If you’re looking to become an internet entrepreneur, you may be tempted to get into e-commerce. After all, it’s easier than ever today with simple website templates, third-party fulfillment and the ability to sell inventory that you never even buy until you make your first sale. If you’re interested in e-commerce, here are five fabulous niches that are ready for big profits:
1. Jewelry & Accessories
The jewelry and accessories market online is one of the hottest markets today and is projected to grow to over 250 billion (GBP) by the year 2020. One main reason why consumers love to buy jewelry and accessories online is that jewelry dropshippers is a more impulsive buy than in a retail store — online, both men and women believe they may not see the same style anywhere else and that if they don’t buy it now, they will miss out.
Jewelry and accessories are also relatively easy to advertise through digital marketing. Here are a few things to keep in mind. First, I recommend focusing on either men’s or women’s styles, to help you focus on the mindset of your target audience. Second, avoid selling clothing due to international differences in sizing. Third, try not to sell anything generic like a necklace; instead, sell a specific set of items like a “heart” necklace, a “Paris-themed” necklace and so on, because these specific items are easier to find for someone searching for those unique terms.
2. Household Goods
One of my household goods e-commerce businesses has generated over eight figures and counting because of this trendy niche. Consumers love to spend money on their homes: Home décor, cooking and gardening are great places to start.
If you can showcase a product or product line that gives your customers a wow factor or a unique experience, your sales will skyrocket. “Wowing” people with your household product means it saves either time or money (or both). Products that wow consumers typically surprise them by showing them how to do an everyday task much faster or much cheaper, making the purchase a no-brainer in the minds of your prospects. From my experience, your household goods store will attract primarily female baby boomers, who hold incredible spending power in today’s economy.
3. Consumer Gadgets
Remember the fidget spinner craze and the fidget cube? These two products have generated hundreds of millions of dollars online — and each month, there are new gadgets on the rise. They can be anything from novelty corkscrews to portable electronics.
To gauge your potential market demand, check out Kickstarter or Indiegogo. Any products that surpass their funding are sales-worthy because people love them. Get in touch with those product owners and lock in a contract with one or two hot sellers to enjoy the ride.
If you’re going to reach out to a product owner, do your homework first so you understand what their mission and vision are. Armed with some background information, your opening email or call to them can really speak to how you will help them sell more products, which is the bottom line for any new product creator. Then, if you want to claim an exclusive contract with a highly in-demand seller, try to be flexible on payment terms and wholesale pricing — just as long as you are only paying on demand as you sell.
4. Phone Accessories
Every year, a new phone comes out and consumers need to upgrade their screen protectors, phone cases and even wireless chargers. One student of mine sold magnetic charger cables and banked over $500,000 in sales simply because of “right place, right time.”
Let’s take the iPhone X as an example. According to Fortune.com, iPhone X has sold 29 million units in a single quarter, which means nearly 30 million people suddenly need new accessories. However, not every phone accessory will sell, so make sure that the accessories you choose solve a real problem, are fashionable and appeal to a narrow segment of the market so they can find you (for instance, an iPhone X case is great, but an iPhone X case with unicorns on it is much better!).
5. Sports & Outdoors Gear
Sports lovers are always crazy about their products, rather than cheap clothing websites, whether it be golfing, fishing, hiking, snowboarding or even badminton. Sports enthusiasts spend money on their hobbies, and that means there’s plenty of room for profit.
Take recreational fishing as an example. It’s a very narrow niche within the sports and outdoors market, but according to the 2016 census report, fishing expenditures topped $46 billion in the United States alone. Taking a mere fraction of this market share can easily help you build a six- to seven-figure business.
If you decide to get into the sports and outdoors niche, here are some tips to consider. First, find a niche within a niche where there’s a need with no competition to bother you. Second, if you choose a sport you know well, you’ll be well positioned to intimately know the pain points and the problem you’re solving so you can woo prospects into becoming customers.
With these five niches, you’ll be in great shape to capitalize on big trends happening in the e-commerce space. Just make sure you fidn your niche down far enough to fill a unique need, and you’ll be steps ahead of your competition.