Ecommerce niche represents the narrow category into which your products fall. For instance, fashion is a fairly broad niche. High-heeled shoes are much narrower. When you choose an e-commerce niche, your brand will revolve around it and build a target audience based on the niche’s qualities and the pain points your product solves.

Strategy for finding just the right ecommerce business niche.

    1. Gauge customer interest
      Make sure to gauge customer interest. You will never build a profitable business without getting into a product niche that takes into account buyer intent. Use your keyword tool — such as Google Keyword Planner  to find keywords with good search volume. If there isn’t enough search volume, you won’t be able to make any money in that niche. Conversely, if there’s too much search volume, you’ll obviously have an opportunity to make money, but standing out against the competition may prove a challenge.Another important step is to figure out whether you’re entering a niche that people are passionate about. Also look for niches with problems. If you can solve customer problems with your products, you can attract an audience that’s eager to buy.Two primary qualifications for starting a business:

      • Knowledge
      • Passion

      If you have those two, you invariably find success. Brainstorm a list of things you’re passionate about. That list will help you throughout the rest of the process. Few questions to consider when making your list of internet business ideas:

      1. What products, niches or industry you are particularly passionate about or interested in?
      2. What products, niches or industries are your friends passionate about?
      3. What pain points do you have in your own life?
    2. Analyze the competition.
      Next step is a competitive analysis. First, check Amazon for competing products. The odds are stacked against you if the product you’re planning on selling is already carried by Amazon. SEO research is the next step. If you want to create a successful business, you’ll need to appear on the first page of Google results, and that may not be possible if the niche is dominated by other sites. Use SEO tool to thoroughly evaluate your competition.
    3. Figure out your margins and pricing
      In general, if your margin is less than 20 percent, you may want to start looking elsewhere. Pricing is another important consideration, and best practices can vary. Many experts believe that the $100-to-$200 range is the sweet spot. Products in this range aren’t too expensive, and should allow for decent profit margin.
    4. Consumer trend analysis
      Paying attention to trends in brick and mortar retail and adapting them to ecommerce can be just the ticket you need to create a profitable and unique internet business idea. Look around your community and take note of what new or interesting retail concepts people are talking about.
      A other great place to start your search for product ideas is to look at some top consumer product trend publications, for example Trendhunter. Following these publications can also expose you to new product categories and industries that you previously didn’t know about. Following what’s trending can help you to dream up new goods, services and experiences for your online business.If you know the industry or niche you would like to be in you can use various tools to discover the influencers in the industry. Following the right people on social media can help inspire new ideas through a constant stream of carefully curated content from the people in the know. It’s up to you to uncover the opportunities.
    5. B2B wholesale marketplaces
      Better way to get product ideas than right from the source i.e. B2B wholesale marketplaces. Some other B2B wholesale marketplaces include:

    6. Online consumer marketplaces
      Another rich source for product ideas are online consumer marketplaces. Millions of products is probably an understatement, so you may want to begin your search with some of the popular and trending items and branch out into other interesting categories that catch your eye from there:

      • eBay: Use eBay Market Research to find some of the most popular product categories on eBay.
      • Amazon: Amazon Best Sellers shows Amazon’s most popular products based on sales.
      • AliExpress: AliExpress Popular reveals the most-bought products.

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