The biggest challenge for any online seller in 2021 is to differentiate their business from others.
The covid-19 crisis has massively impacted the digital landscape. We have seen a shift in customer’s buying preferences during these challenging times.
Large-scale unemployment and financial uncertainty have forced people to cut back on their expenses and stick to basics only. As a result, many industries have witnessed a sharp decline in sales - travel, hospitality, and luxurious products are to name a few.
On the flip side, consumers now prefer online shopping for the things they used to purchase from their nearby brick-and-mortar stores earlier.
The new normal we’re living in also lends an opportunity for ecommerce stores as consumers have become more cautious than ever. According to experts, the ecommerce penetration rates are expected to grow from 15% to a whopping 25% by 2025.
In a nutshell, ecommerce is the future.
If you’re moving your already running business to the digital world, there is no need to worry. You know what you’re good at, who your customers are, and what you should display in your store to boost sales and conversions.
But what if you’re a beginner planning to set up and run your store in 2021?
What should you sell in your online store to capture people’s attention?
That’s where ecommerce niche marketing can save the day.
Before we talk about the best ecommerce growth tactics and top ecommerce niches in 2021, we would like you to know about Debutify’s product research tool. You get this feature Free of cost with our Master plan. With this tool, you can find winning ecommerce product ideas that you can sell in your store in 2021 and beyond.
What Is A Niche Market?
A niche market is a smaller and targetable segment of a larger market. Businesses following a niche market sell a specific product and usually enjoy a competitive advantage over competitors who cater to broader audiences.
For instance, rather than offering general cleaning services, an online seller might take up a niche of carpet cleaning services exclusively. People looking for carpet cleaning services will prefer that brand over businesses that have carpet cleaning as part of their services.
Ecommerce Niche - Categories
Profitable ecommerce niches are highly targeted and attract a much smaller target audience. Ecommerce niches are divided into four categories - demographic, geographic, psychographic, and pricing.
Demographic: Characteristics highlighting a person’s individual characteristics, including age, gender, income, etc.
Geographic: Characteristics highlighting a person’s location.
Psychographic: Characteristics highlighting a person’s interests, buying preferences, etc.
Pricing: Characteristics highlighting price range, such as affordable, premium, etc.
How does A Niche Market Work?
Market research is the key to ecommerce niche marketing. By conducting thorough market research, potential and established sellers get to know about the available market segments that are profitable and in-demand.
While it may be tempting to pick a niche with zero competition, it also indicates that others have already found that niche not to be profitable.
The secret to capitalizing on the ecommerce niche market is to discover a niche that has demand, the potential for expansion, and limited competition.
Let’s suppose you sell customized jewelry online. Now this category includes multiple products ranging from high-end diamond jewelry to funky pieces and classic custom collections.
If you try to sell everything instead of a niche product, you’ll end up with a confused marketing strategy that will gobble up your budget like a monster.
But if you choose to go with diamond jewelry, you have a clear picture in mind about your target audience and their needs.
Similarly, if you choose to go with funky pieces, you’ll craft your entire marketing strategy accordingly.
You got that, right?
Why Choose A Niche For Your Ecommerce Store?
Lower Marketing Costs
Businesses that target a specific audience can save massively on their marketing and advertising budget. You don’t have to throw money marketing in the wrong places and people.
Another perk of using ecommerce niche marketing is you’ll have to battle with fewer brands. For instance, skincare is a massive category, but if you choose anti-aging products, you’ll have to compete with only those brands that are exclusively dealing with anti-aging products.
You’ll Get A Chance To Create A Loyal Customer Base
Now let’s continue with the example we have discussed in the previous heading. Customers looking for anti-aging products will prefer your brand over businesses that sell skincare essentials in general. As a result, you’ll get a chance to create a loyal customer base for your ecommerce store that stays true to your brand no matter what.
You Can Charge More For Your Products
When you’re offering a unique value proposition to your customers, they’ll be willing to pay a premium price in exchange for that. This means you can charge more for your products, especially if they’re customized, eco-friendly, or exclusive.
You Can Start And Run Your Business With Least Possible Resources
The best part of having a niche product is running your online business with the least possible resources. You not only can start with limited inventory and staff, but the overall cost of management and supply chain will be lower than that of businesses that deal with multiple categories simultaneously.
We hope the benefits we have revealed above are enough to convince you to start a niche business in 2021.
Now you must be wondering which specific ecommerce niches have the most growth potential in 2021. Don’t worry, as we have got you covered.
Below you will find the most trending ecommerce marketing niches for this year and beyond.
Top 12 Ecommerce Niches With The Most Growth Potential In 2021
1. Beauty And Healthcare Products
Beauty and healthcare products is an ever-green ecommerce niche with a massive potential for both new and veteran sellers.
