15 Best Ecommerce Niches & 7 Steps to Build Your Niche Business in 2024

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Consider finally starting that online store you have been dreaming about for years. You’ve picked a platform, set up your store, and even chosen a theme. But as you begin filling your store with products, you realize you do not know what to sell. No matter how much research you do, you can’t determine what products will make you money. You keep spinning your wheels, frustrated and overwhelmed.

This is where ecommerce niches come in. Finding a defined segment of the market to target can help you narrow your focus and identify profitable products to sell. This guide will help you understand e-commerce niches and find one that is right for you with the help of ecommerce competitor analysis. With this knowledge, you can successfully identify a profitable ecommerce niche and build a thriving business around it that generates consistent revenue and sustainable growth in 2024.

Shophunter’s Shopify sales tracker solution can help you achieve your goals by providing valuable insights about ecommerce niches. This tool can uncover data about any Shopify store to help you identify profitable niches and target your competition.

What is an Ecommerce niche?

An ecommerce niche is a distinct segment within any given market. It often includes areas that other businesses overlook. For example, niches can consist of handmade items, pet food or pet owners, trendy t-shirts, eco-friendly products, beauty products, gadgets, or other trending products.

By narrowing down how you look at a market, you can find areas and sections other businesses still need to tap into. When you discover these niches, you can build a company with a good chance of succeeding. You will only sometimes go up against the big boys. Instead, you can find and profit from the areas that others have neglected.

Why Choose an Ecommerce Niche?

Start Small for Big Impact

By operating in a limited space, eCommerce startups can have the advantage of taking measured initial steps. The resources required are less, and it's easier for startups to bootstrap. A niche eCommerce business can establish a solid foundation before scaling up and reaching broader markets.

Less Competition Means More Opportunities

A niche allows an online business to operate in an exclusive space with less competition. For example, a niche eCommerce business could sell vegan athletic shoes instead of footwear. There would be fewer competitors in this market, and the website could attract more targeted customers organically through search engines.

Marketing Is Easier with a Defined Audience

With a defined purpose and a segmented target audience, businesses can quickly curate effective marketing strategies with a smaller budget. For instance, if you wanted to promote a niche website selling vegan athletic shoes, you could create content focused on environmentally friendly shoes, how to pick the right shoes for your workout and even shoe reviews. This content could attract organic search traffic to your site and even help you build backlinks from authority sites before you launch.

Build a Specialized Ecosystem for Your Community

With distinct needs, such businesses can personalize their ecosystem around its theme. From the UI/UX to platform features, integration, business policies, and more, niche marketplaces can curate an ecosystem around its users.

Continuing with the example of vegan athletic shoes, a niche site could attract a community of eco-conscious athletes. In addition to selling products, the site could include features like blogs, forums, and product review sections that cater to this audience to help them achieve their goals.

Independent Pricing Strategies Create Value Perception

When niche eCommerce platforms offer exclusive access to certain products specific to their niche, they can create a higher perception of value and execute market-independent pricing strategies. So, using the example of vegan athletic shoes, this niche site might sell a proprietary shoe brand that appeals to eco-conscious consumers. Even if the products are priced higher than competitors, the target audience will see the value in purchasing from a site that caters to their needs and goals.

Higher Likelihood of Repeat Business and Customer Retention

With a niche business, a marketplace effectively builds a community of users with similar interests. These customers are more likely to return to the platform. Continuing the previous example, the eco-friendly athletic community will likely return to the vegan athletic shoe site to make future purchases and access valuable information supporting their interests.

Opportunities for Future Growth

Once the online business gains a foothold in the market, it has a chance to grow vertically and geographically. Using the vegan athletic shoes niche example again, after establishing a reputation and customer base, the business could expand to sell other eco-friendly workout products like apparel, gear, and accessories. The site could also reach out to other athletes who may not be vegan but are looking for sustainable products and target its marketing accordingly to help grow sales further.

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Why Should You Start With a Niche Instead of a Product?

Many e-commerce entrepreneurs make the mistake of thinking big right from the start. I talk to many startup entrepreneurs who don’t know what they want to do. I’ll say, “What is your goal?” The answer might be this: “I want to start a huge e-commerce business.” Unfortunately, that’s not specific enough.

Not even close. If you look at the numbers, it’s easy to see that e-commerce spend continues to grow year after year. While many e-commerce dollars go to big marketplaces like Amazon and eBay, many also get spent in smaller, niche-oriented online stores. Additionally, the market itself is global. When your target audience can be found in every country around the globe, many opportunities present themselves. To capitalize on these trends, you must get very specific.

