Chapter 1: What isProduct Niche?Why it can Help Your Business?
Product niche selection can help you in getting the attention of your target customer base. Selecting a niche product helps your product stands out from the highly competitive generic market.
1. What is the niche market? What is a niche product?
A niche market is a specialized sub-market where a specific product or service is the focus. It is uniquely identified from the larger market by its distinct needs and preferences.
Niche markets not only help you narrow down your consumer base, but they also help you gain a competitive advantage.
There are multiple factors that you can consider while selecting a niche market like price and demographics, level of quality, psychographics, and geographics.
For example, if we consider the market of food, then it’s a huge and highly competitive market. However, if we take the market segment of vegan food, then it narrows down the target customer base.
A niche product or niche item is a specific product from the market, it targets a specific customer base and a certain product category.
These are unique and one-of-a-kind products created to meet a specific consumer need or requirement. Choosing a niche product to sell instead of the popular commodities can be helpful in the case of startups.
2. Why is it important to select a niche product?What is its impact on the business?
With the rapid growth of the business, competition has become fierce more than ever. Due to increased market saturation and fierce competition, it is now more necessary than ever to choose a niche product to stand out from the rest.
Niche products give unique recognition to your business and help in the sale. It narrows your customer base from a vast market and gives a unique identity to your business.
It can also reduce the business’s marketing cost as you have to advertise the product to only your target customers.
3. Does select a low competition product niche helps in the success of the online business?
If you select a low competition niche, then it has a huge impact on the success of your business. You might be wondering how narrowing down your customer base might help you sell more.
It’s because a smaller target customer base gives your company a competitive advantage and more search visibility.
If there is low competition, then you can set a high-profit margin. People are less price-sensitive when it comes to a low-competition product.
Products that have high competition are usually market saturated products and sometimes you have to set a low price to get more sales and compete with other competitors.
4. Why is it recommended to start your e-commerce business with a niche product?
It is often recommended for an e-commerce business to start with a niche product. There are multiple reasons for this.
With the rapid growth of the online business, it is very hard to stand out from the rest of the competition.
Starting with a niche product can reduce competition
Niche products are usually targeting a specific category of the product. There is low competition for the niche product in the market which helps in more sales.
Good for business development
Niche products can give your business a unique identity and recognition. Your business is easily distinguishable from the rest of the competitors because of your unique offerings.
Some businesses prefer both niche products and popular commodities to increase sales and profit margins.
Chapter 2: How to Start Product Niche Business? 5 Stepsto Start your Sale
Selecting the right product niche business is crucial for you. Due to the increase in online businesses, the completion has also immensely increased. Business entrepreneurs look for untouched niches.
In this chapter, we will explain how you can start a product niche business. You can follow these simple steps to select a good and low competition product niche for your business.
1. Start with extensive market research
Research is the key when it comes to finding the right product niche business. There is a huge range of industries and product categories.
There are a lot of product categories including technology, fashion, health, garments, home decor, food, and fitness. Do thorough market research and explore all different available product categories.
Select one category of your choice and then further drill down to select a certain niche product. Explore all the subcategories of your product category.
Keep the customer’s interest and demand in the mind during your market research.
2. Use Google search and suggestion
You can take help from Google search and suggestions to explore the different product categories.
Once you have selected your product category, use a broad topic or keyword for your Google search. You will see a list of Google suggestions regarding the related products and niche products ideas.
You can choose a product niche from the list of available product niches. Then you can perform more research on the product niche before finalizing it.
There is a lot of important aspects that need to be considered like market completion, product demand in the customers, profit margins and production cost, etc.
3. Perform a thorough research on your competitors
Once you have selected a product then perform thorough research on your competitors. Do detailed research on the product specifications and prices that your competitors are offering.
If your competitors are focusing on a specific market, you can further split that market into sub-segments to focus on a more specialized market.
4. Select a target customer market
Selecting the target customer niche is also very important. Select a group of people that you are targeting as customers help in marketing.
If you know your niche audience, then you know the people you need to market your product.
You can prioritize your social media and digital marketing accordingly. It also helps to reach your potential customers.
5. Find the niche products for your target customer group
Once you have figured out your target market and product category, choose your niche products accordingly.
Choose products that solve the specific problems of your targeted customer base
Your product should solve a specific problem and need of your targeted customers. Look for a product niche that can provide customers with reliability and convenience.
You can also make some changes to the current product and sell that product to customers as a new niche product.
Select the niche-specific products that have branding potential
Customer prefers reliable and authentic products. In order to make your brand successful, your product should have branding potential and you should be able to resonate with the customer on a personal level.
Find trending products that fulfill a need or want of your target customer base
Look for trending products that are popular with your target customer base. You can do keywords research and social media platforms to look up trending products.
