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How can i do a market research for my ecommerce product. The product not yet created.

How to find, there is a demand for a product and the market size of that particular product

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10 answers

AJU

FIRST DO THE SEGMENTATION OF MARKET THEN EXPLORE THE TASTE OF THE PARTICULAR SOCIETY IF YOU DO NOT TO TAKE A PRIMARY OR SECONDARY DATA YOU GO THROUGH THE CONSUMER TASTE BY DIRECT QUESTIONS TO THEM TAKE A ROUTE OF ENTRY LEVEL E COMMERCE PRODUCT ONLINE THEN YOU YOU CONCENTRATE ON YOUR WORK FOR MARKET PENETRATION OF YOUR PRODUCTS.

BEST OF LUCK FOR YOUR FUTURE PLANS

DR. AMIT KUMAR KHARE

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Aju,

Without knowing the industry and product here are a few different general approaches:

i) For established product categories there is often fairly accurate market data available from the likes of Nielsen and other research companies. It can get quite expensive unfortunately but for a well funded start-up it is an option.

ii) Looking at turnover of potential direct competitors could give an indication of the market size; for a consumer goods market for example the top 3 brands/companies tend to account for 80-90% of the market.

iii) If no similar product exists in the marketplace currently then the answer will be more volatile. In a sense the current demand then is 0 and it will be up to your company to build that demand, and your success in doing so will determine the market potential. That said, most likely your product will replace some other solution to accomplish the same task, a substitute. Try to look at the market size of the substitute product then factoring in if your product will add more value (thus be sold for more), or if it will accomplish the task more effectively (thus save money for all parties).

iv) Taking a bottoms up approach, estimating what share of the population would be in the market for it (the segmentation suggested above) and how much they would spend on it. The error margin here will be very significant but stay conservative and it should be an okay indicator at least.

v) Using data on search volumes and visitor numbers for specific sites can give you another indicator of demand. It will be hard to extrapolate an exact market size from this but at the very least you will be able to glean the general magnitude (e.g. 10% of population is searching for X), as well as if demand is growing or decreasing.

By combining a few of the approaches above you can hopefully triangulate market size further and identify if one method is incorrectly giving a very different answer to the rest.

Hope it helps!

Best, Jacob

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JOSHUA ASARE,

You have posted an advertisement with a link to a profit making web site.

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Hi Aju,

Without knowing more about the product, I think there are still some general steps that may apply. One of the first steps in sizing a market is defining it. What exactly does your product do? What needs does it address? Who are the customers that would likely buy this? How many of those customers exist? How are you generating value through this product?

Surveys, interviews, and existing market reports are all great sources to get more information on an existing or future market and to help get you data to answer some of the questions above.

One caution on determining the size of an opportunity that does not exist yet: make sure to assess customers' willingness to pay. Often in researching new product ideas, customers will indicate they are interested or love the idea, but they may not be willing to pay for it, which can make the market opportunity seem larger than it really is.

Hope that helps and best of luck! Sarah

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Your profile states you are in the food products and grocery business and that:

"We source the raw spices from the farmers. Grind & Blend the raw spices based on customer order/subscription. Local chef blend spices. Sends them directly to consumers. – to get the freshness"

We in the Q&A community can only surmise that your eCommerce product will relate to the above industry and involve either the product itself or a related marketing and delivery service.

Your best approach is a marketing plan for the potential idea(s) you have that you wish to to validate.

Give your start up idea the following test:

  1. Do you have a product or service niche in mind?

  2. Do you believe you have a market for 1 above and the means to reach it?

  3. Are you willing to develop a business plan using the FREE tool kit linked below to validate 1 and 2 above before you launch?

If the answer to the above questions is yes than take the actions indicated, observe the results, then make an informed decision on whether or not to proceed.

https://www.sba.gov/business-guide/plan-your-business/write-your-business-plan

When you launch if your plan risk analysis indicates high early challenges, phase into them gradually while retaining your present employment. As the business matures and your risks are mitigated, cut over to full time and resign your old position when you are comfortable doing so.

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Hi,

In this case there are two things, the product is an eCommerce (online) product and the product is not developed yet.

The step wise approach that i would have taken in that case would be as below

1) If there is no similar product in the market , then market study the complimentary products, consumer trend and its market size and demand. this will help give you insight of consumer acceptance in future for your product . And the methodology to do the research could be either secondary or primary (surveys may be) But if there are similar products available , you should do a deep dive into the category , consumer and competition.

2) After the research is done, soft launch your product to see the relevance in the market . Try not to be extravagant in your launch and invest on heavy marketing.

3) After a month of soft launch, get your numbers in place and then take a sensible step to proceed on the final launch .

Ps. Only research on your product demand and market size might not help you in all your decision . Look with a 360 degree approach.

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