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In the past few years, we have seen many startups in eCommerce. In fact, it is the most brilliant way to kickstart a business and get rich. You will see a lot of eCommerce businesses that sell you almost anything these days.
I mean, who doesn’t dream of sunbathing on the beach and running a profitable online business by making a few phone calls? This can be possible with a viable eCommerce business idea.
Here, I am talking about a legit eCommerce business, not a churn-and-burn type of eCommerce business.
I’m not saying there is one best idea, as it varies from person to person as every person has different interests, strengths, and skills.
The fact that the percentage of digital marketers is increasing rapidly also means that the percentage of global internet users who buy products online is increasing. This is as clear as vodka: eCommerce is the future.
As per a report, users spend $870.78 billion online with US merchants. That has increased by 15% from last year. This trend will be continued, and the eCommerce penetration rate will rise from 15% to 25% until the year 2025.
If you have an entrepreneurial mindset and are looking to start your business, it is important to know that picking the right eCommerce niche can lead you to riches.
Still confused?
Well, the purpose of this blog is to clear up your confusion and give you ideas about some of the best eCommerce niches where you can invest to grow your business.
Enough of this anecdote; let’s get to the point now.
eCommerce Niches—- How Much You Know?
eCommerce, as in electronic commerce, is a massive umbrella term, like retail stores. However, not all the products are sold at the same pace. As a result, it is critical for businesses to enter the eCommerce market by offering only a few products. By “eCommerce niches,” we mean some specialized standards within the eCommerce industry.
The niches in eCommerce depend on affordable products, high-end products, interests, behaviors, location, education, lifestyle, gender, age, and many more.
However, all the specific niches differ when it comes to earning profits from the eCommerce business.
Why is it important to choose a niche for your eCommerce business?
Here’s the thing: many people think that working in a specific eCommerce niche will minimize the potential customer base, but in the end, all that matters is the profit. That’s why it is important to understand the need for an eCommerce niche.
Some of the reasons or benefits of choosing an eCommerce niche include:
1. You’ll lower your marketing costs.
Marketing your service or product demands a lot of asset investment, and marketing is important as well. Whatever your marketing strategy is, marketing your products or services to a specific niche audience will definitely cost less than when you target entire product categories.
Aiming for a niche audience with relevant ads, for example, will require bidding on low-competition keywords, which will be less expensive.
2. You can charge a premium for your products.
Why would a customer seek out a niche product? Why would a buyer be willing to pay a higher price for a niche product? Do you also have these questions in mind?
Well, let’s answer this. There are three reasons behind the willingness of a buyer to pay more for niche products:
- Scarcity- When there are only a handful of brands selling a particular product, demands surpass the supply. Furthermore, the users are willing to pay more to get premium product access.
- Problem-solving- A niche product solves an important and highly specific problem for the buyer in such a way most of the products cannot.
- Lucrativeness- Listings can only be produced in limited quantities, which entails a high price tag for all items.
3. There Will be Less Competition
Ambitious entrepreneurs usually overlook niche categories because they think there will not be enough demand. It also means that the deeper you dig into any product category, the lesser the competition will be there.
4. Customer Loyalty Becomes Easier to Gain
Gaining customer loyalty is more convenient for a niche store. Think of it yourself: if the product that you sell is hard to find elsewhere, getting loyal customers is pretty much obvious.
Besides this, getting a solution for an important but ignored the problem for your users will give a sense of appreciation for your brand, which will convert into loyalty.
Top Trending eCommerce Niches That You Can Invest in 2023 Upcoming Years
The eCommerce industry is experiencing constant growth and is estimated to grow by 23 percent every single year. There are various eCommerce niches available on the market, and new niches are being invented daily. This makes it difficult for an entrepreneur to select one eCommerce niche out of the available options. In addition to this, not all eCommerce niches are equal in profit and customer satisfaction.
Thus, it becomes important to understand the most trending eCommerce niches. Here is the list of some of the top eCommerce niches
1. Pet and Pet Products/Services
Few people will agree, but pets are adorable, and everyone has wished for one at some point in their lives. If you have a pet, you will obviously search for pet products; therefore, starting a business in the pet product niche will be a profitable business. The popular pet products that are ordered online are pet shampoo, pet supply, raw dog food, dog treats, etc.
After all, you will want to treat your four-legged family member in the best way possible to keep them healthy and happy. One of the latest trends in this niche is organic pet food. Along with food, other wellness products are also in demand, like pet medication, nutritional products, and other supplements like CBD oils that can reduce anxiety symptoms.
According to a survey done, 43.6% of people, when asked, were picky about what their pet eats.
You can earn profit from pet products by opting for this niche, as it is in great demand globally. Learn more about pet apps and how to develop one here.