From mineral makeup to organic fitness pills and cruelty-free beauty essentials, there are always new brands popping up.
Do not take an easy route, though. Instead of selling every possible beauty and health product available on the planet, condense your preferences to one or two interrelated products only.
For example, you can either go with a vegan and organic skincare range or choose cruelty-free haircare products. Similarly, if you’re selling fitness pills, weight-loss teas, or other fitness products, stay yourself away from beauty range and cosmetics.
2. Technology And Home Office Equipment
There is a rising trend of ordering technology products and home office equipment during a pandemic. Many people have started working from home during a crisis. To maintain and improve the quality of their work, they need home office equipment and gadgets.
New graduates have invested in laptops and other gadgets in the hope of learning a few additional skills during these unprecedented times.
The remote working trend doesn’t seem to be going anywhere anytime soon. That lends an opportunity for new sellers to pick a technology/home office equipment niche for their new business.
3. Natural Feminine Care Products
Feminine care essentials is another trending ecommerce niche that holds massive potential, especially when combined with eco-friendly and organic segments.
Honey Pot is an excellent example of a niche brand. The brand offers all-natural washes, cleaning products, and menstrual essentials for today's environmentally-conscious women.
The demand for natural and organic feminine care products is more than ever. So feel free to tap this niche as well.
4. Home Gym And Fitness Gear
Although gyms and fitness centers are reopening in some states, most of them are still closed. People are still not ready to risk their lives and go to their regular fitness centers.
Some people think that setting up a custom gym inside their homes is an affordable and safe option in these times. Because of these and many other similar reasons, the demand for home-based gym fitness equipment and gear is more than ever before.
If you're also passionate about this niche, focusing on this category could be the best way to start an ecommerce niche store.
5. Disinfectants And Home Cleaning Products
Disinfectants, antibacterial products, and surface cleaners are last year’s best sellers. The trend isn’t going anywhere in the current year.
Although we’re seeing a decline in Covid cases in recent months, the WHO still advises incorporating regular hand hygiene and cleaning practices to contain the spread of the deadly virus. People are willing to spend on masks and other hygiene and cleaning products to keep themselves and their families safe.
So this is one niche that is not going out of trend anytime soon. Grab it before the competition gets fierce.
6. Organic And Eco-Friendly Versions Of Routine Products
Whether it’s reusable food wraps or sustainable straws, consumers want to make every possible effort to reduce their carbon footprint.
The trend of replacing every plastic or single-use product with reusable substitutes is more crucial than ever.
We have also seen a massive rise in the trend of using reusable pads and diapers.
Biodegradable bags and accessories have also dominated the world of fashion in recent years. If you choose this niche, make sure you keep your focus on one category instead of trying your luck in two or three different options.
7. Kitchen Equipment And Essentials
According to research, the trend of online grocery shopping has increased from 3%-4% to 10%-15%.
People spending time at home tend to eat more home-cooked meals than ever before. The rising unemployment rate and restaurant closures have also encouraged homeowners to invest in kitchen equipment and cooking essentials that they can use to prepare restaurant-quality meals at home.
Whether you target specialized high-end kitchen equipment, such as air fryers and bread machines or exclusive cooking ingredients, your online niche store can benefit.&
8. CBD Products
With CBD becoming legalized in many US states, many ecommerce businesses are starting to invest in CBD products.
Make sure you check your local state laws before you plan to invest in this niche, though.
9. Pet Care Products
Natural and healthy pet care treats and snacks are another robust ecommerce niche with massive potential for growth and revenues.
Like feminine care products, you can also combine this niche with an organic pet care niche to attract customers who prefer natural and eco-friendly products over anything else.
10. Men’s Grooming Products
Men’s grooming products are all the rage in 2021. The market for lip balms, beard oils, and shaving supplies has been flourishing like anything over the past 4 -years.
The rising demand for this niche has compelled many online sellers to try their luck in this niche. From traditional beauty products to old-fashioned men’s grooming essentials, this trend is only expected to grow in the coming years.
11. DIY And Home Improvement Products
The covid-19 pandemic has given many people a chance to fulfill their dreams. Homeowners are one of those who got the time due to lockdowns to initiate their home improvement projects.
That is why there was a noticeable increase in the demand for home improvement and gardening essentials, including hardware, fixtures, furniture, etc.
With covid-19 not going anywhere, it’s a good opportunity for new sellers to start selling DIY and home improvement products to help clueless homeowners complete their projects without the hassle.
The most obvious one. With everybody at home during lockdowns, the sale of entertainment products, such as video games, home theatres, LEDs, and sound systems, has also seen a noticeable rise in sales in recent months. If you haven't picked any niche for your store yet, then the entertainment niche can certainly be the best option for you.