The profitability of any venture relies on the ability to choose the right market for its products and services. Without taking perfect considerations on who to sell to, your e-commerce business is deemed to fail. Take for example you are dealing with pork. It would be unwise to target the Middle East as the market for your product. Or else, selling beef in some parts of Asia would only cause frustrations to you.
Here are the top four tips for selecting a profitable niche for your e-commerce business:
- The product demand – Profits do not fall from heaven. Rather they come from the sales you make. With this in mind, when selecting a profitable niche for your e-commerce business, you need to consider the demand of the products or services you are offering on that particular market. For instance, if you are dealing with heavy jackets for winter, you cannot target the European market during the summer season. Obvious, you will make a real loss.
- Target customers buying power – Customers are the engine that runs any business be it an e-commerce or a brick and mortar type. When selecting the online niche for your e-commerce business, you need to consider the ability of your customers to buy your products or services.
For instance, it would be unwise to target lower-class audience when you are dealing with luxuries jewelry on your online store. Probably, you will make zero to none sales. Hence, the buying power of your target market for online business must take a central position if you want to earn good returns from it.
- Competition levels – E-commerce business competition relies on your ability to be visible on the search engine. The main determiner of your ranking is the keywords on your target market. When selecting a profitable niche for your e-commerce business, you need to do a thorough analysis of competition levels for a particular keyword.
With this information, you can be able to select most searched keywords but with low competition levels. Hence, you will improve your visibility which in turn may convert to sales and returns.
- Ease of product delivery – Imagine you want to sell jewelry to customers in South Africa and you are located in Washington DC. You are a small e-commerce business with the inability to pay for the delivery service, and the customer is unwilling to cater to it. Is it that a waste of time. When selecting a profitable niche for your e-commerce business, you need to consider the convenience of delivery of your products to the customers.
— Brian Glicklich (@brianglicklich) 4 de junio de 2017