You most probably have heard of the quote that says, “follow your guts!” However, I must disagree: I think that it’s dangerous tips that may lead entrepreneurs astray.
This is particularly true in regards to picking a niche product to market online. Your lifelong love of Star Wars figurines does not indicate it is a fantastic market to construct your new e-commerce shop around—sorry, Skywalker. If a booming business is your target, you need to follow a systematic strategy and decide on a market with characteristics are conducive to internet success.
Within this brief guide, I will discuss six strategies that will assist you to find a market and sell them to the market. I will also demonstrate how you can decide if there is enough demand for your goods, and provide you with a couple of tools to gauge the competitive pressures in these regions.
6 ways to Locate a niche product to market
As you’re brainstorming a variety of markets and product options, there is plenty of facts to take into account. Listed below are 6 strategies that will assist you to find a product to market.
1. Accessory-heavy markets
Advertisers seldom make much on big-ticket things and will just earn perhaps 5 to 10 percent on products such as a sofa or TVs. Where they actually make their money would be on the accessories.
Accessories enjoy substantial markups and clients are not as price-sensitive concerning them. A purchaser might shop for months, scouring numerous different online shopping system to find the very best bargain on a TV, but would not think twice about dropping $30 in an HDMI cable in the exact same location. Yet there is a fantastic possibility the business made almost as much gain over the cable because it did on the flatscreen.
When you select a market with a lot of accessories, you will then enjoy considerably greater profit margins and fewer price-sensitive shoppers.
It is wonderful just how much cash passionate amateurs will invest. Mountain bikers will buy countless lightweight accessories to shave a couple pounds, and enthusiastic fishermen will spend thousands of dollars in ships and associated accessories. If you sell big industrial machinery, make sure that you include smaller items such as welded wire mesh, that supports the bigger products.
Furthermore, if you’re able to provide a product-based remedy to a debilitating issue, you will discover a captive audience ready to purchase.
3. The 100 to 200 dollar range
I have discovered this cost range is an e-commerce “sweet spot.” It is big enough to create adequate average purchase value and per-order gain, but cheap enough — by using a quality, educational site — that many clients won’t have to speak with somebody before the purchase.
As you grow bigger, having the ability to generate the majority of your requests online provides enormous efficiency savings versus a phone-heavy strategy. But if you are selling products which cost $500 or more, many clients will need personal customer support integrated into the website design, prior to pulling out their credit cards.
4. Difficult to find locally
If you wanted garden gear, you would probably head down to a regional Home Depot or Lowe’s. However, where could you go to purchase surveillance equipment or magicians’ accessories? Likely online. Pick niche products which are difficult to find locally, and you will have the ability to get in the front of the huge majority of your clients as they search on the internet.
As you want something hard to supply locally, you also will need to ensure there is ample demand for your item! This is sometimes a fine line to walk, and we are going to go back to the problem from the contest section below.
5. Low merchandise turnover
If your product line is continually changing year to year, then you are going to wind up spending precious time on resources which will soon be obsolete. Promoting a product lineup with restricted turnover ensures that you can put money into an information-rich site which will be feasible for several years. The industrial industry is especially notorious for the longevity of each product lines. Welded mesh suppliers do not have to worry that its product would become out of trend within a year, much unlike fashion merchandise suppliers.
6. Consumable or disposable goods
Repeat clients are crucial to any company, and it is considerably easier to sell to existing clients who have already built trust in you. If your merchandise has to be re-ordered on a regular basis–and you are ready to keep your clients happy–you’ll be on your way to creating a profitable company with great earnings.
Locating a fantastic product is just part of this equation. A market fitting all of the above criteria are a bad option in the face of insufficient demand or devastating competition. Knowing a product’s demand, competition and providers will be significant in creating an educated choice.
Is there a need for niche products?
Among the greatest methods to quantify online need is using a keyword study, which supplies data on the number of men and women are looking for a particular term. If you are unfamiliar with the notion, I would strongly recommend seeing this movie on how to perform keyword research:
It is important to be aware that you need to search for keywords with tons of “long-tail” versions. If we had been selling sunglasses, “prescription sunglasses” and “reduction Oakley sunglasses” are examples of extended variations. These are important since your main keyword (“shades,” in this case) will just supply a tiny percentage of your visitors. In spite of a #1 position in Google, you’re going to be blessed to get 30 percent of this term’s traffic.
Practically, most e-commerce websites will get 80 to 90 percent of visitors from long-tail keyword phrases. So the more extended variations connected with the main keyword, the greater the potential traffic you can create. As a guideline, I love to view at least 3,000 exact-match regional searches for a market’s primary keyword and a dozen or so long-term variations. Without adequate search quantity, I will not even bother assessing a market on other standards. Also, because you will be using your tech a lot, make sure to invest in quality cloud computing services to optimize your data.
Can your merchandise compete in the industry?
You will want to weigh the market requirement against the potency of these entrenched competitors. Keywords such as”scented candles” and “infant clothing” will have a lot of searches but competing against legions of established companies in these markets could be quite difficult, particularly for a new business enterprise.
To quantify competitive pressures, I suggest looking in the three metrics to the top 10 companies listed in Google to your specialty.
Inbound links: by means of a website like Open Site Explorer, it is possible to see how a number of different domain names are connected into the contest. Top opponents in almost any market worth entering will probably possess at least a couple hundred inbound links, also this should not frighten you away. However, if every company has up to 1,000 inbound links, you will want to seriously look at the dedication needed to compete.
PageRank: All links are not created equal, and PageRank is a metric which takes into consideration the quality of inbound links. Additionally, it is a representation of just how much authority a webpage has. Homepages with PageRanks of 4 and 3 are rather standard and will probably be the minimum point of entry for many viable markets. Attempting to outrank websites with PageRank of 5 or greater will need more work and also a search engine optimization campaign devoted to getting backlinks.
Quality of website: This metric could be the most significant of the three. Read the competition’s sites and ask yourself: “How likely would I be to buy from this website?”
If the majority of the companies have badly constructed websites with very little info, you have a chance to compete. But when the market is flush with professionally designed websites adding plenty of value, you are likely to have difficulty identifying your website.
The best way to supply profitable market solutions
Having reliable and capable suppliers is an essential element of establishing a new e-commerce shop and has to become an integral factor in the market selection procedure.
This is particularly true of the things you will be drop shipping, as the provider will be doubling as your own warehouse and fulfillment service. A lousy supplier will result in an infinite supply of annoyance from botched imports to out-of-stock products. What’s more, good providers usually have in-built IT managed services, so it is easy to keep track of your products during the process.
I strongly recommend having at least 2 providers to get any new e-commerce store. Why is this?
- You are not 100% reliant on a single provider;
- Greater satisfaction prices and fewer out-of-stock problems using two warehouses;
- Better pricing when providers are competing for your company.
Wait! Passion remains crucial.
The grand show: I was not being entirely serious when I cautioned against following your enthusiasm. Doing something you are passionate about is vital to achieving success. The mistake newest e-commerce marketers often make is focusing their fire on the merchandise they market rather than the practice of building a flourishing, profitable business enterprise.
It isn’t important if you sell dentures or diapers; if you have built a successful e-commerce company around a fantastic market product, I guarantee you will become enthusiastic about it.