Starting your own business is not a piece of cake. It requires a lot of time and effort, full attention and powerful skills. Sleepless nights and frayed nerves are not a guarantee you’ll succeed in your niche. But hold on a sec, how do you decide on the most profitable niche? And how do you keep your position in this niche? Your primary task is to answer these questions.
Most new entrepreneurs spend months thinking and hesitating. However, overthinking instead of taking real steps toward success is a huge mistake. Abetter practice is to dedicate a limited time to planning and start testing the idea as soon as possible. You either make the right choice and start growing a powerful company or learn from your own mistakes and start all over again with a better vision.
The decision may seem hard, but there is always enough room on the market for a new business. There are hundreds of huge eCommerce companies worldwide, but only a few of them have learned how to cater to specific needs. And you always have a chance to find your place among the competitors.
5 Steps to the Best Decision
Now, it is time to stop wasting your precious time and take a look at the most effective tips for choosing the most profitable eCommerce niche.
Follow Your Heart
Sounds dramatic, doesn’t it? However, this is one of the best ways to make the right choice. This works for business and personal life, studying and training. The point is to really love what you do and feel passionate about the daily routine tasks. Challenges may come and go, success may take months or years; but if you are powered with your passion, you have all the opportunities to overcome the potential difficulties.
The business will not bring you money immediately. The niche you decide on may not belong to the list of top 3 most monetizing markets. But if you are constantly interested, the success is right around the corner.
Take a sheet of paper and write down 10 interesting topics. Let it be the things that make you happy, entertain you, and things that you feel passionate about. Then, with your raised spirits, proceed to the next point.
Make Your Offer Unique
Modern customers are spoiled. They can have everything they want in a matter of seconds, sitting in a comfortable rocking chair in their lovely living room. There are many opportunities available like the door to door delivery, exceptional offers, special discounts, etc. All this complicates the process of entering the market. You as a business owner need to provide actual obvious value to appeal to your potential customers.
Even though it seems like markets are chock-full, there is always an audience with unsatisfied needs. If you want to break into a market, follow several rules to find the target audience and cater to their needs in the best way:
- Study general eCommerce market needs;
- Take a look at Quora discussions concerning your topic;
- Find out what are the most common Google search queries;
- Arrange meetings with potential customers;
- Create polls to understand the issues the audience suffers from;
- Create a list of the pain points and make sure you can solve them.
Provide exceptional solutions and appeal to your potential customers.
Investigate the Competition
Competition may seem one of the most unpleasant and dangerous things on the market. However, it provides a lot of information for the beginners and helps with the right decision.
Get ready for deep research. Open a new spreadsheet and collect as much information about the top 10 greatest eCommerce competitors as possible. Analyze their products, prices, and reviews. What can you learn from this data?
The Greatest Mistakes
When you open the rival’s website, you can analyze its design, UX, and content immediately. The former customers’ reviews are of great value. This is a source of information about what your competitors are doing wrong. There may be some troubles with delivery, customer support, discounts. The more you find out, the better services you can provide.
Poor content is proof that the business owner doesn’t care enough about marketing and products promotion. Look at this from your potential customers’ point of view. What would you change? What information would you demand? Think carefully and implement the best practices in your future business.
The number of competitive companies is significant. If you see hundreds and hundreds of companies providing the same services, it is quite unlikely you will find your position among them. No doubt, there is a chance to find your target audience, but it will be pretty hard. But if there are just a few companies that implemented the same idea, this is a warning sign as well.
It shows the niche you are interested in may be:
- Too difficult;
- Hard to monetize;
- Unpopular among consumers.
Forecast Your Revenue
We believe your list is much shorter now than it was at the beginning of our guide. You have done a lot to reach this final point, and now it is time to analyze the potential profit and set the goals.
Let’s be honest, you are starting your business for financial revenue. So it is essential to see clearly how much money you can make in various spheres.
Take a look at the most expensive and the cheapest products offered by your future competitors. Build a range of prices and calculate if you can raise your capital in the defined niche. This step will also be essential when setting affordable medium prices.
The forecast will help you in the future when the business will be up and running. The comparison of actual income with the estimated numbers will be quite useful.
Keep in mind that:
- You need a qualified team to start the business;
- You have to build cooperation with partners to develop a website, promote and ship the eCommerce products;
- You will not get instant income.
Testing Is Crucial
Before launching a things solution, make sure the idea is profitable. Test it carefully to make sure you have made the right choice.
- Create the pre-sale web landing page;
- Promote the products actively using powerful SEO, paid advertising services and accounts on social media;
- Analyze the investment/profit ratio.
If you fail on the pre-sale, don’t worry. It happens quite often. Think over your mistakes, change website design, edit the texts, and compare your offerings to the other products on the market. With a better vision and clear thoughts, repeat the attempt.
Remember: there are no excellent solutions, no immediate profit, and no success without competition. So take a deep breath, define the time limits for planning, follow the best tips and develop a remarkable business in a viable niche. Cooperate with professionals and join the list of the eCommerce winners.