Simplx Blog

What is a Niche? What Has It Got to do With My Online Business?
A “niche” in economics refers to a very particular segment of the marketplace that is set apart, for one reason or another, from the mainstream. If you think of the economic marketplace as a literal marketplace or bazaar, niches are the isolated little corners, away from the main promenades where most people shop. The places where the mysterious and rare items are bought and sold, by mysterious and rare people.

What isn’t a Niche?
One useful way to define the idea of a niche is by establishing what it isn’t, rather than what it is. Niches are not the place for high-volume, “economy of scale” businesses. A niche doesn’t just sell jewelry; it sells a particular kind of jewelry. A business that is interested in a niche market doesn’t carry large inventories of dissimilar items; every product that it carries and sells is related to some very specific purpose or activity.

Why do Niches Form?
Niches are the natural side-effect of the “one-size-fits-all” trends in the mainstream marketplace. Most people, most of the time, shop for things that are similar to what other people around them are shopping for too, so big retailers compete for the attention of customers in those areas. But occasionally individuals are interested in something different from the norm, and that’s where niche markets flourish.

Take your typical supermarket as an example: despite their different names, all supermarkets sell pretty much the same stuff, for pretty much the same price, right? Occasionally a customer might want a something that is different from the norm though, and the supermarket doesn’t carry it. In those cases, the consumer heads for some sort of specialty store to get their product instead.

Niches aren’t always about the availability of products, either. They can form for all sorts of reasons:

• Price: for bargain-hunters, people who are more concerned with price than the mainstream shopper.

• Performance or Quality: for people interested in a higher grade of the same product than the mainstream shopper.

• Quantity: for people who are interested in buying larger commodities than the mainstream shopper.

• Special Needs: for people who have particular requirements that the mainstream shopper doesn’t have.

• Special Application: for people who are looking for products all based around a specific, unusual task.

• Exclusivity: for people who want something the mainstream shopper don’t have access to.

And these are only a few ideas; niches form for all sorts of reasons beyond these. Additionally, sometimes the reason for a particular niche will overlap. Costco and Sam’s Club base their business models on serving clients who have particular interests in price and quantity.

The watchword of Niche Marketing is focus. A business that is successfully focusing on niche marketing has a very specific reason for carrying the products that they do. They know the needs of their customers (more closely than most mainstream business do, in fact) and are doing their best to fulfill those particular needs.

Why Focus on a Niche?
So, why are we encouraging you, the small business entrepreneur, to study out, select, and sell to a particular niche? Why not go for the mainstream instead, where there are more customers (and thus, more money)? It has everything to do with the economics of competition.

Big retailers (like WalMart, for example) run their business in a very particular way. Their corporate model involves carrying a large amount of very popular items and selling them at very low margins but doing it as quickly as they can. It’s a pretty safe bet that anything you see on a shelf at WalMart hasn’t been there for very long, simply because the store knows that turning over inventory is the key to profitability for them.

That’s a fine way to do business, but it actually places some pretty stern limitations on what a big retailer can carry: WalMart has to carry the products and sell them at prices that will make them fly off the shelves fastest. They don’t carry the highest quality products. They don’t carry the cheapest products. They don’t carry specialty products. They don’t carry the most effective products. They don’t carry the most interesting products. They carry the fastest selling products. Period.

When you think about it that way, you’ll start to see what makes niches the more interesting parts of the marketplace. A business in a niche market isn’t a slave to turnover the way a mainstream retailer is, which makes them free to base their business strategy on something more than simple product popularity. A niche can be focused on things like product quality, or performance, or price, or rarity, or application or all sorts of other things. Choosing a niche offers an entrepreneur more freedom.

Why a Niche Online?
Online businesses have a lot more success targeting niches then big retailers in brick-and-mortar retail stores ever could. In fact, they are probably the biggest reason why e-commerce has changed the way the world does business.

