It’s the age of the entrepreneur! If you have the dream of running an e-Commerce store from the comfort of your laptop, it might be your passion. Before you dabble in how to start an online store let’s figure out why your online store needs a niche!

Secure A Niche
It might be an online store but it needs a theme. Given that you’ve built out your brand and what you hope to represent, always ensure that your store reflects that. Your store should reflect what you are selling and to whom you are selling. Some first time entrepreneurs don’t put much thinking into their niche.
In any enterprise your niche is made up of three components. These are the audience, price and market opourtunity.
Price
Ah! The fun part, but not for some. If you sell cheaper items more people are likely to buy, your Average Order Value (AOV) is going to be lower. If you sell more expensive items, it’s likely that fewer people will buy, but your AOV will be larger. Thus, a higher AOV allows you to make more in your profit margin. A typical eCommerce store has a profit margin of 20% -40%.
Tip
For Instance if your item is priced at $100 with a profit margin of 30% it allows you to make a profit of $30. While an item priced at half that only makes $15. Thus, ensure your product is niche specific and valuable. Avoid small and cheap trinkets because the profit margins are small.
Audience
This is a group of people who are interested in a particular product. So who is your audience? And do you share your audience with a competitor? These questions relate to brand loyalty.

Brand loyalty is a positive feeling towards a brand and a commitment to consistently buy the same product or service, regardless of the behavior of a competitor or environmental changes. Other behaviors such as positive word-of-mouth advocacy can also impact it.
Thus you ought to be cautious in particular niches that are occupied by household names. Consumers aren’t really interested with more options when niches are dominated by large companies. When consumers think of common products, their brand loyalty kicks in and they’re heading straight for the brands that are occupying their top-of – mind consciousness.
With that being said, try to avoid niches that are already dominated or over saturated.
Popularity
In sociology, popularity is how much other people like or assign a status to an individual, idea, location, item or other concept. Popular products are surrounded with a cloud of interest, as tempting as it may seem try to avoid these items and niches. Why? Because the sales drop when the season has passed. Not to be worried, you can dip your toe in the trendy pool. To do this simply spot the trend first.
How to spot a trend?
With technology we have more tools at our fingertips to utilize, Google Trends, try typing in keywords and comparing the searches overtime. Try to lean towards products that have a gradual growth in interest over two years. This ensures that the season hasn’t passed and it isn’t too late to enter the market place.
Longevity and Customer Lifetime Value
In marketing, the lifetime value of the customer, or the lifetime value, is an estimate of the net benefit attributable to the whole future relationship with a company. So you’ve successfully made your first sale, how do you intend to keep that customer?
Firstly, you must ensure that your niche allows you to extend the longevity of your clients. The wedding niche is one of those that rarely have return customers despite its large margins. Thus you would spend alot of time and money on attracting new customers instead of re advertising to the customers you already have.

Conclusion
Getting a niche is crucial, because your overall messaging and product won’t reach anyone if you seek to appeal to everyone. You may also align your niche with who your ideal client is. So, it is important that you have a focused niche audience and that you communicate with the client or consumer in a manner that they can really connect to.
Great article about what everyone who seeks on making money online or work from home online business needs to know, which having your own niche. i have read couple of articles about Niche and all of them pointing towards one direction “intrest”, doing what youre passionate about. Reading this article has solidify my understand about having my own niche and doing it the proper way
Hello, Thank you so very much for your wonderful and elaborate article on why your online store needs a niche. I have always thought that I can just sell anything without representing any brand but here I have learned that my store must have inche that represents my brand and also that I am likely to have more customers when I sell cheaper items. Thanks.
Wow this is extremely useful. Picking a niche is important but choosing the right one for your audience is much more integral for any online entrepreneur.
Knowing your audience and developing a marketing strategy to captivate that audience can go a long way for any online business. The money does not come at the click of a button nor does it come overnight like how some think.
It comes from a well thought out marketing strategy that nets you what every online entrepreneur wants, a returning customer.
Helooo dear thanks for sharing these valuable content with us, I was actually doing some research online when I saw your post, your website is plain and simple, easy to navigate and easy to understand, I think these is great, your description of each items, makes it easier for the readers to form an opinion
Hello there! this is an amazing information you’ve shared with me here and I must commend your sincerity in dishing out up to date info in all your post that I’ve read. Great Job!
I totally agree with you on everything you’ve said here especially the fact that one makes a lot of sales if he specializes in a particular niche, I will work on this. Thank you very much.
Nice article I must say…everybody usually needs a niche to make his her product sell well in the market.. Owning a good nice matters a lot in the online business as it helps to spell out the product you deal on and how it works, it also helps people to easily locate and visit your business..
Hello there, thank you so much for this very detailed and informative post on “why your online store needs a niche” firstly I must say that it’s always a joy to read from this site, seeing that it has given a lot of answers in very simple ways just has thia post has provided me with the information I need because I’m about setting up an online store and I find this post very useful as to why my store needs a niche,
thanks for sharing.