Predictive analytics is one of the biggest disruptive technologies shaping the eCommerce industry. IQLECT published an article on this last year titled The Importance of Predictive Analytics for E-commerce Stores.
The article pointed out that companies have lagged implementing predictive analytics technology, due to cost and complexity concerns. However, this has changed as new AI technology has become more widely available.
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There are a variety of applications of AI in the ecommerce industry. However, one of the biggest applications is with using predictive analytics to choose the best niches.
Predictive Analytics Simplifies Niche Selection Process for Ecommerce Entrepreneurs
Are you looking to hit it big and make a killing in the field of e-commerce? Learning about the importance of selecting the right niche could mark the beginning of a profitable venture. Choosing the right niche, in many cases, can be the “make it or break it” factor. So, in this article, we’ll discuss the process of choosing a hidden e-commerce niche wisely. Let’s dive in!
You are going to discover that there are a lot of advanced tools that use predictive analytics to make the process easier than ever.
Steps to find hidden e-commerce niches:
1. Must you focus on high-quality small niche products?
Springing into a niche market is a good idea when done properly. There are ample of niches that are either untouched or not over-saturated. Channelize your attention to those niches. Wondering why? Well, what’s unexplored and yet a miss is a promising opportunity already. What you must figure out, though, is where to look for detailed insights on the niche and how to find products that potentially can be highly profitable.
The sustainability of the niche is more important than the size in many ways. Predictive analytics makes it easier to find ever green niches.
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One predictive analytics tool is Google Trends. Many ecommerce marketers use Google Trends to predict demand in various industries. Matt Ellis of Ecom Dash wrote an entire article on this topic.
2. Count your interests and your problems when picking a niche.
One of the proven ways to find hidden e-commerce niches is by self-examining first your very own interests. Start by scribbling on your notepad and listing down everything, from your hobbies to interests (yes, things you’re really passionate about). Relationships, health, food, makeup, or whatever – start jotting what interests you the most. Believe it or not, in just a few minutes, all sorts of ideas will start popping up in your brain. By now, you’ve successfully wrapped up your brainstorming session.
Predictive analytics tools will help you wittle your list from there. But you will have a good starting point.
3. Wear the hat of a good marketer
Learning the ins and outs of your ideas from a marketing point of view is very crucial. You can start by reading materials on your niche. What are the main problems that your products should provide solutions to? A conversation with random people about the niche that interests you is a good exercise too. Once all that is done, sit down and compare your list of pros and cons. This is undeniably a great way to sift out potential niches.
4. Do the math and target the right audience for greater out-turns
Not all customers are the same. Being schooled about your target audience could win you brownie points. Carefully pick your target audience. For instance, those with a passion or hobby can be great buyers. Think about it – if you are selling high-quality fishnets or some exciting products related to it, extremely handy to those in the fishing business, won’t they shell out riches to get their hands on your products? Of course, yes! You just have to learn how to get to those interested. Build customer trust, as well. Once a customer is satisfied with your services and products, they will reorder and come back to you for a new purchase (happy customers also means fewer disputes. Another tool to handle those is Purchase Guard, see here a review about it). Your business will keep rolling.
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Use your smarts and pick a niche that interests you and has a demand as well. Focus on your market and deliver what’s scarce. Stick to your customer handling skills, and soon, your e-commerce business would be hitting the high streets of the internet.
Predictive Analytics Makes Ecommerce Niche Selection Easier
There are a lot of factors to look at when choosing an eCommerce niche. Fortunately, predictive analytics technology helps simplify the process.