When selling products online, eCommerce offers two basic options; commoditized or niche products. Commoditized products are essential and always in need. Niche products serve a specific customer base and product category and can be more profitable as there’s less competition.
It can be challenging to identify the correct type of niche product to sell in a saturated market. Just because you’re passionate about it doesn’t mean you’ll experience an increase in online sales. Let’s take a look at how to determine which niche will be most profitable for you.
There are countless product opportunities all around you. The product or service you offer doesn’t need to be huge or complicated; it must just solve a problem. For example, the eCommerce store, The Grommet, sells various household-related goods that practically solve common household issues.
You can also discover new product opportunities by improving product features (like Steve Jobs did with the iPod), tapping into new markets, and optimizing your online marketing for unique product positioning. If you’re not sure where to begin, you should start by thinking about what issues are prevalent to you and the kinds of products that can solve them.
The wonderful thing about eCommerce is that you can sell products globally. There is no shortage of potential niche products, and online marketing enables companies to target segmented audiences interested in these items.
The challenge is deciding what to sell and knowing there is a market. For example, comic book fans spend $35 on average per month on comics and associated collectibles. Therefore, it’s important to spend time on market research to determine a customer base for the product you want to sell.
According to Statistica, there has been a steady rise in the sale of wireless wearables. Last year it was projected that 230 million units were sold globally. Stocking these products will generate online sales, but when the technology updates, they will eventually become redundant.
While there’s nothing wrong in riding the trend wave, you should think about selling something timeless to ensure sales remain steady or balance out trendier niche products with items that don’t date as easy to maintain consistent revenue.
Do some local market research and find out of there are products that people near you are looking for but can’t find so that you can fill that niche. For example, you might discover an increased need for hygiene and disinfectant products due to the pandemic, or perhaps there is a greater demand for pet or child-care products. Don’t be shy to ask around and find out what types of things people are looking for. If you can fulfill their needs, you’re likely to be in business.
Collectible items and specialized health food products are things that customers can buy over and over again. Finding products that customers will have a continued interest in purchasing doesn’t mean lowering the quality of your goods. Take a look at the rise in second-hand home goods eCommerce stores, for example.
The vintage goods store Casa Shop is a good case study of how smart online marketing can make products more appealing. While it is a niche store as not everyone wants to buy second-hand goods, they know that there will always be a market for those looking for the products they sell. Moreover, the fact that they are second-hand adds to their appeal because they contribute towards the circular economy, which is better for the environment in the long term.
If you’re starting an eCommerce store and need help with website development or digital marketing, we can help. Catapult Revenue has an expert team to guide you every step of the way. As a full-service eCommerce agency, we can suggest the best type of platform and digital marketing strategies you need for your eCommerce business. Call us today at (312) 625-0447 or click here to book a free consultation.
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