Before the internet, if someone wanted to buy something they pretty much had one choice: find and go to a store that sold it. That meant the store owner could only make a living by selling a product that people near his store wanted to buy. Most brick-and-mortar stores were stuck following the mainstream model of selling what was popular because their wasn’t any choice; you weren’t going to sell exotic food if there were only three people within a twenty mile radius who want to buy it.

E-commerce changes all of that. If you have an online store, the world becomes your marketplace. You can sell something that no one in your hemisphere wants to buy, and still make a living doing it, if there are enough people on the other side of the world who want it. That means you can sell to any niche you want to when your business is online.

Conclusion
Finding and focusing your business on a Niche isn’t the only way to make money online, but it’s certainly one of the very best ones for a small business entrepreneur. It lets you be creative, focus your attention on something you are really interested in, and tailor your business to the customers you want, all while avoiding the restrictions of being a normal retailer or selling from a brick-and-mortar store. All it takes from you is knowing what niche you want to pursue, and being willing to learn that niche inside and out.

Popularity: 27% [?]

New Merchants:
Bigger and Brighter – 9% commission
BiggerAndBrighter.com is the one-stop-shop for book lights and magnifiers. We offer a wide variety of stylish designs under the LightWedge and Great Point Light brands. We are always adding new items and re-introducing product lines in new color palettes. Serving book lovers, travelers and crafters, BiggerAndBrighter.com is especially relevant for the aging boomer population.

CarParts.com – 6% commission
CarParts.com has all the brands your customers know ready to ship direct to them from the warehouse. In addition to the over 57,000 parts in their warehouse near Chicago, Illinois, they work with a vast network of warehouses across the U.S.A. to find the best possible price on great quality items for most vehicles.

James Allen – 5% commission
James Allen is one of the leading online jewelry companies, offering the world’s most beautiful diamond engagement rings and fine jewelry coupled with the finest laboratory graded diamonds. We also offer free FedEx Shipping, 30 day returns and outstanding customer service on every order.

Vera Bradley – 7% commission
Vera Bradley has earned a reputation as a leader in the gift industry. Creating stylish quilted cotton handbags, accessories and travel items, the company combines smart product designs with distinctive and colorful fabrics and trims.

WatchOrbit – 7% commission
Watch Orbit is a new shopping destination for watch enthusiasts and collectors. This new site focuses on the latest trends and features some of the most unique collections of watches and limited edition collections ever assembled on one site. Their brands include Baume and Mercier, Bedat & Co, Edox, Gucci and Tag Heuer.

Popularity: 20% [?]

You’re a business owner! Whether on eBay or through your own custom website, you regularly provide products for customers to buy, and you are ultimately responsible to that they get what they ask for. Since your business is online, most of your contact with those customers will come through e-mail. What can you do to make sure that correspondence is positive?

Limitations of E-Mail
Talking to someone through e-mail isn’t like having a conversation face-to-face. In fact, it isn’t even like having a conversation over the telephone or using an instant-messaging service like Microsoft Instant Messenger. Instead, e-mail is very much its own method of communication, with special rules and courtesies that you need to keep in mind as you compose. If you don’t follow the rules, an e-mail can be easily misunderstood. And the last thing you want is for your customers to misunderstand you!

Twelve Rules to Improve Your E-Mail Skills
These twelve rules will help you to keep your e-mails sounding professional and clear so that your customers will get what they need and want out of them.

Rule #1: Answer Quickly
Customers expect a quick reply when they send an e-mail! Never make your customers wait more than 24 hours before they hear back from you; you should get used to checking your e-mail box at least once a day, and usually more often than that. If you cannot completely answer an e-mail query when you receive it, send a reply answering what you can and promise to get back to them once you have the information they need. Always keep your promise.

Rule #2: Answer All of Your Customer’s Questions, and Pre-empt Further ones
Make sure you read incoming e-mails carefully, and double check them before you send your reply to make certain that you’ve covered everything the customer needed to know. At the same time, use what you know about your customer to predict additional things they will need. Customers appreciate a business that takes time to anticipate and attend to their needs.

