Think Niche Market
If this is your first website, I suggest you start your online selling experience with just one product (or very few, but related products) or service. Rather than being burdened with having to find and stock a large inventory of items, it will be more economical to begin with just one product or service. Then you can work out the kinks in your new business and build a revenue stream before you expand your product line.
Of course, the decision you make for just that one product is critical since your entire success depends solely on one item. Therefore, you will need to find a product or service with high demand but low competition online. These are called niche market products.
An Ideal Niche
A niche is a much smaller segment of a certain market. What you are looking for is what I call an Ideal Niche Product or Service. This is one that has very high demand (thousands of Internet searches for it each month) but few online competitors that are selling that product or service. When you find that combination, you can make a lot of money.
Do you know why most people go on the Internet? It is to solve a problem. It could be to solve health problems, pet behavior problems, how to fix their lawnmower, computer, or cook award winning ribs on the barbeque. In each case, they have a question or problem and are searching the Internet to find help. It is your job to find out what they are looking for, and sell them the solution.
Therefore, as you are developing your product ideas, look for unique products that solve problems. For example, a fisherman can walk into any sporting goods store and purchase a fish finder. But once the fisherman installs the fish finder, he begins to look for accessories. The sporting goods stores do not typically carry these types of accessories. So where does the angler find them? Your website!
Many ideal niche products are accessories and replacement parts. Now, don’t just think about replacement parts for mass market items (like cell phones). Those items are too obvious. Consider items that are unique or obscure. Think of products for people who like to tinker.
To help you in this process look in your garage. Don’t just limit yourself to products you already know about or have an interest in. Open your mind to new ideas such as lawnmower parts, motorcycle parts and accessories, bicycle parts, replacement parts for camping gear, and furnace filters. Now think about hobbies that need replacement parts and accessories such as RC cars, airplanes and trains. What about selling beads and charm kits so a person can create their own bracelets or other jewelry?
Do you see the difference here? You are not selling primary items, you are selling “how to do it yourself” and “repair” kits. This is a niche. If you find there is also high demand and little competition online for the product, you have found an ideal niche.
As you conduct the online research for your business, you may discover that the products or services you are considering have too much online competition. If this is the case, you are not thinking, “niche enough.” You are at too high a level in your thinking. You are trying to sell cell phones instead of lawn mower accessories. Dig deeper, think more abstract rather than obvious. Venture out and away from common or mass appeal products.
You don’t have to ride motorcycles or be a motorcycle mechanic to sell motorcycle accessories. But also think beyond the typical accessory products that you would find at any motorcycle shop. Look deeper for more unique, rare products with less competition and higher demand. Don’t sell motorcycle mirrors, they are too common and easy to find. Think of selling devices for motorcycles that help the traffic light sensors under the roadway detect that a motorcyclist is sitting, waiting for the light to change, and will therefore change the light. That is a niche product!
Thoroughly research the Internet. Avoid the mass-market categories, and concentrate on smaller, niche markets. This is where you will find products and services with high demand, little competition and great profits. My sincere wish for you is to Be Niche and Famous!
Click the links below to learn more...