July 30, 2021
Image of a person pointing to a large shopping bag coming out of an oversized smartphone, with the text "Choosing a Profitable Product Niche for Your Ecommerce Shop"

One of the biggest reasons why small businesses fail is a lack of product strategy.

Too many online shops resemble marketplaces that sell everything. They figure this means they’ll be able to capture a larger market and more customers. However, when you try to sell to everyone, you end up selling to no one.

If you want to brand your online business or be an authority, you have to choose a product niche. Choosing the right niche establishes your credibility over competitors, ensures a more focused business, and opens you up to other income opportunities down the line, such as affiliate marketing.

What’s the result? Profitability.

In this guide, you’ll learn:

  • What a niche is.
  • How to find a profitable niche.
  • How to find a niche product.

What Is a Niche?

A niche is a profitable market segment with a focused audience. It is a subset of a large market defined by its own unique identity.

For example, the furniture market can be segmented according to use (i.e. office furniture, home furniture, or antique furniture), material (plastic, wood, or upholstered), or price.

The specific niche you choose can influence many aspects of your business, including:

  • What products you sell.
  • How much you sell.
  • Which suppliers you work with.
  • What kind of marketing strategies you should use.

Choosing the perfect niche is more complicated than it seems — you need to find a niche with products that are high in demand but low in competition.

Only when you find the right niche can you determine how to find a niche product.

Below you’ll learn how to find a profitable niche.

How to Find a Profitable Niche

  • Brainstorm niches you’re passionate about.
  • Identify the problem of your niche market.
  • Look for profitable niche markets.

How to Find a Profitable Niche Idea #1: Brainstorm Niches You’re Passionate About

To start your search for a profitable niche, make a list of your interests and what you’re good at. This is just the brainstorming stage, so don’t worry about financial viability at this point.

The ideal niche is at the intersection of profitability and your interests. Business is hard work. If you’re in it for the long run, it’s best to create a business you know you’re going to enjoy.

Additionally, if you choose a niche you’re passionate about, you already have an idea of the basics, including:

  • Who to sell to.
  • How to sell it.
  • What needs to be improved.
  • Where to get suppliers.

Who knows — you may even get to develop new products.

How to Find a Profitable Niche Idea #2: Identify the Problem of Your Niche Market

Good marketers know the key to success and longevity in business is to identify an unmet or underserved need and create a solution.

Analyze your target audience and identify gaps in the marketplace. Your products or services should address a pain point that your audience is currently experiencing.

Here are some websites you can use to seek out that information:

How to Find a Profitable Niche Idea #3: Look for Profitable Niche Markets

Validate your business idea by checking on its value in the niche market. Otherwise, you’ll waste time and effort trying to sell something unprofitable.

Remember: Not all markets are created equal. Some are more profitable than others. Choose a sector that has anticipated growth.

To start, read articles on ecommerce trends, and look through a list of profitable niches.

How to Find a Niche Product

Now that you’ve learned how to find a profitable niche, it’s time to look for products to sell.

A suitable niche product should:

  • Have a relatively low amount of competitive products.
  • Be in demand.
  • Have the potential for long-term popularity.

Here’s how to find a niche product:

  • Check past and present trends.
  • Perform keyword research.
  • Study the competition.

How to Find a Niche Product #1: Check Past and Current Trends

To choose the best niche products, analyze past and current trends. Input keywords from the niche you’re eyeing in Google Trends to check their performance over time.

For instance, the search term “weight loss pills” enjoys relatively stable activity because people will always be interested in an easy way to shed pounds.

Chart showing weight loss pills trend over time.

Meanwhile, seasonal terms such as “candy cane” only see a surge in searches around Christmastime.

Chart showing the spiking trend around certain months for candy canes.

Avoid fads. “Bread baking” may have experienced a surge in search volume during the height of the pandemic. But its popularity has already dropped back to pre-pandemic levels, which indicates bread baking niche products will not be viable long-term.

Chart showing trends for "bread baking" over time, resuming prepandemic levels of interest.

How to Find a Niche Product #2: Perform Keyword Research

To find saleable niche products, do keyword research on popular ecommerce platforms such as eBay or Amazon.

Amazon’s bestseller page is a goldmine for keywords you can break down into niches and sub-niches.

The Amazon Best Sellers page, with highlights on the top bar and left side navigation.

Let’s say you want to move into the beauty industry. On the bestseller page of Amazon’s Beauty and Personal Care category, you’ll find subcategories such as bath accessories, fragrances, hair care, and makeup. Explore these categories for new products to sell.

Look at the highest-rated items and their prices to validate what people are willing to pay for them.

How to Find a Niche Product #3: Study the Competition

Although you may want to break into a new niche, competition signifies a healthy business opportunity.

Be wary of a niche that doesn’t have any competitors. They’re evidence of an existing market. Competition indicates people are looking for the kinds of products you want to sell.

When you study the competition, you can also identify gaps in their current offerings and the markets they’re targeting. Use tools like Ahrefs and SEMrush to research your competitors’ top content, traffic sources, social media, and sales pages.

Final Thoughts: How to Find a Profitable Niche for Your Ecommerce Shop

Contrary to popular belief, it’s relatively easy to make money online, but many small businesses fail due to a lack of product and ecommerce growth strategy.

Learning how to find a profitable niche and how to find niche products is vital to building an online business. Use the information to stand out from the competition, establish your credibility, and create a focused business.

Have you found your niche? Get your online store up and running fast — check out Nexcess’s ecommerce hosting plans today.


Nexcess, the premium hosting provider for WordPress, WooCommerce, and Magento, is optimized for your hosting needs. Nexcess provides a managed hosting infrastructure, curated tools, and a team of experts that make it easy to build, manage, and grow your business online. Serving SMBs and the designers, developers, and agencies who create for them, Nexcess has provided fully managed, high-performance cloud solutions for more than 22 years.

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