Have you ever wondered if you should sell trending products as a new seller on e-commerce marketplaces? Well, you've come to the right place!
Selling trending products can be tempting for new sellers. After all, they are hot-selling items that everyone seems to be buying. However, there are pros and cons to selling trending products that every new e-commerce seller needs to consider.
In this beginner's guide, we will explain in simple terms:
- What are trending products
- The pros of selling trending products
- The cons of selling trending products
- Tips for new sellers on selling trending products
So let's get started!
What Are Trending Products?
Trending products are products that are popular and selling very well during a certain period of time.
For example, fidget spinners were super hot trending products a few years ago. Everyone wanted one! But now, not so much.
Trending products can be driven by:
- Viral social media challenges or videos
- New product releases (like a new iPhone model)
- Seasonal events like Christmas, Halloween, etc.
Some examples of current trending products are:
- Pop it fidget toys
- Squishmallows plush toys
- Ring lights for video calls and livestreaming
So in short, trending products are "hot sellers" that get a sudden boost in demand and sales due to external factors like viral trends or seasonal events. The demand usually dies down after some time.
The Pros of Selling Trending Products
Here are some advantages of selling trending products as a new e-commerce seller:
1. Easy to identify bestselling products
As a new seller, finding winning products to sell can be tricky. But with trending items, the guesswork is done for you!
The viral nature and hype surrounding trending products make demand and sales spikes very obvious. So you know exactly which products are selling like hot cakes.
2. Buyers actively searching for trending items
When a product is trending, many buyers flock to e-commerce sites to get their hands on it. They actively search for related keywords.
So you can easily tap into this surge in search volume and buyer demand rather than try to create it from scratch. More eyes on your listings automatically!
3. Don't need to educate buyers
Often, establishing a new product requires lots of marketing and educating buyers about it.
But with trending items, buyers are already familiar with the product and want it badly. No need for educating buyers!
4. Low competition at the start
At the start of a new trend, there are few sellers offering the trending product. Competition is low as not everyone has reacted yet.
By jumping in early, you can dominate the search rankings before other sellers saturate the market. This lets you win sales more easily.
5. Quickly test product viability
Selling trending products is a chance to quickly test if a type of product sells well for your e-commerce store.
The hype and mania surrounding trends removes a lot of business variables. So you get clear feedback on the product's sales viability.
6. Opportunity for brand awareness
Lastly, selling hot trending products puts your e-commerce store on buyers' radar. They will remember you when the next trend comes along or for future purchases.
It's a chance to make buyers aware of your brand even as a new seller!
The Cons of Selling Trending Products
However, there are also disadvantages to consider:
1. Very temporary demand
Trending product demand usually dies out quite fast. It could be just weeks or months before sales dry up.
Unless you plan your inventory and cashflow well, you could be left with lots of unsold stock. Getting stuck with unsellable products can badly hurt a new e-commerce business.
2. Higher competition as trend progresses
As a trend takes off, more and more sellers will jump on board. Soon you'll be fighting for sales with hundreds of other sellers.
Established sellers with more reviews and resources may outcompete you. So make the most of the early low competition period!
3. Hard to restock quickly
Viral trends are unpredictable. Often, suppliers and factories cannot keep up with the sudden explosion in orders.
You may face stock shortages, delays in manufacturing, and higher prices. This makes it hard to restock quickly and continue raking in sales.
4. Trends are unpredictable
It's impossible to predict which products will become the next viral trend. Lightning seldom strikes the same place twice also.
Relying on ephemeral trends is ultimately an unreliable business strategy especially for new sellers. Consistent long-term product viability is safer.
5. Lower profit margins
The huge demand for trending products attracts many sellers. This intense competition can cut profit margins very thin.
After factoring in ads spend and shipping costs, profits may be too low for a sustainable business. Pay attention to profitability, not just sales numbers.
Tips for New Sellers on Selling Trending Products
If you decide to sell trending products as a new e-commerce seller, here are some tips:
1. Do market research
Study Google Trends, e-commerce marketplace trends, and social media buzz to identify rising trending products early. Act fast before competition explodes.
2. Source from multiple suppliers
Secure multiple suppliers and channels for restocking the trending product. Do not rely on a single source that can suddenly dry up.
3. Start with small inventory
Given the temporary life cycle, only order a small inventory to test sales viability first. Don't overcommit on large stocks that may become obsolete inventory.
- Price competitively
Make sure to price competitively and have wiggle room to adjust prices later. Avoid getting stuck with the most expensive listings.
4. Promote aggressively
Create eye-catching listings and use aggressive advertising. Strike while demand is hot to maximize sales before it cools off.
5. Cash out fast
Withdraw and reinvest revenue quickly back into your business. Don't leave profits sitting idle while the trend is still peaking.
6. Plan exit strategy
Know when to drop the product once sales slow down. Don't get emotionally attached to trending products and their temporary appeal.
Wrapping Up: Assess Your E-Commerce Goals
So in summary
Selling trending products offers new sellers quick sales, low initial competition, and testing product viability fast. But depending solely on ephemeral trends is risky long term due to unpredictable demand, low margins, and sudden spikes in competition. Carefully consider if selling trending products aligns with your e-commerce business goals and strengths. A balanced approach may be ideal. I hope this beginner's guide has given you clarity on whether new sellers like you should sell trending products! Let me know if you have any other questions.
Good luck and here's to your e-commerce success!