How to Find a Niche Market to Foster Your Ecommerce Business
A lot of e-commerce businesses do not want to place themselves in a particular niche because they neither want to be considered as too narrow nor be limited by a particular category.
However, categorizing your e-commerce business and deciding to focus on a particular category is actually a good thing. Although you still have competition, it is not too much since your niche is specialized.
Getting to a niche market is useful, especially if your a budding entrepreneur or a small business owner.
What is a Niche Market?
In a nutshell, a niche market is a part of a larger market. It has its own unique set of needs and challenges, preference, and identity that separates it from the rest of the pack.
When you find a niche that is specifically tailored to your business, then you will have a much better chance of succeeding.
That’s because you are not going up against the biggest players in the market (yet). You can also find a profit from specific areas which are quite neglected.
In this post, we will walk you through the seven ways on how you can find your e-commerce niche:
1. Follow your passion
You can build your brand based on something personal to you, as well to the people within your circle.
If you choose a niche that you’re not passionate about, then it’s harder to sustain things when the going gets tough.
But when you choose a niche that you’re passionate about or willing to fight for, your business will gradually build itself.
When you’re emotionally invested with your brand, you’ll find it easy to have the strength to persevere, and face the challenges of running a business head on!
2. Conduct some keyword research
Now, the next thing that you need to check is how you can rank in your chosen niche.
Don’t venture in an over-saturated market or niche, as you would feel you’re fighting a losing battle from the start. You’ll be placed in a very tight spot fighting head to head with more established online stores.
While it’s still possible that you could compete with them favorably, if you’re a beginner, try to choose a niche that isn’t over-saturated.
Here are some tips:
- Utilize a tool like Ahrefs to search for high domain websites.
- Now, check if you could find low domain sites as well.
- List the keywords that you see from these low domain websites.
- Check their target keywords’ search volume.
- You can also use a tool like Google Keyword Planner.
3. Check out the competition
Run a competitive analysis. You can check Amazon for competing products. The odds will be against your favor if you’re planning to sell a product that’s already on Amazon because competing for the price will always be challenging.
Competition isn’t always a bad thing. But you need to think of ways how you can outrank them.
4. Gauge customer interest
One way to gauge your customer’s interest with your brand is to send marketing emails. There are email marketing platforms that will let you know whether or not they have opened your emails, clicked through it, and converted.
Every single time they do or do not engage with your emails, you get to understand your customers’ interest in your products.
5. Don’t choose a broad audience
When it comes to e-commerce business, it is advisable to start small. So instead of opting to sell tons of sports goods, you might want to focus on selling basketball items.
Going niche allows you to test the waters, which enables you to find ways on how you can have a successful online business.
6. Go for trending niches
Products could easily be depreciated and replaced by something better and more affordable. However, your niche is less likely to disappear.
For example, Apple tends to release a new iPhone iteration every year. However, the smartphone industry remains unfazed. If anything, it keeps on growing to a billion-dollar industry that it is today.
You can utilize tools like Google Trends to check your niche ideas is a constant and ever-growing trend. Don’t simply pick a niche because you think it’s the latest fad.
The niche you choose should have:
- Great market forecast
- Steady customer interest and growth rates
- Search volumes related to the niche
7. Construct a mind map
A mind map is an excellent way to find niches related to your chosen products.
Because mind maps often mimic how the brain thinks, it’s a great and intuitive way to organize thoughts, as well as build and expand on ideas.
Creating a mind map for the products that you put on your e-commerce website is also an excellent way for you to quickly come up with fresh marketing ideas. Not to mention that it encourages you to find ways on how you can expand your offering.
To come up with a simple yet effective mind map, you can use a tool such as Text2MindMap.
8. Sell products that solve a problem
Think about the different solutions that you can offer. Also, what kind of problems can you solve in a particular niche market?
Are you selling car parts that will help repair a vehicle? Do you sell home decor that could help homeowners beautify their homes?
Asking these types of questions will help you better understand which group you belong to.
Just remember that you couldn’t sell to every single person that you meet out there. Focus on your target market first to help you define your specific category or niche.
Over to You
Niche marketing is far too different than regular e-commerce marketing. It requires more specific targeting, and therefore, you need to come up with more specialized content and targeted ads.
Although not everyone is into niche marketing, you can get it right as long as you use the right techniques.
So following the tips we have mentioned above, you can definitely take your brand or business to the next level!