What is an Ecommerce Niche?
An ecommerce niche is a distinct segment within any given market and often an area that is overlooked by other businesses. Examples of niches include handmade items, pet food or pet owners, trendy t-shirts, eco-friendly products, beauty products, gadgets, or other trending products. By narrowing down how you look at a market, you are able to find areas and sections that haven’t been tapped into.
When you find these niches you can build a business that has a good chance of succeeding — you aren’t necessarily going to be going up against the big boys, and you can find and profit from the areas that others have neglected.
5 Benefits of Finding a Niche For Your Online Business
So what are the benefits of finding a niche that others haven’t capitalized on?
As with any business, you need to do your due diligence and make sure that you are going to be able to make a profit from it.
Here are some of the best reasons to start selling in a niche market.
1. Lower costs of advertising.
Since you have a smaller amount of people that would be interested in your product, you don’t need to try to advertise to everyone. I would always recommend that you start with Google Adwords, but you may find that there are other paid advertising opportunities depending on what niche product you are selling. Both Facebook and Pinterest are good alternatives and (depending on the product) you won’t have to spend a lot of money to achieve a great ROI.
2. Attract a more loyal customer base.
Anything from vegan dog chews to hemp backpacks have loyal customer bases, especially since they’re niche. It’s often the more specific and niche a company/product is, the more loyal customers will be to buying from them exclusively.
Plus, from a marketing perspective, you can easily partner with influencers who serve the niche you are targeting. This helps drive traffic to your online store, while adding authenticity and credibility to the specific product you are marketing.
3. Stand out in your category.
Niche products tend to be specific and can be different than most standard products within a category.
Not only will your potential customers know this when they come across it — they are more likely to tell others about your product. Being different and standing out can help impact old fashioned word-of-mouth and customers sharing your products on social media platforms.
4. Be part of successful trends.
Trends rise and fall, but some can carry on into the mainstream.
If your niche product follows along the wave of a trend, it could attract a lot of potential customers.
It is essential here to make sure that your niche product is part of a trend that has an upwards trajectory.
5. Higher-priced inventory.
Since niche products aren’t usually mass-produced, they tend to be limited and will cost more. This means that you can be a higher-cost option for some. People are willing to pay that little bit more for products that they can’t generally get their hands on and when they can rest assured their receiving a high-quality ecommerce product.
