Ecommerce is no longer a buzzword.
It is an accepted and flourishing industry, so much so, that there is an online marketplace for literally anything and everything.
Research predicts that 26% of all global retail sales will be done via eCommerce.
Sure, it’s nice to have an online store for everything that you need. But it also poses a different challenge for those thinking of starting an eCommerce business.
How do you survive the competition in an already saturated market?
By finding your niche.
Targeting niche eCommerce business ideas help you discover new opportunities that stimulate your online sales and fetch you profit.
Why Should you Choose a Niche for Your eCommerce Business?
1. Less Competition
Some hard-hitting news? There are already 12 to 24 million eCommerce sites today. This isn’t to discourage you to start your own online business. But you need to know that you’re entering a market with millions of players. Of course, a lot of other factors come into play such as the geographical location, the type of products sold, and the price ranges.
But even then, to stand out you need to have a unique eCommerce business idea to draw in and keep your customers. The idea isn’t to drive ‘more’ customers but rather ‘qualified’ customers. Putting in interesting, useful, and fun products gives you an edge over the competition and provides you with room to build your niche and brand quickly.
2. Potential to Charge Premium Prices
A unique product offering gives you the liberty to charge your customers at your rate and keep a high-profit margin. First of all, you’re selling to a smaller audience but you’re able to ensure uniqueness and higher quality which facilitates you to have a higher ROI with each sale.
Secondly, since you’re selling a specialised and niche product, you’re likely one of the few brands offering that product. It’s not readily available in the market, giving you the liberty to charge accordingly. There’s also a certain sense of customer loyalty to specialized products for which customers are willing to pay more.
3. Lower Marketing Costs
Unlike eCommerce giants that have a generic demographic for marketing, you need to market to a much smaller population. If you have a niche market, you have fewer competitors, fewer products, fewer sales channels, and fewer audiences which significantly reduces marketing costs.
A niche market also means you don’t need a large warehouse or storage space to store your inventory. A self-storage unit or a small space is enough which further brings down the cost.
4. Higher Customer Loyalty
A niche store amplifies customer loyalty since you’re providing a product that they cannot easily find. Besides, you’re solving a particular problem for a group of customers that has long been overlooked by other brands. A solution to a major pain point naturally translates into customer loyalty and brand appreciation. You can create a personal message that builds a long-lasting impression and trust among your customers.
The task of finding your niche for an eCommerce business idea can be daunting. You need to know what industry to consider, define your audience demographics, and develop the idea that ultimately sells.
Listed below are some eCommerce business ideas that you can consider.
20 Trending Niche Ideas for eCommerce Businesses
1. Clothing and Fashion Products
Starting an online clothing store may seem like a generic eCommerce business idea. But with so many personal styles, fabrics and trends, you can always create a niche within the clothing industry itself. For example, you can have an exclusive online store that sells plus-size bottom wear for women or an exclusive t-shirt brand for teens.
You can also have an exclusive store that sells handmade knitted items from a few known designers. Research suggests that the online fashion market is expected to reach $1 trillion by 2025. All you need to do is identify opportunities, put your creative bone to play, have a keen eye for fashion, and focus on creating private-label designs that work for your targeted audience. You can then outsource manufacturing and eCommerce order fulfilment to meet the efforts required for other activities.
2. Niche Subscriptions Boxes
There are numerous audiences, products, and concepts that you can curate subscription boxes for. It is a market worth exploring since even with established players, there’s plenty of room for innovation in terms of providing rich aesthetics, quality, and variety.
An eCommerce business idea would be to start a subscription box for a wide range of products like pet toys, clothes, chocolates, makeup, meals, etc.
However, conceiving the idea and conceptualising a business for subscription boxes would require you to do a keen study of the market demand, and customer shopping habits, and discover novel ways of implementing personalisation to the boxes.
You also need to ensure procurement feasibility and consider the lifecycle value, value proposition, and prospects of profit.
3. Home Office Equipment
As remote working has witnessed a significant rise over the past few years, there is an untapped potential for the online business of home office equipment. Currently, the number of employees working from home has shot up significantly, especially considering the number of employees working from home because of the pandemic.
Research also suggests that this isn’t just a temporary change and it will continue even as things get back to normalcy. According to Gartner, 74% of companies are intending to shift some of their workforces to shift to remote working permanently.
It goes on to show that selling home office equipment is a great eCommerce business idea since the demand for flexible work desks and other similar products will only rise.
4. Jewellery and Accessories
Jewellery is a very personal purchase. Like fashion, it relies on personal taste and preferences and people with a fascination for fine jewellery are always on the lookout for exploring new designs. eCommerce technology provides you with a means to set up an online jewellery store in a matter of minutes.
You always have a market for it online and it gives you room to experiment. You can design and sell handmade jewellery, wire-wrapped jewellery, handcrafted diamond rings, and costume pieces for high-value to low-value markets. If you have the design abilities, you can always sell your designs or source a wholesaler or dropship exclusive designs.
