What are they buying at; crisis: profitable niches for opening an online store
The pandemic and quarantine force people to go online in a hurry. But this is not the main reason why e-commerce continues to grow even during the crisis.
Russian in 2021 exceeded 1 trillion rubles, and the number of orders increased by 40%. And this research was done even before the quarantine and general migration to the digital space.
For statistics: 95.8 million people over the age of 12 use the Internet in Russia - this is 78% of the country's population. Another study says 66.5% of Russians shop online. Two years ago, this figure was only 37.5%.
Both demand and supply are growing. But the crisis is changing consumer preferences - sales of previously popular goods are falling, but other goods are being bought much better. In addition, when incomes decline and unemployment rises, consumers switch to cheaper goods and services. This should be taken into account when forming the assortment - to choose inexpensive goods of acceptable quality.
If you have already opened yours, this is how it will be easier to survive the crisis. And if you are only going to launch, read this article.
The traditional niche of home appliances and electronics has slowed down
the largest commodity group in Russia - household appliances and electronics - has slowed down its growth rate. The study shows that in 2021, household appliances received 16% more orders than in 2021. This is a good indicator, but if we compare, for example, with clothes and shoes, where the number of orders for the same year increased by 63%, then it is no longer so want to open an electronics store.
Now sales in the segment of technology have grown, but there are fears that after the end of quarantine, a decline will follow again.
Competition also affects the positions of product groups. Traditional niches, which also include clothing, footwear, and accessories, have more players. This makes it more difficult for beginners. To "shoot", you need a zest. Although the niche is growing, you have to work hard to get your customers.
Profitable niches to open today
Therefore, entrepreneurs today are in search of relevant ideas 2021 - what to sell in the online store: it is obvious that the choice of goods completely determines the further strategy of action and the potential profitability of the business. Beginners usually rely on absolute hits and trendy novelties, forgetting about the transience of fashion. Meanwhile, other products are also characterized by stable demand, which makes it possible to make money on their sale not only during periods of excitement, but also over many subsequent years.
Product Evaluation Criteria
Finding what to sell in an online store in 2021 is quite difficult not only for a novice entrepreneur, but also for virtual trade sharks. The process of choosing a product implies an analysis of many seemingly insignificant factors that could potentially turn into a problem for an unprepared businessman. The attention of the creator of the marketplace requires:
- Demand. The profitability of a particular niche is primarily determined by the presence of a well-defined target audience. You can offer the highest quality products and at the same time go broke if they are not in demand by customers;
- Market size. In certain niches, the number of stores is measured in units - however, this does not mean that there is no competition in them. Perhaps more operators simply have nothing to do here. Therefore, you should make sure that the audience size is sufficient for a normal income;
- Competition. You need to understand that virtual trading giants are already working in some categories, and a beginner is unlikely to be able to compete with them. On the other hand, new niches are created every day: a businessman who has managed to occupy one of them has the right to count on his share of the profit;
- Entrepreneur qualifications. As a business, reselling a product requires knowledge of the chosen field. As a last resort, the seller must quickly study the features of the product in order to provide professional advice to clients;
- Attachment sizes. In some categories, the formation of a stock in an acceptable range requires significant investment. When choosing a niche, a businessman should adequately assess his financial capabilities;
- Profitability. In online advertising, there is a concept of customer acquisition cost. The profit from each order should at least cover these costs. In addition, it is necessary to take into account the costs of maintaining the warehouse and shipping the goods;
- Average bill amount. The overhead of completing each order is usually independent of the value of the item. Therefore, it is more profitable for an entrepreneur to sell one expensive product than a dozen cheap ones for the same amount;
- Dimensions and weight of the product. Small in size and weight goods are cheaper and easier to store and ship - no need to rent a large warehouse, hire movers and transport vehicles;
- Availability of suppliers. Reliable suppliers of the most popular goods of 2021 should work in the chosen niche. It is desirable that there are several of them - this is how you can choose the most favorable terms of cooperation;
- The duration of the transaction cycle. The maximum interval between order fulfillment and receipt of payment for it is no more than two weeks. Otherwise, you can sell out all stocks and be left without working capital;
- Frequency of purchases. Making money on repeat sales to regular customers is easier and more cost-effective than constantly attracting new customers. An entrepreneur should choose a product that is ordered at least once every 6-12 months;
- No moral obsolescence. Be wary of new products in the 2021 market, which are often subject to rapid obsolescence. For example, women's clothing or smartphones are rapidly going out of fashion, while tableware or home textiles remain relevant for many years;
- Seasonality. Of course, the sale of designer felt boots, New Year's souvenirs or Easter decorations looks extremely attractive in terms of profitability, but such a business is relevant no more than a couple of months a year.
Product selection methods
- Market Research and Statistics. Thanks to the analytical work of various agencies, you can find out what sells best on the Internet: the statistics for 2021 published on their websites reveal the categories that are popular among consumers. However, the entrepreneur must choose specific types of goods on his own;
- Google Trends. The service helps to assess the dynamics and number of searches for a product or service name in Google and YouTube searches over the past year. Accordingly, by increasing the number of user requests on a particular topic, you can find out what is profitable to sell in 2021;
- Yandex Wordstat. A similar tool that uses the capabilities of the Yandex search engine. Keyword rate measurement statistics include results from the past two years, while geographic targeting allows you to refine data for a specific city or region;
- Ad sites. Bulletin boards like Avito or Yandex. Arquet is used by a huge audience of buyers. Using these tools, you can also determine the demand for goods in 2021: you should create several competent offers for the sale of various products, and then measure the intensity of requests for each of them.
What can you sell online?
In theory, virtual trading floors can sell anything - from souvenir magnets to industrial enterprises. However, an entrepreneur who wants to build a profitable business should know what is most often bought on the Internet: statistics from 2021 allow us to rank the most popular categories of goods and highlight niches with a high margin among them.
Small household appliances
The most in demand is:
Nevertheless, the level of competition in this segment should make a businessman think: large network companies have already divided the domestic market among themselves, and therefore the search for a vacant niche can turn into a difficult task for a beginner.