LESSON 2: CHOOSING WHAT TO SELL
What will sell for me and make me money? There is no doubt about it, this is the number one asked question we get. As simple of a question as it sounds though, it has many answers. The answer that works for you is going to depend entirely on your business plan. In this section, we will go over the choices you have, and what products to focus on depending on your business plan so that you will be able to get the most out of the tool.
Obviously, business plans will consist of a lot of different things covering many areas, but it all boils down to two things
1. A niche store (Niche = You only want to sell a specific type/line of product(s), example if your niche is digital cameras, your store would only sell cameras, camera bags, camera lenses, camera memory cards, camera tripods, camera batteries and other camera related products)
2. A mega store (Mega Store = you want to get as many products out there for sale as you can, covering as many product categories as possible)
Niches are a great way of selling, but like anything else they have a good and a bad side.
Easier to Build because you have more familiarity with the products you are selling
Easier to Market because you will be focusing your campaigns only on your niche
More in touch with your customer base
May limit your income
This is a great business plan, especially if you have above average knowledge of the products associated with your niche market, the only real downfall is if you don't have it up for sale you aren't going to make any money on it. So, if your niche market is for car electronics, then you probably won't be selling any kitchen blenders which means won't be making any profit on blenders. However, there is an upside. Usually when you go into a niche market, this means you are picking a product line that you probably have familiarity with, making you a better source for your customers to go to when they have questions about car electronics (or whatever your niche is). This is going to give you a big sales advantage over a mega store, meaning you will probably sell a lot more car electronics than a mega store would simply because of your knowledge and information you will be able to provide.
When you pick a niche market, having a website is vital, having a niche on a marketplace (ebay, amazon etc), tends to lose its edge simply because most of the time, your customers found you from a search they did for a specific product type they were looking for, not because you specialize in your niche. When you have a website, most of the time your customers will be coming directly to you based off of your niche, and the information you would be able to provide for that niche. This also means you are going to get high quality traffic, since most all traffic going to your website is probably ready to buy or getting close to buying something you probably have for sale.
The best thing you can do for a niche site, is to never stop writing and adding new content pages. Talk about your products and product lines, and the differences between them. Talk about new technologies coming out. You want to be a complete source of information for all things related to your niche. Every new page of information you add, will bring in a new batch of customers.
Finally, always keep up with the new trends in your niche, and never stop adding new products/services that relate to your niche. Even though you probably won't be adding kitchen blenders if your niche is car electronics, the following still remains true. The more products you add/offer, the higher your sales will climb. The more you do for your business that allows you to offer better service to your customers, the better as a business that you will do. This is true for all businesses regardless of the niche you choose. Most of the time your customers will pay a higher price for your products simply because they feel you will be able to help them, and provide products/services to accomplish the goal your customer is trying to reach.
A mega store, is about the complete opposite of a Niche store in terms of the good and the bad and the approach you take. As for the marketing side of things, it will be more difficult, but you can find information that will help in our Marketing section which you will get to in a later step. Right now, I want to go over more of the details about a Mega Store, so you can choose which direction you think you will be more suitable for. A mega store approach is great, if your goal is to get as many sales as possible. Yes, it is true, the more products you list, the more sales you will get. The mega store approach is perfect if you are selling on marketplace(s) (eBay, Amazon etc), however a website can be very profitable if done correctly (we will go over this in the Marketing section in a later step).
The best thing you can do for a mega store, is to never stop adding new products and new promotions (we will go over this later in the Promotions step), There is always ways to expand your business and make it better. This method requires less work in some areas and more in others, But if you want to be a one stop shop that can meet the needs of most of your customers, this is the way to go.
We get in a lot of new arrivals every single day, with every batch of new arrivals there will always be a number of products that are going to sell really well and quickly. So we recommend that you get new arrivals on regularly.
This is the part where I am going to go over our current SKU codes, how to find them on your Multiverse Pro tool, how to find them on our website and what they mean. This will help you find the products you want to sell. You will notice that all of our skus will start with 3 or 4 letters followed by a hyphen (example EVTK-). This will help you find specific skus that you would like to find. On your Multiverse Tool you will go to Catalog>Manage Products and look for the column named SKU, in the search blank for this column you will type in the sku code and then click search. On our website www.novatechwholesale.com just type the sku code into our search box to view all related items.
Our SKU Codes
BTB- There are roughly 4000 in stock BTB- skus. This sku code consists of all brand-new clothing and accessories, you will find these items will move quickly at times and slow at others. But for the most part you will get sales year-round with these skus. We do have members that have all these skus listed and they send 1-5 orders daily. There are usually thousands of new arrivals added monthly, so it is a good idea to stay on top of adding new arrivals if you sell this sku code.
