The eCommerce industry is worth $63.2 billion. The world of eCommerce might seem like one of unlimited potential. However, with so many opportunities, there is a lot of competition online. How do you make your eCommerce store stand out?

Profitable eCommerce niches capitalise on very specific needs for consumers – thus cornering your own market segment. If you can think of a unique product, there’s probably someone out there who will buy it. Yet, the true value of eCommerce niches is when you tap into a trend.

The State of eCommerce in 2022

Within the last few years, eCommerce has exploded. The pandemic in 2020 meant more people stayed at home. Brick-and-mortar shops shut their doors and went online. But, with the world vaccinated and physical stores open again, where is eCommerce in 2022?

In Australia, the compound annual growth rate of the eCommerce business is 13.28% – the 13th fastest growing eCommerce market in the world. 81% of Australians bought something online in the last year. Despite physical shops reopening, many Aussies continue to buy groceries and goods online. Clothing is the most popular eCommerce industry.

Yet, how can you set yourself apart with so many online businesses competing for a share of the market? Finding a specific niche with less competition is an excellent way to thrive in the eCommerce landscape.

What is an eCommerce Niche?

An eCommerce niche is a specific subsection of a larger market. Niches usually sell one type of product or a single category. A successful niche eCommerce business will have a market of untapped potential, target a particular buyer, and appeal to a small audience.

Your niche market will do well when you tap into a trend – for instance, sustainability or men’s grooming. The trick is to identify trending eCommerce niches ahead of the competition.

Benefits of Finding Your eCommerce Niche

There are many ways to start selling products online. Why should you focus on eCommerce niches?

  • Lower advertising costs: Your niche will have a particular target audience. With fewer people interested in your product, you can limit your advertising costs and focus on potential customers only.
  • SEO success: With fewer competitors, your niche business can improve search engine ranking more easily. Keyword research will involve using highly specific terms with a low search volume – but high ROI.
  • Loyal customers: The more detailed your product is, the more loyal customers will be, buying from you exclusively.
  • Stand out against the competition: Highly specific products are hard to reproduce. While many other eCommerce businesses might sell ‘eco-friendly products,’ your unique eCommerce niche idea will set you apart. Being different can impact word-of-mouth and social media sharing marketing.
  • Join a successful trend: Trending products rise and fall. Ensure you follow the latest trends with upwards trajectories. For instance, socially conscious trending eCommerce niches will likely remain profitable for many years.
  • Fewer running costs: Finding inventory storage takes time and money. However, selling an eCommerce niche means you specialise in specific products rather than hundreds of SKUs, which can help optimise warehousing space and keep costs down.

11 Best eCommerce Niches for 2022

Finding a profitable eCommerce niche involves creativity, ingenuity, and confidence. You can’t just jump on the latest bandwagon. You need to be ahead of the curve. Consider the latest trends – can you think of a unique product that meets market demand?

1.    Eco-Friendly Products

Consider sustainability if you want to find an eCommerce niche with an upwards projection. 90% of Australian consumers prefer ethical products. However, you might think this niche has been around so long that it can’t still be profitable. Yet, there are many individual markets to cater to – it’s not just about bamboo toothbrushes and reusable straws.

From bamboo clothing to vegan cosmetics, eco-friendly products have a whole world of untapped potential. Consider any item you use. Is there an environmentally conscious alternative you could sell online?

2.    Home Office Equipment

With more and more people working from home in the last three years, people want home office equipment. Try to think outside the box. Everyone will have a desk, chair, and the essentials. But what about comfort and convenience? Consider profitable niche products that make working from home more manageable and productive.

3.    Pet Food and Pet Products

Pet owners never get enough of treating their beloved furry friends. People treat their cats and dogs like family members – there is no end to what they will do to keep them happy and healthy. Setting up an online store that caters to pet wellness products or organic animal food might be a highly profitable eCommerce business venture.

4.    Men’s Beauty Products

Male self-care and cosmetics are highly popular. As the world tries to tackle toxic masculinity, niche eCommerce businesses promoting men’s beauty products have excellent potential. From beard oil to high-end razors, there are plenty of possibilities. As a sensitive subject, you’ll have a particular target market.

