Selling Products Online: Product Sourcing & Selection Guide

Finding the right product to sell is the single most important decision you'll make as an online store owner. A great product makes everything easier — marketing, sales, customer retention. Here's how to find yours.

Step 1: Generate Product Ideas

Look at What's Trending

Use Google Trends, Amazon Best Sellers, and Etsy Trending to spot what people are buying. Look for products that have been growing steadily for 6+ months, not overnight fads.

Solve a Problem You Have

The best products often come from personal frustration. Is there something you wish existed? Something that would make your life easier?

Follow Your Passion

Your hobbies and interests are goldmines for product ideas. If you love hiking, you understand hikers' needs better than any data analyst.

Step 2: Validate Your Product Idea

Before ordering inventory, validate demand:

Step 3: Choose Your Sourcing Model

✅ Dropshipping

  • No inventory to hold
  • Low startup cost
  • Test products risk-free
  • Lower margins (15-30%)
  • Less control over shipping

📦 Holding Inventory

  • Higher margins (40-60%)
  • Complete quality control
  • Faster shipping times
  • Upfront capital needed
  • Storage space required

Step 4: Find Reliable Suppliers

For Dropshipping

For Bulk Orders

Step 5: Price Your Products

A simple pricing formula: Retail = Cost × 3 (keystone pricing)

Example: If your product costs $10, sell it for $29.99. This gives you room for marketing costs, transaction fees, shipping, and profit.

💡 Pro Tip: Start with 3-5 products, not 50. Launch small, see what sells, then expand. Successful stores often make 80% of their revenue from 20% of their products.