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7 Things to Know When Developing and Selling a New Product

Whether you’re a startup business marketing a new line of products or an online company looking to introduce new merchandise, there are special considerations to take into account before any product hits the market. Business owners must do their due diligence before attempting to make any sale, otherwise they losing to the competition or being engaged in a lawsuit. Before you sell anything, here are a few things you should know:

1. Check Legal Parameters

Whenever you sell a product, you must check for any legal stipulations. A copyright, for example, might stand in the way of you creating a product, because someone else has already developed it. There are often ways to work around these copyrights, but you’ll need the help of an attorney to navigate the legalities safely.

2. Do Market Research

There’s no way to successfully sell a product if you don’t know your target audience. Every company that sells a successful product begins by researching the market and determining a need. A major part of doing market research is ensuring that the product you create will be used and valued among customers. If it doesn’t solve some kind of problem, it won’t get very far in terms of sales and popularity.

3. Consider Shifting the Market

Always remember that the condition of the market isn’t set in stone. It can shift depending on what products come in. You can make the market shift in your favor through marketing tactics that make consumers realize they need what you have to offer. For example, millions of consumers said they had no interest in shifting to digital tech, but now they can’t live without it.

4. Know Your Competition

Who else is selling products like yours? When you have a product online, the competition is fierce. Find out what your competitors are selling, what prices they’ve set, and how you can outsell them. You must determine what you’ll do to make your product more appealing than your competitors – whether that’s somehow lowering the price, marketing it in a different way, or focusing on brand recognition.

5. Write Product Policies

It’s much better to figure out the rules of making a sale before you market the product than to approach the problem after. You’ll want to consider policies such as returns and exchanges, as well as billing codes. You won’t be able to cover every base in the beginning, since other issues are bound to arise later, but you can cover some of the common scenarios with your policies and fill in the gaps as you go.

6. Select Your Distribution Channels

These channels should offer you the quickest access to customers, whether on level of price or location. The cheaper you can have your products made and shipped, the better prices you can offer your customers to remain competitive and turn a profit. If you can get in with larger retailers, you’ll have a much easier time selling product.

7. Lower Costs

Remaining competitive in general means lowering costs as much as possible. This requires using the right manufacturers to develop products in bulk, forging contracts with retailers, and reducing overhead with your own online shop and marketing efforts. The more product you sell, the more you’ll be able to lower your company overhead and increase your profits.