The world produces a huge number of products every day, from cars to pet toys. A large number of entrepreneurs sell or try to sell these products online. Out of this multitude of products, how do you identify the ones that will make a profit? One of the most important steps in selecting a product to sell is testing. When you start your journey in e-commerce, you need to test the products you intend to sell. When you're an experienced marketer and you're expanding your business - you also need to test whether the products you want to add to your range will be in demand. Together with Step Link's experts, we looked at how to conduct testing and what conclusions can be drawn from the results.
Stages of testing
For our example, we took one of the most popular traffic sources - Facbook. The testing process can be divided into several stages.
Product selection. Determine for yourself the product, work with which may be promising.
Competitor analysis. Using special services, search for your product or similar products by keyword and see how competitors sell them. Pay attention to price, creatives, effectiveness of advertising campaigns, ways of selling (lending, online shop, messenger or lead form).
Determine your cost of goods. You can test different prices. To improve your offer, you can add a gift to the product.
Test the offer in an advert. It is preferable to test video creative, because it better shows the product in action and its wow-effect (if any). It's harder to convey this in pictures. At the test stage, you can run one group of adverts with a wide coverage of users, the second - taking into account the interests of the audience whose representatives can buy the product (for example, goods for sports will be of interest to fans of a healthy lifestyle). Budget - from $10 to $20 per day.
Results
After 3-4 days you will see whether the product is profitable to sell or not. If you have not received a single lead in a day, then the promotion of this offerer should be switched off. The reason may be in the price, creative, text, the online shop itself. In addition, your offer may be irrelevant at the moment.
If you get leads, but there is no income, then you need to refine the advertising campaign: price, creative, audience, etc. Successful testing can be considered if the number of received leads can provide you with profit. Then scale your adverts and make money.
Let's say you have tested 10 products and realised that 3 of them are in demand. Those are the ones you should pursue. It is not necessary to look for another 100 products, so that the assortment at once was wide. You have brought the first batch of goods to a stable sales volume - start testing the following. Find among them successful - add to your assortment and will promote the same scheme. Over time, you will form an excellent assortment that brings maximum profit.
The tests also help to:
Determine the cost of adverts reach/shows;
calculate how much it costs for users to interact with your adverts;
understand what advertising budget to plan for the next period;
identify the best creative or text for your adverts;
find out which user groups respond better
see which promotional channels are more effective than others.
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