Find Your Passion

Build your brand around what you’re passionate about and what you can do well. Me? I’m a marketing guy. That’s what I do. And I’ve built my entire brand around it. If you’re interested in e-commerce, you must determine what you do best. Then, once you’ve selected a product to sell, make your brand the most attractive option for your target audience. First, of course, you need to settle on a niche. Sometimes, it’s more complicated than it looks, but I’ve developed ten foolproof strategies to help you find your niche in the e-commerce market.

10 Foolproof Strategies for Choosing an Ecommerce Niche

1. Follow Your Passion

It sounds simple. It’s also essential. You'll likely fail if you’re not passionate about your e-commerce niche. Entrepreneurship means devoting significant time, resources, and energy to the business. When you have no passion for the product you’re selling, your motivation goes straight out the window.

Conversely, when you feel a strong sense of passion and purpose, you get fulfilled by your work. I’m a prime example of how starting a business without passion can cause an entrepreneur to crash and burn. Brainstorm a list of things you’re passionate about. That list will help you throughout the rest of the process.

2. Conduct Some Keyword Research

You’ve made your “passion list,” right? Now, it’s time to dig into some data. Passion alone can

fuel an e-commerce business. If nobody wants what you’re selling, you won’t drive revenue. Start with a free keyword research tool like Ubersuggest. Enter a keyword or phrase in the box provided. Keep track of the data you collect in a spreadsheet. You can refer to it often and find intersecting lines between search terms. Plus, when you start selling your e-commerce product, this keyword research will be helpful for content marketing.

3. Check Out the Competition

Before you decide on an e-commerce niche, look closely at your potential competitors. You might only take them on if several sites dominate the space. Should you choose to move forward, you’ll know what hurdles you face to gain market share. Maybe you’ve decided you want to focus on dog food. That could be a great niche if you’re passionate about helping pet owners feed their dogs a healthy diet. Start by searching for “dog food” on SEMrush. From there, you can decide whether you’ll be able to compete. You can also combine Ubersuggest with SEMrush to collect data more efficiently.

4. Look for High-Dollar Options

Many e-commerce entrepreneurs want to sell dozens or even hundreds of low-priced items. They figure they’ll get over the price-objection hurdle faster. That’s not the best way to get started as an e-commerce entrepreneur. Instead, target high-dollar products. You have to conduct more customer education when selling high-ticket items. If you’re collecting email addresses, speaking to prospects on the phone, and building your brand, you stand to earn a lot more money.

5. Assess Your Resources and Assets

I like to start businesses with assets and resources already in place. That way, I can beat the competition even before I start marketing. Let’s say that you want to sell custom dog costumes. Yes, it’s a thing. You can charge more for a custom product, which makes it more lucrative than a one-size-fits-all option. The same goes for any e-commerce niche or category. If you have a patent already, you’re better equipped to hit the ground running.

6. Look Beyond Category

It’s easy to get blinded by category when choosing an e-commerce niche. However, one thing doesn’t always serve just one purpose. When you think of virtual reality, for example, you probably picture over-eye headsets that allow you to see virtually. One company expanded on VR to produce audio immersion. What if you could find a new use for something people use daily? The Ossic X creators combined headphones and VR to trump huge competitors. Innovation matters. If you can develop a new use for something old, you’ll have a built-in market.

7. Start with a Problem

Friction often results in fewer e-commerce purchases. Consumers want free shipping, flexible payment channels, and opportunities to share feedback. However, you can’t start with the point-of-sale pain point. You need to dig deeper. Go back to the “passion list” I advised you to create earlier. For each item on the list, come up with three or four pain points you could help people solve. You could solve both pain points by selling dog food I ship regularly based on each consumer’s needs.

8. Walk the Neighborhood

You never know when inspiration might strike. E-commerce as a service has become extremely popular, so take a walk around your community. Pay close attention to the most popular businesses. What’s working for them? How can you turn their success into an e-commerce store? This is how brands like Warby Parker have grown out of seemingly nowhere. They resolve a pain point and turn a frustrating experience into one that offers less hassle to the consumer.

9. Track the Trends

You can’t always rely on trends to choose an e-commerce niche. Many fads and products rise and fall in popularity without warning. That’s why you want to choose a niche with a consistent upward trend. Jump on Google Trends to research your options. Type your keyword into the “Explore topics” bar. Don’t forget to look at the other data, too. Google Trends provides a handy map to showcase the interests of people worldwide.

