Eight Easy Steps To Find A Profitable Niche For Your Online Business

Find A Profitable Niche
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Last year was full of surprises for everyone. Brick and mortar stores have specifically struggled a lot during a pandemic. Many people have stopped going to physical stores to avoid human contact and prevent the further spread of the deadly virus.

It was (and still) is a challenging time for business owners as they're still clueless about how they can ensure a safe and enjoyable shopping experience for their visitors.

We have also seen many businesses moving from a typical brick-and-mortar business framework to online selling, as according to them, it is the only way to thrive in these unprecedented times.

But starting and running an online business when everybody else is also trying hard to sail the same boat isn't as easy as it may sound.

The competition in an online selling space is massive. So how can you start and run a business online in 2021 that guarantees optimum results and conversions?

While many things go into creating a profitable business in 2021, the first step is to discover several business niche ideas and single out an option that fits your needs.

The process doesn't end here. You may also want to consider implementing the best ecommerce niche marketing practices to get the most of your business.

Sounds challenging? Don't worry, as we have got you covered.

In this article, we're going to describe eight easy-peasy steps to find top ecommerce niches in 2021. After reading this post, we're sure you can start your online business without the risk of putting your hard-earned money at stake.

What Is A Niche?

A niche is an area of expertise that differentiates your business from the rest of the others.

There are hundreds of thousands of niches out there. Businesses that want to play safe usually prefer to go with a broad niche. But if you want to excel in the world of ecommerce and outperform others, you should find business niche ideas that cater to a specific niche market.

A niche can be further classified into several sub-niches. For instance:

Fashion>>Ethnic Fashion>>Plus-size Ethnic Fashion>>Luxury Plus-size Ethnic Fashion

What Is A Niche Market?

Simply put, a niche market is a specialized market segment that caters to the needs of a specific group of users. For example, many businesses sell soaps. But you can easily target a niche market of users who prefer organic products over anything else by selling organic soaps.

Sure, targeting a specific group of users might not sound like a great idea at first. But consumers prefer niche stores when they want to purchase anything specific, especially when there is plenty of money involved.

Take your own example. Whenever you need to purchase any high-ticket product, such as a TV or a Home theatre, you always get in touch with the authorized suppliers instead of approaching a dropshipping store dealing with multiple products at a time.

Benefits Of Targeting A Specific Niche

Benefits Of Targeting A Specific Niche

You must be wondering what other benefits you can get when you choose ecommerce niche marketing for your business. We have created this section to provide you with answers to all your concerns.

It Connects You With A ‘Focused’ Audience

The biggest benefit of ecommerce niche marketing is that it enables you to identify your target audience. When you know who your potential customers are, it becomes easy for you to work on targeted marketing strategies that drive better results.

It also helps you nurture your relationships with your customers at a more personal level, which isn't possible when you're selling thousands of different products in your store.

More Referrals

Businesses targeting any specific niche enjoy brand advocacy and referrals. How? Let us explain. Maintaining relationships with your customers at a personal level brings lots of value to the table.

Doing so will enable you to build a loyal customer base that always looks upon your business for their needs. As a result, you get more referrals from those happy customers that add to your already thriving customer base.

Gives A Clear Direction

Choosing a niche gives you a clear direction about the type of content you must produce for your business. It also reduces the stress that comes with setting up an ecommerce marketing strategy.

When you focus on a single niche, you don't have to try your luck in different marketing efforts.

Remember, it is all about building the right audience. Once you have the right audience, you can keep on adding new stuff to your product range, increasing the amount of cash you can earn from each buyer.

Narrows Down Your Competition

The most obvious benefit of using ecommerce niche marketing is that it helps you gain an edge over your competitors. You can successfully build a repo of an industry expert when you choose a single niche.

Improves Search Engine Visibility

The most obvious benefit of using ecommerce niche marketing is that it helps you gain an edge over your competitors. You can successfully build a repo of an industry expert when you choose a single niche.

Last but not least, Google and other search engines value brands that hold a reputation as industry specialists. That goes without saying that your business gets better visibility on SERPs when a search engine recognizes it as a reliable resource.

At this point, you must have a clear understanding of what ecommerce niche marketing is and why choosing a single niche for your business is a good idea.

But how to find top niches in ecommerce 2021 to make your online business a real success. Keep reading as the next section answers to this and many other similar questions.

Eight Easy Steps To Find A Profitable Niche For Your Online Business

Step 1 - Figure Out Who You Want To Sell?

