How to select a niche in commodities

How to choose a niche in the commodity business? The first piece of advice for beginners: don't get hung up on this question. No, this does not mean that you can choose products to sell at random. The fact is that the commodity business is almost entirely based on testing. Let's say you've entered a niche, tried working there for a few weeks, but didn't get positive results. In this case, you can switch to another niche. But you still need to understand which niches you should enter and which ones are better to avoid.

Managers at Arabesco Sideral company have analysed several important aspects of choosing a niche in the commodity business.

The emotional aspect

This aspect may seem trivial, but believe me, it is no less important than the others. What am I talking about? You should at least like the niche you plan to work in a little. This is important in the sense that you should not rest on your laurels. For example, you've reached an income of €5,000 per month. But then you lose interest in developing further in this niche because it doesn't inspire you or give you drive. If you have drive, you will be able to earn more in this niche.

Expertise

You need to know your niche. At least a little bit. What does that mean? If you don't know anything about cars, you shouldn't be selling car accessories, car chemicals, etc. If you don't know anything about women's underwear sizes, don't start selling it. Ideally, you should be an expert in your niche so that you can provide detailed advice to customers and be fully prepared when negotiating with suppliers.

The mathematical aspect

Let's imagine a situation. You have found a niche with no competitors and think that this is your money oasis. But be vigilant. If no one is selling this product, then there is a 99.9% chance that there is no money in this niche. In other words, no one needs this product. In e-commerce, entrepreneurs have already tried everything. And if no one is working in this niche, then it has no future.

The specialists at Arabesco Sideral Portugal advise entering niches where there is competition. First, at the beginning of your activity, you will be able to focus on your competitors, analyse them and learn from their experience. Secondly, if there is competition in a niche, then there is money to be made. If you take a slice of this pie, you are guaranteed to earn money. The amount you earn will depend on your knowledge and abilities.

You may have a logical question: how can you determine a niche where there is movement and money? We recommend using Google Trends. With its help, you can find out how often people use certain search queries. For example, test the queries ‘flower pots’, ‘men's clothing’ and ‘bed linen’. The difference in the number of queries will tell you which niche is more competitive, whether there is money in it, and whether it is worth entering.

By the way, you can read about how to analyse competitors in an article that was previously published on the Arabesco Sideral website.