10. Define Your USP

Sometimes, a niche grows from the USP you use to distinguish your business. An easy way to define the unique selling proposition, or USP, is the intersection between passion, strength, and market needs. You need a passion for the product you’re selling and the market you’ll serve. Otherwise, you’ll burn out pretty quickly. What do you do better than everyone else?

How does your product outperform the competition? And finally, you need to meet market needs. There has to be a demand for your specific product and its unique qualities. Let’s go back to the dog food example. Maybe you sell organic dog food with a scientifically-backed healthy formula. You’re passionate about keeping dogs healthy, your strength lies in my scientific research, and the market needs access to high-quality, nutritious dog food. That’s a great USP.

What is ShopHunter?

ShopHunter's Shopify sales tracker offers a unique tool for ecom founders, particularly those in the Shopify ecosystem. At its core, it is a custom algorithm that estimates sales for entire stores and specific products, helping users quickly validate product potential. The platform goes beyond basic sales tracking, featuring an ad spy tool that monitors advertising activity across stores.

This combination lets users spot trending products and successful marketing strategies early on. Whether you're a dropshipper, a Shopify store owner, or someone looking to enter the e-commerce space, ShopHunter aims to streamline product research and reduce the risk of investing in low-performing items. Sign up for a free trial (no credit card required) to our Shopify sales tracker tool to find your next eCom opportunity or to level up your current eCommerce store by learning from your competitors.

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15 Best Ecommerce Niches With High Growth Potential in 2024

1. Organic Artisanal Pet Food

Pet owners are looking for healthier options for their furry friends, driving the organic pet food market to grow at a compound annual growth rate of 5% between 2024 and 2032. Combining the artisanal and organic aspects could provide a unique selling proposition for your pet products.

Artisanal suggests a high level of care and traditional methods in the production process, while organic assures customers of the quality and safety of the ingredients. This unique blend caters to owners’ desire for wholesome pet options. Additionally, organic and artisanal pet foods are often positioned as premium products, which could allow for higher profit margins.

2. Organic Health and Beauty

The organic health and beauty market is a rapidly growing sector within the health and wellness industry. The global organic cosmetics market is projected to reach $55.5 billion by 2034, increasing 9.5% annually. This growth isn’t confined to any region; North America, Asia-Pacific, and Europe have all seen significant growth.

There are several reasons for this growth, including consumer awareness of the harmful effects of synthetic chemicals in traditional cosmetics, social media influencer influence, regulatory pressure for stricter standards, and millennials and Gen Z favoring ethical and sustainable brands. If you tap into this niche, organic face oils, serums, natural shampoos, and conditioners are in high demand.

3. Golf Equipment

Golf gear is another hot ecommerce niche for 2024. According to Statista, the market is projected to generate a revenue of approximately USD 25 billion, with an expected annual growth rate of 5.63% from 2024 to 2028. The golf club segment, particularly the golf club market, is a significant contributor to this niche, with a dominant share and a CAGR of 6.5% forecasted for golf gear.

Technological advancements in club design and materials are key drivers of this segment’s growth. For ecommerce businesses that want to capture this market, golf balls, drivers, fairway woods, hybrids, irons, mallet putters, and golf club sets are all potential products. There is also a growing market for women’s golf equipment, with manufacturers producing items aimed explicitly at female golfers. Affordable and entry-level equipment is also trending, catering to beginners and casual players.

4. Online Consulting Business

In 2024, the advancement of sophisticated technologies like data analytics and generative artificial intelligence (genAI) continued the demand for consulting services. Instead, it increased. Companies in every industry are turning to consultants for guidance in adopting new tools and integrating them into their business strategies. MordorIntelligence forecasts the size of the consulting service market at USD 354.01 billion in 2024 and is expected to reach USD 447.72 billion by 2029, growing at a CAGR of 4.81% during the forecast period (2024-2029).

Those considering entering the online consulting business should focus on high-demand niches with high growth potential. Such niches include healthcare consulting, generative AI consulting, and environmental consulting. Other possible niches are consulting on sustainability and social responsibility, company culture and inclusion, data analytics and visualization, no-code tech stack, and brand integration.

5. Online Courses

Online learning platforms became increasingly relevant as the workforce became more decentralized, providing opportunities for upskilling and reskilling. The global e-learning industry is increasing. It may reach $325 billion by 2025 and $1 trillion by 2028. This demand isn’t limited to academic learning; corporate eLearning is also on the rise, with 90% of corporations utilizing online education for their employees.

