You are all fired up and ready to take the drop shipping world by storm. Only thing is……what are you going to sell?
Most people get really excited about starting an ecommerce business online but then lose interest when they try to figure out which niche they would like to select for their store. It all gets too complicated so they go back to reading and dreaming about what could have been.
Today, I am going to teach you how to select a great niche for your ecommerce business. We will then use some tools to ensure your niche is profitable. You are here to make money after all!
Brainstorm your future success
So, let’s try a simple visualization exercise to decide a great niche for you.
1. Grab a notebook and pen.
2. Sit back and relax.
3. Now, answer this question with the first thing that comes to mind:
What am I most passionate about in my life?
4. Write down your answer as it is probably the closest thing to your perfect niche.
5. But let’s keep exploring further.
Why am I so passionate about this?
What in particular about this provides me the most joy?
What we are trying to do is drill down into potential niche ideas that may be less competitive than your first answer.
For example, I love fishing and am very passionate about it. But, fishing is a hugely competitive market and I would be quickly overwhelmed by the big sellers. So, by looking further into why I love fishing and what it is about fishing that makes me happy, I realize that it is the peace and tranquility of sitting by a river with a fishing rod and watching the world go by.
This provides some further niche ideas for my ecommerce store; river fishing, lake fishing, freshwater fishing, fishing tackle, fishing accessories, fishing apparel, camping goods and on and on…….you get the picture.
But what if you don’t have an obvious passion?
Try answering these questions and see if something pops up.
1. What do I like to do in my spare time?
2. What do I look forward to doing when I am not doing it?
3. What online publications or magazines do I read?
4. What are the things I like to learn about?
5. What were the last 5 items I bought online?
6. What hobbies do my family and friends have?
7. What are the trends you see that affect your life or those around you?
8. What are other ecommerce stores selling successfully?
9. What are people liking the most on social shopping sites like Pinterest?
10. If I had $100 to spend right now, what would I buy?
As you answer these questions, write them down and you will start to develop a list of possible niches where your enthusiasm and knowledge can shine. Delve even deeper into each question (why…., how…., who….) and write down these answers as well. Don’t judge whether you think it will be a bestseller or not. We will do that in the next part of the lesson.
Test your niche is profitable
You should now have a list of 10 – 20 potential niches for your ecommerce business. You need to narrow it down so the list contains only the very best of your ideas.
First, let’s get some validation that people are even searching in your niche. Go to Google Search (https://www.google.com/) and type in the first idea on your list. How many results are there for your first idea? For my search on “fishing store” there are over 1.1 billion results! People obviously search for fishing stores on a regular basis.
Now, go type in each of your niche ideas (one at a time) and take note of the number of Google Search results. You might want to create a spreadsheet to record your results.
This is all well and good. There are thousands of pages of information on your niche but how many people are searching them on a regular basis? If you use Chrome or Firefox as your web browser, I have the perfect tool for you to discover this. It is called “Keywords Everywhere”.
Keywords Everywhere is a FREE browser addon for Chrome and Firefox that shows search volume (Vol), cost-per-click (CPC) and competition (Comp) information for sites you browse in Google Search. You can install it from the Keywords Everywhere website (https://keywordseverywhere.com/). Then, when you are finished, come back here and we will push on with the lesson.
Are you done? Good. Let’s keep learning.
Now that Keywords Anywhere is installed, go back through your list of niches and check out the extra information that is available in your Google Search. Add the extra information to your spreadsheet.
For example, I can see that “fishing store” has 60,500 searches per month. That is a lot of searches! We won’t talk about the CPC number yet but the Comp number is interesting. At 0.13, Competition for the keyword “fishing store” is very low. Not quite sure why yet, but we will keep digging and hopefully find an answer.
How do your potential niches look? Do people regularly search them and do any have low competition? These are the ones we are going to focus one.
If Competition is high for all of your niches, don’t despair. I will show you some tools at the end of the lesson that can help you drill down further and find your own low-competition niche.
What’s that, you are already despairing? OK, click here and it will take you to the tools. Use them and when you have found a niche that suits you, is regularly searched and has low competition, come back here and we can continue on.
Where to next?
Hopefully, you have narrowed your list down to 2 – 3 niche ideas which you are passionate about and which have the makings of a great niche for your online ecommerce business. Let’s take those niches and see how they stack up with the kings of ecommerce; eBay, Amazon and AliExpress.
First, go to eBay (https://www.ebay.com/) and search for each of your niche ideas. Try searching your niche ideas under Daily Deals or any other deals which are currently running. You can also take a look at Trending on eBay, Featured Sales & Events and Editor’s Picks. Look for products with high ratings, lots of orders, and lots of good reviews to get an idea of how successful your niche might be. Write down any great products on your spreadsheet.
Next, search for each of your niche ideas on Amazon. Check out the Amazon Best Sellers, Amazon Movers & Shakers and Amazon Most Wished For pages. Look at the products’ ratings and what people are saying about them in their reviews. This will provide you some insight into what people love or wish could be better. Add any products you like to your spreadsheet and note the loves and dislikes.
Finally, go to AliExpress and search for your niches there. AliExpress can be a valuable tool for you, because it can provide good product ideas and you can actually sell those items in your store.
If you go to the AliExpress homepage, you can search your specific ideas, or you can use the ‘Categories’ tab on the left sidebar. From the Categories tab, you can also access Flash Deals and any other current sales.
You can type in your niche idea using the search bar. Then, on the results page, go to ‘Sort by’ and click ‘Orders’ in the dropdown menu. This will show you the most-ordered products.
AliExpress also shows you suggestions for related searches under the Search bar. This can be a great way to get more ideas and validation.
You’re almost there!
By now, your short list of potential niches should be pointing towards one particular niche that you know in your heart is right for you. Follow your instinct and make a firm decision to go with this niche. Keep researching this niche and products that relate to it. Build up your spreadsheet of product ideas as this will form the basis of your inventory that we will learn about in Lesson 3.
Well, that’s all for this lesson. I hope you got something useful from it! Let me know and send in your comments below.
Catch you in Lesson 2 when we look at the process for setting up your ecommerce store in Shopify. Bye for now.
Oh, you are still waiting for the other tools that can help you drill down and find your ideal low-competition niche!
Click here and it will take you to a page showing the tools I use to help select the perfect niche.
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