The key to ecommerce success is not selling the same thing everyone else is selling or jumping in on the hottest trend. Sure, these can make you money in the short term, but you’ll have more competition to work with and less sustainability in the long run.
Narrowing down your target market and offering unique niche products can help you build a loyal customer base and a successful long-term business versus selling a broad range of products.
Think outside the box: search for a small, underserved, yet passionate audience to whom you can provide products that will keep them coming back for more.
Continue reading to learn more about this strategy:
- What are niche products?
- What are examples of niche products?
- What are the most popular niches?
- How do you find a niche product?
- Where do you sell niche products?
What are niche products?
Niche products are items that fall under more defined product categories that appeal to — and target — smaller, more specific groups of customers with particular needs.
You can find niche products when you narrow down a broad product category and look into unique subcategories.
By offering products in a smaller niche market, you would be targeting a much more specific audience by providing a specialized product instead of a general product.
The idea of targeting a niche market is to offer products in high demand but have lower competition.
For example, shampoo is a product nearly everyone purchases. That is a general product category that would be difficult to compete in, because of the thousands of shampoo products vying for customer attention.
“Vegan cruelty-free shampoo for women” on the other hand, is in a niched-down product category targeting a specific group of people: a customer base of women that may value animal rights, plant-based ingredients, and/or sustainability.
In this example, you will likely have more success by focusing on a smaller yet more focused audience over trying to appeal to the general public.
What are examples of niche products?
Now that you know what niche products are, let’s go over some real-life examples:
Niche beauty products
Vegan cruelty-free shampoo for women
Using the example above, here is an example of a niche beauty product that matches the vegan and cruelty-free shampoo search query.
This product targets a specific customer group looking for shampoo made from natural ingredients that are vegan and cruelty-free. It is worth noting that customers that fall within a specific target audience are typically willing to pay more for products that meet their needs or standards.
In this example, this shampoo bottle is almost $15 (regular price) versus some bigger name brand shampoos that are just $3 or $4 a bottle.
Natural nail strengthener nail polish
This product is not just a clear base coat for nails but is also a nail strengthener. It is for a specific group of people who may have weak or brittle nails.
The added protective feature of this product allows it to stand out amongst the hundreds of other related products that are just a base coat — without the strengthener.
This protective nail polish base coat costs $10.79 for one 0.5 fl. oz. A competing brand’s nail base coat without a protective formula costs $9.99 for two 0.5 fl. oz. bottles.
In this case, customers are willing to pay more for one bottle than for two bottles from another brand because this product satisfies their specific needs.
Niche kitchen products
Clear ice cream cone stand for parties
After digging deeper within the broad kitchen category, I reached the “serveware accessories” subcategory. While the term “serveware” can still be a little broad, I eventually came across this ice cream cone stand.
While this particular product can satisfy different types of customers, it is still considered a niche product because it does not appeal to the typical shopper as it isn’t used as an everyday kitchen item. A coffee maker is a much more popular and competitive kitchen product that would be harder to market in a sea of brands.
Think of a specific audience that would purchase this cone stand: A mom hosting her child’s birthday party; an owner of a boutique ice cream shop displaying different cones; a wedding caterer looking to spruce up the dessert display. This event-driven audience who wants to make an impact is the niche market.
Niche pet products
People love their pets, and data shows that consumers love spending money on their furry friends. So what are some niche pet products?
Healthy treats for dogs
This brand is not just selling dog treats but healthy, low-calorie treats for dogs. This type of product targets a specific group of dog owners who want to help their pup lose weight or to ensure they have a healthy diet.
The apple bacon-flavored product stands out amongst competing dog treats because it presents itself as a healthier, lower-calorie alternative to other dog snacks. And while the price may seem low — pay attention to the size of the bag.
This 5 oz. bag of healthy dog treats is $5.40, compared to the Milk-Bone dog food brand selling a 25 oz. package of dog treats for $11.98. Customers purchasing the latter pay more upfront but receive more dog treats.
In the examples above, customers are willing to pay more for a product that meets their — and their pet’s — needs. In this example, customers are willing to purchase smaller quantities if it means feeding their dogs healthier foods.
Airtag cat collar
Cat owners know that cats love to be adventurous and explore — this is especially true for outdoor cats! This product is perfect for outdoor cat owners who want to keep track of where their cat is around the neighborhood.
This cat collar is able to hold an Apple Airtag GPS tracker and targets cat owners whose pets are frequently outdoors or are prone to getting lost. By selling this product, a seller would be satisfying a cat owner’s need to track their pets and relieving one of the common pain points of being a cat owner.
How do you find a niche product?
The question every ecommerce entrepreneur has: how do I find a niche product to sell? There are a few different ways you can go about researching high-demand, low-competition products to sell online.
Search through subcategories
I like to research products by choosing a broad category and diving deeper into the subcategories. The further you go, the more specialized the niche gets and, hopefully, the lower the competition.
You can go about this on any online retailer, but I will use Amazon.com for this example.
We all know that the kitchen category is one of the most popular and competitive categories in ecommerce. But when you niche down and move deeper into various subcategories, you will most likely find less competition.
Starting with the Kitchen & Dining category on Amazon, I navigated to the Dining & Entertaining subcategory. You can go even further — in this case, I went to Dinnerware & Serveware. Eventually, I found the Condiment Squeeze Bottles subcategory.
Once I got here, I tried to think of the different uses or target customers for this product. I decided to type “condiment squeeze bottles for” in the Amazon search bar but did not hit search. I wanted to see what Amazon would suggest.
I came across “condiment squeeze bottles for kids.” At a glance, I surmised that this subcategory would have much less competition than just “condiment squeeze bottle.”
