Are you looking for the best eCommerce niches in 2021 to start a profitable online business?
Many entrepreneurs are venturing into creating niche websites, decided to start a lucrative business.
Many of them choose e-commerce websites due to their potential, even for people without experience. However, if you are considering setting up an online store, you should know the competence can be fierce.
To prevail, you have to choose the balance between demand and competition carefully.
In this post, I have listed the best eCommerce niches in 2021 with the right balance of these factors. If you want to find out what these niches are, keep reading.
- What is an eCommerce Niche?
- How To Find Profitable eCommerce Niches?
- Benefits of Finding a profitable eCommerce niche.
- The 10 best e-commerce niches in 2021.
- How Do You Choose The Best eCommerce niche?
- Best e-commerce niches- Conclusion.
*Disclosure: I only recommend products I would use myself, and all opinions expressed here are my own. This post may contain affiliate links that at no additional cost to you, I may earn a small commission.
What is an eCommerce Niche?
An e-commerce niche is a smaller subsection of a larger market. For example, an e-commerce niche could be eco-friendly products for beauty. This will be within the beauty e-commerce niche.
By narrowing down a market, you will be able to find areas with fewer competitors. When you’re in a niche, you usually sell one type of product or focus on a single category.
The best e-commerce niches have untapped potential, target a particular buyer, and appeal to a much smaller audience. When you find these niches, you can build a business with higher chances of succeeding.
How To Find Profitable eCommerce Niches?
The answer is with niche research.
If you want to find the best ecommerce niches, you should perform these tasks:
- Analyze niche markets and trends. You will need to find popular trends and profitable markets.
- Study the competition. By studying your competition, you can find out which niches are working and which are not. Also, some niches might have big competitors, so you want to avoid these.
- Research niche market keywords. The best way to do this is by using a keyword research tool.
You can find more detailed information on this niche research article.
Benefits of Finding a profitable eCommerce niche.
Next, I will describe some of the benefits of selling niche products.
The maths are easy- A niche audience will need a smaller budget since you will target fewer people.
Although Google Adwords is normally the preferred option for many entrepreneurs, I find Facebook and Pinterest ads to be easier. They are easier to set up, have great reach, and are way cheaper. However, it will really depend on the kind of product you want to promote.
Facebook works great with almost anything, but I only recommend Pinterest for beauty, home, parenting, and health and fitness niches. You can still get good results in other niches, but these niches have proved to be the most popular on this platform.
In the end, your goal is not to spend less, but to achieve the best ROI.
One of the biggest benefits of going niche is that you will be competing with fewer brands.
Competition is one of the biggest issues online entrepreneurs face with their websites, so this is a key factor to succeed.
For example, if you were to compete in the beauty eCommerce niche, your chances of being found for generic products are meager. However, if you specialized in eco-friendly beauty products, you will remove a big chunk of competitors. So ultimately, people will find you, and you will increase your chances of selling your products.
It is easier to inspire and engage your customer when you go niche.
People that visit your website will be finding a solution to their problems. So if your products can help them, they will be coming for more.
The more specific the product, the smaller the audience. But that is also what makes a product unique and how you can really get more loyal customers.
Think about your unique value proposition, and you will find those loyal customers engaged with your brand.
Unique products are limited and more difficult to find. That is exactly what gives them more value.
If your product can really solve your audience’s problem, they will be willing to pay for it. Even if that means spending a little bit more.
Make sure to provide them with quality products if you want them to keep coming for more.
Trends are a very important part of eCommerce niches. Trendy products always tend to sell best for a certain period of time.
The good thing about going niche is that it would be easier for you to identify new trends and adapt to them. This is something almost impossible to do when you go generic.
The most likely is that you won’t even need to do research when you are in a niche. You will learn new trends simply from the news or social media conversations. The sooner you adopt them, the better your chances to make a name.
Another great benefit of running a niche e-commerce brand is that you can do it all by yourself.
Either if you opt for dropshipping or online arbitrage business models, you can easily run your business by yourself.
Here you will find some resources that might help you:
Now that you know the main benefits, it’s time to find out the most profitable e-commerce niches for 2021.
The 10 best e-commerce niches in 2021.
In this section, I will be providing some insights into the top eCommerce niches.
One of the latest eCommerce trends is the growing environmental conscience. Buyers seem more committed to the planet, and they search for eco-friendly products that would align with their sustainable lifestyle.
This ‘Green Market’ is targeted for environmentally-friendly shoppers. And the good news, is that still has low competition.
Also, by selling eco-friendly products, you not only help to preserve the planet but also can step into this rising market.
