1 Learn the concept
Market research is the first and most important step in building an e-commerce business. Many online stores fail not because of poor marketing but because nobody wanted the product. Research helps you find out whether people want what you plan to sell, who your competitors are and what price the market will accept before you spend money on stock. This lesson covers tools and strategies for testing an idea quickly and cheaply.
2 See it in action
- Demand: search trends and keyword tools show how many people look for the product.
- Competition: study what rivals sell, how they price and what customers complain about.
- Customers: talk to potential buyers and read reviews to find unmet needs.
- Margin: check that after costs there is enough profit left.
Worked example
Validating a water bottle idea
Idea: a leak-proof reusable bottle.
Research: many sellers, but reviews of the top five bottles repeatedly mention leaking lids.
Margin check: cost $6, shipping $3, selling price $24 leaves $15 before ads and fees.
Test: a simple landing page and a small ad budget to see whether people join a waiting list.
Decision rule: if at least 3 percent of visitors sign up, order a small first batch.
3 Study an example
Example scenario
Someone wants to sell reusable water bottles. Research shows many sellers but frequent complaints about leaking lids. She decides to focus on a leak-proof design and tests interest with a simple landing page before ordering stock.
4 Apply it and download
- Write your product idea and who it is for.
- Gather data on demand, competition and margin.
- Score the idea with the product validation scorecard.
Worksheet Product validation scorecardOpen, print or save as PDF