How to choose the right niche market for your e-commerce

By Brown Articles Published 10/1/2009 | ECommerce

So you have decided that you want to try e-commerce from home but you don't really know what kind of niche you should be concentrating on.

First of all keep in mind that it is important to concentrate on a particular section of the market, you will be getting more returns if you stick to one niche, or else your website may risk being to evasive and less interesting.

If you pinpoint a profitable niche market then you are sure to have the key to a successful website, but how is one to find the right one?

To start with there are two main reasons why you should concentrate on a determined niche market if you want to be successful. The first is that most of the 'wider' markets are already plentiful and very well established. The second is that if someone is searching the web in general, it is obvious that he or she doesn't really want to purchase a particular product, or they would be searching more specifically, this will result in a lower ratio between visitors on your website and people who are actually buying something.

If you are aiming at a holiday website for example, then forget it! Just think of all the websites specifically aimed at that niche, they have been around for ages and definitely have a larger marketing budget than you have.

If you still intend to stick to the travel niche, you can however concentrate on one specific area for example, say Malta, just to name one place. You may then proceed and create your own original website on Malta, making it exclusive and original. People looking for holidays in Malta will find your website particularly interesting because it is so specific.

You can also opt for a little brainstorming; that is sit down somewhere quiet with pen and paper. Jot down all the categories that are closest to what you are now or what you have been in the past. Write down what really interests you, your hobbies, food, drink, gardening or anything about your family and work.

Once you've got your list take each category in turn, then write down anything that may come into mind. Having finished that take a break, then come back after a few minutes and go through everything you have written down, making sure you cross out anything that doesn't seem quite right.

Edit your list, read through what you have left and choose the top three, the ones that interest you the most or those you know more about. Once you have your three main topics divide these into at least 5 subcategories, as you would do with a book, divide it into chapters. You will need at least 5 subcategories for your website to be of any use or interest.

Now you're ready to start building your website!