Several sub-niches are worth exploring, including microlearning, which is 17% more effective than traditional learning, and mobile learning, which is expected to exceed $80 billion by 2027. You can start by offering courses from home. Later, you can add books and study materials. This niche allows for different educational content types. For example, language courses, coding classes, and photography tutorials. These are popular and can be marketed online.

6. Subscription Boxes

According to Imarc, the subscription box industry's market value is expected to grow at 14% annually, reaching over $105.4 billion by 2032. This growth is driven by consumer demand for personalized, curated experiences that cater to specific interests and lifestyles. In 2024, the industry will diversify, offering products ranging from health supplements and fitness gear to artisanal goods and pet wellness.

Consumers like managing subscriptions by pausing, skipping, or changing delivery frequency, which enhances satisfaction and retention. If you are considering entering this business, focus on niche markets that appeal to passionate customer bases. Subscription boxes can include organic snacks, eco-friendly personal care items, craft supplies, innovative packaging, and cultural goods. Because these niches cater to specific consumer interests, they encourage repeat purchases.

7. Kitchen Appliances

The kitchen and grocery niche is growing and particularly appealing to food enthusiasts and home cooks looking for products that enhance their cooking and dining experiences. With the trend for healthy eating showing no signs of fading, products that support this lifestyle are likely to be in high demand. The market size for kitchen appliances is estimated at USD 245.45 billion in 2024.

It’s expected to reach USD 321.40 billion by 2029, growing at a CAGR of 5.53%. If you want to sell kitchen products, the dominant segments are white goods and small electric home appliances. These include items like air fryers, expected to see a rise in demand with a CAGR of 7.0% between 2023-28, and electric kettles, which are popular due to their convenience. Silicone baking mats and electric wine openers are trending products in this niche.

8. Sustainable Eco-Friendly Products

Sustainable, eco-friendly products are a rapidly growing niche in the ecommerce market, with a projected global market value of $150 billion by 2025. Organizations are adopting sustainability practices due to stricter regulations and compliance requirements. Governments worldwide are taking action against climate change and environmental degradation, leading to tighter regulations.

Consumers demand sustainable products and transparency in the supply chain. They are willing to spend more on sustainably manufactured products, an extreme sentiment among younger generations like Gen Z and Millennials. As for trending products in this niche, consider reusable water bottles, eco-friendly cleaning products, compostable audio accessories, solar energy devices, sustainable office accessories, vegan pet accessories, etc.

9. ReCommerce

Recommerce, also known as reverse commerce, involves the buying and selling pre-owned goods. It is becoming popular in the e-commerce sector. Luxury items, in particular, hold a significant share of the e-commerce market. The U.S. e-commerce market is expected to grow at a CAGR of approximately 14.5% from 2024 to 2030.

The increasing popularity of e-commerce is largely due to growing environmental awareness and the desire for sustainability among consumers, particularly millennials and Generation Z. If you are considering a re-commerce niche, you should focus on categories beyond apparel. Trending product types in this niche include toys and juvenile products, consumer non-durables, cultural goods, jewelry and accessories, fashion items, technological devices, and over-the-counter medical supplies.

10. Print on Demand

Print-on-demand (POD) is a growing niche in the e-commerce space, with a projected market size of $48.4 billion by 2032, growing at a CAGR of 22.7% from 2024 to 2032. This growth is fueled by consumers’ increasing desire for personalized products that reflect their individuality. POD appeals to businesses that want to offer customized products without investing in large inventories. Entrepreneurs and small businesses looking to enter the e-commerce market with a unique selling proposition will find this model especially appealing. The trend is not limited to a single product category; it spans apparel, home decor, accessories, and stationery. Trending POD products include personalized t-shirts, hoodies, and sweatshirts, offering high margins and customer appeal. Custom mugs and candles also sell well.

11. Home Fitness Equipment

Who needs a crowded gym when your living room can be your fitness haven? The home fitness equipment market is forecasted to reach $27.39 billion by 2028, with a compound annual growth rate (CAGR) of 10.6%. This surge is because people prioritizing health (hello, goodbye belly fat!), and the convenience of home workouts being unbeatable.

