Kirsty Bisset
Kirsty Bisset

Niche is the new norm

by Kirsty Bisset. Niche marketing allows you to target a specific market with less competition. These are the five key benefits of finding a niche for your ecommerce business.

by Kirsty Bisset. Taking advantage of the new normal we’re all living in, online shopping is on the rise and ecommerce is seeing unprecedented growth in sectors that have traditionally struggled to break into the online retail market. By 2025, ecommerce penetration rates are expected to reach 25% – up from 15% today.

It’s no wonder, then, that there has never been a greater interest in starting a business online, and ecommerce has become an obvious choice for aspiring entrepreneurs. And you might be one of them, wondering what you should sell if you’re thinking of opening an online store. To be profitable, ecommerce niches need to be highly specific, and the products themselves should include a distinct differentiator.

Choosing what you will sell ahead of time is essential. Therefore, you must define your niche. Niche marketing allows you to target a specific market with less competition. Getting to know your customer base better by focusing on a niche market is also an advantage. To be an effective marketer, you need to know your target market inside and out. These are the five key benefits of finding a niche for your ecommerce business:

1. Having fewer competitors will make your life easier

Why is being in a niche so beneficial? Your space is less crowded. That means more people will have their eyes on you instead of your competitor.

2. Loyalty increases

Providing a solution that meets your customers’ needs means they’ll feel loyal to your brand. It’s more meaningful to appeal to the specific buyer than to a mass audience. If you sell only one product of your kind, buyers will continue to look to you for supplies. Amazon or Takealot are examples of large online retailers. Depending on what’s convenient, people switch between the two. As consumers, we rarely purchase exclusively from one company, indicating that we aren’t loyal to them. Finding a niche for your online business would change this because of your distinctive value proposition.

3. It will be cheaper to market and advertise

The smaller the audience, the less you’ll spend. If you want to create a Google Ads campaign, for instance; you can use costly, highly searched keywords or cheaper, more focused long-tail keywords.

4. Pricing your products higher is possible

Niche products solve a very specific problem for your buyers and are highly unique. It means you can charge more for it – especially if it’s made by hand, in small batches, or sustainably. However, production quality does not entirely determine price. Another important factor is availability. When it comes to niche ecommerce businesses, you’re probably one of the few offerings. Charge more because of scarcity.

5. Lean resources can be used to run a business

You will save on storage and operation costs when you have a smaller inventory. Marketing in a niche area is easier and more cost-effective, since you don’t need a large marketing team.

Having emerged from the COVID-19 pandemic, we’re still navigating a new normal. It is therefore crucial for retailers and business owners to be flexible, adaptable, and ready to pivot as required in order to stay competitive. The ecommerce industry will offer substantial opportunities despite worrying reports about unemployment levels and retail challenges.


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Kirsty Bisset is Managing Director of HaveYouHeard Durban.



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