One of the most important considerations you need to make when deciding to join the ecommerce world through the purchase of an established online store is finding the right niche market.
What is a niche, you might ask? A niche market is a subset of a larger product market—for instance, women’s clothing is a broad market category. However, the niche on sustainable and eco-friendly athletic wear is considered much narrower. In other words, a niche falls into a narrow category of products you’ll be selling to target the specific needs of a certain demographic.
Here are some of the things you need to deeply consider when choosing a niche:
This is a natural start. Choosing an ecommerce business that centers on a niche you are passionate about and genuinely interested in could act as a powerful force that could enable the continuing success of an online business. Many people dream of finding ways to monetize the things that they are passionate about, and working with your passion can provide you with long-term advantages through the ups and downs of business.
If you are passionate about your niche, then the drive to be the best in the industry should come more naturally, giving you the determination to persevere.
Don’t be too Quick to Jump in
Choosing the right niche for you may not be about the hottest category, because everybody is probably on it already. Take note that the most popular niche categories are also teaming with plenty of competition. It’s also not going to be about getting into the widest category imaginable and selling everything under the sun.
Instead, don’t be afraid to look for smaller subsets of the larger category. Narrowing down the category will help you stand out and will lead you to an online business with less competition and a more defined target audience. Less competition will help you get on top of the game to dominate your target market.
The Sustainability of your Niche
One of the most important considerations you have to make in purchasing an ecommerce business is the possible ongoing lifespan of its niche. You need to ask yourself, will this be profitable a year from now? Five years from now?
These are questions you need to ask yourself about the future of your niche because it is also the future of your business. The conclusion here is that you might want to eye a niche and an ecommerce business that has been around for some time with an already established consumer base. It's also important to determine how well a niche and store can “roll with the times” and continue to evolve to stay relevant into the future.
Do Even More Research
Now that we have determined that you can’t just jump into the first over-saturated niche you find or a niche that is a passing fad, it’s time to do even more research. Google Trends is a great and free tool you can use to start scoping the popularity and competition within a niche. It can show you how many people have searched for a certain topic and how the niche has performed over time.
Ideally, your niche should hit the sweet spot by not being too saturated but already has an existing target market. For instance, pet care is widely profitable in ecommerce and an online store selling grain-free pet food for cat owners can be considered a sufficiently narrowed down niche with a potentially large consumer market.
Choosing your niche may seem like a tough choice, but it’s an important one that you’ll have to dedicate some time and research to. It’s a crucial choice where you have to ask yourself what you are passionate and interested in, and if you can monetize it. The niche and online business that you choose should also ideally fit into a narrow category that aligns with the needs of a target market. You shouldn’t also jump into the first profitable niche that you find because you don’t want to be buried underneath your competitors. And lastly, make sure to enter a niche that will stand the test of time so that your ecommerce business can continue to grow into the future.