5 Profitable Strategies For Choosing An E-commerce Niche


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A business’s success is not dependent on having a large budget or access to advanced technology. The key to success is in eCommerce niches. Why?

We live in a highly competitive environment. It is difficult to find a niche that is profitable, especially with the rapid growth of eCommerce and other online sellers.

This post discusses the “eCommerce niche”. It will provide a step-by–step guide to help you find your niche market and how it can support your business’s growth.

Let’s get started!

What is an eCommerce niche?

Before we get into the why and how of getting a niche for your business, let’s first define what “niche”.

An eCommerce niche is a market where you are able to sell a particular product type and have a distinct differentiator. Your market will become more niche-specific the more detailed you can make your customer personas.

We will help you find the perfect niche for your eCommerce business if you are still confused by “niches”.

Profitable eCommerce niches offer many benefits

It is possible to be unfair to compare a regular or new business to e-commerce giants like Amazon, Walmart, eBay or Amazon in terms of “niches.” This is because they both sell a wide range of products to a large customer base.

You must start with these 2 things if you want to follow Amazon or Walmart’s path.

  • A well-respected brand name that has a strong reputation
  • Strong financial support or enormous resources

Or, you can find a niche that interests you and then develop it. This is the best way to get in the game.

A niche is a smart strategic business decision that small businesses can make. You can serve a specific customer base better than your competition (from small-sized sellers to eCommerce giants), if you target a larger market.

It is a good idea to start with a highly-sought-after product in a niche.

  • You can reduce inventory and storage costs by selling a limited number of product types, rather than hundreds SKUs
  • Increased visibility due to fewer competitors
  • You can spend less and be more cost-effective: Because you are limited to a specific niche (a person or a need), there is less work than if you were to target a large market.

Three Steps to Find an eCommerce Niche

It is important to identify a niche when starting a business .

It’s a mistake to choose a market that is too saturated. This niche is a sure way to fail.

Let’s not waste money or time on niches that don’t work after launch. Let’s get to the first stage. Find a need, and then solve it.

1. Find a need

Clear thinking about the central role of customers

Two central concepts of modern marketing are essential for any business’s success.

  • Customers perceptions
  • Customers expectations

Combining these 2 factors is what will determine the value proposition. A business must have these two elements in order to succeed. Whatever niche you choose, ensure that your business ideas are specific to the needs of your customers.

Customers only want a product that solves their problems. If there are any differences between the real and promoted products, you will have a negative impression of a company.

Inspiration comes from your unique connections and self-interests

To find the ideal niche, you must first think of yourself as a customer. You are the best person to understand you.

Why not start with what you are passionate about? You can see the value in connecting with customers and identify pain points by thinking like a buyer. This is a great starting point for potential eCommerce niches.

Ask yourself if you have a hobby or personal interest.

  • Which products are best for you?
  • What are your current pain points in relation to the niche that you work in?
  • You are a buyer, enthusiast or expert in a particular field and you want to solve your problem.

Keyword research

Once you have compiled a list of potential ideas, you can verify them by doing some Internet research. Also, you can do keyword research. The Internet can be a great resource for finding out information.

Your ideas’ viability (the need) is determined by whether people are actively searching for the products you plan to sell. 

  • Trends: If you don’t know which niche you want to join, research the interests of others through the Internet.
  • The digital age has changed the search habits and the way people shop online. Data is key to marketing success in the age of cutting-edge technology.

With tools like SEMRush, Google Trends and Ahrefs you can quickly find out what people are looking for. This task can be done with many tools, both free and paid.

Four resources for conducting research on the consumer’s interest:

  • Major search engines: Google is the most used search engine, with almost 5 billion searches per day
  • Peruse forums: For instance, Quora
  • Influencers from the niche share different product reviews

Research on competition

You should also investigate the interest of your niche customers. Next, check whether your market is over-populated.

To be able to compete in a niche, you need as many competitors as possible (who sell similar products as you). It’s almost impossible to find a niche that is unique with no competitors, so you are the leader.

It is not necessarily a negative thing to have competitors in your niche. Sometimes it can be a sign that you have found a profitable niche. You can learn 2 things from competitor analysis.

  • Your desired market has high or low competition. What is the likelihood of a niche with an unmet need?
  • If so, what products and services are you able to offer that others don’t? Is the solution unique and different from the existing ones?

You can also identify the strengths and weaknesses of your competitors and plan and implement strategies to enhance your competitive advantage.

All your ideas can be mapped on paper

You can organize your thoughts in a mindmap if you have a specific vision of a niche you are able to jump into. You can visualize your thoughts better, expand on ideas, simplify complicated situations, and by doing this, you will be able to make them more simple.

It is possible to start with a broad market and then narrow it down to specific fields. You can, for example, divide a category of body care products into three groups: lotion, scrub, or soap. Each product can be further broken down to suit your needs.

