6 Profitable Ecommerce Niche for Your Small Business 2022

Thinking of dipping your toes in ecommerce? Well, you can’t start without first identifying a niche for your small business. 

From electric appliances to homemade goods, there are lots of niches to consider – but which ones are more profitable? Here, we’ll be unpacking some of the best ecommerce niches you have to check out.

What is a niche in ecommerce?

A niche is a specific category of goods and services in any market. It’s a business model that’s quite different from the mom and pop stores that sell anything and everything. 

Instead of carrying many different kinds of products, having a niche zooms in on a selected type or range of products. Some examples include artisanal dog treats, handmade hypoallergenic jewellery, or woodcraft baby toys.

Why do you need a niche to start your business?

1. It helps you stand out from other small businesses

Our first instinct is to sell a wide range of products so that customers have many options to choose from. But to differentiate yourself in the ecommerce space, having a niche actually helps you stand out from the rest.

Here’s an example of niching down: Instead of selling all kinds of bakes, consider specializing in lava cakes of different flavors. The goal is to become the first person your customers think of every time they want to order lava cakes for their friends and loved ones.

By specializing in a selected niche, you become the subject matter expert of your product. It keeps you from being a generalist and makes your products more memorable. 

2. It allows you to charge at a higher premium

Niching down doesn’t limit your business opportunities. In fact, it does the opposite. Specializing in a selected niche keeps you from being a generalist and signals to customers that you’re an expert in your field.

When customers know that you specialize in, say, luxury leather dog collars, they’re more willing to pay a higher premium for your product than those they find at the general store. The ability to charge a higher can help small businesses stay sustainable in the long run.

See also: Promo or No Promo? Tips to Increase Sales Using Coupon Codes for Customers

Which profitable niches are in trend right now?

Now that we’ve covered why having a niche is important for your business, let's dive into some trending niches you should consider for your ecommerce business.

1. Skin care and Beauty

Demand for skin care and beauty products never run dry. In fact, the skin care market has been growing at a breakneck speed. 

Based on this report, the skincare industry is up from $483B in 2020 to $511B in 2021 — and with an annual compounded growth rate of 4.75% worldwide.

As consumer become increasingly conscious of their health and wellness, demand for quality skincare will only continue to rise. And this makes it a great niche to explore for your ecommerce business.

Great ways to niche down:

  1. Skincare products with an emphasis on natural ingredients
  2. Cruelty free skincare products (not tested on animals and/or use vegan ingredients)
  3. Skincare products for a specific age group

2. Home Decor

With the pandemic, more people are spending time at home with nowhere to go. Our homes aren’t just where we head to at the end of the day anymore. It’s where we work, play, and sleep.

It’s probably why the home decor market was valued at $ 727.6 billion in 2021 and is anticipated to reach $ 939.7 billion. Home decor is a great niche to go into as people are finding new ways to make their space more comfortable.

Great ways to niche down:

  1. Wall Art and Tapestry 
  2. Decorative aromatic scents
  3. Home office goods

3. Home Fitness Equipment

Restrictions and lockdowns are put in place for the welfare of the general public. But they can be quite disruptive for active gym goers who make it a point to exercise regularly.

That’s why this niche is a great one to consider, seeing that we’re still very much in the midst of the pandemic. As people are finding ways to go back to their old routines, demand for at home gym equipments are on the rise.

Great way to niche down:

  1. Lighter weights and exercise equipment suitable for beginners
  2. Smart fitness equipments

4. DIY Craft Kits

More time at home with our family and loved ones creates opportunities for more interaction. DIY Craft Kits are great for bonding and are appealing for the artsy folks who like to get hands-on. 

Additionally, with more time on our hands, many are picking up new hobbies even if they aren’t typically the “artsy” type. DIY Craft Kits are great for beginners who are exploring an interest and want to make something they’re proud of.

Great ways to niche down:

  1. Embroidery kits with instructional patterns
  2. Leathercraft kits with instructional materials
  3. Build your own terrarium kits

5. Eco-Friendly Products

Now more than ever, there has been an emphasis on taking care of our environment. With documentaries on Netflix exposing unethical practices of industrial factories, consumers have become more eco-conscious.

It’s also why more sustainable brands from different industries are popping up. Consumers aren’t just interested in getting cheap, usable products. They want to know they’re doing their part for our earth too.

With a more educated consumer base, selling eco-friendly products can meet the needs of what consumers want in this day and age.

Great ways to niche down:

  1. Reusable cups, mugs, and cutleries 
  2. Upcycled fashion

6. Petcare 

People love their pets. And it’s not hard to see why. Pets bring us joy and comfort, especially in these uncertain times.

Every pet parent wants the best for their pets. And they would willingly spend on premium goods if it means giving their pet a happier, healthier life.

In fact, according to this report, the U.S. pet market sales revenue has increased every year in the last decade, growing from $50.96 billion in 2011 to an estimated $109.5 billion in 2021.

If those numbers mean anything, the pet industry is set to continue to grow steadily in this trajectory. And this could mean that there’s a business opportunity for you in this market.

Great ways to niche down:

  1. Artisanal pet food
  2. Hand made pet accessories 
  3. Health supplements for pets

Get started with your very own ecommerce website

Starting an ecommerce business isn’t as complex as you might think. All you need to know is to zoom in and identify your niche. The next step in the process? Get your very own website

Try it risk-free with our forever-free plan and begin your ecommerce journey with us now!

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