Chapter 3: How to Find the Best Niche Products? 6 Methods to Know What to Sell
We have already mentioned in the previous chapters how Google search and suggestions can help you in selecting the niche product.
In this chapter, we will discuss some of the other effective ways to find the best niche products.
1. Use Opportunity Finder from Jungle Scout
Jungle Scout is a platform that you can use to find a niche product. You can use the opportunity finder of jungle scout to find promising niches.
You can also use the keyword as a market segment. Then with Jungle Scout, you can see the data of the sales performance and other important insights and data analytics.
After collecting this information, you will have an idea about different niche products’ performance. Choose the one you want to sell, and the product must have good sales and growth potential.
2. From social media like Instagram and Facebook
The social media platforms like Facebook and Instagram also have a huge role in niche marketing.
You can use these platforms to find your niche product. You can get a better idea of the customer’s behavior and trending products.
Social media platforms also play a very important role in the advertisement of your niche product.
You can easily reach your target audience through social media advertisements. Also, it’s easy to communicate to your audience through social media.
3. Collect information from discussion websites like Reddit and Quora
Discussion websites like Reddit and Quora can be great sources to see the trending and in-demand products. You can view the discussion and figure out the demands and needs of the audience.
After doing the research you can choose a niche product that solves a certain need or want of your target audience. You can also use these platforms to reach new customers and for your niche marketing.
4. Select analysis tools like Kickstarter and Trend Watching
Many tools can provide you ideas for your niche product. You can use these tools to your benefit by analyzing the current trends of the market. Trend Watching and Kickstarter are some analysis tools that can be used for this purpose.
Kickstarter is a website that has many unique and creative ideas for various projects. Trend Watching is also a website where various experts provide the latest trends worldwide.
5. Find product niche according to offline sources
Some offline sources can help with your product niche search. You can explore printed material like books, magazines, and manuals, etc to get trendy and useful product niche ideas.
You can also attend various conferences on the subject matter to explore the product niche market. It is good to visit different kinds of seminars, exhibitions and meetings.
There will be many good companies that provide new products to the audience, and they will also explain why the products are popular now.
So learn from these sources can help you find good niche products to raise your business.
6. Find out hot-selling niche products in other marketplaces
You can also use other marketplaces like Aliepress and eBay to get ideas for hot-selling niche products.
You can see trendy and hot-selling products on these platforms and can use that information to analyze and understand the market trend and customer demand.
Chapter 4: Top 8 Product Niches with the Most Growth Potential in 2021-22
Product niche search requires a lot of market research and analysis of customer demands and needs.
Here we have provided top product niches ideas in 2021. You can choose any suitable product category as your niche product. Keep reading to find out more about niche ideas that you can use for your business.
1. Health and wellness market
Health and wellness industry is booming as more and more people are concerned about their health and well-being.
There is a lot of potential in the health and wellness market. It’s a relatively new market so the competition is also low as compared to other markets.
Health and wellness product niche ideas
There are a lot of product niche ideas in the health and wellness market. You can choose gluten-free food, anti-aging products, weight loss products, various food supplement, different technology gadgets, and massagers, etc.
2. Products for pets
Pet owners are increasing and they are willing to spend on pets products. Products that help with convenience and constant monitoring of pets are also becoming increasingly popular.
Product niche ideas for pets
Some famous products niche ideas for pets are GPS monitors for pets, cameras for pets, clothes, and other accessories for pets and toys the pets.
3. Products for travelers and content creators
With the increased popularity of social media more and more people are becoming content creators. Some people are even doing it as a profession. You can also choose niche products for travelers and content creators.
Travelers product niche ideas
Some popular product niche ideas for content creators and travelers are traveling gear, traveling clothes, camera accessories, and other products and gadgets that can specifically aid in content creation.
4. Products for gamers
You can also make products for gamers. The gaming industry is huge and it generated a revenue of $180 billion in 2021. Now more and more people are becoming gamers. The terminology of gamers refers to PC, mobile, and tablet gamers.
Gamers product niche ideas
Some good product niche ideas for gamers include game accessories, gamer’s chair, different customized consoles, and controllers for the gamers.
5. Products that aid in working from home
A lot of people are working from home due to the current covid-19 situation. A lot of people are interested in products that can make working from home more convenient for them.
Product niche ideas for remote workers
Some top product niche ideas for work from home products are decoration items for desk, laptop accessories, and decoration items and accessories for home office.
6. Cosmetic for specific dermatological requirements
Cosmetics for people with specific dermatologic requirements is another famous niche market. People with acne or special skin condition can use these specific cosmetics according to their skin types.
What’re more, covid-19 causes that SPA shops are mostly closed in many countries. Especially European and American people, need to stay at home and at-home skincare becomes popular.
Product niche ideas for special cosmetics
Products niche ideas for special cosmetics can be special makeup products for acne-prone skin and people with sensitive skin, skincare products for people with a certain skin condition.
