What are some great niche products for YouTube?

One of the hardest facts to realize is that a Niche is a Unique, specialized segment of a market. This makes it low competition and allows the seller to make a larger profit margin on the items in the niche. Once anyone announces a popular niche, especially on a public forum like Quora, it is no longer a niche. New sellers will jump in to take advantage of unique marketing and selling opportunities and the extra competition drawn to the niche usually results in fierce price competition.

Take the time to do your in-depth research and use your product knowledge to find that special niche you are looking for. YouTube videos offer a very special and unique way to advertise and market. Look for products that have a special “magic” or visual appeal and opportunities to create fun, in use videos. You may only be selling a common item like shoes or other similar items but try and create some buzz. Show real people using the product in real yet creative ways. If you get lucky and have a video go viral, sit back and enjoy the ride.

How do customers choose whether to purchase an item from you instead of from Alibaba when the price is cheaper?

Why should someone buy from your website instead of direct from a trading company on Alibaba? Let me count the ways.

  1. Convenience- Companies on Alibaba sell mostly in larger quantities. On your website, possible you sell one piece at a time.
  2. Shoppers experience- Ability to combine an order and buy multiple items at the same time. Your website may also be easier to shop from.
  3. Location- Your company may be located in the same time zone or at least similar time zones so customer service may actually be conducted in real time or at least more convenient times for you as a customer.
  4. Trust and professional image= The quality and professionalism of your website will make a big difference in the level of trust a customer places with you. They can see by your address and contact details where you are located and how to contact you in the case of a problem. If your website is done correctly your potential customer should see that you are an “expert” in the products you are selling. FAQ, installation or usage tips and tricks, customer testimonials, etc.
  5. Shipping methods- You may be able to offer more speed based delivery service options than a Chinese supplier.
  6. Delivery Times- Shipping from China can take 4 to 6 weeks or more depending on the product, inventory levels, and shipping method used. You may be able to offer next day delivery or other quicker methods.
  7. Payment methods available- Customers may be more comfortable using credit cards with your company, rather than sending secure data to an unknown company in a foreign country.
  8. Customer service- Have a question or a problem? With a local company website you can pick up the phone or even send a text and expect fairly rapid solutions to your problem. Or, get up in the middle of the night to call an Alibaba supplier who may or may not be able to communicate easily in English. They all will tell you, “Yes I speak English”, but the level of understanding may be difficult.
  9. Return policy- Did you ever try to return something to a Chinese supplier? Getting return authorization may be difficult, cost to ship back high, and don’t even think about trying to get a refund for any customs duties you may have paid.

Remember, when you talk about buying from Alibaba you are not really buying from Alibaba at all. You are buying from a third party vendor using Alibaba to list and market their items.

Keep in mind that price is not always the only consideration shoppers use to justify a purchase. If the price is the only consideration you are worried about, and it doesn’t matter about the speed of delivery, possible returns, trust or scam potential, and little details like those, then go ahead and buy based on the lowest price available.

Buyer beware!

What are the downsides of drop shipping?

Drop shipping is an easy way to get involved with e-commerce. No need to have a warehouse, no need to carry inventory, no need to package and ship orders. How much easier can it get?

Despite all of the pluses, drop shipping does have a big downside.

Here are some of the downsides:

  1. Price- you pay for the convenience of having someone else handle inventory and service, and often you pay a heavy premium for that convenience. Suppliers add a markup to the cost of packing materials, they will add a markup to shipping costs, and often they will markup their labor costs. After all, nothing is free.
  2. Information- Your drop ship supplier must keep you informed about inventory levels and any price changes. If you are selling on Amazon, eBay, or other similar sales platforms and you cancel too many orders because of a back order situation from your supplier, your service ranking will be affected and if your metrics drop too low your selling account may be suspended or even cancelled.
  3. Convenience- The number one reason to use drop shipping is also its biggest downside. Drop shipping makes it easy for just about anyone to enter the market. This easy entry results in massive competition since sellers don’t need any investment to start a business.This massive competition often results in sellers competing on price only. Profits suffer for everyone
  4. Control- When you drop ship you give up control of all of your order handling.  How do you ensure your orders will be shipped quickly?  How do you ensure good quality? How will your supplier handle problems or returns when they occur?  You have to find trustworthy suppliers.  That is a difficult thing to do.  Some suppliers will be excellent, some just good, and some totally terrible.  You have to hope you have made the correct choice.
  5. Your effort and involvement- Again, drop shipping is a good way to get started but it is not as easy as a lot of the companies trying to sell you tutorials or drop shipping services would like you to believe.It is not passive income.  It is not a low effort way to do business.  You have to pay attention and actually put a lot of effort into the business to succeed. You have to process orders.  You have to provide customer service and answer questions. You have to communicate with your customers about shipping, tracking numbers, possible service issues and more.  You also have to keep aware of your competition and monitor prices, monitor new items, and make sure nothing is happening to disrupt your market.

How Do You Convince A Customer To Buy From You Instead Of Your Competition?

To convince a customer to buy from you instead of from someone else, you offer them something of value that your competition does not offer. This is one of the hardest tasks many business owners face. How do you convince someone to buy from you instead of any of your competitors?

  • Offer better, quicker order processing and shipping service.
  • Offer better technical support and sales training for your products.
  • Offer quantity pricing incentives for a higher volume of sales.
  • In a worst case scenario, offer a lower price than your competition if you can afford it. If you can only compete on price, you will probably not be very successful since your competition can also cut prices to keep their current customers from moving to you.

How can you prevent liability when selling online?

You really can’t prevent liability, you can only lessen your exposure. If someone or something is injured or damaged using your products. People, especially in the USA can sue anyone for anything. Often cases are dismissed or “Thrown Out” by the court as frivolous, but you may still have to pay legal fees to defend yourself. While not being able to prevent liability, there are ways to lessen your exposure.

  • The best that you can do to avoid or at least reduce liability is to select your suppliers carefully. Make sure they are manufacturing quality products and are using proper quality testing. Verify that they comply with all necessary safety regulations in your country. Examples of risky products would be anything electrical (think battery packs and battery chargers on Hoverboards for a recent example), anything that replaces an OEM part on a vehicle,, (think brake parts, tires, wheels, brake lights, headlights, etc.,) batteries on rechargeable products, (think about Samsung phones), food, medicines, and nutritional supplements, cosmetics, children’s clothing, and the list can go on and on. Make sure your supplier can provide copies of this compliance to regulations just in case you need them.
  • In addition to carefully checking quality, see if your suppliers carry product liability insurance and ask that you be covered on their policies for your protection. You will need to consult with an attorney or insurance agent that specialises in Product Liability since it is a very complicated area, especially if you import products.
  • Look into carrying your own product liability insurance, especially if you are selling something that may fall into a “ high risk” category.
  • Handle all customer complaints promptly and to the customer’s satisfaction. Sometimes just the simple act of acknowledging the problem and correcting it is sometimes enough to avoid legal action or additional problems. Some customers simply like to know you care about their issues and are willing to work with them to correct a problem.

As I mentioned earlier, Product Liability is a complicated issue and you must consult with a qualified attorney or insurance agent to get the best, most accurate advice. Proper advice may save you from a lot of financial problems for both your business and you personally in the future.