Market niche in e-commerce - how to find it?

Service Business

There has been a significant increase in the number of online stores over the past few years. Despite the intensive development of e-commerce, most stores have a very similar offer, which leads to very high competition and endless pursuit of the customer. So is it possible to open your online store without having to fight enormously with competitors already on the market? Yes, an appropriate market niche is enough for you to provide your services or goods.

What is a market niche?

The market niche is a small and poorly developed segment of the market, gathering a narrow group of customers. To put it simply - it is a poorly developed area of ​​the market. The market niche has one main advantage - there is little competition, and thus - lower marketing and promotion costs. Logistics costs are also lower than in the case of larger markets, and the profitability of the business is higher due to the precise and specific needs of the client. Of course, the market for your services or goods is also smaller, but you should remember that having a target market that is too small can become a disadvantage. Why? Well, it can be so small that it will not be possible to maintain the business on it.

Market niche and entrepreneurial opportunities

In order to find a niche where you can sell your products, you should first consider what you know, what you are good at and what interests you. Your knowledge and skills in a given field will certainly be crucial when it comes to the company's business profile. Without them, there is no question of any success, because in the long run you cannot do well what you are completely unfamiliar with. If it is also your passion, it only gets better - you will know the product and customer expectations better, and the work will not be a boring necessity for you. It is a good move to talk to people with similar interests, because it is they who, based on their own observations and experiences, can give you an idea for your own business.

Market segmentation and defining a market niche

When identifying what could constitute a market niche, you should also segment your market. It consists in dividing the market into fragments due to specific criteria. The main criteria are:

  • geographical criteria, e.g. country, province, city;

  • demographic criteria, e.g. gender, age, education, profession;

  • psychographic criteria, e.g. interests, lifestyle;

  • behavioral criteria, e.g. user status, his reaction to shopping opportunities.


The main goals of segmentation are the analysis of the needs of customers that actually create the sales market and product positioning, i.e. giving it the features that customers expect. Also consider how often customers will use your online store, as the customer returning from time to time will be a guarantee of constant profit.

Competition analysis

The niche market is very small, but that doesn't mean it's devoid of competition. Once you know what you would like to do, check if there are already companies offering similar services or products on the market. Don't just focus on the internet - check out what's outside of it as well. Think about what you can be better at and what will allow you to gain an advantage over them. Sometimes little things can work to your advantage, such as faster shipment, nicer customer service. When setting up a business based on online sales, the customer is the most important and it is this customer that should be remembered when opening your business.