CTG- There are roughly 160 in stock CTG- skus. This sku code consists of brand new and a few refurbished consumer electronics, and business products. There are some items that are really priced to sell, and other items are priced a little on the high side, but you will get some orders from this sku code. If you are going to list these, I would recommend to list all CTG skus to see the best results. There are only a few new arrivals added a month, however, most of the skus available will not run out of stock, and if they do, it would be a short time before more are available unless the item is discontinued.
CWR- There are roughly 18,000 in stock CWR- skus. This sku code consists of all Brand new and less than 1% refurbished marine, camping, outdoor, rv type products. These skus start selling strong about a month before Memorial Day all the way up to Labor Day. They will sell the rest of the year too, but sales will be the strongest between those times. During peak season, you can expect 10-30 orders daily with all skus listed, and off peak it will drop to 5-20 with all skus listed. 99% of the products in this sku will be available all the time until the item has been discontinued, so even if something runs out of stock, it is usually back in stock within a short amount of time. A lot of these products have to follow MAP price, but that is good since you will be the same price as your competition on many of these products. There is a very low return ratio on these, less than a half of a percent.
EVTK- There are roughly 1400 in stock EVTK- skus. This sku consists on a mix of brand new and refurbished computers and accessories and consumer electronics as well as liquidation and closeout items. This is probably our biggest selling sku code as the prices are very reasonable and there is room for a profit to be made on the marketplaces. With the 1400 items listed you will generally see 4-6 sales daily. These skus sell year-round. The downfall is most of the items are one-time deals, so once the available qty is gone, usually we won't get more. However, this sku code receives a lot of new arrivals every single day. These skus have about a 5% return ratio, the upside is you will make decent money with the products.
JBO- There are roughly 6000 in stock JBO- skus. This sku code consists of mainly collectible knives, swords and hunting gear. Some items are priced well and will sell, but this is one of our slower moving products, however, in the late fall and winter months these skus seem to sell the best. You can get sales all year round, but usually not as much as some of our other sku codes. However, with these skus, most of the items stay in stock until an item is discontinued, and if an item runs out of stock, usually we get more rather quickly. The return ratio is very low, less than a half of a percent.
MEGA- There are about 1600 in stock MEGA- skus. This sku code consists of consumer electronics, toys, collectibles and home & garden type products. There are a few refurbished items, but most everything is brand new and sealed. These products do well year-round, but really crank up around the holiday season. Most of the year you can expect 1-5 sales daily with all these skus listed, during peak times, you will see 5-15 sales daily. There is a very low return ratio on these products. Prices are decent, there is definitely room for profit. We highly recommend these products.
MNA- There are about 16,000 in stock MNA- skus. This sku code consists of sporting goods, hunting, fishing and similar type categories. Everything is brand new and sealed. Our customers selling this sku code do very well. With everything listed, you can expect to see 10-15 sales daily. These products sell all year long, but during the summer you will see a spike in sales to 20-30 sales daily. We highly recommend these skus, as we have seen a lot of success from our other members that are selling these items. There are a lot of new arrivals daily with this sku code. There is a very low return ratio on these items.
MPC- There are about 1600 in stock MPC- skus. This sku code consists of a fairly even assortment of brand new, new open box and refurbished consumer electronics, computers and accessories along with business grade products. These products do well all year round, and there is decent profit to be made. You can expect to see 3-5 sales daily with all skus listed. There are a lot of new arrivals coming in daily. The return rate is about 3%, but the products are priced competitively with room for profit.
PET- There are about 8500 in stock PET- skus. This sku code consists of mainly brand-new products, but there are a handful of Class A refurbished consumer electronics, home & garden, automotive electronics and collectibles. The prices are probably about mid-range, so with everything listed you can expect to see 5-10 sales daily year round, with a noticeable spike around the holiday season. The return rate is very low at less than a half of a percent.
RKW- There are roughly 3000 in stock RKW- skus. This sku code consists of all brand new phone cases and phone accessories. This sku code does very well for our customers, they are all cheap items with free shipping, with all skus listed you can expect to get between 10-30 sales daily. The return rate is very low at less than a half of a percent. Even though the items are cheap, the volume of sales will allow for decent profit.
TFL- There are about 6000 in stock TFL- skus. This sku code consists of a mixture of brand new, new open box and refurbished computers and accessories and consumer electronics. This sku code does well for our customers, with everything listed you will get between 5-10 orders daily. The prices are decent on most of the products, so there is definitely room for profit. The return rate is actually low considering there are new open box and refurbished items, the return rate is less than 1%. We highly recommend listing all of these skus to get the most out of it.