It is believed that opening an online store is much easier than a similar offline point. However, despite the smaller amount of investments and a quick payback, this business has its own subtleties and peculiarities. Usually the decision to open an online store is accompanied by the choice of a niche. This is often one of the most important and difficult tasks at the very beginning of the journey. The problem is that many would-be entrepreneurs remain at this stage without taking the next step. Therefore, we want to give some tips that are useful in choosing a niche in which you could start your entrepreneurial activity.
Start choosing a niche with the simplest, decide what you would like to do. Take a break from calculating profit for a second. What brings you pleasure and what are you good at? Take a piece of paper and write down 10 niches that you like and have some knowledge of. Even the craziest ideas have a place to be, the main thing is to look at them from the right angle. At this stage, it is important to generate an idea that will be interesting to you and in demand by customers. Perhaps you want to deal with children's products or keep your customers in good shape with healthy food, the main thing is to carry an idea that will be the foundation for a big business that benefits customers and you profit. You can overcome all difficulties only if you truly love what you do. However, focusing solely on your interests and knowledge is not enough. You can be a good beekeeper, but if no one wants honey, you will never sell it. Therefore, after selecting niche listings, check them for viability through detailed analysis.
An extremely important step in choosing a niche is an analysis of the demand in the product market. Before opening an online store, it is important to know if there is a demand for the product you will be selling. What is the best way to study demand? For this, Yandex Wordstat tools and Google Adwords. Enter in the search query that matches your product and the region in which you intend to sell it. Currently, everyone uses search engines for online shopping, their statistics allow you to understand how much the product is in demand. If your product is searched by very few people, it may simply not be of interest to buyers. On the other hand, if there are a lot of results, you will face a lot of competition. Another useful tool for checking product relevance - Google Trends. It allows you to analyze the demand for goods and identify seasonal fluctuations. In the screenshot below, we see that the query “dog food” has a relatively stable trend: This means that the product is quite popular and is in demand among buyers. At the request “Buy a hat”, we notice how seasonality affects the purchase of this product: We see how the popularity of the product increases starting from September, i.e. with the onset of cold weather. This product can be called seasonal and can be expected to be sold only during the cold season. Check the products of the niche you intend to sell in. Perhaps there are some nuances that should be taken into account. We recommend paying attention to the trend development chart, it should grow upwards. There are growing trends in any stable niches. It can be a new brand of cosmetics, goods from other countries, toys, etc. Usually these are rather narrow niches. Thanks to the analysis of the relevance of the product, you will have an idea of the demand for the niche in which you want to create a business.
Are there competitors in your niche? It's a bad sign if they don't. This may mean that the niche, as such, does not exist. To study a niche, it is important to study your potential competitors and their products on the market. Find out what products your competitors sell and how they sell them. Perhaps they use contextual advertising, SEO promotion, or effectively maintain customer loyalty through social networks and e-mail newsletters. Analyze which channels will be more effective for promoting your product and what investments you need to make in order to start buying your product. Also pay attention to the quality of service of competitors, perhaps they have shortcomings that you can take into account when developing your business. To do this, try ordering goods from your competitors. Mark what problems you encountered, what confused you and what you should focus on when creating your online store. You can sell the same product as your competitors, but stand out from their background with better service or favorable conditions (for example, free shipping, free call to measure, gift with purchase). Check for customer reviews of products similar to yours. If they are positive, then the product is in demand and already loved by customers. If the reviews are negative, please note what can be changed or improved in order to correct the situation. It will also be useful to know how many of your main competitors are in the market. Thanks to the whois-service.ru service, you can easily find out. To do this, drive in the domain of interest and look at the information in the “created” field: If the site has been working for a long time, it means that it sells enough products and has already established itself in the market. Study the work of your potential competitors in the selected niches, this will help you make a further choice and provide a lot of information for further creating an online store.
To create a powerful Internet business, it is important to find reliable suppliers with favorable conditions. Try to analyze their conditions before creating a store. This will save you from further difficulties and help in choosing the most profitable niche. Start by looking for suppliers. Are they easy to find? Are there many vendors in the niche you are analyzing? A large number of suppliers indicates the demand for goods. If there are difficulties in the search, it may be worth re-analyzing the demand for products. Next, you should request prices, this will allow you to study the fluctuations in the wholesale cost. To do this, select a few of the most popular products (you can borrow them from online stores of representatives of the chosen niche) and compare retail prices with wholesale ones. With a normal level of market competition, there should be an optimal difference that will become your profit. Calculate your main expenses and estimate marginal profit. Based on these figures, one can easily conclude that the analyzed market niche is promising.
Who will you be selling to? Each niche has its own target audience. It is very important to know everything about your potential client. The more information you have, the more accurately you will be able to form a market offer. What criteria is important to know about the client?
Criteria such as age and gender can be roughly analyzed at your request using the service from Mail.ru. For example, we enter the query “buy headphones”: We see that for this query, the main audience of buyers is men aged 26-34 and 35-49, as well as women aged 35-49. This is a paying audience. It’s better not to choose niches with an insolvent audience, this can be considered an audience under 18 years old.
So how do you choose an internet business niche? Formulate your interests and knowledge into several niche options, analyze demand, competitors and supplier prices. Based on the information received, make a choice and evaluate your capabilities. We wish you good luck with your choice! Author: Manko Karina, Content Marketing Specialist Read also:
Leave your contacts and we will contact you shortly
What do you wish to find?
Your application has been accepted.
We will contact you soon!