Why Commodity Products Have No Place in Direct Sales

At $187 billion in 2021, global direct sales continue to grow. Direct sales also remain a popular method of distributing new products within the health, beauty, and wellness sectors.

Unfortunately, remarketing commodity products within the direct sales industry is not as effective. Based on our years of experience as one of the best product development companies, we know commodity products have no place in direct sales. Read on to learn why!

What are Commodity Products?

Let’s first define what a commodity product is. At their core, these are products that are readily mass-produced because they are easy to replicate and widely available. Commodity products can be found in a grocery store or big box store or even a gas station.

Common examples in health and beauty include basic skincare products, generic supplements, or questionable medical devices without the fundamental research and planning to deliver on their promises.

Challenges of Selling Commodity Products

It is always easier to obtain a supply of cheap commodity products because they are available in such abundance. The challenge of using these products is the market is already saturated. Resellers and other retailers are offering incredible deals and promises to push these products, but the profit margins tend to be relatively low.

The direct sales model is the opposite. Ideally products are superior because they offer features and benefits that have been proven to boost the overall quality and marketability of the item. These features and benefits allow you to build long-term business success.

Focusing on Direct Sales Product Development

At Zeta Technology Group, we are a research and development firm focused primarily on creating innovative products that are unique in the market. We are a product development firm that brings real value to potential consumers.

We not only differentiate the client’s new product, but motivate sales representatives because commissions are higher due to better profit margins, marketing, and features. It is much easier to sell something directly addressing target customers’ unique needs rather than a commodified overproduced product.

When a client presents an idea to be developed and created through our product manufacturing company, we provide the benefit of building long-term relationships with clients. With a unique product that is differentiated from a commodity product, customers will repeat their purchases and refer friends to these brands because they offer higher quality and value.

Our professional and experienced team at Zeta Technology Group believes that direct sales should be reserved for products that offer innovative, unique, and real value to customers. We specialize in developing products based on industry leading research, technology, and cutting-edge strategies that allow our clients to stand out from the rest of the competition.

Conclusion

Commodity products have their place. Everyone needs a quick tube of lip balm or a pain-relieving pill now and then. However, these items do not belong in an industry committed to innovation and high-value features like direct sales.

If you are interested in learning more about how our product development company navigates the design, creation, manufacturing, and development process of high value direct sales items, please reach out and schedule a consultation. We look forward to building something new to help you carve out a substantial and long-term niche market for your product.