Ecommerce Q & ACategory: DropshippingHow can I pick my niche in dropshipping and stick to it?
digitalsunilsah Staff asked 1 year ago

Why picking a niche in dropshipping important? How can i stick to one niche?

1 Answers
digitalsunilsah Staff answered 1 year ago

The key to picking a niche (and sticking with it) is to balance the “four key elements”.
1. Something that you’re interested in —
What’s your passion? What do you spend most of your time doing? Look at your search history, YouTube watch history, the books you’ve read cover-to-cover, favorite movies, bank statements to see where your money goes, ask your friends and family what you’re obsessed with and won’t shut up about. By doing this you’ll find out what you’re interested in. This is where it all starts. For example, let’s say you did these exercises and found your result to be “golf”.
2. Something that addresses a market need —
Now that you know the general area of your interest/passion, it’s time to start looking at that ecosystem. If your passion is golf, that doesn’t mean your niche should be you becoming a pro golf player. It means you should analyze the golf ecosystem by mapping out all the different participants, their relationships, flows of value, etc. There’s golf players, equipment companies, golf courses, magazines, TV channels, radio stations, websites, blogs, training/coaching. Map all of them out on paper and start to connect the dots.
Market needs are born from ecosystem inefficiencies, or in more simple terms — people wanting something they’re not getting. Start researching the different participants online, see what they’re saying, complaining about, find out their problems, pains, fears, desires. Passive Internet researching isn’t enough, you must speak to the market human to human too — identify different people in your market and email them, add them as a friend on social platforms, start the conversation and advance it to build relationships. Don’t make it about you, don’t sell anything, don’t have an agenda, simply be there to listen and observe. People love talking about themselves (and you’ll love to listen and learn).
3. Something that’s possible —
Now that you know your passion, and you’ve found a true market need within that area of passion, you now need to craft a solution. Your solution should solve the markets need. If it attempts to solve it but fails, it’s no good. So it needs to work, that means it needs to be possible for you to provide. What’s possible for you to solve depends on your current skills, resources, finances, available time, obsession level, etc. You can always do more than what you think is possible, but there’s always limits.
How do you know if its possible or not? A simple way is to look at everybody in the market (even outside of the market) and see if somebody has found a solution to the problem you’re trying to solve. If they have, it’s possible. All you need to do is reverse engineer the solution so you can distribute it to your clients. If you can’t find anybody on Earth that’s solved it, you’ve either not looked hard enough, looked in the wrong place, or it’s truly unsolved. If it’s truly unsolved, you can give it a crack yourself or fight another battle. This is up to you.
 
4. Something that people will pay money for —
The final element in this equation is money. You need it to survive. Where does one find money? People. What makes one part with their money? Value. What’s value? It’s a byproduct of solving a problem. What’s a problem? An inefficiency in the participants ecosystem. You see what we did there? Good. Now the question becomes, in your niche, is the problem painful enough that people are willing to pay money for a solution? The only way to find out is to try sell it to them. If they pay for it, good. If they don’t, we must ask why? From here we learn, iterate, and improve continuously until we find something they are willing to pay money for.
To conclude: A niche you’re likely to stick to includes: Something you’re interested in, something that solves a market need, something that’s possible, and something that people are willing to pay money for. The perfect storm of four essential elements.