Identifying suitable eCommerce opportunities
With so many online retailers, it can feel as if every possible niche has already been covered. But even some basic research or knowledge of a particular sector can help you find ways to offer a better product or shopping experience which can help you stand out.
You may be self-employed in a profession which generates saleable products already. For example, photography and design. Or it might be something retail adjacent, such as a personal trainer starting to sell fitness items, or a musician selling instruments.
In these cases, it’s easier for both businesses to cross-promote and fuel each other. You’re also more likely to know the relevant suppliers, or be able to sell products to clients.
Another area to think about are hobbies and interests that you could monetise. There are obvious opportunities if you enjoy woodworking, pottery or other arts and crafts in your spare time. But you could equally build a business based on your love of pets, sports, antiques, video games, or anything else someone is potentially willing to purchase.
A big benefit to this approach is that you can use your genuine enthusiasm as a marketing tool, and working on your eCommerce business won’t feel so onerous if it’s selling something you enjoy.
The third option is to choose an area where you can apply your business knowledge and experience, without necessarily being an expert in the products. For example, PR expert Mark Rofe operates a business selling Christmas trees, while digital agency owner Ash Young has built a multi-million car mat business.
In many cases, this approach requires you to work with a supplier who can deliver the product side, allowing you to focus on the business strategy and delivery. Beyond the benefit of leaving the day-to-day process of fulfilling orders to someone else, it also means you’re less emotionally invested, allowing you to be more objective when it comes to revenue, issues, and possibly offers to sell up.
A wide range of tools exist to help you quantify the potential interest for your business. Google Trends is a quick way to see what people are searching for at the moment, and tools such as Buzzsumo, SEMRush, Ahrefs and more will allow you to analyse specific terms and keywords, the websites of existing retailers, and other useful data.
This can also help you identify if what you’re selling might be a temporary fad (there are still warehouses full of fidget spinners around the world). Or if it’s something which has sustainable demand for the foreseeable future.
You can also use a variety of social media monitoring tools to check the volumes of people discussing a topic on Facebook, Twitter, Instagram and more. A growing number of retailers are powering their businesses by selling direct to consumers through apps including Instagram and TikTok, while Youtube has also become a very valuable promotional tool for eCommerce brands. Even large purchases, such as cars and motorcycles, is possible through social networks with the right audience.
If you’re offering something completely new, then there may be little existing data available. In this case, you can still test your idea by setting up a very simple one-page website using a variety of platforms. This can be shared in relevant online communities with an email sign-up to capture the details of relevant potential customers for the future (just remember that not everyone will necessarily commit when it comes time to actually make a purchase!
Understanding your potential buyers is also important to become successful, as you need to know the best routes to reach them, and what they’re looking for in a product and retailer. The more you know your potential customers, the more effective you’ll be in selling to them.
What to do if you’re not making any sales
It’s estimated that around 50% of eCommerce stores never make a single sale, so it’s important not to panic if your attempt at an additional revenue stream doesn’t take off immediately. Most diversification and side hustles still require a significant amount of resources to become self-sustaining.
You should be able to refer back to your business plan, and assess whether you were too optimistic with the timescales or number of potential customers. You may need to allow extra time to build up awareness and trust in your eCommerce business, or to invest in distributing samples to get the ball rolling. And whether it’s to friends and family or online influencers, it can take a while before their referrals start to appear and generate customers.
It's also worth reassessing your products, prices, and competitors. Has a new rival launched something better, or are they running sales or discounts which are undercutting you?
Look at the data you’ve been able to collect so far, particularly for potential customers who have abandoned their purchase before it has been completed. If everyone is dropping out at the payment page, consider whether you’re offering the right options (the issue may be as simple as adding a Paypal option, or checking that credit cards are being accepted). Or you may need to offer cheaper delivery options, especially for low-cost items.
Optimise your product listings on your own website, and any third-party channels you’re using. You can create your own bespoke photography, descriptions, and details to stand out, especially when so many products for sale online include spelling mistakes or factual errors. Make sure you’re highlighting any unique selling points and benefits, and other supporting information.
And consider whether you’re advertising, marketing and promoting your business in the most effective way to reach the right customers. Switching from investing time in Twitter to sharing your products on Facebook, or creating some content to answer popular questions entered into Google might be all it takes to start making your first sales.
Even if your business is focused on eCommerce, visiting local or trade events in-person can also be hugely valuable, especially when you’re starting out. It’s easier for a customer to trust your website after they’ve met you and learnt about your passion for offering quality products.
And finally, if your eCommerce business hasn’t generated a sustainable or worthwhile income, there’s no shame in admitting it might not be the right option for you. Plenty of successful self-employed business people have experimented, failed, and switched to different approaches before settling on what works for them.
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