etsy. Although it isn’t as large a platform as Amazon or eBay, Etsy is rapidly growing into an e-commerce powerhouse.
What Makes This Option Great
Right off the bat, Etsy is an enticing option because it gives you the first 40 listings for free.
Another advantage of the platform is that it charges lower fees than Amazon and eBay. Etsy is an especially great option for those selling handmade products.
Fees/Commission: $0.20 per listing and 6.5% of the amount due to the seller on each sale
Payment Methods: Credit cards, Debit/bank cards, Etsy Gift Cards and Etsy Credits, Apple Pay, Google Pay, and PayPal
Instagram isn’t just for posting pictures and watching reels.
If you know how to sell on Instagram, the social media platform can work wonders for your income.
What Makes This Option Great
The main advantage of selling on Instagram is that it shows your product offerings to those who should be seeing them.
In turn, more of your target market is exposed to your listings. This isn’t to mention that 500 million people are active on Instagram daily.
Fees/Commission: 5% per shipment, regardless of product category. Shipments of $8 or less have a flat fee of $0.40
Payment Methods: Visa, Mastercard, American Express, Discover, and PayPal
How to Sell a Product: Step-By-Step Instructions
If you have a clear vision of what you need to do to get your venture up and running, this makes your path a lot easier.
Here are the steps you’ll need to go through:
1. Find a Need Gap in the Market
Your first order of business will be to identify a need gap in the market. The product you choose to sell should address this unfulfilled need.
Your goal isn’t solely to address customer needs, it’s also to make as much money as possible.
As a result, your choice of product to sell should account for profit margins.
You’ll need to find a product with high profit margins if you want to maximize your proceeds.
2. Find a Reliable Supplier
Finding a reliable supplier is one of the most important aspects of your venture’s success.
You’ll need a steady, consistent inventory flow to keep up with the orders when they start pouring in. This is why it’s essential to have a supplier you can count on to deliver.
Another factor to keep in mind is the tradeoff between cost and quality.
Sure, you should aim to minimize costs to maximize profit. But, this shouldn’t come at the expense of product quality.
Ideally, you should find a supplier that offers good quality and gives you great deals when you buy in bulk.
3. Choose a Platform to Sell on
The next step is to figure out where you’ll sell your products.
If you decide on the online store route, we recommend using Amazon, eBay, Etsy, or Instagram.
Alternatively, you can open a physical store if you prefer to deal with your customers in person.
Displaying your product offerings at a trade show is a great way to raise awareness for your offering.
4. Decide on Your Pricing Strategy
Another key aspect of flipping things profitably is making the correct decision in terms of the price you’ll be offering your products at.
Arriving at the optimum price will start with carefully researching the market to see what price others are offering the same product at.
Whether you position yourself above or below the average price depends on the price elasticity of demand for the product you’re selling.
Essential products, such as food and water, have a low elasticity. This means you can make more money selling them by raising the price.
Luxury goods, like smartphones, have a high elasticity. In turn, selling them at lower prices yields a higher revenue.
5. Market Your Offering
The final step is to carry out marketing campaigns for your products.
You can do so in a number of ways.
Facebook advertising and sponsored posts on other social media platforms are excellent ideas.
Alternatively, you can promote your offerings through sponsored ads on blog posts and related articles to the product category you’re selling.
Things to Consider When Selling a Product
Before you start making serious cash from product sales, there are a few factors you’ll need to consider.
Getting these aspects in order is essential to your venture’s success.
Differentiating Yourself From the Competition
One aspect you should keep in mind is how to stand out from the fold. Finding niche products to sell is a great way to do so.
You can also sell a new product that isn’t offered on the market.
How You’ll Position Yourself
Another factor to keep in mind is your positioning.
Is your brand a premium one that caters to higher SECs? Is it a budget-friendly one that targets customers in lower SECs?
Establishing a clear brand identity will help you build customer loyalty.
Frequently Asked Questions
Here are the answers to commonly asked questions about selling a product:
What Are the Selling Techniques?
There are three main selling techniques to be aware of.
Product selling is the simplest sales strategy.
It involves focusing on the advantages and features of the product you’re offering.
Solution selling is about convincing the buyer that your product is the optimum solution to their pain point.
Insight selling is a more advanced form of solution selling.
What Is the Most Effective Channel to Sell a Product?
The most effective product sales channel is social media.
This is because of the wide usership that social media platforms have amassed.
This immense daily traffic means that more of your target customers will be exposed to your offerings every day.
The advanced algorithms that allow you to target certain groups also make social media very potent.
Similar Tutorials to Check Out
Here are some tutorials for other ideas to explore for a boost in income:
- How to Sell Baseball Cards: Do you have a baseball card collection worth a lot of cash? You can sell those cards and boost your earning power substantially!
- How to Sell Photos Online: Are you a talented photographer with an impressive portfolio? Capitalize on your talent by selling your flicks!
- How to Sell Old Phones: Are your old phones gathered up in a drawer collecting dust? Now’s the time to change that. You can find willing buyers of old phones online!
Wrapping Up
As with any business, there are a lot of factors to consider when trying to sell a product for profit.
Follow the instructions and tips outlined in this guide to help yourself launch your product-based business successfully.
If you have any queries or need extra clarification on anything in this guide, let us know in the comments.
Also, don’t hesitate to share this article with your family and friends to assist them in their journey.