Rule #3: Be Concise and to the Point
Never make an e-mail longer than it needs to be. Reading an e-mail isn’t like reading a printed letter; don’t intimidate your customers with something long and unwieldy! Sending an e-mail that is too long can make your reader feel like skimming what you have to say, which is often a sure recipe for misunderstanding.

Rule #4: Use Proper Spelling, Grammar, and Punctuation
Remember, grammar rules are there for a very good reason: they make your text easier to understand. If you neglect your spelling or punctuation, it doesn’t just make your business look unprofessional; it makes what you are writing difficult to understand. Most e-mail programs have spellcheckers now, be sure to use them!

Rule #5: Personalize
Sometimes it’s appropriate to use a template for responding to your customers, but do everything you can to avoid letting your e-mails sound canned. Use your customers name, and make whatever changes to the text are necessary to specifically address their questions and concerns.

Rule #6: Mind Your Structure & Layout
Since reading from a screen is more difficult than reading from paper, take care to structure the text of your e-mail in a way that will be easy on the eyes. In general, use short paragraphs and simple sentences and make sure your e-mail software leaves enough space between the lines. Also keep in mind options like bulleted and numbered lists.

Rule #7: Never Write in ALL CAPITALS
Remember; uppercase letters are designed to make text easier to read when they are used in combination with lowercase ones. Uppercase letters by themselves indicate shouting however, which is rude as well as difficult to read. It’s best to simply never use all capitals at all.

Rule #8: Always Read the E-Mail Before you Send it
Although it might seem silly, it’s amazing to see how many people are too quick to click the “Send” button. Take a second after you compose your e-mail to make sure it reads well, is appropriately personalized, and covers all of the points that it should.

Rule #9: Be Careful With Formatting
Remember that different e-mail services have different formatting abilities. As a general rule, keep formatting simple, with few colors, and keep everything easy to read against a white background.

Rule #10: Use a Meaningful Subject
Always use a subject for your e-mails, and make sure it is specific and useful. Generic subject lines can be easily mistaken for spam, either by the user or by automatic spam filters, and your carefully crafted e-mail could end up being discarded without being read. It is usually best to include your name (or company name) as well as the name of the product your customer is purchasing.

Rule #11: Avoid Long Sentences
As a general rule, sentences in an e-mail shouldn’t be longer than twenty words. Your customer is going to want to get the message quickly; don’t make your sentences too complicated or you risk them missing something important.

Rule #12: Use Active Voice
Sometimes, in an attempt to sound formal or well educated, e-mail writers use passive voice. Remember: “We will process your order today” sounds far better to your customer than “your order will be processed today.” The second example doesn’t just sound stuffy; it sounds like the task of processing the order has been passed on to someone else.

Conclusion
Your business exists to serve your customers, and you want your e-mails to reflect that fact. Follow the rules outlined above, and your communications with your customers will always be clear and effective.

Popularity: 20% [?]

New Merchants:
Created Natural – 10% commission
Created Natural ™ Mineral Cosmetics and Organic Skin Care are specifically designed for everyday women who want a look that is easy to apply, clean looking and all natural.

Department 56 – 9% commission
Since 1976, Department 56 has been a leader in the giftware, collectibles and holiday decorating industry offering nearly 3,000 different products.  As a subsidiary of Lenox Group, Department 56 has quality products, personalization, established brand and strong brand equity.

FAO Schwarz – 10% commission
FAO Schwarz is a 145-year-old company, specializing in toys, collectible toys, high-end plush (stuffed animals), and baby items.

Geoff & Drew’s – 10% commission
Geoff and Drew’s has been in business since September of 2001 and has been building a cult following in Boston that has lead to their recent induction in the Boston Business Hall of Fame. Their cookies and brownies have earned rave reviews in print and broadcast media including the Food Network, the Today Show, MSNBC, Gourmet Magazine, Inc. Magazine and were featured as the Snack of the Day on Every Day with Rachel Ray.

