Evergreen eCommerce Niches
Starting an ecommerce business is an attractive concept; it’s truly never been easier to start an online business than it is today. It’s also never been more lucrative. In 2020, worldwide business-to-consumer e-commerce transactions generated over $4T USD in revenue, and the numbers are expected to grow. But, with all of the business already out there, how do you find your niche? Learn about up-and-coming eCommerce niches in this simple guide.
How To Find An eCommerce Niche
We should start off with honesty—your own lifestyle and values are the best leads when searching for an eCommerce niche. Your ideal niche, in many ways, is shaped by you, your goals, and your passion. Success in eCommerce takes more than simply selling the most expensive item on the shelf; it’s about how well your business solves problems and fills gaps in the lives of your customers. The more you share the values and passions of your customers, the better you are at meeting their needs.
So, how do you turn passion into profit? Here’s where to start:
1. Start With Something Familiar to You
Are you passionate about indie board games? Or how about limited-ingredient skincare products? If you’re new to ecommerce, the best place to look for novel ideas is often your personal lifestyle—what kinds of products do you use in your everyday life? What are some of your favorite hobbies? What values influence your purchases? Great ideas for ecommerce niches come from personal interests and/or challenges you face when searching for products that you use frequently in your daily life.
Regan Moira Jones, founder of the boutique baby goods brand aden + anais, offers an excellent example of niche product selection and development. Jones began her multi-million dollar company after being unable to find high-quality muslin baby blankets on the market, a product she needed in her daily life. Her personal need for the product and her familiarity with the advantages of muslin helped her successfully market her product to other parents.
2. Get Specific
Thinking big in ecommerce often means starting small—even Amazon began as an online bookstore, after all. The most successful online businesses develop with targeted and specific markets in mind; niche markets. Finding a niche market involves simple deduction. Once you’ve identified a general area of interest, can you continue to narrow your focus?
Let’s demonstrate with an example. We’ll assume that you have a general interest in electronics. What area of the electronics space are you most passionate about? Perhaps health and fitness. Yet, “health and fitness” is still a broad category in the world of electronics; you could be selling anything from large pieces of equipment to headphones designed to stay in place while running. To go niche, you’ll need to narrow down even further—think biohacking gadgets or smart home gym equipment.
3. Do Your Research
Apart from general market research, there are three main types of research that you need to find your e-commerce niche: consumer research, competitor research, and keyword research. To us, consumer research involves learning as much as you can about the purchasing habits of your potential customers. What products do your potential customers review the highest? How much do they usually spend on these niche products? What is the highest value product that will meet the consumer’s price constraints?
Next, how many businesses are already trying to serve your ideal customer? Competitor research involves appraising the competition—are you trying to enter into a saturated market? Are your competitors failing the consumer somehow? How will your business add value to your potential customer’s lives when compared to other brands? How will you differentiate yourself from others?
Finally, keyword research is important in the world of e-commerce. Many people find products by searching on Google and various social media sites. So, keyword data can give you a surprising amount of information about what kinds of products your customers look for most often. Keyword data will also tell you what words they use when discussing the products and reveal commonly asked product questions.
Profitable Evergreen eCommerce Niches
The most profitable e-commerce niches are ones that are both trending and have the greatest potential to grow. However, not all evergreen niches are accessible to all prospective entrepreneurs; some require far more startup capital and expertise than others. Wondering what’s right for you? Here are a few potential leads to get the ideas flowing:
1. Online Courses
Have skills? Sell your knowledge. Online courses make for great ways to monetize your passions and easily tap into a specific niche. Love electronic music? Offer an online basics course for beginners. Are you a houseplant enthusiast? Offer a course on the best ways to create, care for, and design an indoor garden. The options are endless.
From board games to indie video games to game-themed swag, gaming is a long-term hot market that’s here to stay. Put your curation skills to the test and create a Shopify shop with nothing but novel STEM games for kids. Or, create an online storefront filled with fan-favorite paraphernalia from the N-64 days.
3. Natural Beauty and Hair Care
Natural beauty is a multi-billion dollar industry for a reason—new products and formulations are seemingly endless, and the sector has a strong history of positive growth, great signs for continued success. Getting started in natural beauty is also reasonably straightforward. Unique essential oil blends make for a good jumping-off point, along with bath bombs and other bathtime formulations. Google Trends and other organic search tools may help you better identify up-and-coming niches in this rapidly growing sector.
4. Novel Electronics
Telescopes, binoculars, meditation headbands, VR headsets—we’re living in the era of technology and design innovation. These high-value items may not be necessary, but they certainly enhance the lives of the consumers who buy them, if not allowing them to experience a different reality altogether. Twitter ranks “tech-life” as one of the primary pillars shaping the cultural conversation of today.
5. Bespoke Fashion
Let’s get custom! On-demand tees and artwork-turned fashion are more popular than ever. Fortunately, they’re also some of the easiest businesses to start. Several third-party platforms offer on-demand printing and shipping for tees, bags, and other pieces of apparel. So, good design and a solid marketing plan are all you need to get started.
6. Sustainable Living
Sustainability is becoming an increasingly important value among consumers, who are looking for products that reduce waste and have positive environmental impacts more than ever before. Want to create a business centered around positive values? Think reusable containers, toothpaste capsules, natural cleaning products, paper alternatives, and beyond.
7. Subscription Boxes
Dollar Shave Club and Stitch Fix may have helped kickstart the subscription box trend, but it’s been growing ever since—with the help of influencers and unboxing videos, of course. Subscription boxes are excellent ways to engage with a specific community without necessarily tying yourself down to one product or getting your consumers to keep buying your product month after month!
8. Diet-Specific Health Foods
Break out that Keto ice cream and those savory snacks. The popularization of different dietary trends is spurring significant innovations in prepared foods. More than ever before, consumers are looking for low-sugar, gluten-free, and diet-specific goods—all trends which have contributed to the success of e-commerce superstars like Thrive Market and Whole Foods.