You can draw your mindmap on paper, or you can use free online tools like Coggle, SimpleMind and Text2MindMap.

Based on data from potential markets, you should have a number of options to choose from for your eCommerce niches that offer viable products. Next, answer four questions to determine the profitability and potential of each option.

  • Is there any market for your business in this niche?
  • What is the unmet need of your target market’s audience?
  • Do you have a solution?
  • Is this a viable solution?

2. Specify your ideal eCommerce niche

Find the best solutions for your niche customers.

After much research and consideration, you may make a decision on the best or most desirable selections. Then, it is time to evaluate each possibility.

You can answer the following questions about each selection:

  • Who are you targeting with your message?
  • Who are your target markets?
  • What are their biggest pain points? What are their pain points?
  • Which competitors are in your niche?
  • What are the problems with the solutions of your competitors?(their missing features that customers don’t like)
  • Are there products that can satisfy unsatisfied desires and surpass other competitors?
  • Is your solution feasible for practical implementation?

The last question will be about how distribution and fulfillment relate to your product sources. If you cannot ship the products or deliver them without profit, a niche is useless.

These questions will help you determine your final eCommerce niche as well as your solutions (products and services).

Explore new eCommerce niches to expand your options

Five primary factors are typically used to define a niche. These include:

  • Price range: Define the price range of your solution (marketed goods or services). It should be in the luxury, premium or affordable category
  • Demographics: Who is your solution targeting? Their detailed personas like gender, age and income level.
  • Psychographics: These are their concerns and interests that can be used to define their pain points and other marketing activities in future
  • Geographics: What your target market is focusing on. This could be a country, a city or an area.
  • Quality of the product: How high is your product/service quality?

These criteria will give you a clear idea of the niche that you are looking for.

Try your idea

You now have enough information to select the right niche. The last step is to put your idea into action before the launch.

For pre-sales, you can create a simple website or a landing page. You can then drive traffic to the page by using:

  • Paid advertising (to see immediate results)
  • SEO techniques (via an optimized content system targeting your niche).

You can test your idea in a very short time period to determine if it is flawed. It could be due to the chosen niche, an unsuitable target audience or ineffective content.

3. Take a look at these eCommerce giants.

A handful of eCommerce giants dominate the online shopping landscape. It’s not unusual to hear the names Amazon, eBay and Walmart. It is not exaggerated to say they are the winners in global eCommerce.

Although it may seem impossible to join such an elite group (almost impossible), there are still a few things you can learn from their methods of operating, targeting customers and selling products.

Here are some suggestions for top eCommerce niches

These niches are worth your investment based on the most searched keywords of today.

It’s possible to still find a lucrative niche in eCommerce despite the dominance by big brands.

Products that are environmentally friendly

We are seeing an increase in complexity of consumers’ needs. Businesses’ products must not only solve customers’ core problems (its core functionality), but also meet their expectations for added value.

Because people are more concerned about the environment, it is possible to create competitive advantages and stand out from the crowd by using environmentally-friendly criteria.

Popular items such as:

  • Natural products
  • Reusable products
  • Products made without plastic

WooBamboo, for example, offers bamboo toothbrushes. This is a well-known brand that focuses on environmental protection.

Products that are minimalist

Surprisingly products with minimalist designs (such watches, jewelry, and clothes) have seen a slow increase in sales over the last few years.

When a lot of people are interested in the minimalist lifestyle, this trend will boom. This presents a huge opportunity for eCommerce sellers.

Instead of following the latest fashion trends, you might consider going minimalist for your jewelry, homeware and fashion.

Muji is a brand you have just heard of that is well-known in this industry for its timeless and minimalist designs.

Space organizing products

Many people are interested in organization helpers, but they are often overlooked by eCommerce sellers.

These products are designed to satisfy the basic needs of users, not generate impulse purchases. There are many things you will need to look for, such as wall shelves, DIY simple shelving or storage units in all shapes and sizes.

These products can be used to organize your home or workspace. Products that reduce work and improve living spaces are always appreciated by people.

Open Space – A home organization brand that offers amazing organization tools (stylish yet useful), such as wire baskets, entry racks and underbed storage bins.

You might also like these ideas to fuel your inspiration

These are just a few other ideas to help you think of high-demand niches in eCommerce today.

  • Skincare products and cosmetics for men
  • Wellbeing and nutrition
  • Home exercise equipment
  • Smart home devices
  • Natural and organic pet care products

Turn your passion into action

It is not something anyone wants to do. It’s possible to be a niche leader and stay ahead of the copycat brands.

Keep in mind that niche marketing is the same regardless of which route you take. This is about finding niche markets that are small or unexplored and where you can be the dominant player, a game-changer.

Higher risk investments are associated with higher returns. You must be ready to get on the ground.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.