5. CBD Products
Opening up an online CBD (cannabidiol) store will require extensive research depending on where you set up your store and where you’re selling. You’ll have to comply with federal, state and local laws, get approvals, and adhere to strict marketing restrictions.
However, if you’re willing to get through that and obtain the necessary license, you should know that CBD is a flourishing market in the health and wellness industry. CBD has become a mainstream product that people are using for calming their nerves and keeping their pets calm and for pain management. Some popular CBD products include teas, drops, salves, and lotions.
6. Skincare and Cosmetics
Cosmetics is a popular vertical in eCommerce. Beauty and health products are one of the niches with the most longevity since it is one of the fastest-growing industries online. While cosmetics may not seem like an innovative eCommerce business idea, the industry gives you numerous options to branch out.
Like in terms of coming with organic and natural ingredients and catering to particular men or women. You can also build an exclusive line for either skin care or hair care or makeup to further define your niche and narrow down your demographic. For example, an online store for a natural skincare brand for men or an organic hair care brand for women.
7. Eco-friendly and Sustainable Products
Over the years, consumers have become increasingly eco-sensitive to their purchases considering the environmental impact of consumerism. They are making conscious choices and are shifting towards natural and organic products that have minimal impact on the environment. And this is not just a trend but is rather becoming a lifestyle for many.
It’s a lucrative eCommerce business idea to explore sustainable and eco-friendly products that use clean and safe ingredients. It can range from vegan beauty, personal care, organic cleaning and hygiene products, makeup, packaging, etc. It also provides a good ROI since people are willing to pay higher if the product is sustainable.
8. IoT Devices and Niche Electronics
IoT and smart home products have been at the top of technological trends for a while now. However, despite their growing popularity and demand, a few online business owners are selling these devices.
These include doorbell cameras, voice technologies, wi-fi controlled thermostats, and other niche smart home devices.
Another rising trend is selling selfie drones and drone accessories to real estate agents, wedding photographers, influencers, and others who regularly make use of aerial photography and videography. You can always have your own manufacturing and fulfilment centre but you also have the choice to source a drop shipper that provides low-range electronics to sell.
9. Protein Supplements and Meal Replacement
Fitness freaks and athletes follow a stringent diet comprising meal replacement shakes and protein powders. They’re quick to prepare and need easy supplements post-workout. Although you’ll find a few online sellers, they usually cater to a particular location and aren’t mainstream.
You can create your own brand particularly catering to the health and fitness fanatics and offer them reliable and safe supplements that aid their workout sessions and enhance their stamina. You can completely skip the manufacturing and source products from wholesalers and focus simply on selling and shipping products at the earliest.
10. Male Grooming
While there are numerous players in the women’s skincare and grooming industry, the male grooming industry can still use new players in the market. Grooming products for men aren’t easily available except for a few exclusive brands.
You can start selling grooming products like razors, beard growth oil, beard massage oil, and many such products that are in high demand. In fact, it is also a very good time to take an educational stance as a brand and guide men on how to groom themselves and showcase to them how your products can help.
11. Pet Supplies
The global pet care market size is expected to grow from $222.93 billion in 2021 to $325.75 billion in 2028 at a CAGR of 5.6%. So starting an online pet store can be a lucrative eCommerce business idea right there.
People love to care for and even pamper their pets. And they need care like any other member of the family - right from their food, medicines, toys, furniture, bath essentials, etc.
You can provide a range of products on your online store such as durable toys for tough chewers, supportive beds, joint supplements, pet kennels, decorative jackets, or training hoops. You can further tap into an even specific niche that either sells just pet toys or just pet hygiene products.
12. Baby and Child Care Products
It’s not a surprise that everyone loves baby clothes. Parents, kids, young adults, and even non-parents. Everyone. But more than love, it’s also for the potential it has as an industry since the baby apparel industry itself is supposed to grow at a rate of 9.5% per year by 2026.
You can differentiate your childcare business by offering lower-cost products for modest families or entirely focusing on a high-end fashion line and heirloom-quality products for which parents don’t mind paying a higher price. You can include a range of goods that range from diapers and cleaning wipes, to safety and feeding accessories. You can also branch out to provide baby care and baby nutrition products.
13. Furniture and Home Decor
If you have an eye for home designs and decor, you can give it a shot to sell furniture and home decoration items on your online store. You can be an interior designer, carpenter, photographer, or reseller who wants to turn their skills into a profitable idea.
However, one thing you have to take into consideration if you go with this eCommerce business is determining how you’ll ship your products.
Order fulfilment for large items like furniture will require experienced freight service providers who know how to load and unload heavy items and move them to the customer’s destination. You can also partner with a dropshipping service provider to sell furniture and decor items without having to take care of the storage or shipping.
