Tips For Choosing The Best and Most Profitable eCommerce Niches

Tips For Choosing The Best and Most Profitable eCommerce Niches

Have you ever wondered what the first three rules of finding profitable niches for drop shipping are? Have you been left scratching your head, thinking that maybe drop shipping isn’t for you?

If so, this is some vital information that will get you prepared to turn your drop shipping business around. Discover the three criteria Olisa uses to find profitable niches that will have you making a full-time living off your eCommerce store. You may be surprised at what they are… and we can guarantee you will use this information for years to come!


eCommerce Niche Selection Research is Essential

So, you’re ready to start an eCommerce drop ship business.  Congratulations! The first step is the biggest one of all. That step is not just saying that you “want to start an online business” but actually taking action and moving towards getting your first sale.

One of the largest mistakes that is made when starting an eCommerce drop shipping business is not enough research. Many times at first glance, a niche can look like a gold mine ready to start bringing in the big bucks. But, after some diligent research it can quickly be found to be infiltrated and overrun with competitors. This would mean very little profit, and the opposite of your goal.

Olisa will explain the tips to avoid this costly mistake.

The Importance of The Right Niche Selection

Here are three great tips from Anton on selecting the right niche while keeping three of the most important things in mind: Price, Target Market, and Brand Loyalty!

The first step of the drop shipping process is called “Niche Selection”.

This section will cover the first step towards building a profitable eCommerce business by choosing your niche.  A good niche will meet three prices of criteria: it will fall into our target price range, it will appeal to the upper-middle class, and consumers will have no brand loyalty which we will be explained in-depth later.

When selecting a niche for a new eCommerce store you should look for a set of products that meet certain criteria. Olisa constantly reminds us of how important it is to do this profitably. How to choose profitable niches and how it can actually be easy.

Now, the problem is you can still make money if you do it the wrong way. Except it will be a lot harder to get to your desired outcome. Which I guess is making a full-time living, right? Making a lot of money with eCommerce..

Below are three tips from Olisa, and he will better explain the tips and strategies to nail picking the best niche for you.

Tip #1: The Importance of Pricing

There are three tips for selecting a profitable niche that will actually make money. Now, here are a few pieces of criteria I look for. The first thing is always the price. That means product’s price, what you’re going to sell this product for.

The average product price should be $200 or more.  This is because your average profit margin (when you are drop shipping and using our method) will be about 25% of the gross revenue. What does that mean in practice? Well, if you sold something like a water bottle, that’s not at least $200. So that is not going to be a niche that I recommend get involved with.

The same amount of time will go into processing an order for $20 as it will for processing an order for $200 or $2,000.  If you’re going to be doing the work you might as well have a chance of making some real money on each sale.

It is important to note that although I do have websites that sell products for $999 and up, I have noticed customers placing an order that large prefer to call in to place their orders.

If you are comfortable on the phone, then this will not be a problem, but if you want to run an online store where the majority of orders come in before the customer even contacts you, I would recommend selling items priced between $200 and $700.

Now, on the other hand, if it is something like a cell phone, that’s more than $200. That would pass the price test, but it would not pass the third test that you’ll hear about later.

Tip #2: Your eCommerce Niche Target Market

I have sold products online that appeal to the wealthy, products that appeal to the middle class, and products that appeal to lower income households.  From all of my experience, I have learned that it is best to appeal to the upper-middle class, meaning online shoppers who have a household income of $100,000 or more.  It’s sad to say but if you sell products that appeal to low-income households you will have a lot more work to do.

Once we make sure our price is above $200, we look towards our target market. Now, if you are involved with marketing at all (if you ever studied marketing) you’re familiar with demographics. And the truth is you could break up the world into probably a billion different demographics.

When people don’t have enough money or spend their last dollar to buy your products, you better believe they are going to have more questions. They are going to be inspecting the items more carefully. If anything is wrong or even if they think anything is wrong, you are going to hear about it non-stop.

With the wealthy, it’s the same thing. When they are investing money or buying products, they expect a certain level of customer service that requires really a different type of business owner.

And there is nothing wrong with that.

