Creating an eCommerce store is easier than it’s ever been before. Of course, the competition is also greater, but the process of setting up a store and sourcing products is really pretty simple, particularly if you go the dropshipping route and don’t have to maintain any upfront inventory.
There’s one big consideration to keep in mind, however, and that’s the niche you want to sell products in. Choosing the right niche is what’s going to help you find that balance between an area that’s not so flooded with competition that there’s no way to make your own path, and something that’s so obscure no one’s going to want to buy it.
Some of the most popular niches right now include things like vaping supplies and equipment, baby equipment, crafting supplies and food, but even beyond those categories, how do you choose the exact category that’s right for your business?
Does It Interest You?
Yes, your focus when choosing a niche needs to be profitability, but you’re also more likely to remain energized about your store if you choose something you’re interested in. Having a successful eCommerce business isn’t just about selling items. It’s also about blogging and creating content, so if you have an interest in what you’re selling it can keep you motivated in these areas.
Plus, if you have at least some knowledge about the niche you’re selling in, it can help with things like customer service and choosing the best possible products.
Gauge Interest of Other People
Besides being interesting to you, your niche needs to be interesting to other people.
You can use tools such as Google Trends to see how popular something is, at least as a starting point. With Google Trends you just need to enter a search term, and it will give you an idea of things like search volume and what the trends have been like over time.
This can provide a good starting point for you, and once you’ve done that, start looking at things like forums focused on topics surrounding your niche and see what conversations are happening. You can also look for bestsellers on large-scale platforms like Amazon.
A lot of eCommerce experts find that the best price points range from $100 to $200.
Of course, there are plenty of retailers with products much lower and higher than this, but in this range, there’s generally the ability to create good profit margins, but the items aren’t so high-cost that you’re going to have to dedicate a lot of time on customer service.
As mentioned above, drop shipping is often one of the easiest ways to set up an eCommerce business. You don’t have to maintain an inventory, and the shipping process is handled for you, but when you’re in the process of choosing a niche if you’re going the dropshipping route you need to make sure you can not just source your products, but that you’ll be able to find a reputable supplier.
Without a reputable supplier, you’re going to have inventory and shipping issues that can cost you customers and doom your business.
These are just a few of the many things to keep in mind as you start researching a concept for a new cCommerce business, and choose the right niche to enter.