The growth of the eCommerce business has been a constant part of the discourse in the tech world for more than a decade. The Covid-19 pandemic has come in as the most defining moment for this industry. It has been registering double-digit growth for more than a decade.
From $572 billion in 2010 the industry has seen multifold growth in the 2010-2020 decade. It was valued at $4.2 trillion in December 2021. Analysts believe this to be just the tip of the iceberg as the Covid-19-induced change in shopping habits. It is expected to take this industry to newer heights.
For all the growth projections in the industry, it remains thoroughly competitive. At SoftTrix, we have been in eCommerce development and digital marketing. We have had a ringside view of the level of competition in this industry.
This brings us to the question – which are the high ROI niches that you should target if you wish to cut teeth in this industry? Which are the long-hanging fruits?
Let us take you through five high ROI niches and share some case studies. These studies highlight the growth we have generated for our clients.
Pet owners share an inseparable bond with their pets. They don’t mind spending the top dollar on products that improve the health and wellness of their pets. Products such as pet shampoo, raw dog food, dog treats, and other pet supplies are fast selling. Most pet lovers have turned to e-commerce stores for these supplies.
Numerous studies have pointed to the fact that online pet food would surpass in-store sales by 2025. This industry is expected to witness a double-digit compound annual growth rate in the years to come. Naturally, this is a competitive territory, and several small and large players and battling hard for a pie in this market
Our experience with Australia-based Jumbopets has been exciting. We undertook a PPC project for them to increase their conversion rates. The client was suffering from low conversion and poor sales despite having an impressive product line. We achieved a 71% increase in conversions with our PPC campaign and reduced the cost per acquisition by 26%.
Home Gym Equipment
The popularity of home gym equipment needs no introduction. As people find it difficult to go to community gyms with their busy lifestyles, exercising at home has become the road to fitness for many. The market which stood at $10.73 billion in 2021 is expected to reach $14.74 billion by the year 2028.
From basic weights to advanced cardio machines, people around the world are investing in such equipment to stay in shape and keep illness at bay. This has turned into one of the most lucrative product categories in the eCommerce space.
We recently had the opportunity to work with a Canadian Client Montreal Fitness. The client is in the space of selling weights, cardio equipment, and home gym accessories. The client had scaled up the business but was stagnating in a market that was growing at double digits.
They were down on search rankings and this was affecting their sales. Our digital marketers ran a multi-pronged campaign that included SEO and PPC. We were able to up generate $167,000 in sales. It was a great improvement from the base figures we started with.
Gym And Sports Apparel
It can be called an extension of the previous eCommerce niche we discussed. As people take exercising seriously, more so in a post-Covid world where millions have realized the importance of health and fitness, the market for gym and sports apparel has also been booming. It is among the fastest-growing segments in Amazon and other eCommerce marketplaces.
Research and Market, one of the leading research firms recently published a report which estimates the market to touch $221.3 billion by 2026. It is a fast-growing market with a low entry barrier for new eCommerce stores and sellers.
Our experience of working with Gorilla Wear, a German gym and sports apparel wear store has shown us the potential of this market. The store had failed to tap into the fast-growing market for these products in Germany. Their previous attempts at digital marketing hadn’t yielded expected results.
We carried out a thorough audit of the store to identify the shortcomings and run our campaign. The results were impressive as we were able to generate 16x ROI for the brand in three months.
Work From Home Equipment
The Covid-19 pandemic has been a major inflection point in human history and it is likely to change the way the corporate world functions. A recent study by Deloitte suggests that organizations are working on remote working strategies as employees are keen on remote and hybrid models in the post-Covid world.
As employees create their remote work setup at home, the demand for Work from Home equipment has seen steady growth. From computers and IT peripherals to office furniture, this segment continues to see a surge in demand and is one of the fastest-growing eCommerce segments.
We recently had the opportunity to work with Newtech, a Dubai-based online seller of IT equipment. The brand started its operations months before the pandemic and landed up with a huge opportunity at the onset of the global health disaster.
However, they didn’t have a strong eCommerce platform or a digital marketing strategy in place. We took up an eCommerce development and digital marketing project for them and generated 125% growth in sales within a month.
Natural Skincare Products
We have already covered some of the fastest-growing segments in the eCommerce business. The last on our list is natural skincare products. The skin care industry in the past has always been dominated by multi-national players. However, we are seeing a shift towards niche brands that are offering natural and 100% organic products that don’t cause any damage to the skin in the long run.
This industry which was valued at $6.7 billion in 2021 is expected to see a compound annual growth rate of more than 6% in this decade. Most of these sales would be on the eCommerce channels. Sellers are using marketplaces and creating their independent stores to reach out to the surging customer base.
Imbibe is an Australia-based beauty and wellness brand. They make natural skin care products. The company was struggling in accomplishing its sales targets when they came to us. We launched a Google Shopping Campaign for the brand by setting up a Google merchant account and linking it with Shopify.
We also ran a Google Ads campaign which resulted in revenues of $12,864 within a month and an increase in conversion rate by 23%. The brand was struggling with mobile commerce and our strategy helped them generate 76% of its sales from mobile devices.
To wrap up, these are the eCommerce niches you should target if you are looking for fast growth and ROI. At SoftTrix Tech Solutions we offer end-to-end eCommerce solutions starting from eCommerce design and development to eCommerce marketing. As the case studies above testify, we have generated growth for our clients, and we would love to work on your project. Book a free consultation and we shall take it forward.