But, just expect that if you’re going to go that route, you are going to be more of a concierge rather than someone that makes money online.

Again, that is why when we are looking at demographics. Remember, stick with the upper-middle class. I define that as having a combined household income of above $100,000 U.S. dollars.

When people have that kind of money, they are very comfortable with spending online. They are used to buying items that are $200 or more. They are not going to be calling or emailing you as much.

So again, this demographic makes niche selection a lot easier. It makes your business run a lot smoother. It makes it a lot more profitable if you choose niches that fall into that target demographic. If that’s who the products appeal to.

Tip #3: eCommerce Brand Loyalty

The final tip from Olisa is just as important as the first two regarding your target demographic and pricing. Now, we will talk about brand loyalty. As was mentioned earlier that while cell phones fall into the price range criteria, they don’t meet one of my other criteria and that is because of the brand loyalty.

When someone is going to buy a cell phone, in general, they are going to buy an iPhone or they are going to buy another Android phone, they pretty much already have a brand in their head of what product they want.

Same thing with people that are going to buy headphones. There is probably four or five big headphone companies. Right? There is Sony, there is Bose, there are Beats, and there is Sennheiser. There are all these big companies and people already know what they are going to buy.

So the third thing that you are going to look for when trying to choose a profitable niche is to pick an industry that has no brand loyalty. It’s going to make a big difference.

That’s because if you try to sell in a niche where people already know what company they want to buy from, it’s going to make it that much harder for you to get dropship suppliers. Harder for you to actually be able to sell these products, for you to be able to compete in terms of price. It’s impossible.

Remember The Target Market for eCommerce Niches Are Vital!

After two years of experience selling products online, I’ve realized that selling products to low-income households require much more pre-selling, more customer interaction, and more complaints/returns.  The same can be said about selling to the wealthy. They expect more personalized service and require much more of an effort to close the sale.

We are looking to start a business that requires as little effort as possible while generating the most sales possible.  We are looking to sell to single people or families with disposable income who are used to shopping online and comfortable making large purchases over the internet.

How Brand Loyalty Affects Your eCommerce Niche

What kind of computer or cell phone do you have? Is it the same kind of brand as your last one? Chances are if you own a Mac, the next computer you buy will also be a Mac.

Why? Brand loyalty.

When selling online, you want to avoid selling products that customers already have brand loyalty for…

For example, I wouldn’t try to sell TVs online.  Most customers who are buying a TV do the research on which TV is best for them or purchase the same brand TV they have had in the past.

They already have researched which TV brand has the best picture quality, the best warranty, and the best reviews online.  If I wanted to sell the TVs that people are actually buying (Sonys, Panasonics, LGs, etc) there is no way I would get approved for an account with the same payment and pricing terms as Best Buy or any other big box stores.

So, what type of products do I look to sell?  Products that customers are thinking about buying, but will not be diverted from buying it because it isn’t from a specific well known brand, or cause them any reservation because they could think it is “off-brand.”

Here are some examples of eCommerce niche markets that I would want to target:

Let’s say I live on a lake and I decide I want to get into stand-up paddle boarding.  I know I need a paddle board and a paddle but I have no prior knowledge of this sport or what brands are well known.  I could care less what company makes the board as long as I can find some good reviews and the price is right.

This is a great example of a product to sell online.  The average cost of a stand-up paddle board and the paddle is over $700, the average customer does not care what brand they are buying, and this sport is likely to appeal to the upper-middle class and would be purchased with disposable income.

Here is another example:

Mr. and Mrs. Smith move into a new home, there is a huge chandelier that hangs in the entryway.  Mrs. Smith hates it. They go to the local The Home Depot & Lowe’s but can not find a replacement that they agree on.

They know what style they are looking for but they can not find it locally. Mrs. Smith goes online and searches for a 30” x 30” entryway chandelier. She finds a website with hundreds of options including one that she and husband can agree upon.

This is another great example of a product to sell online.  Chandeliers are expensive, they appeal to the upper middle class, and the average customer does not care what brand they are buying as long as they like what they see.

