The statistics of Online eCommerce Stores are sad – more than 60% are closed in the first six months or a year after their opening.
The reasons may be different, but one of them is the wrong choice of a niche. Competently, wisely selected niche, it’s also a field of activity, is the guarantor of the development of the store’s website, increase in visitors, buyers, profits. Therefore, as soon as you have the idea of creating an Online eCommerce Stores, take the time to evaluate and choose your business.
The main subtleties of finding a niche for online business
Why is niche selection so important? Why can not you trust your intuition and start selling those products that are currently popular? First, relying on a popular product category is a dangerous path. Today the product is popular, but not tomorrow. Secondly, it is very difficult to deal with competitors established in the eCommerce market, especially when it comes to products that are relevant at the moment. Remember how many online stores currently sell 7 iPhone models. At the moment, you have a single goal – to find a category of products or goods that are either not intended for the general public (highly specialized goods), or unique. In this niche, you can calmly become a leader over time.
Of course, you should like the product. It’s stupid to rely on trends if you do not like the product you sell. You must be sure of your assortment. To know what you sell, the advantages of products, to be able to handle them in order to become an expert. The description of the product cards, their advertising, and delivery to the client also depend on this.
How to choose a profitable niche for your business?
There are several factors that can help identify the relevance of a niche to the market.
Payback… This is the amount of net profit that you put in your wallet with one piece of the goods sold. It is believed that an amount of fewer than 500 rupees is considered a fairly low rate. Of course, you can get your first 500 thousand in several ways: make 1000 sales or 500. Of course, it’s more interesting to sell less and earn more than the other way around. An exception will be only if the plans to sell goods with a minimum margin in bulk in bulk. In this case, the profit can be very good.
We noticed an interesting fact. The higher the value of a group of goods, the easier it is to sell. For example, a mink coat is sold much faster than a winter jacket with a synthetic winterizer. The thing is that the lower segment of pricing is very competitive. Budget buyers will look for cheaper deals. Those who can afford a luxurious fur coat will not change: I saw, I wanted, I bought it.
Demand analysis for key queries. Be sure to look at the statistics of queries using Yandex, Wordstat, and Google Adwords. If there are more than 15 thousand requests, then the products are in demand, which means that there is a probability of development in this direction. If there are very few requests or they are absent, then:
- Perhaps the product is not presented on the market or the need for it is not formed. No matter how you try, there will be no sales;
- Perhaps the market for this niche is only emerging, and you can become a participant in it.
The second option is possible only if you devote enough time to analysis and have good intuition, you have the makings of an entrepreneur. With this method, you can both become a millionaire and burn to the nines. To avoid this, systematically enter a query and see statistics. If the trend is growing, then there is demand and you can try this niche. What products can it be? Cosmetics, clothes (a certain brand), perfumes, hygiene products are stable groups of goods that are always in demand.
Niche Competition. Remember, competitors in niches should be. If they are not, then the niche is not in demand. An exception may be the competition of the selected niche in the offline business. Then opening an online store is your best decision.
Seasonality Do not bet on seasonal goods (goods dedicated to the holiday or one season). Of course, with earflaps and ski equipment you can earn, but only 2 months a year.
Consumer reaction to a niche. Everything is simple. Type a niche query in the search bar and add the word “forum”. If there is a discussion of the product (it does not matter, in a positive or negative context), then this indicates the emotional sphere of activity. Selling such products will be easier.
The Most Profitable Niches for Online eCommerce Business
The choice of topics for the development of an online store is a specific issue. It all depends on you, desire, opportunities. We can only suggest niches that are popular and profitable.
First of all, these are consumer goods: shoes, clothes, accessories, household chemicals, products for personal hygiene. Next – cosmetics and perfumes. It also makes sense to pay attention to building materials, furniture, dishes, textile products. Those things that we use every day.
But there are niches that are not recommended for the promotion of an online store: electronic equipment. Fighting competitors in this segment is very difficult. If you are attracted to gadgets, then start small, incrementally. For example, if you would like to sell smartphones, then start with accessories for them: covers, monopods, protective glasses, etc.