If you’ve been thinking about starting your own online store, you’re
With so many new products on the market that make it easier than ever
to open a store without programming knowledge or deep pockets, no
wonder more and more people are delving into e-commerce.
Of course, a lot of people still feel like they can’t set up their
own store, because they think it’s too difficult or too costly.
But new tools have made it easier than ever, and less expensive than
ever, to get started in e-commerce.
Here are some facts about e-commerce that might surprise you:
- Retail e-commerce sales will reach $4.5 trillion globally by 2021
- About 40% of worldwide internet users have purchased something online
All this information comes from reputable sources such as the Harvard Business Review, and you can see just how huge
e-commerce has become.
Niche selection is one of the most critical elements of setting up a profitable
business, whether it’s online or a traditional brick-and-mortar store.
If you think about it, even Sam Walton selected a niche and filled it when he started Walmart all those years ago. He wanted to provide inexpensive merchandise to the average individual. He saw a market and gave them what they wanted. And it worked in a very big way.
But not everyone is going to explode into a multi-billion dollar
mega-corporation in just a few decades in a relatively broad market like Walmart.
Most people need to choose a tighter niche, and the tighter, the better.
Selecting a niche is crucial. You need to choose a market that has a large
number of people who are interested in the niche, but ideally not that much
Although competition isn’t such a huge factor, because there are ways to set
yourself out from the competition, it’s always a good idea to choose a niche
with the lowest amount of competition you can find, because it will make your
job a bit easier.
Demand is more important. It’s critical to find a niche with a good sized
market and plenty of hungry buyers.
What’s even more important is choosing a niche you’re interested in. Unless
you are just passionate about business in general, you’re going to get
bored and frustrated quickly if you choose a niche that doesn’t interest you.
To avoid burnout, choose a niche that excited you if you can. Almost everyone
has a few hobbies and interests that are in a profitable market.
So what makes a profitable market?
In order to be profitable, a niche must have:
- A large potential buyer base
- Buyers who either need or passionately want the product
- A potential for repeat buyers
- Products that can be sourced cheaply enough to be profitable
This is another reason you want to choose a niche with less competition.
Competition lowers prices, which reduces profitability. The more sellers there
are in a market, the lower prices are likely to be, which is a lose-lose
proposition for everyone except buyers.