Understanding Product Life Cycles How To Always Pick The Right Products
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Understanding Product Life Cycles: How to Consistently Choose the Right Products
Summary:
Selling online involves more than just finding a product and a supplier. Without consistent market research and product sourcing, profits can dwindle. Every product has a limited lifespan; what’s popular today may not sell tomorrow. Keeping track of where products are in their life cycle is crucial for knowing when to phase out old products and introduce new ones.Key Concepts:
- Ecommerce- Market research
- Online store strategies
- Product life cycle
Article Body:
When you sell online, it might seem like your job is done once you've found a product and a supplier. However, without continuous market research and sourcing, profits can quickly decline. Every product has a finite lifespan. What sells at a premium today might not be worth anything tomorrow. That's why it's essential to monitor where your products stand in their life cycles, so you know when to retire old products and introduce new ones.Monitoring Product Performance
In the early stages of a product's life cycle, demand is high, supply is limited, and prices are elevated. Entering the market at this phase can be challenging, but the competitive phase is where most online sellers thrive. During this phase, supply increases while demand remains stable, leading to a slight dip in prices but steady conversions. Eventually, demand starts to decrease as a product enters the decline stage.
There are numerous reasons for a drop in demand: a product may go out of style, out of season, or the market could become saturated with competitors driving prices too low for profitability. Recognizing the decline stage signals that it’s time to transition to new offerings.
Following Market Trends
Updating your product lineup starts with diligent market research. Jen Cano, co-author of eBay Performance! Selling Success with Market Research and Product Sourcing, emphasizes, “Research allows you to source products your customers desire, when they want them.” She highlights two crucial aspects to focus on: demand and direction.
Demand: Measure a product’s demand by analyzing search volume, sales frequency, and average selling price. Utilize research tools such as Hammertap, KeywordDiscovery, Google's Keyword Tool, or eBay’s Pulse and Marketplace Research to gather and interpret the data you need.
Direction: Knowing where a product’s demand is heading helps you determine its current life cycle stage. Avoid sourcing inventory that's in decline by observing products over extended periods. While a thirty-day snapshot might not reveal much, breaking it down into weekly segments can show clear patterns in demand.
At any point, you might be managing multiple products in various life cycle stages. Cano explains, “Finding new products and sources is a continuous process. Constantly research, assess, and adapt to succeed in a dynamic marketplace.”
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