MyStrollers.com – 5% commission
MyStrollers.com is a leading specialty retailer of high quality baby gear. From preconception and pregnancy through baby, toddler and preschooler stages, MyStrollers.com has everything parents need.

Deactivated Merchants:
REI
CartoonNetwork

Popularity: 18% [?]

The McCormic Place West was hopping with this year’s eBay Live! event, spanning three days and serving thousand of eBay buyers and sellers in one of the nation’s largest convention centers. Over one hundred seminars, eighteen formal group discussions, and three dozen computer labs later, it appears that eBay Live! 2008 was just about everything it promised to be.

Seller Focused
2008 is shaping up to be a big year filled to the brim with change, and eBay Live! 2008 reminded all of us that eBay isn’t getting away without a few of its own adjustments. New policies, even good ones, always take some getting used to.

But, even with the changes, eBay is promising not to neglect Sellers in the coming months. The vast majority of seminars, lessons, and computer labs at eBay Live! this year were still focused on the perspective of Sellers, offering instruction on eBay’s new seller-related resources (like eBay Stores) and tips for using PayPal and other services.

Other Vendors
Of course, in addition to services provided directly by eBay at the convention, eBay Live! 2008 gave over 160 vendors the opportunity to offer their eBay-related goods and services to buyers and sellers. Everything from auction research and management software to shipping services were represented, giving visitors the chance to learn about the latest and greatest tools for getting the most out of eBay.

Incidentally, there was also no shortage of “Swag” (free, company-labeled promotional items) at eBay Live! 2008. The subject of which vendors offered the best giveaway materials is still a matter of discussion in our own company….

New Announcements
A few new policies were announced and clarified at eBay Live! 2008 that you should be aware of. Naturally, we advise you to visit eBay’s policy pages to make sure you have the most up-to-date information.

1. As of July first, listings on eBay will need a little extra information from users before they can be posted:

• Item condition (new or used)

• Specifics about return policy

• Handling Time (how long it will take for you to get the product in the mail, rather than simply how long it will take to arrive at the buyer’s door)

2. Beginning in September, eBay will begin routing all e-mail communication between buyers and sellers to preserve anonymity. Users will use temporarily assigned anonymous identifications that will be redirected through eBay to the correct address. As part of this new policy, sellers are not allowed to give their e-mail address anywhere in their correspondence.

Conclusion
And so we bid a fond farewell to eBay Live! 2008, and turn our attention to the news it gave us. Some sellers don’t need to change anything at all in the way they do business, but others are scrambling a little to regroup. Whichever sort of seller you are, we wish you the best and assure you that you can do it!

Popularity: 16% [?]

New Merchants:
Care.com - $40 commission
Care.com is an online marketplace connecting people seeking care services with a national and local network of trusted providers. The company provides a simple and safe way for families and individuals to manage their care needs. Care.com offers a full breadth of subscription-based services - child care, pet care, senior care, tutoring, and soon other services - to address the lifecycle of specific care needs while providing free background checks and a suite of tools and resources for selecting the best care possible.

Heavenly Couture – 10% commission
Heavenly Couture specializes in offering the highest quality designer junior clothing and women’s apparel in all of its selection. Heavenly Couture searches for the best quality junior clothes and women’s clothing throughout Northern America and brings them at a savings up to 85 percent to our woman and junior customers.

Hydro Pro Kits – 15% commission
Our Hydro Pro Conversion Kit and setup guide will convert your car to run on water very simply and it’s very affordable. Thousands of customers have used this technology successfully and are now experiencing the benefits of our system. You can as well today!

MoGiz – 3% commission
Buy and Sell online using MoGiZ.com. Our unique model allows shoppers to buy products from thousands of sellers in one location with confidence, and allows sellers to easily list their products online for free!  For additional savings we also offer multiple levels of membership plans that allow you to save even more!

pcRUSH – 2.5% commission
pcRUSH was established in 1998 to sell computer products online to a full spectrum of computer users. They carry over 50,000 products in their latest catalog and have access to over 80,000 additional products. From a complete selection of scanners and printers to a full line of memory modules and monitors of all makes and models.

