I am going to follow the training offered for free at StoreCoach.com about how to open a successful ecommerce store. I’m going to use my website to make notes about it in the hopes that it will help someone else make money online with an ecommerce store.
Chapter 1 – Finding a Winning Micro-Niche
3 Main Factors for determining whether to go after a niche or not:
Your niche has to pass these 3 factors to be considered. If it fails even 1, move onto the next possibility.
1. Seasonality – long seasonality is ok, like summer stuff (pools, camping, etc), but not 1 week or 1 month seasonality like Halloween costumes.
2. Local Availability – if there’s a good, wide selection locally then it’s not a good niche. The local stores like Walmart can have some products, but a lot of choices at local stores means you should skip this niche.
3. Average Order Profit – average order size should be $80-$100. Ideally we want profit to be $50-$150 per order which means the order size needs to be $200+
Imagine having 3 or 4 stores that are each making $3-$5k/month each.
Smaller Factors to Consider
1. Catalog size – smaller is actually better. It takes a lot more work to maintain a store with hundreds of products. Look for 1-150 products. Shy away from a technical type of product that will take a lot of hand-holding with your customers.
2. Intent to buy – is the visitor looking to buy something or just looking for info?
2. Shipping – how hard is it to ship?
3. Fragility – how likely is it to break during shipping?
4. Touchy/Feely product – is it something that a customer will most likely want to see or touch in person so they might be disappointed when they receive it?
5. Target Audience – stay away from teenager products
6. Legal issues – stay away from grey area products that may be illegal in some states
They don’t look at the percent they make compared to the cost of the product. They only look at how much they can make per sale and target $100-$150 profit per order processed.
Make a List of Your Interests
Brainstorm ideas and use their Keyword Tool to determine good niches to go after. Sit down for 15 minutes and write down your interests, hobbies, sports. Just make a list of 10-12 topics, don’t worry about the market aspects of it at this stage.
We build our stores around a specific keyword phrase that gets a lot of searches and doesn’t have a lot of competition. Use the Store Coach Keyword Tool (which is also provided free) to determine how many searches keywords get each day.
Keyphrases that have a bold green number of searches are good candidates as long as they meet all the other criteria for a good niche.
Market Opportunity Score
The MOS tells you how strong the online competition is. The higher the score, the easier it’ll be to rank for your keyword (niche). The MOS is based on how hard it will be to outrank the current top 10 Google results. The MOS takes into account several factors and very quickly gives you the information that used to take them hours to come up with.
Chapter 2 – Finding a Supplier(s) for your Store
Introduction to Find a Supplier for Your Store
The Store Coach system is based on dropshipping. You may have heard that drop shipping is a scam, but they have created 40 ecommerce sites that use drop shipping.
Introduction to Brand Names
We need to find out what the top brands are within the niche or if the brand is already in the key phrase, we only want to carry that one brand.