No matter what you sell, you will have competition. It’s pretty much just part of the deal. Even if you’re working in an obscure niche with only a few sellers, your competition will indeed grow as time goes on. The real key is understanding your competition and your market so you can maximize your profits in your given niche.
Take a look…
Understand The Limits
Every niche has a profit ceiling so to speak, where in some niches you can make hundreds of thousands a month, and even at the peak in a different niche, you may only be able to rack up tens of thousands. Both scenarios are absolutely fine as long as there is profit to be had, but it’s important to understand every niche is different when it comes to the profit ceiling.
Keep your eyes on the prize
The last thing you want to do is have a certain amount of profit in mind, only to find out that your niche doesn’t usually achieve the sort of profit you are going for even on it’s best days. You also have to consider the cost of production for any given product as well, as that will have a direct result on your profit margins.
To put it simply, make sure that whatever product you are selling, you know the ins and outs of that market, and that includes cost of production and what is left over after it is all said and done. Don’t let your reach exceed your grasp, or you may find yourself in a hole, and nobody wants that.
Sizing Up The Other Guys
It doesn’t matter if you are an athlete, a fighter, or just your humble online seller, sizing up the competition is an absolute must. Take a look at the top dogs in your space, and maybe even dig into some subcategories to get a better idea of what THEY are doing, and work to apply that to your own product and listing. Never, under any circumstance copy exactly what they are doing, but by looking into your competition you can glean what might work well for you, and put your own spin on it.
One great way to get a good look at what the other guys are doing, is to do a simple google search for them online. You can even go as far as digging into Facebook, Twitter, and Instagram to get a look at what sort of digital and social marketing they are putting out. In this way, you can get an idea of what campaigns may be successful for your own brand. It may as simple as a Facebook group where the seller actually has discussions with their buyers. Nothing imbues trust quite like showing you care about more than the almighty dollar, and simply taking the time to acknowledge your buyer base in a public forum can do the trick.
Also, if you have the opportunity to subscribe to an email list run by your competitor, do so. See how they treat their people, and you will more than likely find some extra strategies to use for your own brand.
Spread Yourself Around
There are plenty of sellers online, but the ones that gain traction are not relying solely on Amazon to bring in the bacon, and are utilizing social media to get more eyes on their product or service; and as we all know, traffic and positive exposure are the name of the game.
The bottom line is this: if your competition is driving traffic and you’re not, YOUR GONNA LOSE. As harsh as that may be, it’s true. You can have the very best product in the world, but if no one knows it’s there, it might as well not even exist, and if your not careful, it might not.
The data from these sorts of “deeper looks” is absolutely invaluable. gathering ideas is half the battle when it comes to exposure, and if you can, take advantage of what other seller’s actions can tell you. You may be surprised at how little details can make huge differences.
The Importance Of Price Point
Besides looking at your competition, taking into account the overall price point of the niche is always a good idea. You never want to necessarily be the cheapest guy there, but you don’t want to be the most expensive. That is, UNLESS, you’re product demands it. If your product demands it, make sure you are portraying that through your copy, photography, and/or video. Understand, though, that if you are going for a premium price point, you need to pay even closer attention to what you are doing to get eyes on your product. Being the most expensive can be, well, expensive. So always take that into consideration.
You can have the very best product in the world, but if no one knows it’s there, it might as well not even exist, and if your not careful, it might not.
Closing The Deal
No matter what, you will face competition, which is some cases can be daunting, especially if you don’t have the money to invest in marketing like the top competitors do. However, keeping in touch with your buyer base through social media, and even simply posting about your business and responding directly to those that reach out to you can make a profound difference. Keep your eyes on the prize, and even if there are two thousand other folks doing the same, you can still get your piece of the pie by watching, learning, and applying the best tactics for your niche and your product.