eCommerce Weekly Checklist: Niche Markets

By: Shirley Tan

The Problem/Opportunity

Many people reject the idea of marketing to a niche because they perceive it results in lower profits than catering to a broader segment. In reality, marketing to a targeted segment may offer a much greater chance of growing a successful business.

The Solution

Having a niche means you are marketing your goods to highly targeted customers. Find a niche in which you can excel to help define your Unique Selling Proposition and make your business stand out from the crowd.

Brainstorm niche ideas. Are you into breeding dogs? Then consider a business that has something to do with canines. Being passionate about the product or service can help you focus and maximize business potential in your particular niche.

Through keyword research, assess if there’s a market for your niche product. Are people searching for it? Are there other businesses that satisfy the demand? Google Adwords Keyword Tool can help you determine if there’s a significant number of keyword searches related to your product.
Use long tail keywords in your research. These are highly targeted keywords related to your main keyword. Unlike short tail keywords, which are just a single, general term or two, long-tail keywords are less competitive. For example, typing the short tail keyword “paper clips” will return 2 million search results. That’s too competitive! On the other hand, a search on the keywords “novelty paper clips” returns fewer than 200,000 search results. This is still a large number, yet is segmented enough to be your niche. Fewer sites in the result means less competition, giving you a better chance of ranking higher in Google.
Pick a niche with a need that is not being met adequately. Get insights from discussion boards and forums about business opportunities. If consumers are voicing their frustration about an unfulfilled need, act quickly and offer your solution.

In the Long Run:

Your goal is to be the best online resource for your niche market. As your business gradually establishes its credibility and profitability, you can slowly expand your business to cater to other untapped niches.

Getting to “eCommerce heaven” is a marathon, not a sprint – but you can get better every week.

By: Shirley Tan