  • Expensive
  • No Brand Loyalty
  • Appeals to Upper-Middle Class

Take some time now to think about other products that meet these criteria.  Write a list of as many product types as you can think of.

If you’re crunched for time, let us help you by providing you with some niche ideas.

eCommerce Niche Selection Conclusion:

These are some excellent first tips that are sure to be valuable and help in honing your strategy when choosing the right eCommerce niche.

Remember that these three rules for profitable and effective eCommerce niche selection are crucial: the target price, the target demographic, and brand loyalty cannot exist – because if it does it is going to make your life and eCommerce drop shipping business a lot harder.

Why Location Tagging On Instagram Matters (And How Can Businesses Benefit From It)

In 2019 there are currently over 1 billion people on Instagram and over 500 million daily users. And eight out of ten users are following businesses on the platform.

We all love Instagram, and this social media platform has come a long way since its beginning in 2010.

What does this mean for all of these business accounts?🤔

Mainly, this is great news for every business on Instagram who tries to increases its engagement rate and ultimately its revenue. But while internet fame might be enticing, being actually able to attract local customers is the main challenge.

This is where location tagging can help.

Add a location tag for better Instagram performance.
Add a location tag for better Instagram performance.

Adding a location to an Instagram photo or video can be useful for letting your followers know where you are, without stating it in the caption.

It also helps your engagement rate on Instagram and it will give you more exposure and attract customers with minimal effort.

We are going to explore everything you need to know about location tagging. I’ll also show you how to create one and how to use it to engage with your target audience.

Let’s dive in⇣

Why location tagging on Instagram matters and how can your business benefit from it

  1. What is a location tag and why it is important for your Instagram marketing strategy
  2. Learn to add a new location tag to your next Instagram post
  3. Create – step by step – a custom geotag who’ll help you grow your business
  • Step 1 – Facebook Check-In
  • Step 2 – Enable location services
  • Step 3 – Name your location
  • Step 4 – Add your location
  • Step 5 – Choose a category
  • Step 6 – Pick a physical location
  • Step 7 – Claim your location
  1. Integrate location tagging in your Instagram stories
  2. The benefits of using a location tag for businesses
  • It puts your business on the map
  • You have more chances to be found by Instagramers
  • You can better engage with other Instagram users
  1. Final Thoughts

1. What is a location tag and why it is important for your Instagram marketing strategy


In order to find products or services close-by, many people search for local businesses on Instagram.

Luckily, the platform offers just the right feature for your businesses – location tagging.

So if you want to be found, you have to make sure your location is correctly tagged. Your instagram metrics will thank you.

Let’s say you have a coffee shop and you serve a wide variety of coffee, so you want to be found from people around the world who are visiting your city for the perfect coffee tasting experience.

When you post pictures of your serving, not only are you inviting them to recreate the experience, but you also want to invite them to taste everything for themselves at your shop.

You want to make your business to be easily found. This is the stage when the location tag does the magic.

Therefore, an Instagram tag is a specific location based on latitude and longitude of where your brand decides to store all your Instagram content.

Locations are displayed at the top of every post once they’re published, right underneath the username or the brand.

Your post with a location tag
Your post with a location tag

2. Learn to add a new location tag to your next Instagram post


After editing, filtering and cropping your image or video, comes the page where you can add your caption, tag people or decide if you want to also share the content to other platforms.

How to add the location tag.
How to add the location tag.

Instagram automatically displays “Location” options near where you were while taking the picture! If you can’t find the right location between the suggestions, you can tap “>” to search for more.

Location options.
Location options.

Just choose your location and post as usual. And there you go, you have just added a location to your Instagram post!

3. Create, step by step, a custom geotag who’ll help you grow your business


If you don’t have a custom location for your business, it’s relatively simple to create and add it. Make sure you follow these steps and get started right away.

Step 1 – Facebook Check-In


Because Instagram and Facebook are connected, you have to create the location via Facebook.

Go to your Facebook homepage, then to the “Check In” button located underneath the status bar. Click on it and you should see a list of popular locations near you.