You can do some more research to see if there is enough demand in the market for you to launch a new product.
Another way to find unique niche markets is to search through online communities such as Reddit, Instagram, Facebook groups, and niche forum websites.
Find a community you are interested in and start reading through posts and comments members write. Being active in a community around shared interests or hobbies will give you some ideas of niche products you can offer to that type of audience.
Reddit is a fantastic place to do this because there are subreddits for nearly every topic under the sun.
Not sure how to find a subreddit? Type any topic into the search bar, and I can almost guarantee that some type of discussion is already taking place.
I like boating, so I searched for a boating community on Reddit. Lo and behold, I find a subreddit called r/boating with 55,000 members.
Start with one of your hobbies or interests, or simply type in something random and see what comes up.
Find out what customers are actively searching for by conducting keyword research into specific niches. Use the free Google Keyword Planner tool if you don’t want to pay for a keyword research tool.
Start by searching for a broad keyword, and the tool will populate with hundreds, even thousands of related keywords into which you can dig deeper. Doing this is a powerful way to discover unique keywords and niches you may have never thought of before.
You can use the Jungle Scout Keyword Scout tool if you want an Amazon seller-focused tool. Keyword Scout will also be helpful when searching for keywords on other ecommerce platforms.
Tip: we’ve found that if customers are searching for a particular keyword on Amazon, they’re likely searching for similar keywords on other online retailers such as Walmart, eBay, and even Google.
Evaluating your product ideas
Once you discover some niche product ideas, you will need to evaluate them to ensure enough market demand. There are some key factors to consider before choosing a product to sell:
Are customers actively searching for the product you want to sell? Is the demand high enough that customers are actively purchasing the product daily?
Once you determine the demand, you need to evaluate the competition. If the market is too saturated, there may be no room for you to make any sales or profit.
Is the product seasonal? How long does the season last? Can you sell this product all year round? Ask yourself these questions before investing in a niche product.
Can you sell this product profitably? You need to be sure you can source the product for a low enough cost to turn a profit on whichever marketplace or ecommerce platform you sell on.
How you market your product these days can make or break your brand. Take a look at the competition and see how they market their products. How can you improve your marketing to make your product and brand stand out?
For a deeper understanding of how to evaluate your niche product ideas, check out our Product Research Guide.
Where to sell niche products
After you research and discover an excellent niche product to sell online, where do you sell it?
Luckily, there are a few marketplaces where you can start selling to the masses. Following an omnichannel approach, let’s go over a few platforms where you can sell your products online, to reach as many customers as possible.
Since Amazon is the largest online marketplace with millions of customers each month, it is where you want to be as a brand or ecommerce entrepreneur. Selling on Amazon is arguably the best way to sell your products online.
If you decide to become an Amazon seller, check out Jungle Scout. We have a full suite of tools to help you grow and run your business on Amazon.
There are many opportunities for ecommerce sellers to succeed on Walmart Marketplace. Since it is still a reasonably new marketplace, there isn’t nearly as much competition as there is on Amazon, and now is an excellent time to get started.
According to our new State of the Walmart Seller Report, nearly 95% of Walmart’s ecommerce sellers are profitable, and over half are reporting revenues of over $100,000 per year.
Walmart Marketplace also offers a similar fulfillment service as Amazon called Walmart Fulfillment Services (WFS.) Simply ship your products to Walmart’s fulfillment centers, and Walmart handles shipping and customer service.
Until the end of the month, Walmart offers free 3-month storage and discounts on commission rates and fulfillment fees when you sign up as a new seller. Learn more about this intro offer here.
Shopify allows ecommerce brands to create their customized online storefront. As a Shopify store owner, you have complete control over your site’s branding, its operations, and how you market and advertise.
Building your own store is simple, with hundreds of templates to choose from to make your store fully functional and customized for your brand.
eBay has been around as long as Amazon has, but many customers have associated eBay with old, unwanted items people no longer want. While it’s a good place to find many unique, used items, it is also a fantastic place to sell new niche products.
Like Amazon, eBay has millions of loyal customers who love the platform and continue to use it to buy goods online.
If you are marketing niche products online, you would be missing out on potential customers if you were not selling on eBay.
Selling on Facebook Marketplace may not sound like a great way to sell niche products, but it is. I say that because it’s not just a local marketplace, you can choose a shipping method that allows you to reach customers all over the country.
Do people shop on Facebook? Yes, they do! 26% of consumers start their product search on Facebook, and approximately 800 million people use Facebook Marketplace to discover and purchase products every month. To list items for sale on the marketplace, all you need is a free Facebook account. It’s a no-brainer!
Instagram Shopping and Facebook Shops
Unlike Facebook Marketplace, Instagram Shopping and Facebook Shops allow you to add a shop to your accounts so your followers can purchase products directly from Instagram or Facebook. While these are two different shopping platforms, you need a Facebook account to set up a shop on Facebook and Instagram.
This option is terrific if you already have a decent social media following and a professional or creator account on these two platforms. Building a loyal social media following makes it easier to sell your products as your followers want to help support your business.
When you post an image or video on Instagram, you can tag your products so people can tap to learn more and make a purchase. There will also be a “View Shop” button in the bio of your account.
What niche product will you sell online?
We hope this article helped you understand what niche products are, find a niche product, and figure out where to sell your niche products online.
Do you have more questions about discovering your niche or selling online? Let us know down in the comments!
Are you ready to start selling products on Amazon? Jungle Scout can help you get started with discovering high-demand, low-competition products, researching relevant keywords, managing your sales and ads, and helping you earn more reviews.
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