The 3 Critical Areas of Online Market Research

When considering any product you may want to sell online, one must understand there's a certain amount of online market research

 

that should be done to determine if there's a market for the product itself.

Let's look at 3 areas of market research that will help determine the profitability of any product under consideration.

1) Demand

The product or service has to fill a need for the customer, and determining this ahead of time will help minimize any time and cost invested. Avoid the costly mistake of assuming your own enthusiasm for a product will be matched by the marketplace.

Patience and diligence must be applied in our research to insure our marketing success. A simple Google search is a good start to judge the level of demand for any product type we may want to sell online. Also checking out Amazon and similar merchant sites will give a good indication as to product demand.

2) Competition

Next we need to determine the level of competition we face provided our research has already shown a good demand. Competition is good however too much competition can make our efforts tougher by increasing our marketing costs and decreasing our profit margins.

Here we need to take a look at the search results we found researching the demand to see how many of your competitors are paying to advertise to this market. In the right hand column you'll see ads that are paid for by your competition. You can roughly determine how much competition you'll be facing by the number of paid ads you find. Simply scroll thru the pages of your search results to see how many ads there are.

Realizing most people when searching for something usually won't go much beyond page 2 or 3 in the results, you can assume that the deeper these ads show up in the results, the more competitive there is.

3) Market Niche Research

This area of your research concerns markets that appear to have a great demand and perhaps too much competition to make it worth your while. In such cases you may want to dig deeper into the market itself to see what current consumers needs may still be unfulfilled. A simple strategy here is to do a search for 'market/product specific' forums targeting of course the product you're interested in. The results will be a list of forums you can visit for this market enabling you to view questions or concerns people may have. By taking these 'ideas' you've discovered from within the forums you can again perform the same type of research to determine any demand and potential competition before committing any more time, energy, or money.

Obviously these online market research techniques we've reviewed are fundamental in nature. Much more detail can be given in all areas of the research process; however this detail is outside the scope and intentions of this article. The point is with a little bit of research, you can increase your chances success when selecting what it is you may want to sell online.