Ever wondered about the importance of niche products in online business? If you are looking to start up an e-commerce business, targeting niche products is likely to make you a higher profit. Why do we claim that? Hang on! We will clarify the point ahead. Many entrepreneurs after planning to start up an online business find no clue about how to go ahead with their plans. This mostly happens due to their half-baked plans that are unlikely to bring out positive fruit. One of the shortcomings in their plans is the failure to make the right decision of the products they want to sell.
Before we shed light on niche products, it’s key to pick up what does it mean? Niche products basically imply a group of products from a category targeting a small section of people from a larger market or industry. What does it mean? Let’s understand the term from an example. Take fashion for example. There are plenty of fashion products including dress, watch, sunglasses, jewelry, cosmetics, hair-care products, footwear, and so on. No doubt, fashion is a niche here but it’s a broad niche. If we narrow it down, even dress can be a niche but it will be deemed as a narrow niche. If we narrow it down further, we can make a niche called women’s dress.
E-commerce business has dispersed all over the world in recent years. Especially, with the availability of various e-commerce tools, fulfillment by Amazon, and ease of dropshipping, people got more zealous about online business. But just because people are launching an online business, it doesn’t necessarily mean that they are nailing it. Those who conduct market research, know the demands of people, and operate as per their strength are the ones who get the taste of success. Selling niche products is one of the rights picks to ace your online business.
Let’s present to you some of the strongest reasons why you should go for niche products in preference to generic products.
In a niche market, both the demand and supply of products are limited. When you go for niche products, you are targeting a small section of people. There can be several metrics to target a particular group of people for selling your products including gender, age, area, interest, income, luxury, and many more. This lets you choose a particular product based on your preference, strength, and confidence. At the same time, you are isolating yourself from many of the other businesses. As a result, you are presenting your products to shoppers with a small number of businesses, unlike a mass market. Then, what’s the outcome? Surely, the chances of sales multiply and you put more cash in your pocket.
When you are doing niche marketing, you are limiting your target customers. It automatically slashes your marketing expense. How? In a less-competitive environment, when you publish promotional ads on various social media platforms, it makes a strong impact on gripping the targeted customers. Even picking the keywords for Google ads becomes a piece of cake as well in a low competition. Additionally, if you pick a perfect e-commerce niche, you can rank at the top of the SERP with some basic SEO.
The success of an online business is measured by ROI. The higher the ROI, the greater the success. When it comes to niche marketing, you are investing a small amount of money and time as compared to mass marketing. With less competition, your ads and content are contesting with less number of ads and content posted by your competitors. But at the same time, your reach to your target customers will get easy and smooth. As the effort to put your resources in front of your audience declines, your ROI automatically redoubles.
Plenty of niches are available to choose from for selling products online. But what’s important is to pick a trending niche that will earn you sales and profit. For that, you have to do homework before you proceed to select a lucrative niche.
Let’s put forth some of the core strategies as to how you can trace a profitable niche product.
Before you kick off your online business with a particular niche, it’s very pivotal that you have zeal in that niche. If you don’t have a passion for that niche, how will you carry out the business and flourish? Remember, when you devote yourself to a business, you have to invest time, money, and energy. It’s a big deal! So, you have to be super serious about your attempt. With a lack of passion and seriousness, your confidence will go straight out of the window.
Do a brainstorming and prepare a list of products you are curious about. This will ease the entire process of tracing a perfect niche product.
The biggest mistake that you can make is to go for a niche without carrying out in-depth research. It’s very crucial to know how much a particular product is performing in the market. What’s the taste of the buyers? In which niche, audience spend most of their time and money? Is it a trending niche to earn me sales and profit? On top of that, find out the complaints of shoppers about a particular product. All these are key factors to understand the demand for different products. Now, the question is how can you track these details? For that, scope out the platforms below….
Only tracing the demanding products isn’t sufficient to ace your niche marketing and online business. Competitors matter a lot to determine the success of your business. If you come up with a niche product having a huge demand but you are to compete with some giant e-commerce companies, your business is likely to flop. If certain e-commerce companies are already selling the product and customers are more prone to them, you can’t grip them. If you intend to attract some of their traffic, you have to align with their profiles. Why bother too much? Just look for a demanding niche product without having any giants competing for it with proper research and you are good to go!
How to trace if you can compete with a certain competitor? For that, you have to check the number of backlinks the competitor’s site has. You can do that easily with Open Site Explorer. If you find a number of competitors having 1000+ inbound links on a particular niche, it is better not to go for it. Try for any other niche and generally, if a site has a few hundred backlinks on a particular niche, it’s a good idea to choose that niche and sell your products.
One of the core features that a product must have to generate sales is that it has to be a problem solver. Before you choose a niche, you have to emphasize this factor highly. A product may look gorgeous, innovative, and stylish but if people don’t benefit from it, they aren’t going to buy it, no doubt. Niche marketers know this fact pretty well and keeping it in their mind, they design their niche marketing campaign.
Take QuadLock for example. They found out the pain points of people carrying smartphones and so they came up with mounting accessories for cell phones. They don’t go for aesthetics and innovation rather they focus more on the needs of their customers. They highlight all the ways their mounts can facilitate the lives of the people. As a result, they are nailing their business.
To wrap up, we would like to highlight that launching a new e-commerce business is electric but at the same time scary. You have to make the right decisions to stand any chance of success. One of the utmost important factors that you can’t ignore before starting up a business is your niche. Picking a perfect niche will scale up your chances of success in online business while the wrong selection of niche will trigger the failure of your business.
Follow your passion, focus on the demands, and resolve the pain points of people as discussed above. Finally, get things into perspective keeping these factors in mind, and nail your online business!