2. On-Demand Subscription
Subscription platforms are at their peak these days, be it for newspapers, milk delivery, grocery delivery, or gym membership. This is the result of digitalization, and when eCommerce combines with digitalization, it offers users great convenience by saving the time and effort of store owners.
With an on-demand subscription model, users can enjoy a stress-free buying experience, free shipping, and attractive deals while subscribing to buy products.
From the business side, a subscription means a viable number of loyal customers to achieve recurring revenues.
According to a study from BigCommerce, the subscription model is one of the biggest eCommerce trends in 2022. The most captivating thing about an on-demand subscription is that it is one of the biggest eCommerce trends in 2022.
Here is the cost estimation of on-demand apps.
3. ReCommerce
ReCommerce is a word that implies selling items that were either previously owned, used, or new.
Some of the standard products in the Recommerce niche are clothing, electronics, books, jewelry, goods, etc.
It is generally the high-end products that people look for the most because this is a decent option to get expensive products at lower prices. Moreover, rental clothing is one business that is very similar to ReCommerce clothing.
This is not a new model; it was well-established prior to COVID-19. You will find many companies that let users rent luxury and premium apparel for one-time events.
Therefore, it is for sure that rental clothing and ReCommerce are on the list of sustainability trends, and why not? It is the best choice for budget-conscious customers.
4. Home/Office Equipments
The trend of users purchasing home equipment is not going away anytime soon. With the increasing trend of WFH (work from home) and due to digitalization, this particular eCommerce niche will grow sustainably in the upcoming days.
In addition to this, the increasing acceptance of freelance work will also contribute to this growth. According to a report submitted by Modor Intelligence, the home office market’s CARG (compound annual growth rate) will go up by 5.5% by 2025.
5. Eco-friendly/Organic Products
This is one broad niche that enfolds a wide range of products such as cosmetics, home goods, fashion, and travel stuff. Although this eCommerce niche has been a hit for a while, it is still running as a profitable one.
This is one thing to be positive about. The trend of using eco-friendly and organic products is everywhere. The internet, news, media, government, and movies all talk about it all the time.
It has piqued the interest of many users in these products; however, not all of them make a purchase. If you are a nature enthusiast, this may be your chance to find, develop, and sell truly good green products and increase your chances of success.
Here’s everything you need to know about building a home/office equipment app.
6. Health & Wellness Products
According to Global New Shire, the health and wellness food market is expected to grow by 9.20% by the end of 2026, reaching 162.09 billion.
Plus, this BigCommerce niche is already a big one, and there are plenty of competitors in the market.
Your one chance to stand out is by catching up with the latest trends or by offering unique and amazing products that nobody else has ever done before.
And this is possible because there are still many uncharted territories in this vast niche, leaving plenty of room for newcomers.
Do you want to develop a health-tracking mobile app? Here’s the detailed guide.
7. Online Course
Due to digitalization and increased internet accessibility, online learning has become easier than ever. And thanks to the lockdown, people have now become accustomed to this new learning model that is cost-effective and convenient.
Furthermore, online courses are no longer just for students; more and more adults are turning to online learning to keep up with the fast-paced economic and digitalized world.
Adults and older people, including those over the age of 50, can benefit from online learning. If you want to put your subjective expertise to use, this is the best niche to try your hand at. You can begin this in various ways, like by creating your own course website and building a proper curriculum, or you can build a selling platform like SkillShare.
How To Find an eCommerce Niche To Achieve Success?
Now you can know some of the best eCommerce niches in which to invest in 2023. However, it’s still not best to only rely on our article to kick-start your eCommerce business right away. The things we stated in the blog were based on global data that might not be accurate for your country’s market.
Moreover, you should do as much self-research as you can until you have found a promising niche and solid reasons for the success of your idea.
Here are some that will get you started:
1. Indulge in your hobbies
2. Deeply study the market trends
Once you have found a niche for yourself, it’s time to think about running a successful business like product manufacturing and marketing. There are many business models revolving around these features. Although you have to choose one that fits your strengths and budget, that’s how success is guaranteed.
However, there are mainly two options: either creating your own products or reselling those from other suppliers. Both options have an equal share of pros and cons that you should consider before moving forward.
To Sum Up
To wrap up, did you like the content?
I know you’re probably thinking there’s a lot of thinking to do and what the point of reading this blog is, but at the very least you’ve got an idea of where to start and what to do once you’ve found your niche.
But if you have successfully found your niche, the next steps will get easier for you.
It doesn’t matter what kind of business model you choose; Extern Labs will help you in every step of your business, be it business app development or marketing.
I hope you have found the piece of information you were looking for.
Thank You!
