Setting up an eCommerce business is not easy, just as it is the case for any other type of business out there. However, thanks to the work of qualified freelance web developers in Dubai, setting up, launching, and the maintenance of such websites has now been made easier than before.
This possibility has greatly encouraged the growth of eCommerce businesses all over the world, making it easier for entrepreneurs to set the ball rolling.
What Exactly is eCommerce?
From a general perspective, eCommerce is a blanket term used for businesses to transmit goods, services, and funds over the internet. The growth of this virtual world has made it possible for people to buy and sell anything and everything.
Online retail behemoths such as Amazon have, by a significant margin, influenced the economy of the world. During the third quarter of 2019, in the U.S alone, eCommerce sales had accounted for 11.2% of all the retail sales, amounting to $154.5 billion.
These figures clearly indicate that this industry is in no way about to slow down as there will be more and more demand for products and services online. Many other eCommerce sites have been set up to not only counter the demand but also to provide convenience.
Even though you may not have a big startup capital for a big enterprise, you can always start off with whatever little you have planned for. After all, you need to factor in is the cost of the website and how you will deal with your vendors.
Finding your niche
Your eCommerce niche is the specific, narrowed-down category that your products fall into. For instance, fashion is a fairly broad field you want to venture into, but when you talk about male boots, then you will have found your niche.
The first step in eCommerce is always finding a niche and starting with that. You might be tempted to start big just like Amazon, but guess what, Amazon also started in a niche. Following this path tends to make your business to have better chances of succeeding because you will have known more about your target audience and not just a general audience.
Once you choose your preferred niche, your brand will revolve around it, and even though you might sell other products, your audience will still consider you as their solution for the products you started selling initially. You shouldn’t be afraid to narrow down your product line. It is a fact given that you might lockout a few potential customers, but all this will eventually pay off.
In a nutshell, one needs to pick a niche of their online business because of the following reasons:
- It allows you to channel all your efforts to a single field of expertise
- You will be connected to a targetted and interested audience whose queries you will be in a better position to respond to efficiently.
- Your business becomes more searchable online, unlike when you run a general store.
- Your eCommerce business will have a clear direction on what type of content to develop and how to choose the products to be sold.
- Marketing your products will be easier too, as you will have a clear message on the benefits and purpose.
So how do you get to pick a profitable niche for your eCommerce business? Here are 5 major considerations you should make.
1. Follow your passion
A helpful way to begin your search for the perfect niche is to consider your interests and passion. Sounds simple, right? It is also quite essential. The thing is, if you are not passionate about your eCommerce business, it is most likely to fall. Without motivation, the chances are that you will not devote much of your time, energy, and other resources to the business.
As humans, if we have a strong connection of purpose towards something, we are more inclined to ensure that the best comes out of it and this is the exact case scenario to be applied when starting an eCommerce business.
2. Conduct research with keyword searches
Your search for the perfect niche doesn’t stop at considering your passion, after all, you might do something that you love, but it there is no demand for it in the market. Research the popularity of the need for each of the ideas you had. Do a Google search of the keywords related to the field you want to try out and check on how popular they are.
Some tools, such as Google’s shopping insights, help you to compare how different niches compare with each other. When you select a business, you will also be shown not only the demand but also the competition you stand to face.
3. Determine a problem that you wish to solve
If you have been keen enough, you will notice that the majority of entrepreneurs who became successful with their businesses is that they first looked for a gap to fill. What are some of the challenges or problems that people face which you want to solve? Before thinking of setting up an eCommerce website, you should ask yourself this question, which will help you to better pick a niche that actually has demand.
4. Research on the competition
As mentioned, using keyword-search tools enable you to know about the competition in the same field. If there are a lot of businesses already operating in that niche, you shouldn’t be scared.
This is because it is a sign that there is actual demand for those products and if you strategize your entry well, you might just have a good shot at it. After checking out your competition, you should devise ways that can make your products or business stand out from theirs. Try and find a thing that people might not like about the competition and work to avoid that.
There is always something that can be done to make your brand better than the competition. Is it the quality of service that need improvement? Does their quality of products require a change for better ones? Do they have a poorly constructed website which a good freelance web designer in the UAE can handle for you?
With all these in mind, you will have seen what your competition does, and when you are ready to get in the field yourself, you should have already mastered and improved on their flaws.
5. Evaluate the profitability of the niche market
You are starting this business to make money, and so the profits have to be there. Choose products with enough profit margins. This is a simple process as you simply have to contact your potential suppliers and get their quotations. Thereafter, you will see how much you stand to make from your preferred retail price. You don’t really need a niche where you must sell hundreds of products to make a sizeable profit.
The niche you select defines your entire eCommerce business. You have to choose the best one and have your website set up professionally, by some of the best freelance web developers in Dubai.