7 Ways to Find a Niche for your Ecommerce Store

www.noupe.com noupe.com3 years ago in #Business Love403

Discovering your niche within a crowded marketplace can give even the most seasoned entrepreneur a tension headache. With good reason—it’s difficult. But, difficult problems can always be tackled with a combination of ingenuity, research, and good ol’ fashioned elbow grease. Here, we’ll show you the steps to discovering your niche, and how you can capitalize on it.  Research your competitorsPropose new solutionsWhittle downDetermine profitabilityUtilize analyticsRun testsRinse and repeat Propose new solutions Whittle down Determine profitability Utilize analytics Run tests Rinse and repeat 1. Research your competitors Smart marketing within your niche requires information. Being able to outmaneuver your competitors and pull in new customers relies on your ability to evaluate the field. That means competitor analysis. You don’t have to build out a complicated spreadsheet with pivot tables, graphs, and formulas, but knowing who you’re competing with is the first step to determining how you can behave differently. Find them Finding competitors is usually pretty easy, and your primary tools are going to be Google and Amazon. Running searches for your niche will give you a good idea of who is top ranking in both areas. If you’re starting a business selling specialized, highly technical outerwear, searching with keywords that become more and more specific will get you closer and closer to your true competition. Don’t just stick with “outerwear,” add more specific adjectives, like “technical outerwear,” “low-temperature technical outerwear,” and see what comes up. Categorize them Imagine your business at the center of a bunch of expanding concentric circles, and place your competitors in orbit around you.  Main – These are the competitors who are selling the same thing you are, likely to a similar audience.  Outside the circle – These are competitors who might be selling a similar product, but in a different price category, or to a different audience entirely.  Tangential – Competitors who aren’t competitors yet, but you might be adding products later that will bring them into your competitive space.  What’s their CX Look at your main competitors. What is their customer experience? Pretend you’re one of their customers and walk yourself through their buyer journey. Where do you see obstacles? What works well, what doesn’t? These sorts of questions will be integral to defining your own position within the niche. Thinking about how you can differentiate can often start with CX, and it might just be as simple as adding a store to your popular blog.  What’s their market position What do your competitors sell the most of? Why do people gravitate towards their products instead of other products? If we’re talking outerwear again, people purchase from Patagonia and Mountain Hardware for entirely different reasons. This is a market position. If you don’t think you can outcompete a competitor on a particular area of market position, try to fill in a gap.  Pricing, shipping How do your competitors price their products? If you can position your product as a cheaper, higher quality option, that might be a way in. Going the luxury route is viable too. The key is to determine what might set you apart, and moving your business towards that.  2. Propose new solutions Now that you’ve done quite a bit of competitor research, you can start shaping your messaging and potentially tweaking your products to match. This is where the research you’ve done comes in. Look at your main competitors. What does your product or service do that theirs fails to? That isn’t to say that you need to do the opposite of your competitors in every possible area, that might lead you tying yourself into knots. But, if your competitors…

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