5.    Home Gym Equipment

As with home office equipment, people working from home over the last few years have been looking for more convenient fitness technology they can use in their own houses. Selling fitness equipment online is an excellent eCommerce niche.

Moreover, people love online courses on health and fitness. Why not sell home gym classes along with home gym equipment to boost your audience?

6.    Handmade Jewellery

Marketing anything as ‘handmade’ or ‘homemade’ will immediately boost your online sales. With a growing concern for reducing waste and supporting local markets, eCommerce store owners sell ethically sourced and produced goods.

The fashion industry is widely known for fast fashion and other unsustainable practices. Can you target a socially conscious market with handmade jewellery?

7.    DIY and Home Improvement

As people spend more time at home, there has been a considerable shift to focus on DIY and home improvement or renovation. The home improvement industry is far-reaching. You could sell products for painting and decorating, upsell furniture, or ‘how-to’ guides and online courses.

8.    Organic Food Subscription Boxes

60% of Australians buy organic food on occasion. The biggest challenge is finding locally grown organic food at a reasonable price. All too often, it’s easier and more convenient to shop at the local chain supermarket and pick up everything you need in one go. So, why not set up an eCommerce niche that makes buying organic convenient?

It is a great idea to sell subscription boxes with everything people need for their weekly meal planning. Source local products to keep shipping and transport costs down.

9.    Vegan Beauty Products

About 2% of Australians are vegan, and 2.5 million Australians eat a vegetarian diet. While plenty of vegan food products are available, many struggle to find vegan cosmetics. Consider everything from sustainable soaps to animal-testing-free make-up. Natural products are trendy and likely to remain profitable for online businesses.

10.                  Protein Powders and Meal Replacements

Meal replacement shakes, and powders are healthy and convenient. People are busy and don’t necessarily have the time to cook meals every day. Moreover, protein powders are excellent for active people who regularly exercise.

11.                  Educational Toys

Parents care about their children. Since 2020, more and more kids are homeschooled. Educational toys are highly beneficial to children’s development. Moreover, while toys sell well all year round, they are an excellent seasonal eCommerce niche.

Research which educational toys are available and how you might enter this eCommerce niche.

How to Find an eCommerce Niche?

Finding a successful eCommerce niche isn’t easy. After all, the right eCommerce niche is one that no one else has found yet. You can’t just copy what other eCommerce brands do. Instead, you need to consider how to improve on the competition. Here are some tips for building the best eCommerce niche.

  • Combine two or more industry trends. Consider making vegan male beauty products or eco-friendly home office equipment.
  • Leverage your own interests and skills. Is there anything you know a lot about already? Or, perhaps you’ve already got a life hack ready to share with the world?
  • Ensure there is an audience for your eCommerce business niche. While you can sell most things online, you need a substantial market to ensure your venture is cost-effective and enables business growth.
  • Do keyword research to ensure people are looking for your product or the niche you want to enter. This will also give you an idea of the competition.
  • Optimise your pricing. Setting up an eCommerce business has fewer overheads than physical stores, but you still need to consider your order fulfilment processes and find a cost-effective third-party logistics provider.

Finding a Niche Market for Your eCommerce Business

The hardest part of setting up a niche eCommerce business is researching your idea. Thinking of niche products is the first step. But, you must also consider your target market, competition, marketing plan, and logistical challenges. Is your niche online business profitable? Will people want your product for many years to come?

Setting up a niche eCommerce business requires tapping into the latest trends and future-proofing your products.


What Is Niche in eCommerce?

eCommerce niches are highly unique products that cater to very particular needs. eCommerce store owners with niche products tend to focus on one specific category to create high-quality goods for a loyal customer base.

Is eCommerce a Good Niche?

Setting up an online store is a great way to start your business. Online stores have fewer overheads than physical stores and might lead to better customer loyalty. Since you’re not catering to a broad audience, you can focus on your specific customers and offer them the products they need.

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