Consumable Business Ideas that Work

In business, the best customers are repeat customers. This is one of the reasons why fast-moving consumer goods (FMCG) businesses are rapidly growing in Australia and around the world. Selling consumable products online has never been easier, or more popular when it comes to small business ideas. Australia is ranked at number 10 on the list of the most active e-commerce nations, with the value of the country’s e-commerce market expected to exceed AU $33 billion by 2020. The consumer goods retail sector is worth $169 billion annually and is growing.

What exactly are consumable products?

Consumable products are goods that are sold quickly and at a relatively low price. Typically, a consumable product needs to be re-ordered on a regular basis, making it easier to obtain repeat sales. Examples of consumable products include non-durable goods such as packaged foods, beverages, toiletries, household products and can include low-cost electronic items that are disposable. Consumable products are often described as fast-moving as the items are quick to leave the supermarket or virtual shelves. They tend to be sold in high volumes but at a low cost.

What consumable small business ideas work best?

The key to successful consumable businesses is understanding the niche you are filling, as well as the product’s demand, competition, and suppliers. Since profit margins are typically lower for consumable products, higher sales volumes are necessary for these kinds of businesses. This requires a reliable supply chain for delivery and dedicated marketing efforts to continually drive sales and prompt reordering.

Consumable Business Ideas

One of the best ways of identifying new consumable business ideas is to speak to professionals who deal with businesses and entrepreneurs every day. Trusted accountants, financial advisers, and small business superannuation experts can not only advise on business ideas but can help you put systems and processes in place to help ensure you are successful. Here are a few ideas to get you started.

Box subscription services

A great strategy for consumable products is to build reordering into your business model via subscriptions. Box subscription services deliver consumable products to a customer’s door on a set schedule. Whether it’s a weekly, fortnightly or monthly schedule, it means the customer doesn’t have to worry about reordering, and the business owner has the recurring income they can rely on. Having subscribers can also cut down on marketing and administrative costs. The beauty of box subscription services is that the only limit to the kinds of products you can sell is your imagination. Some of the most popular box subscription services include: ●Beauty and fashion for womenrn●Grooming and fashion for menrn●Book clubsrn●Kids games and activitiesrn●Household Goodsrn●Foodrn●Beverages. Within the above categories, you can also drill down and focus on specific products. Some niche consumable products businesses have gone as far as selling underwear subscription services, and even kitty litter.

Non-subscription Consumable Products

Not all products lend themselves to being sold via a subscription model. You may also prefer to just sell individual products, as and when needed. Again, you don’t need to restrict yourself with what products you want to sell. Some businesses even manufacture or create the products themselves. In any case, here are some ideas for consumable products that you may not have thought of. ●Tissues – This is a product almost everyone uses and has an ongoing need for. They are also lightweight, especially pocket-sized tissues packs, meaning freight costs are low. ●Wet wipes – Any parent or carer of a baby or small child is likely to have these on hand at all times. There are also facial wet wipes and freshener wet wipes that are also highly popular. ●Hair accessories – Hair bands and bobby pins are one of those items that you can never seem to find when you need them. They are easily misplaced or can wear out, making them a popular consumable product. One of the most important things to consider when dealing with consumable products, especially perishable items such as food and beverages, is what regulations you need to follow in terms of storage, importing and exporting. Chat with the small business superannuation experts for guidance. This article has been prepared by a third party, on behalf of NSF Nominees Pty Limited (ABN 29 053 228 667 AFSL 253129), trustee of Nationwide Superannuation Fund (Nationwide Super) (ABN 15 201 768 813), for information purposes only. It does not take into account your objectives, financial situation or needs. You should consider whether it is appropriate for your individual circumstances. As at the time of compilation, the information in this article is correct, and any estimates, opinions, conclusions or recommendations are reasonably held or made. The information contained in this article should not be used or relied upon as a substitute for professional advice. To the maximum extent permitted by law, NSF Nominees Pty Limited and third parties disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this article.