What is a niche market? The definition from Wikipedia says, “A niche market is the subset of the market on which a specific product is focusing”. A niche product is the specific product from the definition. To find a niche product, you need to find your target market first, study their needs and wants plus their spending habit. If your target market is too broad, it’s very easy to lose focus.
From my previous experiences, you can target a particular group of people and find a product to serve them. My favorite type of products is hobby related. People with same kind of hobby can be grouped together. No matter their gender, age or income. Hobby is a particular way to enjoy life because when you are enjoying your hobby, you can easily have a relief from the stress that bothers you all the time and shift you mind away from your busy life.When dealing with hobby, people are very emotional and willing to spend their hardly saved money, to you as a seller, this is a good starting point. You do need to spend some time to understand the hobby related products in order to talk in same language with you customers, but remember an expert really just means a person who understands a little more than a average person in a particular area.
There is another type of products that are more ideal than hobby related products, which is addiction related, but so far I have not found any good ones on ebay. If you come across any, please let me know.
If you find it’s hard to think of any product, try to search on ebay directly and browse its sub categories. Sometimes you might find something that worth giving it a try. For this approach, I call it top down approach, as you start from the top of the category and go all the way down. One thing to kind in mind is, in order to be more specific, it’s ideal if you go down to the 3rd layer of the category trees. For example, if you want to sell some products in “Cell Phone & Accessories”, you want to go from top down as far as “Cell Phone & Accessories” -> “Phone Cards and SIM Cards” ->”SIM card reader”, because in most of the cases, before you reach the 3rd layer, it’s still too broad.