Technology is also upping the game. Imagine AI trainers or VR workouts – pretty cool, right? These advancements create a more engaging and effective sweat session, all from the comfort of your living room. Trending products in this niche include hip resistance bands, yoga/exercise mats, battle ropes, pull-up bars, bike pedal exercisers, vibration plates, dumbbells, jump ropes, yoga balls, kettlebells, shaker bottles, and steppers.

12. Home Decor & Office Equipment

Online platforms have made it easier for consumers to access a wide range of products worldwide. As living spaces become smaller, especially in urban areas, there is a demand for multifunctional home equipment. Additionally, consumer preferences towards sustainable and eco-friendly products and increasing renovation and remodeling activities in the residential sector have made this niche a promising e-commerce sector with high growth potential in 2024.

Trending products in this niche include nature-infused workspaces, flexible furniture, and tech-integrated office equipment. Nature-infused workspaces use natural materials, indoor plants, and earth-toned color schemes. Flexible furniture includes modular desks, adjustable chairs, and collapsible storage units. Tech-integrated office equipment includes smart gadgets, automated systems, and tech-savvy furniture.

13. Handmade Items

People are increasingly drawn to unique, handcrafted pieces that tell a story. They are seen as a form of self-expression and are often associated with high quality, sustainability, and supporting small businesses. The market for handmade products is massive, and it’s only getting bigger; with a projected value of $983.12 billion by 2030, it shows a high growth potential.

This growth is driven by consumers’ increasing preference for unique, artisanal products that offer a personal touch and often embody sustainable and ethical practices. When selling handmade items, leveraging dedicated marketplaces like Etsy, Amazon Handmade, or IndieCart, frequented by buyers explicitly looking for handcrafted goods, is beneficial. These platforms provide a ready audience and can help sellers reach their target market more effectively.

14. Homeware and Garden

Since the pandemic, consumers have developed an increasing love for their homes, which has led to an increase in the sale of homewares. Like fashion, the homewares industry incorporates multiple ways to start an e-commerce marketplace for kitchenware, lighting solutions, art collectibles, and more.

15. CBD Marketplace

Cannabidiol, or CBD, is a compound found in a plant called Hemp. This compound is different, and it is unlike another compound from the same plant, i.e., THC, that is known for leading a user to be spaced out. Instead, researchers have associated it with health benefits. Hence, CBD is gaining popularity. Available in oils, biscuits, candies, pills, and more. Since this niche is still relatively new, CBD sellers are looking for new online sales opportunities.

How to Build a Thriving Ecommerce Niche Business in 7 Steps

1. Stay Ahead of the Curve with Ecommerce Trends

Ecommerce trends change all the time. By staying on top of the latest trends, you can identify profitable niche markets for your online store. For example, probiotics, specialty teas, and eco-friendly items have been in high demand since 2019 and will continue to grow in 2023. Jumping on ecommerce trends is a simple way to find your niche and capitalize on what products are selling well. However, it’s crucial to ensure the trend has lasting value (e.g., fidget spinners were popular a few years ago but quickly faded out).

The COVID-19 pandemic called for a higher demand for essential products like hand sanitizers. Touchland successfully transformed hand sanitizer from a first aid item into a beauty staple that was chic and more pleasant to use. Their high-quality, moisturizing hand sanitizers include aloe vera, essential oils, and other high-performance natural ingredients, along with Denatured Ethyl Alcohol that kills germs without leaving hands dry or sticky.

“We were already growing quickly when COVID began, then we completely sold out the first week of the pandemic. In three weeks, more than 34,000 customers were waitlisted on Touchland.com. We even did pre-orders to try and meet demand. Between March and May 2020, we had up to 700 orders per day and sold 10,000 dispensers to industry-leading brands in those three months. COVID changed most businesses' hand sanitation mentality, and this won’t go away after the pandemic.” Andrea Lisbona, Founder & CEO of Touchland

2. Leverage Your Unique Connections or Interests

Some niche ecommerce businesses started because the founders had a hobby and realized others could benefit from their product. Or they realized they could create add-ons and accessories for popular products (like phone cases for smartphones). These are natural starting points for an ecommerce niche.

For example, A Year of Dates started as an idea for a unique holiday gift and became a worldwide sensation. John Greenhalgh created a jar full of creative date ideas for his wife, and after having so much fun on their adventures, the couple began selling a boxed version. What started as a bonding experience between husband and wife has increased, and A Year of Dates has fulfilled orders for couples all around the globe.

