inStarting Etsy Shop
Are you struggling to find the perfect niche for your Etsy shop? Not sure how to identify profitable niches with high demand and low competition?
Then you are in the right place.
In this comprehensive guide, you’ll learn the process of brainstorming niche ideas and spotting good niches to sell on Etsy, so that you can stop wasting time and energy.
Let’s dive right in.
Browse Etsy's popular categories, featured shops, and bestsellers to gather inspirations for potential niches. Etsy’s own blog is also a great place to get niche ideas with their shopping guides and gift idea articles:
Explore your hobbies, interests, and skills to find a niche that genuinely excites you. Focus on what you love doing regularly. A lot of good product ideas can come from that.
Creating products you're passionate about increases your chances of success, as your customers are more likely to resonate with your products.
Consider any unique skills, knowledge, or advantages that you have that can help you set yourself apart from other shops on Etsy. For example, if you have a way to source a material that’s unusual and at a low cost, making products using that material would give you an advantage.
Etsy search bar is a gold mine for finding niche ideas. The autocomplete of the Etsy search bar uses real data from Etsy shoppers, which means that what’s shown on there are actually searched by potential customers.
Another way to get great niche ideas is by browsing these Growing Your Craft articles on popular niches:
Spotting a profitable niche is important, it helps you focus your limited time and energy on shop ideas that actually have a higher chance of working.
Your aim here should be to identify niches that are relatively:
Here are my 5 tips to spot good, profitable niches on Etsy:
One of the main prerequisites of a profitable niche on Etsy is that it should have a good level of demand. Luckily, there are some indicators on Etsy that you can use to find popular niches:
Estimating the competition level is also important in choosing a profitable Etsy niche. You want to avoid niches that are overly competitive as it could be difficult to stand out and get customers. Here are some indicators to estimate the demand of a niche:
Another way to identify profitable niches on Etsy is to niche down from popular product categories to smaller sub-niches. This way, you can potentially find ideas that are less competitive but still with good level of demand. For example:
By focusing on a sub-niche, you can differentiate yourself from the competition and attract customers who are specifically looking for that type of product.
If you already have a niche idea in mind, one way to identify potential market gaps on Etsy is to analyse the reviews of your close competitors.
Look for customer reviews that are 2-4 stars. Focus on their suggestions or complaints. Those are product features that your competitors may not be providing at the moment, and they could present a great opportunity for you to step in and create a better product.
It’s also important to understand the profitability of potential niches before investing your valuable time and money. Here are some factors to consider:
With these factors, you can have a good idea of the profitability of the niche, and therefore allow you to choose the niche with higher profit potential.
To speed up the process, you can also use Etsy market research tools like these (click each one for the reviews):
Other than identifying potential niches for your Etsy business, these tools also give you insights in listing optimisation, keyword research, etc.
I’ll use one of my favourite tools to show how I find profitable niches on Etsy:
(When doing market research on Etsy, it's important to use the incognito browser to avoid the search results skewed by Etsy’s personalised search suggestions.)
The Alura Chrome extension is especially useful for validating niche ideas and identify good niches. It can be used directly on Etsy and helps you compare both demand and competition levels at the same time. The tool is free to try here (and use code GROW30 for a 30% discount your first month).
Alura gives a score based on the search results of the keyword you enter. The higher the score, the better the niche is because it indicates higher demand and lower competition. You can hover over the score to see the details of the demand and competitions levels.
In general, I’d recommend exploring the niches with a score of 6 or higher. If the score is too low, you may need to niche down or search another niche.
As some of you may be on a tight budget, I’ve developed this Etsy market research system that can be done without any paid tools.
This system is built from the ground up; No other Etsy resources have used this method on the internet as far as I know.
This’ll work for both new and existing Etsy shops. New shops can use this to verify their shop idea, while existing shops can benefit by refining their products to better satisfy their target customers.
So, if you're ready to stop wasting your time on product ideas with low chances of success, and start making smarter decisions for your Etsy shop, join GYC Etsy Academy to access Etsy Niche Discovery System today:
📈 Uncover hidden opportunities on Etsy
📈 Identify profitable niches with high demand & low competition
📈 Find your target customers & know exactly what they’re looking for
📈 Apply market research to boost your sales and conversion rate