And many beauty brands start selling some DIY skincare products, this is also another good niche product for you to sell.
7. Organic and sustainable cloths
Many people are switching to organic and sustainable clothing because it’s more environmentally friendly. You can also choose this industry as it is a low competition market and targets s specific customer base.
Product niche ideas for environment-friendly cloths
Some product niche ideas for sustainable clothes are eco-friendly fabric, bamboo socks, organic linen, and organic cotton.
8. Healthy and organic food
Consumers are getting more and more conscious regarding their food choices as food can have a huge impact on the overall health of the individual.
There is an increase in demand for organic and healthy. This can be a good niche market in 2021.
Product niche ideas for healthy food
Some good product niche ideas for healthy food are vegan food, natural and organic food, halal food, cruelty-free food products, and plastic-free products.
Chapter 5: How to Evaluate Your Niche ProductsBusiness Continuously?
Once you’ve decided and finalized a niche product for your business, it’s time to evaluate it to make sure it’s a suitable fit. In this chapter, we have provided multiple ways to evaluate your niche product.
1. Pay attention to the reviews of the niche products
Look for the suppliers that offer a similar product as your product niche. Check the customer reviews on the products and carefully analyze which products have more positive reviews.
Products that have many positive reviews are most likely more popular among people. This is a sign that your selected product has the potential to generate sales too.
2. Ensure the suppliers provide high-quality product’s pictures
Most of the customers decide on buying a product after seeing the product images. Make sure to ask your suppliers to provide high-quality product images. So your customer can see clear images of the product with all the details.
High-quality products’ pictures can also show how your works are done, and this result will affect that how your customers consider about your shop.
If the pictures are good-looking and have more details of your products, the customers will more like it because they can know more even they don’t see it yet.
3. Check whether the products can be delivered to customers location
It is very important to check whether your product can be delivered to your customer’s location. For example, if you are targeting customers from multiple countries then it’s important to consider all the product delivery terms and conditions.
Take into consideration the customs and postal services details of all your target countries.
You need to know what can sell and what cannot in those countries and do the preparation beforehand. This will help you avoid more risks while doing business.
4. Compare prices from different suppliers to find the good ones
Compare the price offering of different suppliers to find the best one. Look for a supplier that offers the product at an affordable price without compromising on the quality of the product.
There are a lot of good suppliers in China which provide high-quality products. You can try to buy some products from them or find some sourcing agents who can help you in sourcing products.
5. Start with testing a small batch of products with dropshipping
When you are starting, it is a good idea to take the start with a small batch of the product instead of starting with a large batch of the products. You can consider the dropshipping option at the beginning.
This will give you an idea if this product niche has the required potential. Then you can get early feedback from your customer on the product.
6. Perform a thorough keyword and market research for the selected niche
The time that you spend on the research of the product will benefit you in the long run.
It is a good idea to invest your time in keyword and market research to find the best product niche. Select the product niche by keeping the target customer base, production cost, and market competition in consideration.
7. Keep an eye on what your customers are searching for at your online shop
Track the search box of your website regularly, it will help you to get an idea of what customers are looking for on your website.
For example, if many customers are looking for a certain product and it is not available. Then you can offer that product to fulfill the customer demand.
This data can help you to figure out what customers look for on your website.
Chapter 6: Frequently Asked Questions About Product Niche
1. How can I decide which product to sell?
Choose a product that solves the problem of your target customer base. Consider the customer pain point, then sell a product that can help them and is more convenient for them.
2. Is the product niche of handmade goods a good one for 2021?
Various handmade crafts are in demand in 2021. Some famous handmade goods that are popular include face masks, eco-friendly candles, jewelry, decor crafts, bath bombs, etc.
3. How can I find product niche for growing my online business?
There are various ways to find a niche product for your business. You can use Google searches and suggestions, tools like Kickstater and Trend Watching to get trendy and creative ideas and social media platforms.
You can also perform offline market research to get product niche ideas for your business.
4. What are the things that should be considered before selecting a niche product?
You should consider your target customer base and niche market before selecting a niche product.
You need to select what is your target audience and consider their demographics to get an idea of their needs and wants.
5. Why is it important to select a target customer base?
Niche products only target a smaller customer base. Narrowing down your consumer base is critical because it allows you to choose a product that meets a specific demand in your customer base.
You can choose a specialized product with a low completion rate instead of a wide market. It can result in more sales and give your product more recognition.
Product niche can have a huge impact on the pricing strategy of the business, production quality, market positioning of the business, and the kind of business strategy you choose.
We’ve gone through exactly what a product niche is and how to discover the perfect product niche for your business in this article.
We hope that this information has been beneficial to you in terms of understanding product niches and how to choose a product niche for your business.