What’s Your E-commerce Niche?

Now that you know the type of eCommerce store you will like to have, the next thing to do is to choose a niche. I know most people will like a general store, but even an all in on eCommerce site has a niche.

What is a Niche?

A niche market or product, is one that appeals to a small or specialized segment of the population.

Why should you choose a niche?

Going into eCommerce on a small scale requires a lot of resources and unless you have funding from big players you might want to spend wisely.  But here are some advantages of choosing a niche.

  1. Increased profits, since customers are actually looking for these products online, you can sell them at great margins.
  2. Lower Marketing costs: this is because your target audience is specific, so marketing can be targeted to that specific audience to get value. This also helps with trust, credibility and brand loyalty.
  3. Less Competition: Even though the big players might sell your products, there will be few people selling it the way you do, this will help you get more market share and competitive advantage.

Before finding a niche in eCommerce, pre-planning is very important. Try and do a lot of research, evaluation, validation and testing, as you don’t want to go into any niche that is too wide to sustain or too narrow for profitability.

So there are several profitable eCommerce niches in Nigeria, and here are a few of them;

Grocery Shopping:

There are high net worth individuals who work and with women increasingly becoming part of mid and senior management at various corporations, Time is becoming more and more the scarcest commodity for money. Cutting down the time taken to do grocery shopping by shopping from your desktop has been embraced lately. Some examples are supermart.ng

 

Printing & Packaging:

Most businesses need to print some branding or marketing materials at some point. So Printing is a lucrative eCommerce business, examples in this space are instaprint.ng and printivo.com

Kids & Baby products:

At times it’s difficult to get all kids and baby products in one space. From toys to educational materials, to baby food, and bath products, there are so many products to add.

Makeup & beauty care

Makeup and beauty products are fast moving as a lot of women are into makeup. But the key to selling here is to key into what influencers in this space are talking about and sell those items. Examples are www.beautykink.com

Natural skincare

Natural skin care is a mover as people are becoming more aware of natural skincare products. Carrier oils, essential oils, shea butter and the likes.

Accessories

Fashion accessories is a great place to be, especially since people always think to sell clothes first when they think of fashion. www.accessoriesmall.com.ng

Shoes

Shoes like fashion accessories haven’t really been tapped as it should be. But some first movers are in this space. www.heels.com.ng

Real estate

Real estate has become very competitive in Nigeria but in e-business, innovation is key. There are several first movers including Jumia house, tolet.com.ng etc.

Drinks

Yes you can get drinks online too and that’s where some businesses like drinks.ng, myshayo.com are.

Phones

I will like to say that phones are one of the fastest moving products online in Nigeria and slot.ng leads as a niche store.

Furniture

Furniture is a good and lucrative business online too. You can start and innovate what others like domestico.com.ng is doing, just getting the different carpenters and showrooms up on your site.

Travel

Travel is a bit saturated but I cannot over emphasize the need to innovate in whatever you choose to do. You can choose to sell travel gear especially if you live around a tourist area. And work with those who do travel packages. Also, local travel is becoming more common so you can tap into that niche as well.

Hotels

Hotels.ng opened the eyes of many to the fact that people actually needed the convenience of booking a hotel online. And searching for the best fit for their budgets with filters too. Innovate and find your niche in hotel and hospitality business services online.

Logistics & last mile fulfilment

Logistics is a tedious one but people and businesses want to move products from one place to another as fast as possible. This niche is still not very competitive and as I will always say, innovate!

 

When you have chosen your niche, it’s time to check the big players and first movers in that niche. What are they not doing right? Once you can get a loop hole and build on it, you have your USP (Unique selling proposition). Find out what the customers want and get it for them. To survive in a niche market in Nigeria, you don’t necessarily have to have depth in category, what you need is customer loyalty and satisfaction. This will do a lot more work for your business than paid marketing ever will. Ecommerce in Nigeria is very peculiar and in this age of Social Media explosion, it is easy to ruin your reputation with one failed customer. So try to create a space where customer satisfaction is the KEY. Make sure your employees also understand this.

 

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