Let’s start with a fantastic fact: in 2021, there were a total of 263 million digital buyers in the United States and it’s projected that by 2025, this will reach 291.2 million. This tells us one thing: online shopping is the new normal, and it is here to stay.
This also means that you should not delay in getting a piece of the action and create a low-maintenance second stream of income, to help you achieve financial security and improve your life.
The number one question remains: what should you sell?
Why Is Market Research So Important?
Market research is the process of gathering relevant data to uncover what your business’s target demographics are actually looking for. It is a chance to learn about the business and to use your time and marketing more effectively.
Market research is a vital part of any business strategy and digital products are no different. There is plenty of competition on Etsy and this research will help you to stand out effectively. Understanding what buyers and customers are seeking is truly the key to building an online business that will stand apart from the competition, add incredible value and deliver better products!
I wouldn’t say it is a quick process, but it definitely isn’t rocket science! If you are willing to put in the time and effort to do market research, I promise you the results will be there! It will be worthwhile.
Market Research To Find A Profitable Product
Market research and the selection of your product are both the first step and the most important part of the process. What you don’t want to do is believe you have the dream product and just go live with it without any prior market research. Doing this will lead to disappointment and a possibly failed product.
I am here to help! Below are my tips for market research and finding a profitable product to start your new business.
- Solve an obstacle
Determining what people are actively searching for and then filling that void is a great starting place. You want to create a digital product that people cannot resist and that will simplify people’s lives. For example, a budgeting book will help people who are struggling to save their money. This data can be gathered by considering challenges and solutions in your own life and/or by speaking to the people in your life about what they think could be a helpful solution.
- Set up goals
Before going full steam ahead with your new business, spend time reflecting on what your goals are and what you hope to get out of this process. This will help you manage your time well so you are not wasting time on what is not needed. You can do this by determining your business goals, writing about them, making processes, and building strategies that will lead you to success.
- Be unique and niche
If you have an idea, dig deep into what exists that is similar (if anything) out there, especially on Etsy. You will want to make sure you aren’t contributing to an already supersaturated space and therefore adding little value and simply becoming another little fish in a big pond. You should look into products that are exciting, fresh and add value.
- Use Google
Take advantage of sites such as Google Trend to search for topics of interest that you could envision getting involved in. Plus, Google Trends is nice and easy—you just enter your specific keyword and Google will let you know just how popular that is and how often it’s been searched for. Then, you can use Google Keyword Planner, which analyzes the monthly search volume and projected competition on specific keyword phrases. This can be pretty technical and requires a strong understanding of keyword research and SEO. But, it is super useful as you are looking for that sweet spot of high demand and relatively low competition. This is a topic that I teach in depth in my masterclass Digital Shop From Scratch!
- Research product reviews
A nice thing about Etsy is that sellers’ data and reviews are 100% public. So, use this to your advantage by reading reviews and testimonies as insight into what customers really think and what they like! You can use this data to ensure you are adding the positive details that stood out to customers and not using the things they didn’t like about the product.
- Create a waiting list
One way to determine how well a potential digital product could be is to get people hyped up about it with a signup page/ waiting list. You could do this on social media, via email or if you have a personal website. It adds a sense of anticipation and you can see by the number of people who sign up what the interest is like.
- Creativity can strike at any moment
I can’t encourage you enough to keep an open mind when it comes to determining your product. You may be hit with a marvelous idea in the most unexpected moment, like in a workout class or while overhearing someone at a cafe. These sparks are worth writing down and keeping track of with a note on your smartphone.
- Bonus hint!
If you are feeling super stuck trying to determine which digital products to sell to make you extra money, I’ve put together 65 digital product ideas you can start selling on Etsy right now so you can start earning extra income. You’re welcome! 😉
I hope this blog has driven home the value and importance of market research! If you are serious about making a digital product that will pop online and stand out, it’s a non-negotiable aspect of it.
I encourage you to put a fun spin on it and focus on the fact that you are learning something new and it’s all going towards a great cause: you, your new online business, improving your life and securing your future.