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You've probably been subjected to the many hyped-up claims
about how easy it is to make money on the internet. Simply
grab a product, put a photo of it on a web page, and
thousands of eager customers will flock to your site,
credit card in hand!
Obviously it's not that easy. The internet is a wonderful
tool -- but just like in the 'real world', some types of
products sell better than others. Consider the following:
__Is there a more convenient alternative?
Products that aren't easily available at a local store have
a better chance of selling online. Not only is it often more
convenient to simply drop in and pick up whatever you need,
you aren't hit with additional shipping or handling charges
(which can be significant when shipping heavy products).
Pet food is an example: my household of pets dictates that
I'm often running out the door to pick up more food. At one
point I investigated ordering it online -- imagine, door-to
-door delivery! -- but in the end, I decided against it:
not only would I have to wait for it to be shipped to me,
but the shipping costs were nearly as much as the food
itself!
__Is your product something a customer needs to feel or see
before making a purchase?
A simple example is a wedding dress: most women want to try
it on, walk around in it, and simply see how they look and
feel in the dress before they make a purchase.
That's not to say that you won't be able to sell something
that the customers generally prefer to see or feel; if your
marketing is good enough, you might actually make a great
many sales. However, customers that discover that your
product doesn't fit or didn't meet their expectations are
likely to drive up the return rate -- which means less
profit and more hassle for you.
__Are customers normally cautious about buying your type
of product or service, even offline?
Many people are still naturally hesitant to purchase
anything online. So if you're selling something that
they normally hesitate to buy in the real world, then
your challenges are compounded.
For instance, some people don't think the services of
a financial planner are necessary -- they might only
make an appointment with one due to persuasion on the
part of family or friends. They discuss their situation
with the financial planner and make a decision about
whether or not they feel they can work together.
Now imagine if a financial planner sets up shop online.
He claims that he's wildly successful, and offers to help
manage your money over the phone or by email. Most would
probably hesitate to take him up on the offer -- without
actually *meeting* him, viewing his office, etc. it's
harder to gauge his honesty or credibility.
__Is there a market for your product, at the price at which
you intend to sell it?
This is what it all boils down to. There must be sufficient
demand for your product at a price that allows you to earn
a reasonable profit after all expenses are paid.
Be aware, too, that some audiences just don't tend to use
the internet much -- or they use it sparingly. For example,
you will have a hard time if you target a bunch of retired
folks who are terrified of technology, or low-income
families who may not have access to a computer.
Obviously nothing can guarantee the success of a business.
However, careful thought and research can help you to build
a thriving online business.
About the Author
_________
Angela is the editor of Online Business Basics, a practical
guide to building an Internet business on a shoestring
budget. If you're tired of hype and just want solid,
down-to-earth information, then visit us now -- and in
moments you can have access to loads of instantly useable
tips, specifically chosen for beginners!
http://onlinebusinessbasics.com/article.html
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