This is arguably the most important step of your entire journey. Finding your niche isn’t as simple as picking a product you enjoy and know a lot about because the reality is not all products and niches sell well. Some markets are over saturated while some others are too small and it becomes extremely hard to drive traffic to your store.
Ensuring the demand is there
While finding your niche, one thing that may seem obvious is making sure the demand is there. Surprisingly, too many new entrepreneurs will make the mistake of diving head first into their chosen niche without even checking what kind of demand is there or what the competition looks like.
There are several different ways to ensure the niche you select has room for you in the market. These include:
Google key word tool
This is a fairly basic way of checking what the market is doing. Basically, what you’re doing is using Google to see how many people have searched for the products you’re are looking to sell.
Becoming a master of using the Google key word tool can take a little bit of time but if you know the basics you will be able to be effective.
The three main ways of using this tool are:
- Match type is when you use the tool to search for a word or phrase in Google. Try to be as specific as you can because that way you will get a more accurate picture of what the demand is.
- Long-tail variations is just the term used for a more specific search. Instead of searching for “Torch supplier” you would search “LED military grade 1mW green torch”. The reason behind this is to get a more accurate picture and to filter through the data of what people are searching for.
- Search location is important to remember that different locations around the world buy very different things. For example, if you’re only selling to Australian eBay users you have to make sure you’re searching only Australian results.
You would use Google trends to get a more in-depth look at a specific product or niche. Think of it as an advanced tool. Some different things you can search for are:
If you are wanting to see where your search results are coming from in an easy to read map, use this tool. It will show you, state by state, where the searches are coming from and where your product or niche is more popular.
Basically, you want to know if your niche has a seasonality factor to consider. For example, camping supplies is going to be a much more effective and profitable niche during the summer months. You need to take this into consideration when doing your research as the data you collect isn’t going to be true all year around if you research during the peak.
Using this tool will allow you to see what main keywords which are being searched with your keyword. For example, if you’re searching a lipstick, it may tell you that the main thing being searched alongside it is “waterproof lipstick”, this tells you that you might want to consider having all your lipsticks be waterproof.
Volume over time
You want to be sure that the product or niche you are considering is not a sinking ship. Using this tool will show you what trend your niche is on. If it looks like there is a downward trend, you may want to look elsewhere.