3. Identify Your Audience and Their Needs

By doing market and product research, you can find out if there’s enough demand for your business idea and if it’s a profitable niche. For instance, there’s a sizable market for handmade furniture, but is there a market for buyers looking for handmade furniture made only out of cherry wood? A targeted, well-defined audience is critical, but go too specific and limit your potential growth.

4. Target the Right Keywords for SEO

Keyword research is a valuable SEO (search engine optimization) strategy for finding out if people are searching for the types of products you sell or want to start selling. Need help figuring out how to get started? Here’s how you can perform keyword research: Identify keywords relevant to your niche.

Using tools like SEMRush or Ahrefs, you can look up what people are searching for and get an idea of the competitive market. Research which keywords are most relevant to your business and will help your business succeed online. By performing Google and Ahrefs searches, you can determine which keywords carry the most weight.

This process will help you determine which keywords are the most relevant. Build a topic map where you group related keywords into lists that all roll up under a representative topic. For example, topics for your supplement brand might be “women’s supplements” or “best supplements for children.” Under those topics would be keywords relevant to each unique topic.

Once you’ve done keyword research, you can create guides, articles, and other valuable content using those keywords in blog posts, optimized landing pages, and more. The more specific your niche, the easier for me to get your content to rank on Google. It will be tough to rank for “organic makeup,” but it can be significantly more straightforward to rank for “cruelty-free vegan makeup.”

When searching for the right keywords, look for relevancy, competition, and search volume. With advertising costs growing over time, targeting the wrong audience can be costly. By focusing on a niche, you can identify and target your audience more efficiently and cost-efficiently using engaging content related to your product. The more targeted you get with ads, the more expensive your cost per lead may be. However, at least you will be putting your brand in front of only those in your potential audience. Perfume and fragrance brand Dossier has launched a blog that sheds light on the perfume industry, best practices, lists of top fragrances, and more. This blog provides consumers with additional information while indexing the search engine results page (SERP).

6. Research the Competition

When selling products within a specific niche, you will likely have competitors with a similar product. However, that doesn’t mean you can’t find a way to make your product stand out. When researching an ecommerce niche, take note of your competitors and their products, and look for ways to differentiate your product further.

For example, your competitor is a protein powder company whose reviews mention that the products only come in bland flavors. With that information, you may create a tasty protein powder in various flavors and use that as your competitive advantage. Customers are demanding quick shipping.

Fast delivery is an area where you can set yourself apart from the competition. In addition to giving your brand a competitive advantage, fast shipping can build loyalty and decrease cart abandonment. Fortunately, launching a niche ecommerce business with 2-day shipping can be done by partnering with a third-party logistics (3PL) provider like ShipBob.

7. Optimize Your Pricing Strategy

Correctly pricing your products can help your ecommerce business grow and become more profitable. Finding the right price point is much more accessible by focusing on a niche. If I look at my competition and notice they all have similar price points, I can use this as an opportunity to create the same product at a lower cost to undercut my competition. Or I can use it to make a higher-priced product that stands above the competition — which is a good strategy for high-end luxury products. With a higher margin, I can even offer free shipping.

7 Ways to Find Customers for Your Ecommerce Niche

1. Think Small to Grow Big: Why a Niche Market Isn't Limiting

Going down a niche path doesn’t mean your business is unambitious. Instead, it’s more about finding a specific audience and providing solutions. Identifying a niche market is a crucial first step for any small business. Remember, targeting particular groups does not mean excluding anyone. It’s about making sure you appeal to the right people.

2. Use Search Engines: How to Find Your Niche Market

We’ve all been there: you type the first few words of a longer phrase into a search engine, and the auto-complete suggestions give you some exciting possibilities. Try it out with a niche phrase like “how to eat healthy,” and you’ll get the following results: Any of these results could be your market niche. In the healthy eating space, you could produce cheap and easy meal ideas for busy college students, offer healthy eating recommendations for people who travel for work or tailor your business around customers who hate to cook. Plus, if people are searching for something, it can indicate that it’s something you need.

If you’re the one person around who can answer these questions, your niche business will be uniquely qualified to succeed. Click the “how to eat healthy on the road” option. You’ll see results for snacks, affordable, healthy travel diets, and more. Each of these results is another potential way to find a niche for your business. Beyond eating healthy, you can focus on eating healthy on the road through travel snacks or inexpensive travel meal plans. See how the extra modifiers to your search results make a difference. That’s the art of finding a niche.

