Mistakes in choosing a niche for business

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Typical mistakes sellers make when defining a niche.

Choosing a new business niche according to personal interests When defining a new niche, it is important to rely on the data from the analysis, and not on your own interests. Products that may be of interest are not always in demand by buyers. For example, if someone is looking for a unique collar for their dog and does not find it on the marketplace, this does not mean that it is worth starting a business selling accessories for animals.
Don't pay attention to competitors Having a player that controls more than 30% of the market in a certain niche makes it much more difficult for newcomers. For example, in the cat feeder segment, one of the players controls 34% of sales. Trying to compete with him by offering a similar product at a similar price may be unsuccessful. When there are about 100 sellers in a niche with shares of 2-3%, a new business has a chance to gain a foothold.
Not monitoring the availabilit hong kong email listy of goods from suppliers Let's assume that the seller has identified a product and purchased the first batch, sales are going well, but he has not checked the availability of stocks from suppliers. Despite high demand, there are no opportunities for repeat purchases. In such a situation, the seller is forced to look for alternative products, but they are no longer in demand: product cards lose positions in the search results, which leads to a decrease in sales and revenue.
Misdefine business model, ignore calculations, exaggerate indicators New sellers may underestimate the impact of marketplace fees and percentages on returns. For example, if a seller believes that their product will be bought out at 70-80%, they do not take into account that the real average buyout may be only 30%. This means that 7 out of 10 products will be returned, increasing logistics costs.
Open seasonal niches for business during the off-season To successfully prepare for the season, it is important to start early. The summer season on marketplaces opens in April, and adding cards in June is impractical — buyers have already placed orders. The situation is similar with New Year's products: you need to prepare the product and create cards in September, not in early December.
Download a useful document on the topic:

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Frequently Asked Questions About Niche Business
Determining your business niche is a critical decision for any business.

What business niche is easiest to enter when starting from scratch?
The one where the number of franchises is growing. Within this approach, the entrepreneur gets the opportunity to work under an already established brand and has access to its equipment and technologies.