If you’re starting up an online business, there’s never been a better time to get in the game. Thanks to recent behavioral shifts and current events, e-commerce has accelerated to become an incredibly popular option for customers to buy the products they want from the comfort of their own home.
Even if you have dreams of becoming the next Amazon, it’s important that you start small (which is precisely what Amazon did!). Focusing on a singular niche helps you get your feet wet in the marketplace and start building up a reputation as a player in the game. There’s no shame in starting out small (and, in fact, it may actually increase your chances of success) so follow these four tips for defining your niche market and get selling!
Dream up your ideal customer.
In an ideal world, what would your ideal customer look like? What would their purchase behaviors be, and what price point would they represent within your overall business strategy? This is a key component of starting any business, since if you don’t have a clear idea of who you’re trying to appeal and sell to, you won’t be able to make the right business decisions as a seller to reach that customer. For example, if you want to appeal to busy working moms, you’ll likely choose a different niche than if you want to appeal to young tech professionals who are always on the go.
Brainstorm niches that appeal to that type of consumer.
Once you’ve determined what types of customers you want to attract and build your brand around, it’s time to determine which sorts of products and niches make the most sense. For example, if you’re interested in targeting men in the age range of twenty to thirty, you might be looking for nutritional supplements for younger men that are starting to hit the gym more or personal care products if you’ve decided that millennials who care about their appearance is the niche you want to reach. Each niche has its own advantages and disadvantages, too, so keep that in mind. For example, nutritional supplements could create a recurring monthly revenue stream, but might take months to get you the same amount of sales per customer that one or two higher-end fashion items might generate.
Research suppliers to make your dream a reality.
After you have a clear idea of what industry niche you want to build your online business around, it’s time to find the right suppliers to make your business happen. One approach is to build your own products from the ground up. For example, if you’re interested in getting into the supplements and vitamins industry, you might look at different softgel manufacturers who can help you create your own product from scratch. From packaging and design to formulation and manufacturing, it’s actually pretty simple to find an all-in-one supplier if you’re interested in entering the marketplace with a brand new product for your niche.
Another option is to sell merchandise at a lower cost than other businesses, effectively flipping liquidation items from major retailers like Amazon, Walmart, and Target in order to outfit your own online marketplace. A benefit of buying Amazon liquidation pallets is that they make it easy to find products and merchandise from in-demand brands, rather than requiring you to build your business completely from scratch. A website like Amazon also likely already specializes in the niche you’re targeting, whether that’s women’s apparel or another product category such as electronics or housewares.
Craft a clear marketing strategy.
One of the singular strengths of choosing a clear niche for your online business is how it allows you to create hyper-focused marketing strategies. Nowadays, people think you should be on every social network or the next hot app if you want to build your business. However, if you know that you only want customers who fit certain criteria, you can tailor your advertising channels to where that demographic is. Not only does this save you money, but it provides you with a clear marketing strategy to reach the target demographic you care about most.