According to Statista, Amazon leads the global eCommerce market with a revenue of $131 billion in 2021. Following closely behind is jd.com with $118 billion and the third position is taken by apple.com with $ 51 billion. These numbers indicate the popularity of the eCommerce landscape among consumers and the huge scope for aspiring entrepreneurs in this domain.
However, many new businesses either struggle to get by, do not turn a profit at all, or simply lose money hand over fist.
There are plenty of markets out there if you know where to look and how to go about building a niche online business. We have compiled a list of high-potential market niches to help guide your future direction. But before that, let’s have a look at the reasons for having a niche for an eCommerce business.
Benefits of Building a Niche eCommerce Business
- Less Competition: Finding an eCommerce niche helps to limit the number of competitors that can attract and retain your customers.
- More Loyal Customer Base: Since niche businesses do not strive to appeal to a broad audience, businesses create messaging that is highly targeted towards the specific audience. This type of targeting when combined with the products/services adds value for the consumers making businesses an authority in the niche. Once the customers start trusting the brand, they become loyal to the brand. The fact is that the more niche a product is, the more loyal customers will be to buying from them exclusively.
- More Price For Your Products: A niche product means your product is unique and solves a highly specific problem. Therefore, consumers are willing to pay more for that product, especially if produced in small batches/in a sustainable manner/manually.
Top eCommerce Niches
With all of this in mind, let’s have a look at some of the most lucrative niches for eCommerce store owners and aspiring online retailers:
Pet Products & Supplies
Millennials have become the largest generation of pet owners and therefore, the largest spenders on pets making it a niche that has great eCommerce potential. From pet store to pet care products which includes food, healthcare, grooming, toys, etc., pet owners buy everything for their pets making this a billion-dollar industry.
As people today are concerned about their pets more than ever, they make sure their pets are healthy and content. From organic food and pet wellness products to supplements that can improve gut health to CBD oils that help reduce anxiety and cat brushes, there are many useful items to sell to pet lovers.
Build Your Pet Products Online Store
Health & Wellness
This is one of the most lucrative niches since the inception of the internet. And now with the pandemic in the picture, health has become a primary concern. People want to be happy and healthy, regardless of their background, culture, or economic standing. They are ready to pay premium prices for health & wellness products and services.
People aspire to eat and live healthily and therefore make random efforts to keep their vitals under check and mind and body sound. And now since the competition in this domain is on the higher side, business owners need to check out the current trends and focus on something that no one else has in store.
This can include building interactive communities of health-conscious consumers, supplying premium supplements, or educating about plant-based eating.
The world is trying to save the planet, giving eco-friendly products the spotlight. People are trying to preserve nature and eco-awareness is becoming the way of life in the modern world. Therefore, there are endless possibilities in this niche which comprises different products from distinct fields like travel, fashion, home stuff, etc.
People these days not only use renewable energy sources but also make an effort to give up all the non-biodegradables. In addition, public awareness campaigns for eco-friendliness and sustainability in our daily lives to protect the planet are also having a ripple effect on the demand for sustainable and biodegradable products.
Natural Skincare Products
Organic skincare is increasing in popularity and has proven to be one of the most lucrative eCommerce markets. Beauty products are relatively easy to ship and there is a high-profit margin for beauty brands. The market for organic skincare products is predicted to peak at around $22 billion by 2024 which makes it a potential niche to tap into.
Home Security Products
An eCommerce marketplace focused purely on home defense weapons of the non-lethal variety is a good idea, to begin with. Smart home security is not something new as security and control systems have been among the most popular smart home equipment over the last few years.
Home monitoring hardware and software are also gaining popularity, such as video doorbells, Wi-Fi security camera systems, and lights with motion sensors. The demand in this industry has grown in recent years and is becoming very profitable.
Want to Know the Growth Potential of This Niche
Veganism has gained significant popularity in recent years and has become a lifestyle choice. People are concerned for their health and therefore, are sourcing food free from animal-derived products. Although people adopting veganism has steadily increased in the last two years, however, the availability of related products has not grown at an equal pace, making it quite a profitable niche to capitalize on.
Solar Energy Products
Since a lot of people have started to realize that energy commodities are exhaustible, products working on renewable energy sources have become quite popular. And one of these energies is solar energy. Solar energy-powered products not only care for nature but also save a huge amount of money which is why they are in huge demand.
However, the supply of these products is not as huge making it a great opportunity for budding entrepreneurs to sell solar products and make a fortune with them.
And with this, we wish to conclude our list of the best eCommerce niches for your business. We hope this helped you decide on the right niche for your business.
How Yo!Kart Can Help Bring Your eCommerce Niche
Idea to Life
With so many people turning online to buy rather than in-store, there is undoubtedly great potential for eCommerce businesses in these niches. Yo!Kart is a trusted name to build a feature-packed eCommerce marketplace in any of the niches mentioned above and kick-start your business.
This ready-made marketplace software aids startups and enterprises to enter new markets, decrease time-to-market, build competitive advantage, and accelerate the growth of their businesses. Being self-hosted and completely customizable makes it the first choice to build an eCommerce business in any niche. The multi-vendor features tailored to every niche help businesses stay ahead in this competitive era.
Highlights of Yo!Kart That Helps Businesses Stay Ahead
- The user-centered UI/UX experience helps businesses build a competitive advantage.
- The robust product management module like managing inventory, order management, order tracking, etc. help admins stay away from all the fuss.
- The personalized marketing module includes PPC advertisements, blog integration, rewards & discounts, and many more help business owners maximize their business potential.
- The multiple payment methods integrated into the software account for smooth transactions on the platform.
- The reporting & analytics module integrated into Yo!Kart helps business owners gain insights into the business.
Over to You
With so many eCommerce businesses taking off every day, it is more important than ever for your business to stand out which can only be done by choosing the right niche and building a user-centered eCommerce marketplace. Just make sure you choose the niche you know about and have an interest in.
It will help you in marketing and running your business more efficiently and stay ahead of the big players that have recognition in the market.
Have a New Business Idea in Mind?