Choose Wisely: How To A Pick Profitable Product Line

If you’re like most new online sellers, the problem with selecting the right product line-up for your web site isn’t a lack of choices. The problem is you have so many choices you don’t know how to start narrowing them down. The key, according to Vinnie Busnelli, General Manager for, is to base your product decisions on facts, not emotions.

It’s Not Personal… It’s Business
New sellers often pick products based on immaterial factors, rather than studying the indicators that tell them whether they can make money with an item. Explains Busnelli, “Your Internet business is a real business. If you want to make real money, you have to select your merchandise based on what the market is telling you, not on your personal preferences.” Over the years, he’s developed a few rules for determining the right wares:

• Don’t choose a product just because you personally enjoy it.
Many new e-tailers are more interested in selling products they love, than products that sell well. But you can’t afford to limit yourself to only selling products you’re passionate about. If there’s not enough demand for your product, or if there’s an overabundance of supply, you won’t be able to move your inventory, let alone make any serious money.


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• Don’t choose a product just because you know a lot about it.
In online sales, you don’t need to be extremely knowledgeable about a product to do well with it. Unlike in a physical store, Internet retail doesn’t require you to talk to your customers to sell them an item. Your web site does most of the talking for you, and you can learn about your products as you go.

• Do choose a product based on market research.
You need to know what kind of consumer demand there is for a product, as well as how saturated the supply sector is. Product markets like iPods and PS3s have tremendous demand, but they have at least an equal amount of supply. There’s no room left in those markets to charge competitive prices and still make a profit. For long-term, sustainable profits, you need to look for product markets with a steady, median demand, and enough room for you to establish your corner of the market.

• Do choose a product based on the risk factor.
When determining whether a product is worth carrying, consider the difference between your costs and profits. For example, it’s far less risky to source a watch for $100, and sell it for $200, than to source a $2,400 plasma television set and sell it for $2,600. With the television, your profit is $100 higher, but you stand to lose a lot more if something happens to it. When selecting your wares, the less risk you assume, the better.

Creating the right product line comes down to making smart, informed choices. Do the research, find out where you can do well, and then put that knowledge to good use. States Busnelli, “Choosing the right products is so important to any new business. By basing your sales selections on the bottom line – not on a whim or your own tastes – you’re really positioning your business to succeed.”

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