When it comes to setting up an online e-commerce business, the barriers to entry is very low.
Anyone that has a functional computer and an idea can set up shop.
Setting up websites is very affordable nowadays, especially when there are a lot of free website builders such as Jimdo, Weebly and Wix in the markets.
Is it Really that Easy?
But just because one can set up an online business, doesn’t guarantee by any means that the person will be successful.
The lower the barriers to entry, the higher the competition.
For example, if you wanted to sell iPhone cases online, it’s pretty simple to set up. You can even quickly set it up with eBay if you wish. But you know, there are probably 10 million and a half vendors selling iPhone cases.
Most likely, you will be a very small fish in a big pond filled with sharks.
How to Survive
So if that was the case, how could you possibly survive in any online businesses?
One way to do so is to dive deep into niche markets.
The market size or your potential customers narrow as you go into the niche markets, but your chances of surviving and even succeeding increases accordingly.
So as the saying goes, “Would you like to be a small fish in a big pond? Or a big fish in a small pond?”
The latter choice is definitely something to consider.
How to Niche Down on Your Business?
So how could you dive deep into a niche?
Here’s an example. Consider an online business selling instructional ballroom dancing DVD’s. The market in itself isn’t as large as other mainstream online businesses already.
But how do you differentiate from competition?
They’re all selling instructional ballroom dancing DVD’s and may have a large customer base already and an established market presence.
Well, with a bit of creativity you can work the product in a different angle, and “re-work” how the DVD’s could be used for.
Here are just some quick examples on how you could potentially narrow your market audience and target them with laser focus:
- Exercise for the elderly
- Exercise for those suffering with arthritis
- A fun way to shed those excess pounds
- A fun way to improve physical co-ordination
- A way to increase mental health (yes, it’s a form of exercise!)
- Natural way to combat depression (it’s almost the same as the previous point, but again, from a different angle)
The list can go on and on. All of a sudden, instead of “just” selling instructional DVD’s, you could be targeting people who suffer from specific problems and are looking for solutions.
Given the global online population, you can be sure that there are people looking for unique solutions.
Niche markets are much easier to survive than general broad markets. You don’t need to invent new products, gadgets or concepts.
Apply a bit of creativity and take an interesting angle “re-working” how to use a product, and you can dramatically increase your chances of success in the cut-throat world of e-commerce.
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