It’s all very well selling products that have hugely popular appeal, but in doing so, you’re competing with everyone else who is catering to that demand. If you include niche products in your range you should experience far less competition for those particular items.
Why sell niche items?
Not everyone needs a certain sort of wool to make a fisherman’s sweater, neither do relatively many people use hobbyist paint required in decorating Warhammer fantasy figures, or airfix models, but those who do, will be faithful to a reliable, friendly supplier who can provide what they regularly need.
Admittedly, the size of the marketplace you’ll be targeting with your niche products will be small, but that’s not to say your profits will be. The margins on niche products are often higher, because those seeking them are looking for something very specific that is not readily available. It’s not as if they’ll have the luxury of choice when it comes to where they purchase their niche products, which means your customers are more likely to be loyal to your brand.
Choosing your niche products
Getting the right niche product can guarantee you repeat sales and position you as an authority in a certain industry, which will help with your marketing. Her are our 3 tips to help choose what you’re going to sell.
- Targeting passionate hobbyists and researching their industry, so you can speak to them in terms to which they can relate, will not only improve your customer’s buying experience, but also give you an insight into what you should be selling. It will also help if you like the products you’re selling; whether they’re related to yoga, the vegan lifestyle or stamp-collecting.
- Look for trends and be prepared for the products’ shelf-life to be limited. When fidget spinners were the buzzword of the moment, they were flying out of the stores at an unprecedented rate. 6 weeks later, they were old news.
- Choose add-ons carefully. By knowing your industry, you’ll have insider knowledge into what new items might pique your customers’ interest.
Other advantages of selling niche products include you spending less money on your investment and you lowering the risk involved in choosing an unpopular product. You’ll know your tight-knit crew of dedicated customers well and exactly what they require. You can limit your range to what you know will be bought.
The only real disadvantage to selling niche products is that it takes only a few customers to pull away from your services in order to experience a significant drop in sales. This is why it’s a good idea to not limit yourself to niche items only. It’s also important, once you’ve found a successful niche product to sell, to not rely to heavily on one supplier. When demand rises, you need to be able to fulfil your orders in order to maintain a good level of customer service.
If you’d like to find out more about how an EDI system can help you automate your sales processes when it comes to helping your customers reorder their niche products on a regular basis, please get in touch.