So you want to make money from home but aren’t sure where to start. Or maybe you’re already running an ecommerce business, but have a feeling that something’s just off with your storefront.
One of the keys to small business success is targeting the right people and finding a niche.
What truly separates one niche from another is the people who buy the products. For that reason, approach the niche-searching process with this in mind:
It’s not the product or service, it’s the people who use it that defines a niche.
There’s a person behind every purchase, so think of your niche as a group of people who have at least one common interest, problem, or need.
In this post, we’ll cover the 4 steps to finding a niche for your online store. And if you stick with us till the end, you’ll also get a free list of more than 100 ideas you can use in your brainstorming sessions!
What’s an ecommerce niche?
An ecommerce niche (pronounced as neesh or nitch) is a distinct market segment with specific interests and needs that an ecommerce business caters to. Ecommerce niche examples include zero-waste lifestyle, urban gardening, and retro gaming. To find a profitable niche, look for a niche with high demand and low competition.
Niche marketing vs. selling everything to everyone
A niche only focuses on a fraction of the market, so you might wonder, “Why would I want to target just a small section of the population? Wouldn’t I get more sales if I targeted everyone?” These are valid questions; after all, there are companies like Amazon and Target that can sell everything to everyone and still be successful.
Learn More: How to Develop an Effective Marketing Strategy
These companies, however, are an exception, not the rule. By targeting everyone, you end up targeting no one, and your sales suffer.
Aim to be a big fish in a small pond rather than a little fish in a big pond.
For example, office supplies is a broad niche with countless sub-niches like office supplies for left-handed people or notebooks from recycled materials. Or, custom t-shirts are a broad niche, but you can narrow it down by designing custom tees for moms with triplets.
Consider these benefits of narrowing your niche down:
Better search visibility. Targeting a specific niche will get your store in front of online searchers who are almost ready to buy a specific product.
Less competition, higher profit margin. If people have fewer options to choose from, they’re less price-sensitive.
Lower advertising costs. Since you’ll be targeting a specific portion of the population, you won’t have to compete with giants with unlimited advertising resources.
More dedicated audience. You’ll get more email subscribers and social media followers because a niche audience is more passionate about the product you’re selling.
Before you start building your online store, you need to know who you’re building it for. This first step will help you understand which niche you belong to as a customer and help you make more informed decisions when you choose a niche for your store.
How to find an ecommerce niche in 4 steps
Step 1: Identify your interests and passions
Choosing a niche that aligns with your passions or interests increases your chances of success. Now, it’s not just about what you’re interested in. You must also do research to find out if there’s a demand and assess the competition, but picking a niche that interests you will make it much easier to succeed.
When you’re emotionally connected to your business, you’re more likely to get through challenges, stay motivated, and connect with your potential customers. A genuine passion for your niche also leads to creativity and authenticity, which customers value.
Here are the steps to reflect and figure out how to combine your interests with your business.
Consider your hobbies and interests
What activities or topics are you drawn to in your free time?
Is there a hobby you’re particularly knowledgeable or passionate about sharing with others?
Identify pain points you’ve experienced
Have you ever felt underserved by products or services in a specific area?
If so, could you create a business to fill that gap?
Reflect on your values
Are there causes or values you strongly believe in? What are they?
Consider niches that align with those beliefs (e.g., sustainability, inclusivity, etc.).
Ask for feedback
Talk to friends or family about what they see as your strengths or passions.
They might offer insights you haven’t considered.
After you’ve answered these questions and shortlisted a few interests, you can move on to the next step: researching if your niche markets have a demand. There’s no business without demand. So this step is crucial to finding a niche that fuels your business and personal fulfillment.
Step 2: Research market demand
Now it’s time to identify market demand. We’ll walk you through actionable steps, tools, and methods so you can choose the right ecommerce niche. You must explore the search engines that you’ll be using, whether it’s Google or social media search engines.
Valuable read: 32 Useful Market Research Tools for Startups and Established Businesses
Use Google Trends
Source: Google Trends
Google Trends is a free and user-friendly tool to gauge interest in specific search terms over time. It shows how popular a keyword or topic is across different regions, which is invaluable for identifying trends and determining earning potential.
