September 24, 2020
One of the best ways to be successful in Ecommerce businesses is to choose the right niche for you. The more narrow your niche, the better your sales will be. A common mistake when starting out in Ecommerce is selling too many items and targeting too broad of an audience. The better you understand your business, your goals, and your audience, the better off you’ll be in the long run.
Niche marketing means targeting a very narrow part of the market based on identifying the needs and wants of your audience. According to the Business Dictionary, it means “Concentrating all marketing efforts on a small but specific and well-defined segment of the population.” It helps you differentiate your brand in an otherwise saturated market and can be the difference between success and failure.
Don’t be afraid to narrow your niche.
The more narrow your focus, the less competition you will have in your Ecommerce store. People love unique items that speak to what they know and love in their everyday lives. It also costs less in ad spend when you market to a targeted audience. Reaching everyone in a larger, more generalized category requires more marketing dollars and generally produces a lower conversion rate. You are also competing with many more businesses.
If you are just getting started, you might be at a loss about how to discover what niche market you want to target.
Some common ways to identify your niche might be:
The best niches are easy to define and pick out of a crowd. Think about the ‘pain points’ of the audience you want to target and how your products address those problems.
Here are our 3 top tips for finding the best niche for your Ecommerce business.
Tip #1: Do your research
After you have a good idea of what niche you want to target, you need to do some research. You can use free online tools like Ubersuggest to do some keyword research. You can also use Google Trends to see what is trending in a certain niche. If you are targeting a specific geographical location, research the area and understand what people are looking for online because they can’t find them locally. Sometimes T-shirts specific to a local audience are difficult to find anywhere but online.
Tip #2: Choose your niche wisely
Choosing too large of a niche can often mean failure for new ecommerce businesses. It’s also important not to focus only on major holidays. Think about how your products will provide value.
Tip #3: Know your competition
Understanding what your competition is already doing is a great way to think about your business. Look at their customers as well. What niches are they targeting? You may be able to find gaps in their marketing and products they are selling that would be a perfect niche for your business. If you think your niche might be too narrow, using a free tool like Google Shopping Insights can help you determine whether or not you are on the right track.
Remember, the key to your success in ecommerce is understanding what you are trying to accomplish and knowing your audience. Spending time doing some research will pay off in the long run. And while you are working hard to find the perfect niche, watch out for these 5 mistakes many new ecommerce businesses make.