What is the best ecommerce niche for a new online seller? What makes this niche lucrative and interesting?
In this article, we dive into the world of online selling with guidance from thirteen ecommerce experts.
Tap Into the Pet Products Industry
Nearly 1 in 5 households in the US adopted a pet during the pandemic, spurring new pet care companies and products. And yet, there still seems to be room for growth in the market.
“The pet product industry is an excellent choice for new online sellers because it caters to a passionate customer base that is willing to invest in high-quality items for their beloved pets,” says Chris Christoff, Co-Founder, MonsterInsights, a Google Analytics plugin for WordPress based in West Palm Beach, Florida. “This niche offers a wide range of products to sell, with recurring purchases, such as pet food, accessories, grooming tools, and toys. All of these different options mean you’ll have plenty of room for growth.”
Supply E-Commerce Business Essentials
As new online sellers emerge, the market grows for selling products that support e-commerce businesses. That’s why Sujay Pawar, co-founder of CartFlows, a sales funnel builder for WordPress, sees an opportunity for businesses to sell products that other sellers need.
“Jiffy bags, brown envelopes, bubble wrap, and a whole range of other items are in high demand thanks to e-commerce,” says Pawar, who is based in Pune, India. “If you can identify a niche that other businesses require, that may also have consumer demand, you have a wide market to appeal to.”
Sell Digital Products for High Margins
The dream many sellers have is to create a virtual product with high margins that can be simultaneously sold an unlimited number of times to a large base of customers. According to Stephanie Wells, the co-founder and CTO of Formidable Forms, a WordPress forms plugin from Salt Lake City, Utah, that dream is possible by selling digital products online.
“A common challenge most aspiring entrepreneurs face is whether or not they should quit their jobs and focus entirely on growing their respective ventures,” says Wells. “Selling digital products can be a viable choice for such entrepreneurs. You just need to come up with or create digital products, like e-books, online courses, or software, and continue to generate income for years to come.”
Sustainable Products
Kristin Kimberly Marquet, founder and creative director of Marquet Media, a NYC-based PR and marketing firm, suggests that one up-and-coming ecommerce niche is in sustainable and eco-friendly products with sub-niches ranging from beauty to fashion to home goods.
“Consumers are interested in environmental awareness and sustainability, and are often willing to pay a premium for fair and ethically produced items,” says Marquet. “The push from governmental bodies worldwide for greener policies supports this trend, facilitating market entry for businesses committed to sustainability.”
Customizable 3-D-Printed Products
Empowering customers to co-create products tailored to their exact preferences can foster a strong sense of brand loyalty and can differentiate a business in an increasingly crowded e-commerce landscape. According to Blair Williams, CEO of MemberPress, a WordPress membership plugin originating from Cedar City, Utah, customizable 3-D-printed products offer the ability for customers to co-create with companies.
“From personalized jewelry and accessories to bespoke home decor items, offering customers the ability to create truly one-of-a-kind purchases through 3-D modeling and printing taps into the rapidly growing demand for unique, personalized shopping experiences,” says Williams. “This niche is not only financially rewarding due to its personalized, premium nature, but it also positions your brand as innovative and cutting-edge by leveraging 3-D printing technology.”
Leverage Unique Connections and Interests
The best single ecommerce niche will look different for anyone, depending on variables like your network, interests, and experiences.
“Many people make the mistake of trying to go too broad and reach too many people,” says Blair Thomas, co-founder of eMerchantBroker, a high risk credit card processing company based in Thousand Oaks, California. “Take some time to pinpoint where your experiences, skills, and purpose meet, and then focus on how that combination can help you serve a challenge or need a specific group of people have. That is how you discover where your purpose and passion turn into the best e-commerce niche for you personally.”
Supply Hobbyists with Niche Equipment
Sometimes, an overlooked niche in e-commerce is around equipment or supplies for hobbyists. Especially when you may be a hobbyist in the niche yourself.
“For example, if you choose calligraphy as your niche, you can focus on supplying the items that people may need to pursue this hobby,” says Jared Atchison, co-founder of WPForms, a WordPress forms plugin based in West Palm Beach, Florida. “You can pick any hobby of your choice and focus on supplying the equipment required by hobbyists.”
Start a Dropshipping Online Business
Dropshipping is a model where an online store is created, and partnerships are formed with suppliers who handle inventory and shipping logistics. When a customer places an order through your store, you simply forward that order to your supplier, who then ships the product directly to the customer.
“My favorite part about dropshipping is that you never have to worry about holding physical inventory or dealing with fulfillment,” says Daman Jeet Singh, CEO of FunnelKit, a sales funnel builder for WooCommerce that’s based in Delhi, India. “Your main job is to put together an appealing product library, build your brand, and drive traffic to your store. Which, in my opinion, is the best part.”
Innovate with Eco-Friendly Home Goods
Syed Balkhi, co-founder of WPBeginner, a resource site for WordPress beginners based in Palm Beach Gardens, Florida, says that the eco-friendly home products niche is at the intersection of commerce and sustainability.
“As environmental technology evolves, and as consumer habits shift towards more sustainable living, the eco-friendly home goods niche offers the chance to innovate,” says Balkhi. “By offering products that are both practical and ethical, you can tap into a customer base that is loyal, engaged, and willing to pay a premium for goods that align with their values.”
Create Personalized and Custom Products
Advances in technology are making it easier and cost-effective to offer personalization at scale. That’s why Michelle Aran, founder and CEO of Velvet Caviar, a Brooklyn-based phone case and accessories company, says that one attractive e-commerce niche for a new online seller is personalized and customizable products.
“People are willing to pay a premium for customized products, leading to higher profit margins,” says Aran. “In addition, personalized products have strong viral potential, as customers often share their unique items on social media, which helps boost brand awareness and attract new customers organically.”
Capitalize on Health and Wellness Trend
The health and wellness industry is predicted to get more personalized, creating opportunities that have broad appeal but are still niche.
“The recurring nature of many health and wellness products, such as vitamins and skincare items, means you can benefit from repeat customers and subscription models,” shares Andrew Munro, founder and president of AffiliateWP, an affiliate management plugin for WordPress that’s based in Auckland, New Zealand. “This can significantly boost your revenue over time.”
Resell SaaS with White-Label Programs
Minimal hard costs are typically one of the top checklist items when new online sellers are evaluating niches and opportunities. According to Travis Schreiber, director of operations at the Miami, Florida based reputation management firm, Erase, reselling SaaS through whitelabel programs requires low upfront investment and allows you to offer tailored software solutions to your target audience.
“By leveraging established software products, you can create unique value propositions without the need for extensive development costs,” says Schreiber. “This approach not only reduces financial risk but also enables you to swiftly adapt to market demands and build strong customer relationships based on the quality and customization of the services you provide.”
Find Your Own Niche
Despite all the lucrative niches and fast growing market opportunities, Joe Beccalori, CEO of Interact Marketing, a digital marketing agency in Newburgh, New York, says that an individual’s passion and knowledge is more important than jumping into a hot niche.
“Are you deeply interested in the niche? Can you speak its language and understand customer needs?,” asks Beccarloi. “Passion fuels the long hours and drives innovation. That’s what truly matters.”