How to use Google Trends:
Start broad, then narrow down. Begin by entering broad keywords related to your industry (e.g., “vegan clothing”). Once you get the results, try narrowing them down to more specific terms (e.g., “vegan workout clothes” or “plant-based fashion”).
Check the “Interest over time” graph. See if the topic is gaining or losing popularity, and look for a stable or growing trend over time to indicate long-term demand.
Review regional interest. Find where the demand is highest and target specific geographic markets where your niche is popular.
How to identify relevant keywords:
Think about the core problems or desires your niche product addresses. If you’re Starting a clothing brand with sustainable apparel, keywords like “eco-friendly clothing” or “organic cotton custom hoodies” may be relevant.
Use a combination of keywords (broad terms like “fitness gear”) and long-tail keywords (more specific phrases like “yoga gear for beginners”). Long-tail keywords typically indicate higher purchase intent, especially when they include modifiers like “best,” “buy,” or “affordable.”
Pro tip: Google Trends also allows you to compare multiple keywords side by side, so you can refine your list of options and choose the most relevant terms.
Valuable read: 20 Trending Products to Sell Online in 2024
Perform keyword research
Keyword research helps you understand the search volume and competition for keywords related to your niche. The goal is to find high-demand, low-competition keywords that signal an underserved market.
How to do keyword research:
Use tools like Ahrefs, Ubersuggest, or SEMrush to find relevant keywords for your niche. Enter a few keywords related to your niche (e.g., “vegan skincare,” “eco-friendly activewear”) and review the search data.
Look at the search volume. Aim for keywords with decent monthly search volume. A good range to target for niche products is between 1,000 to 10,000 searches per month.
Analyze keyword difficulty. Check the competition level. For a new store, prioritize keywords with lower competition to have a better chance of ranking in search engines.
Source: Ahrefs
How to identify the best keywords:
Look for keywords that solve a problem or address specific needs within your niche (e.g., “back pain relief yoga mat” or “eco-friendly running shoes”).
Pay attention to buyer intent keywords—those that indicate the user is close to making a purchase (e.g., “best vegan skincare products” or “affordable organic cotton shirts”).
Once you have your keyword research, you can do search engine optimization to attract more people to your store and make more sales.
Valuable read: What Is SEO and How It Works—a Beginner’s Guide
Check social media engagement
Social media platforms like Instagram, TikTok, and Facebook are invaluable for identifying niche trends and gauging interest from your target customers. Monitoring engagement levels can help you assess how interested people are in specific topics or products.
How to research on social media:
Hashtag search. Look for relevant hashtags on Instagram or TikTok to see the type of content people are creating and engaging with. For instance, if you’re exploring a niche in eco-friendly products, search for hashtags like #sustainablefashion or #ecolifestyle.
Follow influencers. Identify influencers within your niche and track the kind of content that performs well. Pay attention to their engagement rates and the type of products their audience responds to.
Join niche-specific groups. On Facebook, search for groups where your target audience gathers. For example, if your niche is in fitness, join fitness-related groups and monitor conversations around products and trends.
Source: Facebook Groups
Pro tip: Use social listening tools like BuzzSumo or Hootsuite to track the popularity of niche-related keywords across social media platforms.
The key to standing out is taking actionable steps, using data-driven tools, and thoroughly validating demand before diving into a niche. So use a combination of these methods and gain a deep understanding of your target market.
Step 3: Analyze the competition
Your competitors can be a direct indicator of market demand. Analyze how successful niche businesses are to assess demand and find gaps you can fill.
Here’s a step-by-step guide for conducting through competitor research.
1. Identify your competitors
First, you must find direct competitors, those offering the same or similar products and targeting the same audience.
How to identify competitors:
Search for your niche keywords on Google. The top-ranking websites are usually your direct competitors.
Check marketplaces like Amazon, Etsy, and eBay to see which sellers are prominent in your niche.
Browse social media platforms like Instagram and Facebook for brands that have built a following in your niche.
Pro tip: Look beyond just the big players—smaller niche competitors often offer insight into underserved market needs.
2. Assess their products and pricing
When you’ve identified your competitors, study their product offerings and pricing strategies. Understanding their product range, pricing models, and customer preferences can help you find opportunities to differentiate your business.
