There are soooo many ways to go about doing market research on the internet. In this article I just want to show you one way to find potentially profitable niches that you can build E-commerce sites around. This process will show you if you’ll have enough traffic to make good money and if the market you’re researching isn’t saturated with competition yet.
If you slack on market research you’ll be tossing your profits to the fates and you have no idea or have any control of what the outcome will be.
I’ve outlined 3 steps you will take to find the niche for your business.
1. Choose a supplier in a niche of your choice 2. Research keywords (www.keyworddiscovery.com/search.html) 3. Research competition (using a search engine)
Look for a supplier in your niche
A niche is like a subcategory of a larger topic. Take Computers for example. Computers is a huge topic that will have tons of competition and large authoritative websites. We’re not trying to become a computer superstore. It would be very hard to be profitable or to even find a supplier for a new business that would be trying to sell everything computers. So instead we dive deeper. What are some sub categories of computers?
I always use www.wholesalecentral.com to find a supplier. Navigation is easy because they list all their categories on the front page. Choose a category your interested in and find a supplier for your niche. Once you’ve done that we’ll take that niche and do some research with the keyword tool.
www.keyworddiscovery.com/search.html
I found a company that supplies scrapbooking supplies. my next step is to do some keyword research in that niche to see if its going to be profitable or not and if theres little enough competition for me to jump in the game. We’re looking for 1000-100,000 searches per month for our initial keyword.
It looks like the number of searches for scrapbooking is roughly 16,000 per month which is great. That means 16,000 unique people are actively looking for things related to scrapbooking. However after typing scrapbooking into Google’s search engine it shows that there are 36,000,000 competing pages which way too high for us. were looking for 5 million or less. The keyword tool gave me a few more suggestions though, one of which is scrapbooking ideas. Scrapbooking ideas has 1040 searches per month so lets go see how many competing pages that phrase has.
Great! there are only 455,000 competing pages so were are far below our 5 million maximum. Now this is keyword that we should be able to get our website ranked for in the the search engines. The are dollar signs in the sky 
Remember the parameters I gave you: 1000 – 100,000 searches per month and less than 5,000,000 competing pages.
Now its your turn. Find 5-10 niches that fit within those parameters and start contacting the suppliers to discuss drop shipping options. Good Luck!