As they say, ecommerce niches lead to riches. But it's not going to be easy money. As discussed earlier, many things go into setting up a profitable online business.

The first step to finding a profitable business niche is to figure out who you want to sell. Are you looking to target any specific country or region?

The idea is to tap into a niche that has the potential to generate profit for you.

It's critical to analyze trends carefully to determine whether your chosen niche is stable and not seasonal.

Also, it should address the pain points of your target customers.

Step 2 - Use Online Resources To Find A Profitable Ecommerce Niche

Did you know you can easily find the top ecommerce niches in 2021 by leveraging different online resources?

Use Google

A quick Google search is the simplest way to check the viability of a business niche.

Type in the keywords related to your niche and see if there's an established market for your targeted keywords.

Use Keyword Research Tool

You can even use different keyword research tools available online to determine the search volume of your targeted keywords. There is a demand for a specific product if people are searching for it.

Check Social Media Platforms

Yes, social media can also provide you with valuable insights into trending ecommerce niches. Instagram is our favorite platform that enables you to see what hashtags and content are popular. With this information at hand, you can find out how massive the audience for that subject is.

Step 3 - Choose An Ever-Green Niche You’re Most Passionate About

Ecommerce niche marketing is not just about choosing the most profitable niche. It's also about choosing something you're really passionate about.

If you're not really into pets, selling their supplies online might not be a good idea. You got that, right?

Ecommerce niche marketing is a time-consuming process. That's why it's crucial to choose a profitable niche that also reflects your area of expertise.

Google has also started emphasizing E-A-T in website ranking. E-A-T means expertise, authority, and trust. That means your website will rank higher on SERPs when your business encompasses all these three elements.

Step 4 - Gather Data

The next step is to collect data you can use to refine your business strategies. Keywords are obviously the main thing. Remember, choosing the wrong keywords can cost your business a lot - both in terms of traffic generation and conversions.

Many websites can also help you out in the process. For example, there are websites you can use to look for rising trends. There are numerous keyword tools also available that you can use to determine the traffic volume in a specific region or a country.

Step 5 - Conduct Competitor Analysis

At this stage, you must have a clear idea of who your ideal customers are, what niche you're most passionate about, and what your expertise is.

You have also learned how you can gather some data that you can use to your advantage.

What's next?

Yes, you guessed that right. It's time to know about your competitors. Who they are, what keywords they are targeting for their business, and above all, what works best for them.

No, we're not asking you to stop working on your strategies. Every business is unique, and what works best for them may not necessarily work the same for you.

But you can't improve your strategies without knowing your competitors. 

Just like you perform a Google search to determine the most trending keywords, you can also find the top-performing brands working in your niche by this strategy.

Perform a quick Google search with your chosen keywords. Now, look at the websites that are listed on the first page. They are your competitors.

You can also use a tool like SEMush to find out who your major competitors are. Also, you can go to Amazon.com or eBay to see who's offering what.

Step 6 - Conduct SWOT Analysis

The next step is to conduct a SWOT analysis. This step requires you to put all the data you have collected in the previous steps into practice.

SWOT stands for:

  • Strength: Figure out what's your major strength. Is it passion or expertise?
  • Weaknesses: What problems do you think can hinder your way?
  • Opportunities: Whether or not the niche you're investing in is expandable?
  • Threats: How high is the competition in your chosen niche?

That goes without saying that you must choose a niche that gets a higher score for strengths and opportunities.

Step 7 - Validate Your Findings

Validate Your Findings

It's time to validate your findings. In this step, you have to talk directly to your target customers to determine what they think. Forums are the most inexpensive way to connect with your potential customers.

You can also reach out to your prospects using social media. The feedback you receive by conducting surveys, forums, or social media is valuable as it comes directly from your target audience.

Step 8 - Test, Test, And Test

One of the best ways to check the viability of your business plan is by creating a landing page where your prospects can land to know more about your offers.&

You can also run a Google Ad or a Facebook Ad for your landing page to evaluate how interested prospects are based on the total number of clicks you get from these sources.

Check if consumers are willing to spend money on your chosen niche. If your budget allows, you can also conduct an ROI risk assessment to calculate the probability of success.

Over To You!

Finding a profitable ecommerce marketing niche is critical for your business success. Follow these steps to find the top ecommerce niches in 2021 that are profitable and expandable.

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Tags : Top ecommerce niches 2021 Ecommerce niche marketing

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