How to evaluate competitor products and pricing:
Product range. Look at the types of products competitors offer. Are they missing something that your niche audience wants? For instance, if you’re in the sustainable fashion niche, do they offer eco-friendly fabrics or customization options that appeal to conscious consumers?
Pricing models: Compare pricing across competitors. Are they competing on price, or are they positioning themselves as a premium brand? If you can offer better quality or additional value (like free shipping, customization, or sustainability), you can stand out even if your prices are higher.
Let’s say you’re in the pet product business. More specifically, selling pet costumes on Etsy. In that case, one of your direct competitors would be GlamarousPaws. You can check out their collections, see what they’re not offering yet, and fill in the gaps.
Source: GlamorousPaws Etsy store
3. Analyze competitor marketing and SEO strategies
Studying how competitors market themselves, both organically and through paid advertising, can give you insights into what’s working and where you can do better. This includes evaluating their search engine optimization (SEO), content marketing, and social media efforts.
How to analyze marketing strategies:
SEO research. Use tools like Ahrefs or SEMrush to analyze your competitors’ top-performing keywords and backlinks. Which keywords are driving the most traffic? Are there any relevant, low-competition keywords they are missing that you could capitalize on? Look for long-tail keywords they might not be optimizing for, which could provide opportunities for you to rank higher in niche searches.
Content marketing. Review competitors’ blogs, videos, or other content types. What topics are they covering, and how engaged is their audience? If they focus on general content, you could differentiate by providing more in-depth, niche-specific information.
Social media presence. Analyze competitors’ social media profiles on platforms like Instagram, Facebook, and TikTok. Pay attention to how often they post, what type of content performs well, and their level of engagement (comments, likes, shares). Are they investing in influencer marketing?
Source: SEMrush
4. Evaluate customer feedback and reviews
Customer reviews are a goldmine of information about competitors’ strengths and weaknesses. Reading through reviews on platforms like Amazon, Google, and social media helps you understand what customers appreciate—and where competitors are falling short.
How to use reviews for competitor analysis:
Identify common complaints. Look for patterns in negative reviews—are customers dissatisfied with the quality, delivery times, or customer service? Use these pain points to shape your own offerings and provide better customer experiences.
Highlight positive trends. Reviews also show what competitors are doing well. For example, if customers rave about a competitor’s product packaging or after-sales service, consider implementing similar strategies.
For example, in the screenshot below, you can see that while all the customers love the phone case’s design, one of the customers has commented that the product isn’t durable. So, if you’d be their competitor, you could find a provider that emphasizes product quality.
Source: Etsy
Pro tip: Go beyond just reading reviews—engage with online communities or forums (like Reddit or niche-specific Facebook groups) where your target audience discusses products in your niche.
5. Find market gaps and opportunities
After analyzing your competitors, it’s crucial to identify gaps in the market. What are competitors failing to deliver? These gaps present opportunities to offer something unique.
How to identify market gaps:
Product gaps. Are there underserved needs or product variations not being offered? E.g., if most competitors sell eco-friendly products but don’t offer sustainable packaging, this is a gap you can fill.
Customer service gaps. If customer reviews highlight poor customer service experiences, this is an opportunity to differentiate your brand by providing exceptional support.
Brand positioning. Is everyone in the market competing on price? You could stand out by emphasizing quality, sustainability, or ethical production.
Once you have your competition research finalized, there’s only one step you must take to have found the best ecommerce niche for your business.
Step 4: Evaluate profitability
The last thing you must do is figure out the profitability potential for your niche and business. Here’s how.
Estimate your costs
Decide on the print-on-demand provider you’ll be using. Then, check out how much their products cost.
Research shipping and handling. Find out how much shipping costs, and add that to the overall expenses.
Explore competitor pricing. Browse ecommerce marketplaces or platforms you’ll be selling on and compare how similar products are priced. This will help you understand what customers are willing to pay and how you can position your pricing.
Calculate your profit margins
A profit margin is the money you keep after all expenses have been paid, described as a percentage. Your profit margin will depend on the products you’re selling. Here are the profit margins for the most popular POD products.
Source: Printful
Valuable read: What is a Good Profit Margin for Print-on-Demand?
Analyze competitor sales
Visit platforms like Amazon Best Sellers or Etsy Trending Now products to see what’s popular in your niche. Products with high sales and good reviews indicate good demand and the potential for profitability.