Deactivated Merchants:
Frontier Airlines

Popularity: 16% [?]

New Merchants:
7 For All Mankind – 8% commission
7 For All Mankind is the world’s premiere brand of luxury denim-lifestyle products. Their products are focused on innovation in design, fabric, finish and fit, which makes modern consumers feel sexy and sophisticated. 7 For All Mankind consumers are fashion forward contemporary women and men who appreciate and value quality, design, and image.

Aunt Bea’s Bargain Buys – 8% commission
Aunt Bea’s Better Bargain Buy’s sells all types of T-Shirts, Hats, Kitchenware, and more, all of which are top-quality at the best Bargain Prices.

Biologic Solutions – 7% commission
BioLogic Solutions was formed to introduce the public to the latest breakthroughs in cosmeceutical and nutriceutical formulas for the advancement of anti-aging and natural and holistic health for mature adults.  We have joined with pioneering cosmetic surgeon Dr. Lewis M. Feder and use many cosmetic chemists whose research brings you cutting edge products, often before they can reach the general marketplace.

Life Learning Devices – 25% commission
Wallvations are removable motivational quotes and words of wisdom for your walls. Constantly being exposed to the right mantras and belief systems can positively shape and change lives. Wallvations are mantras and quotes that spur you to do your best and live life to the fullest. These items make great gifts for executives, teachers and parents. NEW HOT ITEM: LAW OF ATTRACTION WALL QUOTES.

Vans – 4% commission
Vans is the leading action sports lifestyle company. While some companies just jumped on the skate bandwagon, they’re the original skate shoe manufacturer since 1966. They stay connected to those who love Vans through action sports including skate, snowboarding, surfing, moto and BMX and through major events like the Vans Warped Tour and the Vans Triple Crown of Surfing.

Deactivated Merchants:
Dahle’s
Brilliance.com

Popularity: 18% [?]

New Merchants:
Ann’s Bridal Bargains – 12% commission
Are you a thrifty bride? Ann’s Bridal Bargains offers discount wedding invitations, wedding favors, personalized wedding napkins, and more at bargain basement prices. Lowest prices guaranteed! Shop Ann’s Bridal Bargains today for your wedding needs.

CampbellShop – 5% commission
From kitchen items to collectibles, The Campbell’s Shop has it all. The shop is filled with hundreds of products featuring the charming Campbell Kids or the famous Campbell’s red-and-white label. Browse for cookbooks, kitchen essentials, clothing, home decor and hard to find (and exclusive) Campbell Soup collectibles.

Gordon’s Jewelers – 5% commission
Established on the principles of honesty and integrity, Gordon’s Jewelers was founded in 1905 by Meyer M. Gordon. His store was the first general mercantile store in Houston, Texas, and watches and jewelry were only a small portion of the store’s inventory.

OfficeDesigns – 4% commission
OfficeDesigns has over 100 years of experience in the retail industry. Since their inception, they have had the privilege of meeting the needs of thousands of satisfied customers. They are an Authorized Herman Miller Retailer, and also carry such well-known names as Steelcase, Bodybilt, Interactive Health and Panasonic.

Savile Row Company – 10% commission
The Savile Row Company has been making finely tailored shirts since 1938.  A family company, Savile Row Co. now designs and produces an extensive range of clothing and accessories for Men and Women - all crafted to the highest standards. The Savile Row Co. brand is now sold in over 30 countries worldwide and the secret to our success is simple - we provide exceptional, luxury clothes at very affordable prices.

Popularity: 20% [?]

Things change in every industry, and the online world is certainly no exception. Our successful clients aren’t simply folks who came up with a good idea and ran with it; they are entrepreneurs in the truest sense, who have learned to cope with (and thrive through) change.

eBay has instituted several changes recently, and this post today is going to focus on two of the biggest ones that will impact your eBay business.