14. Wedding/Party Decoratives and Accessories
If you think about it, wedding and party decoratives is an industry that doesn’t really see a bad time. People get married all the time, regardless of the political or social climate. And there are a lot of things that go into making a wedding memorable. A good eCommerce business idea would be to look into the products needed for wedding planning and events.
You can make your online store a one-stop for everything wedding-related. For example, you can sell unique guest books, fresh flowers, wedding gowns, tablecloths, candles, custom cakes, etc.
However, you’ll need a strong network of suppliers and vendors for every product and have product delivery figured out for far-off wedding destinations.
15. Gardening Tools and Plants
The pandemic has given a boost to many small industries and the plant industry is one of them. According to Google Trends, a lot of people searched ‘buy plants online’ during and post-pandemic since they were home more and were introspecting to give sufficient time for gardening. It has also always been a primary accessory to beautify houses or offices.
You can either have a b2b store that supplies plants to interior designers, architects, and builders and sell in bulk or a store that directly sells to consumers for their homes and personal spaces. Some other products that you can sell along with plants are gardening accessories such as flower pots, garden claw gloves, anti-mosquito bracelets, artificial plants, etc.
16. Handmade Crafts and Artwork
You’ll be surprised at how many talented individuals are looking for a platform to sell their handmade products. Sure, you do have eCommerce giants that sell artwork and handicraft work. But having a niche platform that not only sells but also celebrates their art helps an online store stand out.
You can build an eCommerce platform that sells custom art, handmade jewellery, network, pottery, hand-knitted items, candles, etc. You have the opportunity to build a brand that includes small-time artists and craftspeople. Just ensure that whatever you choose can make a profit for every party, is sustainable, and is scalable.
17. Stress Relief and Mental Wellness
People living in the pandemic and post-pandemic world have been through an overwhelming journey that’s taken a toll on their mental well-being. Understandably, the emphasis on stress relief and mental wellness has never been higher.
You can research this market and provide an online platform that sells products like weighted blankets, calming teas, oil diffusers, acupressure mats, light therapy lamps, etc.
You can also launch a meditation app that facilitates people to meditate at home. Ensure that you have an educational approach and explain how your products work and how they benefit your customers. Add social proof and scientific evidence to further build trust.
18. Office Supplies
Business owners and entrepreneurs already have so much on their plate. Whether one is a small business owner or an entrepreneur, one needs to have sufficient office supplies to keep work running smoothly. A profitable eCommerce business idea would be to provide a one-stop shop for everything that a business needs at their workplace.
Organisations usually purchase office supplies in bulk and even individuals buy them in multiples. You can offer custom stickers, office stationeries, furniture, professional merchandise, and tutorials, and even extend into services.
19. Business to Business (B2B)
B2B industries often get overlooked when it comes to eCommerce. Selling to other businesses helps you source large accounts with bulk orders, allowing you to get a better ROI. You can hire a shipping provider to send regular deliveries to your clients depending on their requirements.
Some B2B eCommerce business ideas you can consider are selling to restaurants and hotels, office spaces, influencer marketing, and yoga and wellness studios. For example, you can offer organic wellness products to fitness and yoga studios, lotions and bath essentials to hotels, and organic vegetables to restaurants, etc.
20. Custom Goods
You see a lot of brick-and-mortar stores offering options for personalised goods and services, especially during festive seasons and events. You can do the same online. You can provide an online platform where customers can place orders for a personalised mug or a t-shirt or have a name on any of the products.
Some products that you can include in your online store are custom candies, phone cases and covers, personalised puzzles, and personalised pet accessories. You can also innovate in terms of product packaging and opt for unique and personalised designs.
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Frequently Asked Questions (FAQs)
1. Which is the best eCommerce business idea?
Since eCommerce is a vast industry, you can try out less explored markets like
- Men’s Grooming
- Organic and wellness
- Pet Supplies
- Home Office Equipment
- B2B eCommerce
- Gardening Tools and Plants, etc.
2. Why is having an eCommerce niche important?
Ecommerce is a competitive space. To capture the market and establish a loyal customer base, it’s essential to have an online store that is niche and addresses the pressing pain points of a specific audience. You face low competition, have the power to charge a premium price, incur low marketing costs, and can establish a loyal customer base within a short time.
3. How do I find an eCommerce business idea?
You need to consider market research, and identify supply chain solutions, manufacturing and demand. You can start finding a suitable niche by
- Evaluating your competition (Low or high)
- Marketing potential customers
- Your expertise
- Understanding your target audience
- Identify if it’s a steady trend, a fad, or a growing one.
4. What are some of the marketing strategies for niche online businesses?
Some strategies that you can adopt to target your small pool of audience are:
- Assess your marketing channels
- Research General Market Keywords
- Create Targeted Content
- Build Brand Loyalty
- Get Involved in the Community
- Listen to Your Customers
- Organise events for your customers