How To Find Niche Market

How To Find A Niche Online Market

In dropshipping, your exploits heavily depend on the niche you choose to focus on. So, finding a niche market is one of the most important aspects for an ecommerce entrepreneur.

How To Find Niche Market
How To Find Niche Market

So, in this resource, we are going to discuss how to find the perfect niche for your dropshipping online store, how to approach it, the advantages you will get from that, and the mistakes you should try to avoid.

Lets get started already!

What Is A Niche Market?

Before we focus on finding a niche market, lets start with knowing what it means.

A niche is a small market segment with some direct products that are interesting and desirable to a certain category of potential buyers.

For instance, lets take a broad market: clothes. Within this large market, there’re lots of little product categories:

  • Outerwear
  • Underwear
  • Homewear
  • Sportswear, and many more.

And each of these categories, in turn, can be divided into numerous, even smaller niche segments, for instance:

  1. Classy jackets and coats for young men
  2. Comfortable workout clothes for women
  3. Affordable home clothes for toddlers

There could be countless variations! Defining a niche, you;

  • Take a broad market as your launching point (for instance, clothes)
  • Pick a narrower category within it (for instance, office wear)
  • Make it even more smaller to understand who you will be targeting (for instance, smart suits and accessories for middle-aged men)

When your niche is defined in such a specific way, it lets you manage and grow your business much more efficiently as you can understand;

  1. Who exactly is your average target audience representative
  2. What product features and online shopping aspects are most appealing and desirable to this audience
  3. What should your advertising messages be and where you should target them to reach your potential customers effortlessly

Why A Niche Store Is More Beneficial Than A General One

At the initial state, dropshipping may seem like a very easy way to earn money. Although in many cases, it has proven to be. All that you need to do is set up your online store and upload the most popular products.

It does not require much to open a general store: all you have to do is import the most popular products to your website, regardless of their niche. You will have a large range of products to offer and attract lots of customers and earn a fortune. It should do the trick, right?

As a matter of fact, a general store has some critical downsides you really need to look into. Let’s look at the most important ones;

  • Extremely high level of competition
  • Having a general store means competing with the biggest marketplaces out there – Amazon, eBay, etc.
  • Are you sure you can handle that kind of competition?

Let’s be sincere, at the initial stage of developing a new business, it will be extremely difficult, nearly impossible, to do so.

Have you thought of regular brick-and-mortar stores that are near your buyers’ place of living?

Often, if consumers can acquire the same product you’re offering in a nearby store, even if you advertise a better price, they would not opt for online shopping. Why? It’s simple, customers who are searching for more general items won’t wait for the goods to arrive if they can purchase them right on the spot.

For a dropshipping business, marketing is everything.

When you offer a wide range of products to purchase, it becomes impossible to identify your target audience to zero in on. However, it’s important to draw up your marketing plan. If you don’t have a rich marketing strategy, your dropshipping business is not likely to go well.

In addition, running a general store significantly stresses your search engine optimization (SEO) efforts.

How To Find The Perfect Niche For You

Searching a niche market with some potential and one that you will enjoy creating your ecommerce business around will need you to do some research. More so, below are some things you need to consider while finding the perfect niche for your business:

  • Consider your own interests and passions:

Customers need to be sure that they deal with someone who does not just want to line their pockets at consumers’ expense but has something in common with them. In this case, your clients perceive your service as a sort of help.

It’s important to create trust with your potential customers!

However, if you like what you do, it is much easier to keep yourself focused on having your online business succeed. The easiest way to specify your passions is writing down a list of the interests. Carefully think about the sites you frequently visit, magazines you read, communities and groups on social networks you’re subscribed to, etc.

  • Estimate the level of competition within the chosen niche
  • Before choosing a niche to focus on, thoroughly analyze it.

Identify the sites of your potential competitors, and compare their prices. Ponder on the original products you can offer, non-typical pricing strategy you could apply, and the unusual promotional strategies you could try to make yourself unique.

Finding a niche market with the help of Google trends:

Google Trends is an instrument that provides you with the vital insight into general public interest towards this or that product. This service is designed to analyze search trends, so it could be perfect for your business.

Finding a niche market using Instagram and Facebook:

To check whether the niche you’ve chosen has the necessary potential, type its name in the ‘Search’ field on Facebook or Instagram and choose the ‘Groups’ section.

Finding Niche Market Via Instagram
Finding Niche Market Via Instagram

You will see a list of the existing groups that have this keyword in their name and the number of their members.

We usually consider a niche to be promising and prospective if it has more than 15 groups with more than 30,000 members per each.

What Mistakes You Don’t Want To Make While Choosing A Niche

Giving in to mistakes is all part of the experience. The more you make, the wiser and experienced you become. Anyway, isn’t it much better to learn from other people’s mistakes rather than your own?

Based on our experience, we are ready to share with you some thoughts on what common mistakes you should avoid, and they are:

  • Ignoring your personal interests
  • Only focusing on the profit
  • Making no research
  • Allowing no room for growth


One possible strategy of choosing a niche for your dropshipping store is focusing on trending items. As long as this particular product is popular, you can theoretically make good fortune from it.

Traditionally, a less risky approach is more popular. Entrepreneurs go for a niche with a more or less stable demand that is expected to settle in a long-term period. Over time, they slightly update their product range along with the promotional methods.

In Summary,

You do not need to go far to search for the best dropshipping niches, as we have already chosen the best niche products for you. Nevertheless, finding and choosing the right niche market consumes quality time. You need to carefully look into and research different aspects and determine the best opportunity for you or your business.