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4 Niche eCommerce Markets to Target For Marketplace Business in 2021

Author : smithbarkar
Publish Date : 2021-03-31 16:31:25
4 Niche eCommerce Markets to Target For Marketplace Business in 2021

Online marketplace business has been on the rise, and a recent pandemic has pushed it to new horizons. In 2020, a top online marketplace that includes Amazon, eBay, Airbnb, and others had revenues of over $2.67 trillion. So, creating an online marketplace can be beneficial to your business, especially if you consider targeting niche markets. 

Take the example of Etsy. It is a niche marketplace for vintage artifacts and jewelry that has grown into a massive eCommerce giant. The niche marketplace is set to grow at a compound annual growth rate of 22%. In 2019, Etsy’s revenues amounted to an astounding $7.46 billion. 

Creating a niche marketplace needs identification of the market, problem-finding exercise, and a solution that can solve the specific section of the audience. Here we will discuss four niche marketplaces that you can target in 2021 for online marketplace business. 

#1 Organic Skincare

Organic skincare products are one of the best niche marketplaces. As the cosmetics market is rising, there has been a massive demand for naturally made skincare products. The global market value of organic skincare products is expected to reach $7.2 billion by 2024. In 2019, the market value reached an astounding $4.75 billion in revenues. 

From essential oils like coconut oil, sesame oils, and even flower extracts have been the prime source of raw materials. Apart from the floral extracts and essential oils, naturally occurring butter is also among the raw materials used for organic skincare products. 

Organic cosmetics have also been a part of skincare treatments. Many dermatologists prefer using organic products for skin treatments, and that is why it is a marketplace that you should consider tapping into.

#2. Pleasure Toys

Another niche marketplace that you should look to capitalize on for online business is toys for adults. It is a niche market that deals with accessories and toys for intimacy. Especially for long-distance relationships and couples that want to add some spice to their intimate routine, such toys have been popular. There are toys like vibrators, and sleeves for individual usage, along with sensual toys for couples. 

The global adult toys market is set to rise at 9% between the 2019 to 2026 forecast period and reach $52.7 billion in revenues during the same time. Among other categories, sensual lingerie is also quite popular as a couple’s pleasure tool. Pleasure tools like sleeves are not just for fun, but they also help men fight issues like erectile dysfunction(ED). So, as a niche marketplace, adult toys can be a great business perspective. 

#3. Dropshipping Marketplace

One of the most exciting retail marketplace ideas is dropshipping. It is a retail method where you don’t need to stock a product and instead send it directly to the customer from a this-party vendor. For example, you are to fulfill an order of sports shoes for the customer that you buy at a cheaper rate from a third-party vendor and directly ship it to the consumer without the need for inventory management.

You save on inventory management costs and earn revenue based on the difference between the product’s acquisition cost and the selling price. According to GlobeNewswire.com, the dropshipping market will reach $591.77 billion by 2027, growing at a compound annual growth rate of 28.8%. So, creating a dropshipping marketplace can help you be the next disruptive startup in 2021.

#4. Fitness Niche

The recent pandemic has been forcing the fitness industry to rethink their strategy as physical workouts in a crowded gym is not an option anymore. With social distancing being the new normal, there is a surge in gym equipment for home workouts. According to a survey, the spike in demand for fitness equipment has been around 170% due to the pandemic. 

Such a niche marketplace not only includes fitness equipment like dumbbells, treadmills, and skipping ropes, but also sportswear. When it comes to sportswear and gym wear, there is a massive market which was $181 billion in 2019 and will reach $208 billion by 2025. 

Apart from the gymming equipment, sports apparel, and gym wear, online gym sessions have gained momentum. It is another niche marketplace idea that you can try by offing a platform for different trainers to host their online sessions through a subscription model. 

Signing Off

Online niche marketplace business needs value generation. Not only for the customers but also the sellers on the platform: value matters. When you consider a niche marketplace like saying adult toys, gym equipment, or even organic beauty products, users’ value can be ensured by adding more products at different price slabs. At the same time, sellers can have more importance by higher traffic on your platform. So, the focus lies on the value generation of a niche marketplace.

Category : business

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