Using Supply and Demand Research to find the Right Product to Sell Online

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More Techniques for Determining Supply.


We came across a recent on-line shopping report from WebPro News. It stated that a survey was performed to determine how on-line shoppers utilize the web to search for their products.


According to the report, over 88% of On-Line Shoppers use Yahoo!, Google, MSN, and AOL to find the E-Commerce outlets for the product that they are looking for.

So what’s that mean to you?

A few things….

Once again, Yahoo! Is the primary shopper destination on the web. But you already knew that…

When your searching for products to sell, and you’re at the stage where it’s time to determine the supply of the product, you can use these 4 search engine/directories to further clarify how many e-commerce sites are actually SELLING that product.

For Example.

Let’s say you’ve decided to sell Tapestries. You know, those terrific, woven wall hanging that have embroidered images of the Crusades, Jesus Christ, or a Pony…

Your first stop is the Yahoo! Shopping Network. You see that there is 200 or so Yahoo! Stores selling a product with the keyword “Tapestry” in it.

Not bad…. Now lets head on over to Overture to figure out the demand. Using the Search Term Suggestion Tool, you see that 21,000 folks used the word “Tapestry” in a search engine last month.

Holy Cow!

Too Good to be true? Let’s look some more…

You head over to Word Tracker and use their KEI Tool and you see that:

There are over 476,000 competing sites and the KEI is only 2.7 ( We want 100 or better) for the word “Tapestry”

Well, that really awful. So you decide to move on…

WAIT! Not So Fast!

Now it’s time to take those top 4 search engines and do some real sleuthing.

You type the word “Tapestry” into each search engine and look at the result for the first 4 pages of each.

What did you find?

The word Tapestry may be contained on half a million web sites, but guess what?

In the 16 pages of searching on Yahoo!, Google, MSN, and AOL, there are 2 web sites that sell ONLY Tapestries. There were 3 more General Home Décor Stores that sell 2 or 3 types of Tapestries.

So, lets do the numbers:
Of the 360 website that were in the first 4 pages of the 4 search engines (20 sites times 4 pages times 4 Search Engines), there were 5 web sites that sold that product.

What gives? Why such a bad report from Word Tracker?

Well, there is a Musical Group called “Tapestry”. There is an on-line Chat Forum called “Tapestry”, there is the History of “Tapestry” making….

But only a handful of Stores Selling Tapestries… That’s why you need to dig deep and get dirty (Seriously though, this might take you an hour…)


Please Understand; doing this kind of research will help you accomplish many things:

1) Products that seem too good to be true can actually turn out to be a fantastic selling opportunity if you focus on a very particular market niche

2) By narrowing your market even further (say, Medieval Tapestries) you can reduce your competition to a greater degree.

3) Even if there’s only a small amount of competition in the Yahoo! Shopping Network, the other Internet Shopping Portals can be hiding hundreds of other competitors. Ask yourself, if there is nobody selling it with a Yahoo! Store, is it because there is already too much competition elsewhere?



Okay, one last little competition nugget.

Is there anybody bidding on the general keyword (On Overture) for your product? Let’s use an example from A Squared Armory…

Remember how we bid on the keyword Narsil? (That’s the “Sword” from Lord of the Rings?) At the time of the writing of our Book, NO ONE was bidding on that keyword…

A t first we thought “Uh Oh, nobody cares enough to bid on it so it must not be selling for them…”

WRONG! We sell about $1,250 a month worth of that “Sword”…

Here’s what we did. We looked to see how much money people were spending for an Un-Focused or Broad Keyword, like “Sword”

Sure enough, bidders were driving the price of that keyword as high as 45 cents.
What’s that tell you?

For starters, people would not be bidding on a keyword consistently unless it makes them money. That means there is a market for that product.

Two, those bidders are telling you something.
They’re saying, “Yes, this industry is worth bidding on traffic to get customers”
That means they are probably making money…

They are also saying, “We have no idea how to compete in the niche markets, and we are guessing what keywords to bid on and we’re going to try to get as much general traffic as we can by bidding on the broadest term possible…”

It’s sad.
But you will not make that mistake!

Remember! Little Industries (Fuzzy Seat Covers) inside of Big Industries (Automotive Accessories) is where the moneys at!

You need to get the educated shopper! Get the shopper that is looking for a product that has an adjective in front of it!!!

“Medieval Tapestry”
“Roman Tapestry”
“Religious Tapestry”

“Battle Ready Sword”
“Sword from Lord of the Rings”
“Cheap Sword”

“Blue Fiestaware”

“Rapid Weight loss”

“Low Carbohydrate Recopies”

“Steel Toed Work Boots”

and on and on…

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Let’s wrap this all up.

1) Do your research on a broad scale! Check the major shopping portals for your product keywords

2) Then look deep into the SPECIFIC products (And Keywords) people are searching for.

3) Concentrate on Marketing to those SPECIFIC products and KEYWORDS – Model Numbers (Sony STRDB 1040 Receiver), Colors (Purple People Eaters), Genres (Gothic Tapestries), etc.

4) Spy on your competition!!!

Remember, Word Tracker and Overture DO NOT differentiate Keywords from Store Fronts. That information needs to be searched by hand, by you!

If your disappointed or elated about the results of your product search from either of those two services make sure you dig deeper, find out whose actually SELLING those products! You might be surprised to find that a market is ripe for the plucking, or rotten for the effort.


Shop You Soon!

Andy and Audrey

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