How To Choose A Niche

Andrew Chornyy - 001
Andrew Chornyy

CEO Plerdy — expert in SEO&CRO with over 14 years of experience.


Market niches don’t exist for no reason, they are created after defining consumers’ needs and wishes which none of the competitors have managed to meet (or have met only partially). The task of an entrepreneur is to offer a product or a service that will cover this demand. So even if a market share is small but profitable, it’s a solid reason to pay close attention to it and come up with some eCommerce business ideas.

Frequently asked questions, what type of business to open or what niche to choose:

  • How to choose a blogging niche?
  • How to choose a niche for affiliate marketing?
  • How to choose a digital marketing niche?

The best guarantee of future growth and a high income can be pretty easily explained: a company should take a special niche on the market, eliminating the need to compete in price. Sometimes it’s more reasonable to have a dominant position in a small market segment than be in the top ten in a broad direction.

As an entrepreneur, you should see unmet needs, market trends, and potential opportunities, regardless of the type of business you are doing. Unfortunately, there is no magic formula that can guarantee your business success. The most important thing is to understand the chosen direction and, as the saying goes, keep your eyes wide open.

How to Find an Interesting Ecommerce Niche for Business?

There are many strategies you can use to get ahead of competitors. They are often based on a simple principle – make a better offer at a more affordable price. But what should you do if you don’t know what to offer, as you still haven’t decided what you want to sell? You will probably be surprised when you realize that finding an eCommerce niche can be a more difficult task developing a business and competing with other market players.

To make selecting a business niche more simple, use some tips that will help you decide on a specialization.

choose niche

Figure out what you are good at. Of course, no one can be professional in all spheres, but at the same time, each of us is an expert in a particular field. Moreover, doesn’t necessarily have to be related to the main occupation. Indeed, working as a dentist in a clinic, you can make radio-controlled toys on weekends and become an expert in this field in several years.

Thus, you can complete a list of all directions you are interested in, for instance, 10-20 positions, and then exclude them one by one until you get 2-3 options to be considered in more detail.

Go from bigger to smaller. After you define a general field of interest, try to break it into specific components. For instance, if you want to sell digital devices, you can separate the following segments:

  • Compact cameras.
  • Semi-professional DSLR cameras.
  • Full-frame cameras.
  • Lenses.
  • Tripods, bags, filters and other accessories.

As you see, any of the categories above is quite self-sufficient. Therefore, you can focus on one of them instead of splitting efforts, time, and budget. And what is most important, having done a successful online store in one narrow eCommerce niche, you can gradually add new sections to an existing product catalog.

Make sure that you want and can become an expert. Maybe you are already proficient in the chosen field and have some experience. Are you ready to continue studying and work hard to become a leader in a sphere? Be honest with yourself in this respect, as you cannot be first in any niche if you only do something well. It would help if you strived to do it better.

You are going to solve problems of people, answer questions, and face new challenges. If you liked something as a hobby, it will not necessarily preserve its attractiveness after turning into main occupation.

Criteria for Choosing an Ecommerce Niche

choosing niche

Every entrepreneur needs a target market to work on. And to make the right choice, you have to define some criteria that the ideal niche must meet beforehand.

A target audience and demand. The presence of a target audience is a characteristic feature that distinguishes a profitable business from a problematic one. Ecommerce niches are profitable because entrepreneurs working in them have a precise and clear target audience. You can offer great products and high-quality services, but spectacularly bankrupt if no one can buy them.

Market segment is big enough. There are some niches where you can count market players on the fingers of one hand. Thidoesn’t’t necessarily means that you have found a topic with no competition, and now you can go to a bank and open an account to save a future profit. The problem may be this market segment doesn’t need a lot of sellers.

An average check. This is an unobvious but important thing. The understanding of it will help you to get a fresh look at some issues. It is logical that selling two products and earning $200 is much more preferable than earning the same $200 by selling two dozen products, as more items take more time. If you can choose between these two options, opt for the one with a higher average check.

A short transaction cycle. Ideally, it should not exceed two weeks from the moment you process an order up to receiving the payment for it. Even if you choose a high-margin business but will have to wait for payment for months, you can easily run out of money although you have sold all products in stock.

An opportunity for repeat sales. Or, in order words, you must ponder whether the chosen business niche allows developing a base of loyal customers over timeIt’s’stimeIt’s’stimeIt’s’stimeIt’s’s much easier and more profitable to earn on repeat sales than every time spend time and a marketing budget on attracting new customers.

A growing trend. Many promising markets are constantly developing, which allows some lucky entrepreneurs to fit with their product/service in a growing trend. In this case, within a short period, they can succeed that many business people in other markets can only dream about. If you want to offer customers what they want, Google Trends will perfectly help you with that.

No strict seasonality. Some wonderful and exciting businesses such as selling Christmas gifts, ski equipment, designer mittens, etc. Unfortunately, the single problem is that businesses can bring profit only in winter, moreover, during one-two months. If you don’t want to have a side job at a local diner for the rest of the year, it’s better to refuse such ideas.

A saleable product It’s great if you have found a free niche with good demand and have enough resources to launch a business in this market. But will you have enough competence and arguments to convince potential customers and get a sales flow going? If you doubt, you’d better think about how to test the abilities of a salesperson on the cheap, not to place a bet on everything you have, and eventually, be left with nothing.

As you see, the factors worth attention are quite numerous. And each of them can play a crucial role in the establishment and successful development of business.


There is no point in writing here about a possible secret of a successful business because it just doesn’t exist. But wait, it does! Yet, it isn’t a secret for any practicing entrepreneur, as they know a real key to success comprises constant work, searching for new ways for development, and dedication to what you are doing.

Most frequently, failures are caused by self-reliance, focusing on opinions, and a lack of professional knowledge in the chosen field. Therefore, to find a niche in business, first of all, pay attention to these things.

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