niche products - Heads or Tails? - How to Find Your Place in the Market
by Chris Malta
This presents a lucrative opportunity for you, as an Internet seller. Those niche products that comprise the market's "tail" tend to do better online. You have the potential to offer a huge diversity of products, and you don't even have to stock them yourself. You can use drop shipping to identify which products sell extremely well, and then buy those in bulk for even greater profit margins.
And you don't have to be a big player to get the entire market for more specialized products. Explains Mike Levin, of HitTail.com, "You actually have a greater opportunity to reach your potential leads than the larger retailers because they aren't specifically going after those tiny niche markets." And you have the ability to reach a wider audience than even chain stores because you have the search engines helping people find you and the products you carry.
When Less is More
There are additional benefits to carrying products that fall into the "tail" of the market. With extremely popular search terms, like "iPod" or "designer jeans", paid listings are very costly and natural rankings are difficult to achieve. With relevant, but more obscure keywords, it's much easier to drive targeted traffic to your site:
- With paid listings, bidding on the somewhat less "principal" terms further down the tail is inexpensive.
- Organic rankings are easier to attain because few people are optimizing their sites for those keywords.