Starting an Online Business All-in-One For Dummies, 7th Edition

Chapter 1

Discovering Niche Markets

IN THIS CHAPTER

Narrowing your product focus

Figuring out which niche market has your name on it

When you start an online business, the Internet offers plenty of untapped markets for you to explore. These markets are segments within existing industries that have a lot of potential because they haven’t yet become saturated by sellers. You can certainly find this potential in niche markets, which are smaller, more defined segments of an existing market. Or in some cases, a niche market represents a new, untapped area of opportunity based on developing technologies, as an example. In this chapter, we provide a few basic guidelines for identifying new areas to explore, working with a niche product, and also show you how you can access these niche markets and sell to their loyal (and prospective!) customers.

Deciding to Sell a Niche Product

When thinking about a niche market, imagine the market in terms of a pie. The whole pie represents an entire market — one that’s usually well established. But cut out one piece of that pie, and that piece becomes a smaller market on its own. Instead of concentrating on selling the entire pie, you narrow your focus to that single slice.

The pet industry serves as a real-world example. It’s one we have been following ...