A “ Niche” site is simply one that specializes in a unique product. It could be a product you have developed, a brand that you have marketed and established, a novel and unique way to advertise and sell your products. Anything that draws attention to your business and generates more sales.
The number one difficulty selling things on the internet today is competition. Anyone with an internet connection can sell online. It is really difficult to make a profit if you try and sell the same popular products as everyone else. Most sellers don’t know enough about advertising, marketing, or selling to establish a reason for customers to buy from them instead of any of the other competition so they simply try to sell based on low price only.
You create your niche site by research and by educating yourself about all aspects of the market for your chosen product category. You find out who your close competition is, what they sell, who they buy their products from, and the general size of the industry to make a decision about what to sell. You become an expert on the products you want to sell and develop unique and creative marketing and advertising methods to prove to customers you are the best choice for them to purchase from.
Every major retailer in the world has a group of merchants who have become experts in their assigned product categories. They are “Buyers” or “Category Managers” or Merchandise Managers”. They decide what products to sell, what price they sell them for, and how to advertise or promote the product to their market.
You have to become that expert to hope to have the best chance for success in your online sales niche. You first should choose a product category you have some previous knowledge about. It makes learning a whole lot easier. Suppose your interest is video games. You probably already know what the hot products are, the best joysticks or control devices, the hottest chips and memory cards for games. You also probably know what products you wish were available. Find those missing products. You would then be unique.
Maybe you know that a certain popular product can do a lot more than what it is advertised for. Advertise that special hidden feature and you have a unique niche product. Be creative, but always remember, you must continue to develop new products because your competition will catch up fast.
Over my many years as an International buying manager I dealt with many Asian factories. It was amazing to find so many electronic products available but not in production because no one every asked for those features before. I was developing an electronic horn for a customer and was meeting with the factory engineering team. My customer wanted a horn to compete with an existing model on the market that had 20 sounds. I asked the engineers if they could make the horn with 20 sounds and they replied, sure, which sounds would you like to use? The I.C. chip they used already had over 80 sounds programmed on it but no one had every asked for more than the 20 already available. For a few small tooling charges we developed an entirely new product. Find those unique niche products.
Do your research, use your experience, and learn all you can. Nothing is easy. but if it is profitable, in the end your hard work will be worthwhile.