3. Find Out Who You Should Be Targeting: Create a Detailed Customer Profile

When targeting an audience type, you’ll want to know everything about them. Consider your business and ask yourself what kind of person would use your product or services. Who are they? If a company wants to sell vegan handbags and accessories, get down to the brass tacks: who buys this? It’s far more likely to be college-educated women in urban cities than middle-aged fathers in the rural suburbs.

Questions to ask may include: How old are they? What gender are they? What are their likes and dislikes? What’s their relationship status? What job do they have? Are they still in school? Where do they live? How do they spend their weekends? What do they hope and dream about? What problems do they have that you can solve? Creating a personalized marketing campaign for your business will be much easier by getting answers to these questions.

4. Work Smarter, Not Harder: Target Segments Within Your Niche Market

Once you’ve identified your niche market and potential audience groups, pinpointing your customers and selling to them will be much easier. For example, an interior design business in Austin, Texas, may prioritize middle-income homeowners aged 40-70 with incomes up to $250,000.

They could specialize even further and target customers who want their kitchens fitted in a classic style. Then, they could even break their audience into two segments: working families and early retirees. Once you have this demographic clarity, check out the competition and see what great ideas you can plunder.

5. Good Artists Borrow; Great Artists Steal: Research Your Competitors

Most business ideas have already been indexed online, so even if you have a grand vision for a new product, you’re still part of an existing sector. Chances are other people will have shared your midnight epiphany, too — so just do it better. As part of your market research, identify what your competitors do well and how they could improve. Go on their websites and social media pages, download their apps, and sign up for their email subscription lists.

Read their Facebook posts and tweets and see how they speak to customers. You can appropriate it for your business if they're doing something right. Big companies, sports teams, and governments are always looking for winning formulas, so if you come across a great idea online, you should grab it with both hands. Once you know your competitors better than they know themselves, you’ll be in a better place strategically.

6. Test Ideas With Customers: Validate Your Niche Market

When speaking to customers, it makes sense to test your assumptions by chatting with friends or someone who fits your customer profile. Listen carefully to their language — words are gateways to human aspirations and motivations. Social media platforms also provide free audience insights, so look out for news, trends, and topics relevant to your niche market.

If you want to feel your audience’s pulse, why not post on Facebook community groups and ask pertinent questions? For instance, an aspiring yoga business owner in Cleveland, Ohio, might want to advertise on local Facebook groups to see if there’s an audience available. Alternatively, research keywords and hashtags on your favorite social platform and see what people say. By analyzing their comments, you will discover ideas that appeal to your audience.

7. Mean Something to People: Identify Your Niche Market

As you can see, identifying your niche market can be lengthy. But if you’re thinking about launching a business, the most important thing you can do is provide value to people. Mass marketing is like throwing a fishing net over the Pacific Ocean and seeing what you’ll catch, while the niche approach is more specific and requires bait, skill, and patience.

Trying to appeal to everyone on the Internet wastes effort, time, and money. It’s also impossible. So, think very carefully about your niche market and audience share. Any sector or industry you choose, from eCommerce to engineering, will require you to have specialist skills, and that’s where your business can prosper.

Another big thing you’ll need, no matter your sector, is a brand identity that instantly conveys your niche and competitive advantage. This way, potential customers understand what to expect from your company and feel compelled to learn more about your offerings. With this learning comes more potential interest in a purchase.

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6 Tips for Newer Entrepreneurs Looking to Appeal to the Right Niche Market

1. Let Your Niche Find You

Oleksiy Torokhtiy, Founder of Torokhtiy Weightlifting, says, "My niche found me. I love weightlifting and have been at it for over a decade. I would still have continued weightlifting if I had not ventured into entrepreneurship. New entrepreneurs, how do you like to spend your days? What would you be comfortable doing for hours or days? Does it make you feel fulfilled? What do your friends or others come to consult you about?

The key is to find whatever works for you. For example, if you love building websites, sell your services and build websites for people. Eventually, you can start a company of your own. Stay caught up in the unending cycle of constant brainstorming and endless research about what you want to do. I will end up getting paralyzed with fear and anxiety and never start. Look inward into what you are good at and love doing, and let your niche find you.

2. Passion Leads to Niche Opportunities

Paul Chow, CEO and Co-Founder of designdynamics.io, says, "Finding my niche stemmed from my passion. Since 2012, I've been obsessed with prop making, which led me to explore various creation methods like woodworking and CNC machining. In 2016, when I got my first 3D printer, a whole new world opened up. I wasn't just printing—building, repairing, and customizing these machines.

