In the e-commerce world, if you have an excellent product to sell, you don’t have to wait for decades to become profitable. When you find your niche, you can reach 6-figures or more in revenue, often within one year. The key is in choosing the right product, the right markets, and the right strategy.
Why a Private-Label Business Might Be Right for You
Often, products are sold under the brand name of the supplier, rather than the retailer’s brand. Private-label retailers, however, use a third-party manufacturer but sell the product under their own brand name. For any entrepreneur hoping to quickly build an e-commerce brand, a private-label business is the way to go.
Private-label businesses have total control over the specs of their product. They deliver the precise details to the manufacturer and the manufacturer produces it.
This type of business allows for more adaptability, which is essential in the fast-paced e-commerce business world. As customers’ needs and interests shift, a private-label business can simply inform their manufacturer that they would like the product updated.
Because of the increased control over the product, private-label businesses can make alterations to the products they sell much faster than if they were not private-label. Without a private-label business, retailers are dependent on suppliers’ timelines for product adjustments. It’s also up to the supplier as to whether or not they agree that the product should be altered.
Control and speed aren’t the only benefits of a private-label business. It also allows you to build your own brand loyalty, rather than relying on the supplier to win customers over. You don’t know if your supplier is going to market their product effectively, so it’s much better to have control over branding.
1. Think Beauty: Skin Care, Hair Care and Makeup
The beauty industry is a great market for an e-commerce retailer to enter. The industry grew from $483 billion in 2020 to $511 billion in 2021, and it’s not expected to slow down anytime soon. It’s predicted to pass $716 billion by 2025.
The major thing driving the growth of this industry is e-commerce retailers. This industry used to be dominated by large legacy brands, but a number of internet retailers proved how possible it is to reach consumers and build up a new brand in today’s digital age.
This industry includes almost entirely products that often become repeat purchases. This means if you can turn a few customers into fans, you’re likely to earn some loyalty. Because of this type of product, many online retailers in this industry have found success in the subscription model.
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2. Health Supplements Are Generally Easy To Push
These days, growing numbers of consumers care about their health. The global wellness market is estimated to be worth $1.5 billion and that number is increasing every year. The health supplement industry is just one piece of the wellness market, however, it is one of the easier industries to become successful in.
Because health supplements are nutritional and not pharmaceutical, there are low barriers to entry. If you do your research on nutritional ingredients, it is relatively low cost to manufacture these supplements. It’s similarly low cost to reach consumers.
Because of the rising interest in nutrition, there are huge numbers of people looking for help obtaining the nutrients they need to live a full and healthy life. If you can find a type of nutritional supplement that isn’t yet offered on the market or that has very little competition, you’re likely to hit multiple six figures in revenue in a short amount of time.
3. Smartphone Gadgets and Gizmos Are Always Hot
When smartphones entered the market over a decade ago, it created a huge business opportunity for entrepreneurs to create complementary products. There are 3.8 billion smartphone users worldwide. You could potentially grow your customer base to include hundreds, thousands, or even millions of these users. That’s a lot of potential revenue.
Fancy phone cases, car or bike mounts, portable batteries, and many other gadgets have hit the market over the last decade. If you can create a new and improved version of a product that’s already out there or, even better, come up with a product that isn’t yet offered, your brand could become an overnight success in this industry.
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4. Clothing, Accessories And Jewelry Can Bring In Big Bucks
Fashion is an industry that will most likely be around forever. Like other things in the world change, people will always want to choose the way they dress and accessorize. That’s why this industry is such a success in the e-commerce world. There is potential to bring huge profits in a short amount of time by crafting a clothing, accessory, or jewelry brand.
Through e-commerce retailers, it’s possible to shop for new clothing and accessories from anywhere. This is what has made this industry so successful.
Instead of requiring a visit to the mall, e-commerce fashion retailers are able to entice customers to make a purchase whenever they have a free moment. If you’re looking for a way to build a huge e-commerce brand, this might be the perfect industry for you.
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5. Workout Equipment Is Popular With Health-Conscious Buyers
In 2020, the workout equipment industry grew tremendously, reaching a value of over $10 billion. While the COVID-19 pandemic may have driven some of that growth, experts predict this market will continue to expand each year, reaching $25 billion by 2027. Because of the massive growth that’s coming, it’s likely you’ll be able to find your place in the industry and build a workout equipment e-commerce branch worth 6-figures or more.
If you choose to enter the workout equipment e-commerce industry, there are many sub-categories you could target. In the past, the office, hotel, and health club segments were very strong, but the home workout equipment is the segment that is expanding the most rapidly.
Whether you choose to build a brand of strength training equipment, cardio, flexibility, or a combination of it all, you’re likely to have success due to the current rise in health-conscious consumers. With a little bit of planning, you’ll be able to easily reach these consumers in no time.
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