In the image from Google Trends below, you can see how different eco-friendly products perform. You can clearly see that terms like ‘bamboo toothbrush’ and ‘organic soap’ are slowly growing in popularity, making them great items with still low competition.
Other eco-friendly products like solar charger, has been already very stable for the last years. So even though it is a trendy item, the competition is probably higher.
A great example of an eco-friendly product store is Eco Roots. Eco Roots is a plastic-free shop whose goal is to support a minimalist, eco-conscious lifestyle and raise awareness of our single-use consumption reality.
According to the latest market research by Technavio, the global vegan cosmetics market is expected to experience growth during the period 2019-2023.
A key factor driving the growth of the market is the increasing preference for vegan products from consumers. Increasing consciousness with respect to using cruelty-free brands and awareness of the adverse environmental impact of animal-based products has led to an increase in demand for vegan cosmetics across the world.
Also, vegan cosmetics are known for unparalleled characteristics which keep attracting more consumers.
By analyzing the trend below, you can see that vegan cosmetics is a very stable trend. Also, terms like ‘cruelty-free make up,’ and ‘vegan beauty’ are growing in popularity. So it seems it is a good time to specialize in this eCommerce niche.
Ecco Verde has listed more than 18.400 vegan cosmetic products. It offers an extensive catalog with a clean interface, which makes this a great example to follow.
Covid was a before and an after for many trends. And home gym was one of them.
With the moving limitations and many gyms closed, it surged a new necessity for sports lovers and fitness enthusiasts. It was then when home gyms increased in popularity. Many people turned their garages and other spaces into gyms, realizing they did not pay costly gym fees.
Not to mention that fitness has always been an evergreen niche. So the combination of an evergreen niche with new trends is the perfect mix for a profitable eCommerce niche.
You can clearly observe in the trend below how these home gym items peaked after covid and even kept growing. This is a key factor that indicates that these kinds of products are in demand.
Although this niche might have some more competence, it is always about finding a niche and more specific products.
P.volve is a brand that has really take advantage of this very cleverly. Not only do they have a shop so that readers can buy products from them, but they also stream classes and run a blog full of tips and advice. This is how you find your spot and make your customers look for your brand.
CBD has been a very competitive niche for a while now. But what about CBD for pets?
CBD for pets offers the same benefits to animals as it does to humans. Because animals and humans are similar in physiology, both bodily systems can be positively affected by CBD in the same ways.
Pets in need of wellness support, extra calm, or a daily boost may be able to benefit from CBD’s powerful properties. This, together with the rise in the number of pets last year, seem a future-proof niche.
In the trend below, you can observe how CBD for pets became more popular by 2019. It has been growing slowly and will continue as people become more and more attached to pets.
Holistapet is a great example of this eCommerce niche, with thousands of happy customers. Their products are crafted with natural ingredients to promote the overall well-being of pets. Not only do they have a great selection of products, but they all have excellent reviews, which builds trust with potential customers.
Home office equipment is becoming trendier for the same reason home gyms are. But the truth is that this niche was already starting to grow even before the Covid.
During the last years, digital nomads and remote jobs have been on the rise. If you add the Covid-19 restrictions, which made working from home mandatory for most of the population, home office equipment’s demand suffered a peak.
And the thing is that remote work doesn’t seem to be going anywhere any time soon. A recent survey revealed that around 74% of companies intend to keep at least some of their workforce remote after the pandemic is over.
So this might be a great time to get into the home office equipment niche. You might choose to focus on technology such as laptops, keyboards, mice, and monitors. Another possibility is to concentrate on non-technological home office necessities such as ergonomic office chairs and standing desks.
It is not a casualty that all these kinds of products peaked just after the first Covid lockdown. And what is even more interesting from the eCommerce niche point of view is that this trend is here to stay.
Big players dominate this eCommerce niche. However, it is all about finding an angle. And this is exactly where The Gadget Flow excels; They featured really cool and visual gadgets that make an appealing and interesting addition to any home office.
I still remember my first Fancy Box many years back when no many brands were doing this.
In recent years, subscription boxes of all kinds have become very popular; From organic food to clothing and beauty boxes.
Subscription boxes came on the rise a few years ago. They offer everything from organic feminine care to different monthly teas. What works great about this eCommerce niche is that you can get very personal with your subscribers and offer subscription-based services.
Products on this niche keep growing in popularity, with huge spikes during the Christmas season. There are some products which much more traction over others, like the beauty box example below.
In any case, if you provide unique products and good service, subscription boxes can make a lucrative and low-maintenance eCommerce niche. To increase customer lifetime value, you can add in monthly subscriptions as part of your package
Barkbox is a fabulous example of a subscription box niche. What makes them unique is that they create products and experiences that foster dogs’ health and happiness with carefully crafted boxes.
