|One of the most challenging problems that any aspiring entrepreneur faces is finding a niche that is both profitable and marketable. After all, the type of product you choose can determine the success or failure of your business. Fortunately, there are easy and useful steps that can guide you on properly selecting a niche when it comes to e-commerce, Shopify, and dropshipping business. For more information, click here.
The future of e-commerce, which pertains to buying and selling products online, is promising as more people depend on technology to accomplish their daily tasks, even shopping. This holds true for Asia and the rest of the world. To invest in the market is a wise move, as the revenue for the e-commerce market in Asia is pegged at US$970.8 billion in 2019, according to Statista. However, like any business venture, ample research is needed in order to be successful the niche of your choice.
Shopify, on the other hand, is an e-commerce platform that lets you put up an online store where you can buy and sell different products without having to build your own website. Especially if you’re a merchant, it provides you with the tools you need to make selling more convenient, and it lets you customize your own online store. Dropshipping is where a merchant can list and sell products without having to keep stock of their inventory, or even package and ship items as the supplier will be the one to take care of these.
Now that these terms have been defined, here are tips to capturing the right niches for your e-commerce, Shopify and dropshipping business:
Solve A Problem
The first step in finding the right product niche is to determine whether your product can solve a problem that customers might have. People generally seek items that can make their lives more convenient, so if a product in a certain niche can fit this demand, it will likely have high marketability.
Incorporate Your Passions
In choosing the right product niche for your e-business, factor in your passions as contributors to your decision-making process. However, you should also consider the risk and feasibility of choosing products that would align with your interests. Choosing a niche which you are most passionate about increases the probability of your success, and while it is not a sole determinant, the motivation to keep pursuing it will drive you forward.
Ponder Your Expertise
Naturally, your passion alone can only get you so far, which is why you need to temper this with your professional expertise. Look closely at the skills you have on hand, and the abilities you are capable of. From there, try to match it with possible product niches that you can offer to the market.
Be The First To Recognize A Trend
A fad is far different from a trend because a fad lasts for the short term, while a trend has a longer shelf life. Trends happen because they tend to answer an already existing problem in a different and more innovative way. Having the ability to immediately recognize a booming trend is an excellent strategy to utilize and gain prestige. Being the first gives you an opportunity to be the leader in a specific niche before others can take advantage of it.
To succeed in recognizing trends, there are things you need to be acquainted with such as Google Trends, which can help you identify booming topics and see what’s drawing everyone’s attention. You can also utilize the power of Trend Hunter, a popular trend community that offers trend reports and innovative keynotes to help people find better ideas. Crowd-sourcing, too, where you take advantage of social media to gain insights netizens, can help you be vigilant and identify what most people are interested in order to position your product strategically.
Look For Products With Higher Profitability
Researching for products which have higher profit margins is an excellent way to earn more and leverage the market. In pricing your product, you need to take into consideration the total costs it has incurred, then adding that up to the desired margin. To do this better, try searching for low-cost products that can give a higher return on investment.
Check Your Competition
Benchmarking is the practice of comparing your business with that of your competitor’s. Familiarizing yourself with your possible competitor’s products will help you determine the demand rate of a product or niche, and if your competitors are selling a variety of other products you might be considering.
Take time to look around your neighborhood and see which ones are the most successful businesses, then incorporate that into your e-commerce idea. See how you can improve that existing product or niche in your own online store.
Test Your Idea
With all the information you have gathered, it’s time to test your idea before officially launching it to the public. Doing a pre-launching test will help you determine if the idea or niche you want to get into is acceptable, and if people are willing to spend money on it.
The Bottom Line
There is no perfect process in finding the right niche that will correctly work for you. You need to plan, experiment, and exert the necessary efforts, skills, and passion to have a successful online business. Take both your successes and failures into account as those are your stepping stones towards achieving your business goals.
This is sponsored material and does not necessarily reflect the editorial views of Asia Sentinel.