Facebook Check-In
Facebook Check-In

Step 2 – Enable location services


Make sure you have your location services turned on in order to create a custom location. You can do this by going into your Settings > Privacy > Location Services and allowing your Facebook app to know your location.

Step 3 – Name your location


Once your GPS is turned on, type your custom location name which in most cases will be the name of your business.

Make sure there isn’t involved any typo because this is what your future customers will see.

Step 4 – Add your location


Ignore all the other locations that appear on the screen while you’re typing. After you finished typing, find the “Add Location” option, located towards the bottom of the Check-In screen.

Add your own location.
Add your own location.


If the name is already taken, try to be creative and to come up with another one, but use the right keywords for your audience.

Step 5 – Choose a category


After clicking on the “Add” button, you’ll be taken to pick a category for your location.

It’s important to choose an accurate category so people can find your business when searching in your niche.

For example, for a coffee shop, you might want to choose the Restaurant category.

Choose a category
Choose a category

Step 6 – Pick a physical location


After choosing a category, the next step is to determine your exact location. This process works best if you are physically at the location of your business.

Choose a city.
Choose a city.

Step 7 – Claim your location


After creating your location, find it on Facebook by typing it into the search bar at the top of the Facebook homepage.

When you find it, you should be brought to a page where you can click, “claim this location.”

Claim your location
Claim your location

Now when you want to post a photo or a video on Instagram, your new location should now be available to tag and share.


Be in the Exact Location or really close. Custom locations tend to work better when you’re creating one in the exact spot of your business. If entering in an address from elsewhere didn’t work, try creating the location while you are physically there.

4. Use location tagging in Instagram stories


It’s better to give people all the info they need in one place.

Make your Instagram stories even more relevant and useful for your business by adding your own location. w/ @socialinsiderio/

Click To Tweet

There is a higher chance that people to visit your place if they see your location in the caption versus having to look up that information on their own.

Because you have already set up your location for Instagram, you can also use it by applying locations stickers. Make sure you follow these steps:

  • Create a story by tapping the camera icon or swiping right from anywhere in the feed
  • Take a photo, record a video or upload something you already recorded
  • Tap on sticker icon which looks like a square smiley face, at the top right of the screen and the choose the location sticker option
  • Type the name of the location you want to use and select a corresponding name from the list that appears
  • Rotate, resize, move or change its color and place it in.
Use a Location Sticker
Use a Location Sticker

If you want to see just how useful it may turnout to be, keep a record of the total visits of your business before and after using the location tag by accessing your Instagram historical data.

5. The benefits of using a location tag for businesses


Is it really worth it to create a tagging location? The answer is definitely yes.

Posts with a tagged location result in 79% higher engagement than posts without a tagged location. People who click on it can view all the other posts that have been uploaded on that location.

More exposure means more customers and more customers leads to more profit.

It puts your business on the map – literally


Above all else, a custom location creates exposure for your business, literally putting it on the map for social media users.

Locations work in a similar way to hashtags. When a user searches a particular word or phrase, any hashtags containing that word or phrase pop-up.

It’s the same process with locations. If someone searches for a coffee shop nearby, he/she’s more likely to find your business.

Your business will appear in the search options.
Your business will appear in the search options.

You have more chances to be found by instagrammers


Moreover, Instagram and other social media platforms such as Facebook have algorithms that show photos or videos in people’s feed based on their prior searches and the likelihood of liking that content.

If your caffeine-loving Instagrams users are searching for coffee shops or coffee-related products, they are going to be shown more posts about this. The likelihood of your business appearing in their feed increases when you have a custom location turned on.

You can better engage with other Instagram users


Geotagged posts allow your business to collect user-generated content (UCG). All of these posts which are created by your audience, (If they have public accounts), will be received in the geotag search and you can share them with your followers.

This means you notice your existing clients and appreciate them as well, and also it shows your audience another perspective of your company.

6. Final thoughts


Instagram location tagging feature provides your brand or business the opportunity to gain more exposure and to attract local customers. If you haven’t considered it yet, you should really give it a try.

In order to do this, guide yourself after Instagram analytics  to make the best decisions!

We’d love to hear how your location tagging influenced your Instagram engagement rate!