Digital art is an artistic work or practice that uses digital technology as part of the creative or presentation process. Digital photography and digital painting are some examples of digital art.
This is the favorite eCommerce shop for artists, where they can sell their own work. But you don’t need to be an artist to sell digital art.
The key is to find unique products that will resonate with your audience and make the navigation process seamless.
Although this trend has been very stable during the last years, the interest has recently increased. Making this eCommerce niche a great opportunity for entrepreneurs who has a taste for art.
Matt LeBlanc’s website is a great example of this kind of eCommerce niche. You can find from paintings he created to clothes and some other types of digital art on his website. This kind of store tends to work since the products you offer can’t be found anywhere else.
I am excited about this niche because I am a big consumer of beard oil, and I have done a lot of research until I found ‘my brand.’ I am pretty sure I have not been the only one looking for the ‘perfect beard oil’- no grassy, good moisture, nice scent.
During the last years, bearded men have become very trendy. And where there is a beard, there is the need for a product to groom it.
Beard oil has continued to grow year over year. But it has been in recent years when the trend has been more stable with fewer peaks.
A company that knows how to take advantage of this demand is ‘The Beard Struggle.’ What sets them apart from the competition is the amazing beard oil products they offer. Moreover, they run a blog with tips for common beard struggles. Also, they send plenty of offers to their subscribers in their newsletter.
Keeping your home clutter-free is another tendency that more people seem to be adapting.
And it really makes sense because, before Covid, people were traveling more than ever- They rather spend money on experiences than on material stuff.
And even today, nothing compares to the bold, simple minimalist design in your home. It is normally defined by interiors decorated with a neutral palette and a small hand-picked collection of decor; a minimalist home cultivates a calm and comfortable atmosphere.
In the trend below, is easy to see how minimalist decor is increasing in popularity on time.
A great example of a minimalist decor eCommerce website is ALLMODERN. They provide a mix of stylish and modern Scandinavian decor with various items to choose from.
This is probably one of the most untapped ecommerce niches for now.
As technology evolves, beauty also does.
We live in the era of Instagram, Tik Tok, and other social platforms where the image is key for many professionals. And you don’t need to be a professional to want to use these beauty devices, especially when prices are starting to be affordable.
Lotions for eyes are being replaced by eye massagers, traditional epilators by pulsed light epilators and many other products are being replaced by devices.
And if you think about it, totally makes sense. If the technology is evolving in all fields, why wouldn’t evolve for such a demanded niche as beauty?
The good news is that there are still many devices to be invented, which can provide you with the advantage of being the reference in your eCommerce niche.
By observing the trend below, you can see how devices like the epilator have been trendy for a while now. At the same time, eye massager and facial steamer are growing in popularity. Your job would be to look for products like this: With demand and which trend is growing.
Most of the brands provide a category with beauty tools or devices. But I really struggled to find one dedicated exclusively to this. An example is SkinStore below, which offers a ‘tools’ section.
Also, what is great about this kind of e-commerce store, is that the product value is normally higher than normal beauty products. This can be beneficial to increase your profit margin.
How Do You Choose The Best eCommerce niche?
If you want to create a winning eCommerce business, you want to target a demanded niche.
No one wants to spend time working on something that might not work in the end. But how do you do that? It is impossible to predict 100% what will work or won’t. Otherwise, everybody will have profitable businesses.
However, you can follow a series of patterns that will definitively increase your chances of finding a great niche.
You want to bet on something which is already working.
There are some techniques to find profitable niches. But normally, the trends included in each section are good factors to find potential niches that can make money.
When I started blogging, I always recommended my readers to focus on niches they are passionate about. My advice today is to focus on whatever generates money. You might be very passionate about a certain topic, but at the end of the day, if it does not make money, it is totally useless.
You can also learn herehow to find profitable niches quickly.
Trends go up and down. Your job is to find evergreen products that are here to stay.
When you focus on a niche, it is easier to target evergreen and popular products. But at the end of the day, evergreen products are the ones that will keep your loyal customers coming for more.
Competition can be a good sign. After all, where there is money, there is competition.
In fact, if you find trends that have been around for a while but are not many competitors, it is probably because they are not profitable. So stay away from them.
Lastly, remember that where there is money, there is competition. The key is to find the balance.
Best e-commerce niches- Conclusion.
Ecommerce niches can be very competitive, but the ones on this list still offer some great options for entrepreneurs.
As in any other niche, niche research is key in your path to success.
Also, if you are into eCommerce, I suggest you check the best dropshipping niches. They require a minimum investment and can really help your niche eCommerce business to take off.
Now is your turn!
Which one is your favorite ecommerce niche?
Leave a comment with your answer below.
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