Advantages of niche e-commerce

Advantages of niche e-commerce

The advantages of niche e-commerce and the paths to success in this segment

For the small and medium-sized entrepreneur, the advantages of niche e-commerce make it the best option to conquer a space in a market as competitive as that of Brazilian e-commerce.

Since Chris Anderson, in his book The Long Tail,defined internet market niches as the most lucrative segment for new online entrepreneurs, the virtues and advantages of niche e-commerce have been widely debated in various articles on specialized websites.

Even in Brazil, it is possible to find several market niches in e-commerce that have a great growth potential and have often not been explored in a professional way, 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 who sell virtually everything and are not experts in anything at all.

So if you’re thinking of setting up an online store,this is an issue that should be thought of early on.

This positioning can be used to your advantage allowing you to focus on a specific niche and products that are worth it to you in terms of margins.

Those who choose to work in niche markets have 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 certain market share.

2 – Economics in terms of e-commerce platform

Currently the Brazilian market has a multitude of suppliers of e-commerce platforms with the most diverse configurations, features and, of course, prices.

Working in a smaller and very well defined market, the needs of the e-commerce system will be equally smaller and more appropriate, facilitating the choice of the ideal platform.

One of the advantages of niche e-commerce is that its e-commerce platform will need fewer resources than if it were to work with a broader universe of products and customers, which would require extra functionality that would cost the project.

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 accurate positioning which greatly facilitates the work of communication with customers and the creation of a strong image in this segment.

This is a true win-win strategy, because in addition to facilitating and cheapening the company’s dissemination work on the Internet, it still 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 really make it successful among these people.

In mass e-commerce, the variety of Marketing Personasmakes this perception much more difficult. In a niche market with lighter 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 proximity to its customers.

5 – Reduced online marketing costs

Another great advantage of niche e-commerce is the reduction of the costs of dissemination of the online store.

The cost of disseminating an e-commerce is closely related to the audience that needs to be achieved and the fact of working with a smaller audience is a point in their favor.

Working with a more targeted audience you have the opportunity to create more focused and integrated digital marketing actions across the various channels,

It is important to make it clear that this reduces costs that would be much higher if you had to work with a wider range of potential consumers. An advantage you only find working with niche markets.

6 – More efficient loyalty

Nowadays customer loyalty plays an important role for the success of an online store.

With the costs of advertising a company on the Internet increasing, winning a new customer becomes increasingly expensive, so it is much smarter to retain your already conquered customers.

One of the advantages of niche e-commerce is that in the face of lesser competition, combined with a deeper knowledge about customers’ habits, customs and preferences, it is much easier to retain their audience by creating a closer and more constant relationship.

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