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What Is A Niche?

Simply put, a niche is a distinct product or market segment in eCommerce that is often overlooked by other players. Entrepreneurs that are able to spot and take advantage of a niche stand a chance in building a successful, long-term business, thanks to the readily available market.

Examples Of Market Niche

It will help if you understand what is a market niche before delving deeper into how to find a market niche. This is simply a unique segment of a larger market with particular needs, identities, as well as preferences. Examples include:

  • Health and wellness products, especially if they are 100% organic;
  • Pet and animal products;
  • The gaming sector;
  • The travel industry.

Examples Of Niche Products

Niche products in the eCommerce industry are trending items that often offer improvements to the already existing categories. Typically, consumers are likely interested in them but no one has made a compelling offering. Examples of these products include:

  • Beard oil — beard oil is a new trend and players who jump onto it as early as now stand a chance of building a reputation before other businesses infiltrate the niche.
  • Cannabidiol (CBD) for pets — CBD has been around for a while as a trending niche. However, branching out to offer products that cater to pets makes CBD a super niche worth paying attention to.
  • Vegan beauty products and makeup — consumers are always looking out for alternative cosmetics that are 100% organic. This niche product has long-term potential.

How To Find A Profitable Niche?

There are various niche industries that businesses can explore and build a loyal customer base for long-term success. But how do you go around it? Here are some tips that will help you pick a niche for your business.

  • Research the Internet to find current trends, based on what consumers are searching for;
  • Explore products and markets that you are genuinely passionate about;
  • Find what consumers are mostly in need of, especially in low-competition markets;
  • Talk to an expert.

Benefits Of Finding A Niche In eCommerce Business

Now that you already know what is a niche and how to find a profitable niche, it will help if you understand the importance of this field. There are various business benefits of finding a product or market niche, regardless of the industry in question, including:

  • Better and higher-priced inventory;
  • An opportunity to build a loyal consumer base;
  • Lower advertisement costs due to low competition;
  • Niche products are unique and stand out in the industry.

Frequently Asked Questions About Niche

What are the most beneficial niches in eCommerce?

The eCommerce industry’s most prevalent yet beneficial niches include CBD (cannabidiol), pet products, health and wellness, and eco-friendly cosmetics.

Are niches still in trend in eCommerce?

Niche products are still in trend in eCommerce and there is no sign of them slowing down, especially after the pandemic which saw many consumers prefer to buy online.

Should I create own product or resell other manufacturer's products?

Although it’s acceptable and even profitable to resell other manufacturers’ products, creating your own sound like a good plan, especially if you want to have explicit control of the supply chains.

How to find customers for a niche product?

You can find niche customers in the following steps:

  • Identify your niche and the problem to be solved;
  • Offer to solve the consumer’s problems;
  • Present the product for trial;
  • Get consumer feedback;
  • Improve the product continuously to lock in returning customers.

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