Register now or log in to join your professional community.
1. Accessory-Heavy Niches: Merchants rarely make much on big-ticket items and will only earn maybe5 to% on products like laptops and TVs. Where they really make their money is on the accessories.
Accessories enjoy markups of to1,%, and customers are much less price-sensitive about them. A buyer might shop for weeks to get the best deal on a TV, but wouldn’t think twice about dropping $ on an HDMI cable from the same place. Yet there's a good chance the business made nearly as much profit on the cable as it did on the flatscreen.
When you choose a niche with lots of accessories, you'll enjoy significantly higher profit margins and fewer price-sensitive shoppers.
2. Customers with a Passion or Problem: It's amazing how much money passionate hobbyists will spend. Mountain bikers will drop hundreds on light-weight accessories to shave a few pounds, and avid fishermen will invest tens of thousands of dollars in boats and related accessories. Also, if you can offer a product-based solution to a painful problem, you'll find a captive audience eager to buy.
3. The $ to $ Range: I've found that this price range is an ecommerce “sweet spot.” It’s large enough to create decent per-order profit, but small enough that – with a quality, informative website – most customers won't need to personally speak with someone before the sale.
As you grow, being able to generate most of your orders online offers massive efficiency savings versus a phone-heavy approach. But if you're selling products that cost $ or more, many
