This post by Ben shows you how to find the perfect niche for you. Ben is an instructor on Udemy and has published a course that gives you in-depth tips and guidance on the reselling business. You can find the course here.
Why is it important to find the right niche?
The niche is your ticket to the reselling business. If your niche selection is not thorough enough, you will not succeed. That’s why it’s important to do a detailed niche analysis in order to be sustainably profitable. In this article, you will learn what you should pay attention to!
What should you pay attention to?
In my time as a reseller, I have tested several niches and was able to gather a lot of different experiences. All in all, I came up with 6 criteria that you should definitely consider when choosing a niche.
1. Your article should have a high demand
If your product does not have high demand, you will have to wait a very long time for your item to sell and you cannot expect high profits. In addition, low demand means that you will have to store the product longer. This increases your capital commitment, which in the end leads to less profit. So it is self-explanatory that there should be a high demand.
2. Your item should have a high offer
On the other hand, there should be a high supply, because if the supply in your niche is too low, it will be hard to find products and you will have in the long run, too small earnings.
3. The profit per sale should be over 10$
Another point about earning is then also reflected in point 3: “The profit should always be above 10€”. This is very important, because if the profit is lower than 10€ per article, the profit-effort ratio is too bad. So you should definitely make sure that you get a reasonable hourly wage.
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4. The price of the article should be differentiated.
This is a criterion that is less popular, but even more important. It means that in your niche there are sellers who do not know the value of the item or underestimate the price. If this is the case, your product has great potential, because you can expect large profit margins.
5. Be sure to find a niche that interests you.
It’s extremely important that you find a niche that interests you. Why? It is super important that you place yourself as an expert in the chosen niche and this is only possible if you also develop an interest in the products. For example, you want to enter the niche “sneakers”, but you have no idea which sneakers are limited and which are suitable for reselling. Then sneaker reselling is not for you, because you will have a hard time getting into it if you have no general interest in shoes. Much better would be a niche in which you have been active for years (even unconsciously). Here is another example: You have been playing Xbox for years and know the consoles and games very well. Then it is obvious to choose this niche as yours because you already have the know-how and you might enjoy learning even more about “Xbox”. Another advantage is that you have some additional security because if necessary you can keep the products yourself and play them yourself (although you should not be tempted to play the games yourself ). So you should have realized that it is important that you choose a niche that interests you personally.
6. Your article should be uncomplicated to send.
Last but not least: it’s important that your product is easy to ship. Sure, you can resell bikes and pick them up in the area. But the problem is that this also shrinks your customer base. This is because most customers of bicycles do not want to drive more than 20 kilometers, otherwise, the effort for a used bike is too high. So make sure that your products are easy to ship because then you can buy them all over Germany. Reseller electronics, for example, meet this criterion.
In the end, you have to find the right niche for you and you have to see if one criterion is so important that another criterion can be neglected. However, I would recommend you (especially if you are a beginner) a niche that meets the above criteria. In the beginning, it’s important to get a feel for the reselling business and once you’ve made your first profits, you can always change niches or learn about other niches.
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