When it comes to Shopify, most of the articles you can see online are about how to use product selection tools, e-commerce platforms, Facebook and Google Trends, etc.
The first thing you need to do is to clarify your shop's positioning and category planning, and then select products under a clear category plan. For the selection of products, we need to consider several major contents; market space, profit space, and compliance.
Selecting revenue = market space * profit margin * compliance = (degree of demand / competition) * ((selling price - procurement / logistics / operation and other costs) * (1 - commission - tax rate)) * (no infringement * legal * compliance)
Different positioning and category planning will require consideration of the above revenue formula, but there will be a different bias when considering a specific factor.
For example, some big sellers with strong supply chains mainly tap into categories with high demand, so that even if there is a lot of competition they can still crush small and medium sellers with their supply chain advantages; while many small and medium sellers will choose niche markets with less competition and not as much demand to do differentiation. Shops will select high-demand items in the whole category to make a breakthrough, while boutiques will select trending items with similar functions and styles.
【Source text: by report】
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