My fascination with 3D printing technology made me realize the niche opportunity. Some creators, like myself, crave high-quality, custom 3D printing solutions but may need more expertise to build or maintain their printers. So, for new entrepreneurs, my advice is to look inward! What are you passionate about? What problems do you encounter in your field that others might face? Those personal interests can be the seeds for a thriving niche business."

3. Focus on Expertise and Market Gap Intersection

Abhi Madan, Co-Founder and Creative Director at Amarra says, "In pursuing my passion for high-end fashion design, I found your niche almost organically. Having a strong interest in and knowledge of formal attire, I channeled my creativity into handcrafted gowns for proms, weddings, and other formal occasions. Nothing entirely like it existed in the market, and thus, Amarra was born. For newer entrepreneurs, finding the right niche is about understanding where your expertise, passion, and a gap in the market intersect.

Tap into your knowledge and interests, assess the existing market, and identify the unique value you can provide. Once you've identified the niche, learn to speak the language of your target audience. In my case, I had to understand the aesthetic preferences, purchasing habits, and emotional needs of those looking for exclusive, luxurious gowns. Success in a niche market is a blend of unique value propositions, a thorough understanding of your audience, and keen market insights."

4. Build Around Your Most Successful Clients

Jason Bland, Co-Founder of Custom Legal Marketing, says, "When we started our digital marketing agency 19 years ago, we were working for various industries. However, with our law firm clients, we delivered measurable results in their local markets faster than some national brands, which sometimes had lower marketing budgets. As we shifted our focus to the legal industry, our entire infrastructure grew around what worked for law firms.

When finding my niche, I asked myself, 'Who has the most to gain from my offering?' We built my law firm marketing company around the client base that was most successful using my service. If you focus on building your business around serving the community, you and your team can serve the best, and you can't go wrong.

5. Inspiration Drives Niche Business Success

Jan Brandrup, CEO of Neurogan Health, says, "When finding my niche, I highly recommend finding your ‘why.’ Our ‘why’ inspired us to create our whole business—the illness of a family member that meant we wanted to find the right solutions. That ‘why’ is your power because the first thing many think when they see a business with a specific niche is ‘Why?’ They are far more likely to engage further because of your human story rather than just the products.

If your business has meaning, it is what gives it its niche, so never be afraid to share how you came to it because somebody else may have been looking for that same solution, which leads you to build your customer base. Of course, we want to reach as many people as possible, but especially as you get started, that 'why' behind your niche can also help you build trust with a new audience."

6. Combine Passion With Market Research

Roxie Lubanovic, Co-Founder of Frostbeard Studio, says, "As the co-founder of Frostbeard Studio, specializing in candle scents for book lovers, I found our niche through a blend of passion and market research. Our journey started with a small pottery business, but we quickly realized the potential of combining our love for literature with our craft. Noticing a gap in the market for unique, book-themed candles, we pivoted and created a product that resonated with a specific community of book enthusiasts. One essential tip for new entrepreneurs is to cultivate a deep understanding of your interests and hobbies, as they can often lead to discovering a niche.

Studio Art and English Literature

provided a natural segue into creating candles with literary themes. We tapped into a community that shares a love for books, which allowed us to connect deeply with our audience and tailor our products to their preferences. Another crucial strategy is to leverage platforms where your niche audience is active. For example, we started selling on Etsy, where our bookish candles quickly became best-sellers, thanks to the platform's focus on handmade and unique items.

This success enabled us to launch our website and expand production, selling in bookstores and gift shops nationwide. Consistently seeking feedback and engaging with your community can significantly refine your niche offerings. By listening to our customers and incorporating their preferences into our new products, we've created over 100 unique candle scents, many of which received 5-star ratings. Our DIY ethic has remained unchanged, ensuring authenticity, which resonates well with our target market.

This hands-on approach has been vital in maintaining quality and fostering a loyal customer base. “Always look for ways to enhance and personalize the customer experience. We host exclusive events, like candle-making sessions, to deepen customer engagement. This interaction not only builds a stronger community but also provides invaluable insights into customer desires and trends, helping us stay ahead in our niche market.”

This combination lets users spot trending products and successful marketing strategies early on. Whether you're a dropshipper, a Shopify store owner, or someone looking to enter the ecommerce space, ShopHunter aims to streamline product research and reduce the risk of investing in low-performing items. Sign up for a free trial (no credit card required) to our Shopify sales tracker tool, find your next ecommerce opportunity, or level up your current ecommerce store by learning from your competitors.