Advantages of niche e-commerce
The advantages of niche e-commerce and the paths to success in this segment
For the small and medium business, the advantages of niche e-commerce make it the best option to conquer a space in a market as competitive as that of e-commerce.
Since Chris Anderson, in his book The Long Tail , defined niche markets on the Internet as the most profitable segment for new online entrepreneurs, the virtues and advantages of niche e-commerce have been widely debated in several articles on specialized websites .
It is possible to find several market niches in e-commerce that have great growth potential and often have not been explored in a professional manner, such as LGBT e-commerce and virtual stores aimed at the elderly.
Let's look at some of the main advantages of acting in a niche e-commerce for the new online entrepreneur.
1 - Differentiation from other major players
One of the advantages of niche e-commerce is to create a differentiation from the big players that sell practically everything and are not specialists in absolutely anything.
So, if you are thinking of setting up a virtual store , this is an issue that should be considered right from the start.
This positioning can be used to your advantage allowing you to focus on a specific niche and products that are worthwhile to you in terms of margins.
Anyone who chooses to work in niche markets has the opportunity to become a reference in the market, which arouses the interest of consumers in being served by a specialized store that sells specific products for a given market share.
2 - Savings in terms of e-commerce platform
Currently the market has a multitude of suppliers of e-commerce platforms with the most diverse configurations, resources and, of course, prices.
Working in a smaller and very well-defined market, the needs of the e-commerce system will also be smaller and more adequate, facilitating the choice of the ideal platform.
One of the advantages of niche e-commerce is that your e-commerce platform will need less resources than if it were to work with a wider universe of products and customers, which would require extra features, which would make the project more expensive.
Smaller markets, without prejudice to profitability, have made it increasingly easy to choose an option that meets the needs of the online store.
3 - Precise brand positioning
Acting in a niche market , your brand can assume a much more precise positioning, which greatly facilitates the work of communicating with customers and creating a strong image in this segment.
This is a real win-win strategy, because in addition to facilitating and cheapening the company's work on the Internet, it also adds value in the event of the sale of the business in the future.
4 - Better public perception and products
Among the many advantages of niche e-commerce is the opportunity to have a better perception of the target audience and the products that are really successful among these people.
In mass e-commerce, the variety of Marketing Personas makes this perception much more difficult. In a niche market with clearer and more accurate Personas this gets easier.
Identifying the needs of consumers is one of the best ways to create a successful online store and working with a very specific segment, as in the case of niche markets, makes this task much easier, due to the proximity to its customers.
5 - Reduced online marketing costs
Another great advantage of niche e-commerce is the reduction in the costs of advertising the virtual store .
The cost of advertising an e-commerce is closely related to the audience that needs to be reached and the fact of working with a smaller audience is a point in its favor.
Working with a more segmented audience, you have the opportunity to create more focused and integrated digital marketing actions between the different channels,
It is important to make it clear that this reduces the costs that would be much higher if you had to work with a wider range of potential consumers. An advantage that you only find working with niche markets .
6 - More efficient loyalty
Nowadays customer loyalty plays an important role in the success of a virtual store.
With the costs of publicizing a company on the Internet increasing, gaining a new customer becomes more and more expensive, so it is much more intelligent to retain your customers already won.
One of the advantages of niche e-commerce is that in the face of lesser competition, coupled with a deeper knowledge of customers' habits, customs and preferences, it is much easier to retain your audience by creating a closer and constant relationship. .
As you can see, due to its characteristics, the advantages of niche e-commerce make this segment of e-commerce the ideal environment for new online entrepreneurs who want to open a virtual store .