How
to choose best niche for you to sell in and what is the most profitable product
to sell in that niche?
This is a question that pops up in every sellers’ mind.
Well because it’s just like the ‘million-dollar question’.
Firstly, where are the details? I am unlikely to glean from your brief question about niches what your interests might be or what you have some knowledge about or skill within.
I won’t know whether you are a newbie or have some experience. I won’t know what your buying power is or how big or small you want your business to be…
There are lots of factors involved, including your experience, your interests, capital available, goals and aims.
Niches can be too big…or too small
I must make it clear that only you can decide which niche you want to sell into. Choosing a niche is only as difficult as you make it and so many would be sellers end up procrastinating for way too long over this. Always to start with something that interests you, something you know about or is connected in some way to your lifestyle or a hobby or a passion. This makes it much easier.
Once you’ve done that you’ll need to find out what the total sales are in that whole niche over a 30 day period. So, for example, if you have chosen the ‘Dog Supplies’ niche you should research the total combined number of sales for all doggie products over the past 30 days. This could include dog leads, dog collars, dog coats and so on – you’ll need to make a list of products ready for your research. The niche will likely contain a variety of products like this which you’ll investigate and then eventually add all of your data together to get a total sales sum.
Big niche. Buying power too small
This is a question that pops up in every sellers’ mind.
Well because it’s just like the ‘million-dollar question’.
Firstly, where are the details? I am unlikely to glean from your brief question about niches what your interests might be or what you have some knowledge about or skill within.
I won’t know whether you are a newbie or have some experience. I won’t know what your buying power is or how big or small you want your business to be…
There are lots of factors involved, including your experience, your interests, capital available, goals and aims.
Niches can be too big…or too small
I must make it clear that only you can decide which niche you want to sell into. Choosing a niche is only as difficult as you make it and so many would be sellers end up procrastinating for way too long over this. Always to start with something that interests you, something you know about or is connected in some way to your lifestyle or a hobby or a passion. This makes it much easier.
Once you’ve done that you’ll need to find out what the total sales are in that whole niche over a 30 day period. So, for example, if you have chosen the ‘Dog Supplies’ niche you should research the total combined number of sales for all doggie products over the past 30 days. This could include dog leads, dog collars, dog coats and so on – you’ll need to make a list of products ready for your research. The niche will likely contain a variety of products like this which you’ll investigate and then eventually add all of your data together to get a total sales sum.
Big niche. Buying power too small
Small niche. Buying power too big
Yes, it’s possible to have too much buying power that would be wasted on a tiny, tiny niche. At the opposite end of the scale, if the niche you’ve researched only has 30 day sales of £5,000 for example then it’s going to be far too limited for you to make any real money. The exception to this rule is if it’s for example a £5,000 per month niche with only a couple of sellers in it. This would be extremely rare, but it can happen. The issue here is that a new seller in such an unsaturated niche will definitely cause waves, simply because those original few sellers will immediately see a drop in sales as soon as you enter the market. The knee jerk reaction to this will probably be price cuts from the original sellers and ultimately this causes a price war – and this is not good for anyone. This doesn’t happen when you enter a larger niche because any impact from a ne w seller is offset across lots of other sellers rather than just one or two.
Don’t forget too that when a niche is too small to consider, the potential is there for your buying power to take you much further and much more quickly. The key is to make the best use of your budget and get a good return on investment.
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This way you can make a far better informed decision as to which is the ‘perfect niche’ and the ‘best product’ for you to sell, bearing in mind the actual size of the market and your own individual future business goals
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