By combining cost research and competitor analysis on marketplaces, you can effectively evaluate whether your niche has enough profitability to succeed without spending money upfront.
Valuable read: 11 High Profit Margin Dropshipping Products + Examples
As promised, here are 100+ ideas for your ecommerce store. This list is not exhaustive, so feel free to mix and match these topics to create a personal niche that connects you to your target audience.
You can pick a few ideas that resonate and do market research to find the most profitable ecommerce niches you can enter.
Fashion (Brand example: District of Clothing)
Wanderlust (Iconspeak)
Parenthood (Classic Dad, The Bad Dads Club)
Rare conditions (StomaStoma, ND Renegade)
Beliefs (PAL Campaign)
Districts and neighborhoods (#muhoov)
Woodworking (Nick’s Wood Shop)
Parks and green spaces (Love MPLS parks)
Workout gear (Kettlebell Kings)
Social media for pets (We Rate Dogs)
Virtual and augmented reality
Wearable technology
Zero-waste lifestyle
Civil rights
LGBTQ+ (Passionfruit, Queer Ivy, Point 5cc)
Body-positivity
Recycling
Vegan cuisine (Vegan Savage)
Paralympic sports
Stay-at-home parents
Single parents
Expecting parents
Newlyweds
Solo-traveling
Tiny house
Van life
Animal welfare
Dog & cat breeds
Unusual pets
Animals with special needs
Animal sanctuaries
Birdwatching
Pet accessories
Specialty coffee
Homebrewing
Local cuisine and delicacies
Artisan foods
Mixology
Meditation and relaxation
Posture devices
Cycling
Grooming
Internet memes
Demotivational quotes
Hand lettering and calligraphy
Left-handed people
Tech preferences
Sailing and canoeing
Geocaching
Biohacking
Urban gardening
Outdoor survival
Keto lifestyle
Bullet journaling
Cosplay
Streetwear
Fantasy sports
Fantasy football
Cryptocurrency
Collectible cards
Digital nomads
Personal finance
Frugality
Tiny desk accessories
Custom keyboards
Plastic-free cleaning products
Fantasy art
Tarot reading
Astrology
Skincare routines
Beard care
Women in tech
Home automation
Productivity hacks
Remote work
Side hustles
Podcasting
Self-publishing
AI and automation
Robotics
Solar energy
Upcycling
Art installations
Video game modding
Sneaker culture
Vintage motorcycles
Digital detox
Hiking gear
Camping essentials
Outdoor photography
Fitness challenges
Meal prepping
CrossFit
Parkour
Home workouts
Dance fitness
Powerlifting
Personal safety devices
Ethical fashion
Sustainable beauty
Urban exploration
Comic book collecting
Boho style
Farm-to-table
Fermented foods
Gluten-free living
Intuitive eating
Martial arts
Self-defense
Boxing
Vintage toys
Lego enthusiasts
Puzzle solvers
Escape rooms
Thrift shopping
DIY home projects
Model railroading
Drones
Airsoft and paintball
Comic con attendees
Sci-fi fandoms
Superhero culture
Paranormal investigations
Urban legends
Conspiracy theories
Space exploration
Astronomy
Rare books
Antiques and collectibles
Board games
Card games
Graphic novels
Street photography
Polaroid photography
Analog photography
Cinema enthusiasts
Film buffs
Movie memorabilia
Retro gaming
If you didn’t yet find the topic that makes your eyes light up, we have 50 more ideas prepared, you can download them below.
Time to pick a niche for your online business
We have now covered the main aspects of finding your place in the ecommerce world. To recap, here are the 4 things you should do to find your niche:
Find out where you belong as a customer
Decide on an area in life you care about deeply
Research the interest in your niche
Identify a problem and propose a unique solution
And now it’s time to implement these tips in real life and start building your own niche ecommerce business. Taking action is the scariest part for any entrepreneur, but fear not: if you go through these steps thoroughly, entering the dropshipping market will be a calculated risk, not a shot in the dark.
Read next: How to Start a Small Clothing Business From Home in 6 Big Steps
Share your experience in the comments, we’d love to hear from you!
Finding the niche market for your online store is the key to success. Discover your niche audience with these 4 steps.
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