External Links
Although they were regulated previously, links to other sites from eBay are now restricted even more strictly. It used to be legal to put links to your online store in your eBay MyWorld page or your About Me page, but that is no longer the case. Furthermore, links that take customers to informative pages about a particular product can not advertise, or link to, a site that offers any products or services for sale off eBay. That, unfortunately, includes your online store.

This change takes effect as of July 1st 2008, and violation of it can have serious consequences including cancellation of listings without refund, dings against your seller status, or even account suspension.

Buyer Feedback
Previously, buyers and sellers both left feedback for each other at the end of a transaction. As of May 19th 2008, eBay’s feedback program has changed regarding this. Sellers no longer control what feedback they leave buyers; all transactions are considered “positive” for buyers. Naturally, this may be a concern for you, because it seems like there is now nothing you can do to protect yourself from unethical or unreasonable buyers. In fact, there are several other changes that have been made which should help to balance the matter.

The biggest tool you have is the Report a Problem page. This is a Seller’s utility that you can use to report malicious buyers. Using this tool, you can report:

Unpaid Item
You didn’t receive payment for the item you sold.

Feedback Extortion
The buyer is threatening to leave negative or neutral Feedback for you unless you provide goods or services not included in your original listing.

Feedback Abuse
The buyer included your name or phone number in a Feedback comment or is bidding on your item solely to leave you negative Feedback.

Unwelcome and Malicious Buying
The buyer does not meet the terms you’ve outlined in your listing and is not permitted to bid on or buy the item.

Customs Fraud
The buyer is requesting you to provide false information on a customs declaration form.

Report Another Problem
Get help with other eBay transaction problems or safety concerns.

In addition to providing this tool, eBay has also taken a new policy on negative feedback: if a user leaves you negative feedback and they are later disciplined for abusing the feedback system, their negative feedback will be removed from your record. This makes it especially important to use this system to report violators; it’s the way they are caught and disciplined.

You will find the Report a Problem page at this link: eBay Problem Report for Sellers. We advise that you bookmark this page in case you need to use it in the future.

Conclusion
Things change. eBay changes. But you have advantages that other eBay users don’t have; you have someone in your corner, watching out for the changes that might affect your business and reminding you to stay on your toes as they come up. Keep your head up, follow the rules, and remember that new regulations also mean new channels of opportunity.

Popularity: 24% [?]

New Merchants:
Aqua Max Boats – 2.5% commission
Quality inflatable boats from $549 to $1250, outboard motors & other accessories.  Aqua Max is made by one of the world’s leading manufacturers of high quality, superior inflatable boats that are now available to you at Factory Direct Prices. Compare our superior Korean made 1210 Dtex fabric to other boats 1100 Dtex fabric. We also boast an Industry leading Five year warranty. Our boats are designed for strength-yet they’re light, compact and easy to assemble. Fast and fuel efficient, they offer a superior ride and stability whether adrift or anchored.

Britannica – 10% commission
Encyclopædia Britannica, Inc., headquartered in Chicago, Illinois, is a leading provider of learning and knowledge products. They’re proud to be one of the world’s most trusted sources of information on every topic imaginable - from the origins of the universe to current events and everything in between.

GroundedSoles – 10% commission
Grounded Soles stocks over 50,000 shoes and has the largest selection of comfortable footwear for men, women and children. Grounded Soles offers sandals, clogs, boots and shoes from Alpro, Birkenstock, Birki’s, Chaco, Dansko, Earth Shoes, Footprints, Haflinger, Keen, Klogs, Newalk, Papillio and Tatami.

Motor Mint – 20% commission
MotorMint is absolutely one of the best sources for diecast automobile replicas. They have the largest selection of Classic 1:32 Scale Diecast Models on the planet, and many models that cannot be found anywhere else.

The Furniture Paradise – 6% commission
Furniture Paradise has been selling furniture online for over 11 years but have actually been in the furniture business for over 20 years. You can buy everything from from home furniture such jewelry armoires and bedroom furniture, to office furniture such as computer desks and conference tables and more.

Deactivated Merchants:
United Airlines

Popularity: 22% [?]