Choosing the wrong product to sell can slow down your online business before it even gets started. In this article, we identify 5 key signs to avoid this and guide you towards smart decisions that will boost your online sales.
Choosing the wrong product to sell is a common mistake that can lead to low online sales and frustration in your online store. The key is to recognize these signs early on so you can adjust your sales strategy and focus on profitable options. The clear solution is to analyze the market, demand, and your resources before investing, which will save you time and money on products that don’t sell.
Why is it important to detect the wrong product to sell?
Many people start an online store with enthusiasm, but without a thorough evaluation, they end up with inventory that does not generate income. This not only affects online sales, but also the motivation to continue. Understanding the signs allows you to pivot to a more effective selling strategy.
Remember that platforms such as Neolo Shop are ideal for getting started, as they never charge sales commissions and offer a free one-month trial. This makes it easy to test ideas without initial financial risk.
The 5 key signs that you are choosing the wrong product to sell
Below, we detail these signs with practical explanations. Each one includes tips for checking and correcting the course of your sales strategy.
Sign 1: Low market demand
If you do your research and see that few people are looking for your product on tools such as Google Trends, this is a clear warning sign.
For example, niche products such as accessories for forgotten sports may seem unique, but if there are no searches, they will end up as products that don’t sell.
A little-known tip: Use data from specialized forums to gauge real interest, not just general statistics. According to a study by Statista, 40% of e-commerce businesses fail because they ignore local trends.
Sign 2: Excessive and saturated competition
When the market is full of sellers offering the same thing at low prices, such as in basic electronics categories, it’s hard to stand out. Your online sales stagnate because customers opt for established brands.
Real example: In 2022, many entrepreneurs tried to sell post-pandemic masks, but the saturated market led to massive bankruptcies.
Unique tip: Analyze sub-niches, such as eco-friendly customizations, to differentiate yourself without competing directly.
Sign 3: Insufficient profit margin
If, after calculating production, shipping, and marketing costs, the margin is less than 30%, reconsider. Products with low prices but high logistics costs, such as heavy items, are often traps.
A little-mentioned trick: Include the cost of returns in your calculations, which can reach 15% in online sales, according to data from Shopify (2024). This helps you avoid products that don’t sell due to zero profitability.
Sign 4: Logistics and storage problems
Fragile, perishable, or bulky products complicate shipping and generate customer complaints.
Imagine selling live plants in an online store without an adequate cold chain: returns will ruin your reputation.
Exclusive tip: Try local suppliers first to minimize risks.
Sign 5: It doesn’t solve a real problem or generate emotional interest
If your product doesn’t solve a clear need or connect emotionally, like unnecessary gadgets, customers will ignore it. In online sales, engagement is key to a successful sales strategy.
An unusual tip: Conduct surveys on social media to validate ideas before investing.
According to a HubSpot report, 60% of failed products lack initial validation.
Practical tips for choosing the right product
- Research trends with free tools such as Google Keyword Planner for words like “online sales” and “online store.”
- Test prototypes in small markets before scaling up.
- Focus on products with seasonal demand for fast turnover.
- Consider scalability: can you grow without multiplying costs?
Neolo Shop stands out as the best option for opening an online business, with no sales commissions and a free month to try it out.
Conclusion
In summary, detecting these five signs—low demand, excessive competition, low margins, complicated logistics, and lack of relevance—helps you avoid the wrong product to sell and strengthen your sales strategy. With careful analysis, you can transform your online store into a sustainable success.