Why Targeting a Niche is a Great Strategy for New Sellers
There is an old saying “If you failing to plan, you are planning to fail“. Same goes with online marketplaces. Only deciding to do business online is not enough. You have to have a strategy right from category selection to zeroing in on a product and selecting a niche.
In our earlier articles, we have discussed the importance of going with Private Labels and choosing your category carefully. If you are thinking that you will target as many product categories as you can, there are chances that you will fail miserably. It is very important to select a product niche and explore it fully. You might be wondering what a niche is? Why selecting a niche is of key importance? In this article, we will explore the importance of niche step by step.
What is a Niche?
Niche is a sub-category or a specific section inside a category. Once a category is finalized, you have to shortlist a bunch of related products you will initially focus upon. For example, if you have decided to go with electrical and electronics category, you cannot target the whole category at once. You have to shortlist one or two niche products like Extension cords or Multi Pins initially.
This video will help you to understand about niche selection.
Why is it important to choose a niche?
When you are a beginner, you have fewer resources. If you try to target the whole category and sell totally unrelated products, it will not attract a good number of sales. Initially, to remain motivated is of utmost importance and for that, focusing on a few products and achieve sales in that niche is strongly advised. When you start getting regular sales in one or two niche products, you can certainly expand to other related categories.
For example, if you have decided to go with photography equipment, focusing on Tripods and White Umbrellas initially is a good strategy. Once you start selling them, you can expand to camera and camera lenses.
Now that you know the importance of choosing a niche, let us understand the advantages of going with it.
Benefits of Going with a Niche
When you choose a niche, you get benefitted in various ways-
- Going with a Niche makes an impression in front of Amazon that you are a specialist and expert in that category. If you are selling kitchen cleaning brushes, you will be considered a specialist dealing in that product and you will get natural visibility backed by Amazon.
- Whenever Amazon looks at your profile, after finding products of same niche, it will club two or three products in a bunch and list them in “Frequently Bought Together” category. This way you get extra boost and visibility at no additional cost. For example, if somebody is buying a cake mould, he is most likely to buy silicon spatula and baking brush as well. That is the advantage of choosing a niche.
- A natural push from Amazon will certainly reflect in increased sales and that is what you need for gaining that initial motivation.
- Your one product pushes the sale of another product without any extra effort or sponsored ads which will add to your cost.
What if you don’t choose a niche?
We must have a look at the disadvantages of not going with a niche and not having a strategy in place well before you start your journey.
- If you don’t have a plan and you are targeting the whole category at once, you are making a grave mistake. A category is huge in itself. If you launch large number of products which are totally unrelated to each other, you will not be considered a specialist by Amazon and hence, lesser visibility to your products.
- No natural pushes from Amazon as products are very different from each other. Very few people buy water bottle with car cleaning foam or a camera lens with socks.
- ‘Too much Too Soon’ is a bad strategy. The lesser sale will demotivate you in the initial phase itself and you are most likely to go for sponsored ads which might not suit your pocket.
How can AMZ blast help?
Category and product selection is not a quick affair. You have to patiently search each and every category and products in those categories to zero in on the niche of your choice. Although, searching manually on Amazon can be tiring and cumbersome.
Here, you can make use of PRT (Product Research Tool) of AMZ blast which makes the process a lot easier and you can make your decision backed by well-researched data. In PRT tool, each category and its subcategories have been analyzed to minute details so that you can judge the scope of different categories and products.
To give an example, ‘Niche selection’ section helps you decide on the niche in a product category. EMR in a selected product range tells you the monthly sales a product gets whereas EMR tells you the estimated monthly revenue of the seller. Various sections of these kinds are there to help you so that you can make an informed decision backed by facts and data analysis.
Now that you know about the importance of private label brands and selecting a niche, AMZ blast has only one advice to share. Slow but steady wins the race. Don’t aspire for overnight success. Once you achieve initial sales and gather the motivation to move ahead, then only add other products and categories. AMZ blast is there to help you at every step.