Too often, people go with the obvious. Say, you sell jewelry online. The keywords "jewelry" or "bracelet" will make very poor choices for keywords precisely because they're so common. Unless you're a huge multinational corporation or just happen to own jewelry.com, you're unlikely to have anyone find you from a search on "jewelry".
To actually benefit, focus on more specific keywords that has less competition AND more relevance to your site. For instance, words like "Rolex watch" or "Tanzanian bracelets" will much more likely generate a better search result with your site listed.
If you want to come up with other good ideas for keywords or maybe even business expansion, the Google Wonder Wheel may be able to help. The Wonder Wheel can be accessed by doing a search and then clicking "Wonder Wheel" under the filter options on the lefthand side. A visual representation of the way that Google groups together keywords is presented to you. This gives you an idea of what else potential customers are searching for that's related to your chosen keywords.
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