Which business is most profitable online?
Here’s the list of businesses that are most profitable online today and in the near future-
- Apparel Products
- Shoes & Footwear
- Fashion Accessories
- Groceries & Fresh Fruits
- Health Supplements and Medicines
- Baby Products
- Electronic Gadgets
- Pet Products, etc.
What is a Profitable eCommerce Business Idea?
A profitable eCommerce business can be defined as one that is not only able to sustain itself, but also grow over time. The business should also have a higher return against your eCommerce business budget.
eCommerce isn’t the only way to make money online, but it’s still one of the easiest ways. And best of all – eCommerce gives you the ability to keep most of the profits, as there are very few parties involved except you.
Yet, the average success rate of eCommerce stores stands at just 10%.
So how come most eCommerce businesses fail, despite having the ability to sell to customers from any location and keeping most of the profit? Well, most eCommerce business owners don’t do the proper planning and ideation before starting an eCommerce business.
Finding a niche that is suitable for you and also is in demand, are two things that are crucial for an eCommerce business to succeed.
We’ve put together a list of profitable and New eCommerce business ideas that can be profitably run with minimal investment and low collateral costs.
1. Apparel Products
Selling apparel products online is a great idea for eCommerce businesses. The first reason is that there are so many people who want to buy clothing items online, and they also want them to be delivered right to their door.
In 2021, the global e-commerce fashion industry reached an overall market value of 668 billion U.S. dollars. The online clothing and apparel industry is expected to reach a value of 1.2 trillion U.S. dollars by 2025
Another reason why selling apparel products online is a great idea for an eCommerce business is because there are so many different types of clothing available on the Internet. You can start with any type of clothing you want, from dresses to jackets and everything in between. Also, starting an apparel business requires a small investment than most niches.
Overall, it’s a great idea for someone who wants success with little investment.
2. Shoes & Footwear
Another great idea on how to start an eCommerce business is selling footwear products, especially shoes. That is because footwear products are one of the hot-selling products online. It can be done by anyone who has a passion for shoes and is willing to learn how to make money by doing something they love.
In 2020, the global footwear market attained a value of nearly USD 235.5 billion. The publisher has been monitoring the online footwear market and it is poised to grow by $21.48 bn during 2021-2025, progressing at a CAGR of 5.29%.
There are so many different types of shoes out there – from fancy running shoes, and sneakers to flats and even sandals. As top brands, there are also so many small brands out there that you can sell.
There are also other accessories related to shoes that you can sell to maximize your profit.
3. Fashion Accessories
Selling fashion accessories online is a profitable eCommerce business idea. There are many reasons why this is the case.
Fashion accessories are a very popular product category and there is a large market for them. People usually purchase fashion accessories such as sunglass, belts, shoes, bags, and belts matching their dresses. So each person usually has multiple accessories. Also, these accessories are not used for a long time, which means more recurring sales.
Overall, the eCommerce fashion accessories market value stands at USD 207.0 billion in 2022, which is expected to be more than double and reach USD 475.2 billion in 2028.
Thus, you can easily guess how promising this niche is to start an eCommerce business.
4. Groceries & Fresh Fruits
People need groceries every day and they need them fast. While there are a lot of giants in the industry, if you can deliver fast and run a localized business, selling groceries online can be a great business idea. This is another niche, that is growing fast.
The global online grocery market size was valued at USD 285.70 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 25.3%.
Also, if you want to start making money with very low investment, then starting up a business idea for eCommerce like this is the way to go.
5. Health Supplements and Medicines
Selling health supplements and medicines online have increasingly become a popular and new eCommerce business idea.
The beauty of this business idea is that there are a lot of people out there who want to buy health products, but don’t know how to go about it. They need help in the form of advice, knowledge, and guidance when it comes to finding the right products for them. So if you passionately provide information along with the service, you are bound to succeed.
However, because this niche is related to health, so it’s important that you become an expert in this field before trying to sell them yourself.
6. Baby Products
There’s a lot of money to be made in the baby products shop online. Baby products sell for a premium and new parents want to buy what they can to make their little ones happy. But there are also plenty of rooms left. It is easier for you to reach customers in your local area with personalized products that cater to their needs, even if you can’t compete at a bigger stage.
The global baby products market currently stands at USD 214.13 billion in 2021 and is expected to expand at a compound annual growth rate of 5.7% from 2022 to 2030. This makes it another future-proof business idea for eCommerce.
7. Electronic Gadgets
Electronic gadgets are popular items in today’s society and most people have an interest in them. People like to buy electronic gadgets because they make life convenient.
There are many different types of electronic gadgets that people purchase, such as smartwatches, earphones, power banks, action cameras, and so on. So the diversity of the market is huge. You can choose to sell multiple types or select a single niche to work on.
One drawback is that it takes a substantial amount of investment to start an electronic gadget shop. If you can afford that, the profit margin in the electronic gadget market is very high.
8. Pet Products
Pet products are relatively less competitive than other eCommerce store categories. However, that doesn’t mean there is any less demand, in fact, it is the opposite. With more and more people opting for pet animals, the online market is only increasing.
The global pet care e-commerce market size was valued at USD 20.75 billion in 2019 and is expected to grow at a compound annual growth rate of 11.3% from 2020 to 2027
You don’t need much money to get started with a pet product website, and you don’t need much space either. So with low investment and space, you can easily start a pet product shop online.
9. Gift Shop
Selling gift products online is a great eCommerce business idea. Why?
Gift-giving is a big part of the holiday season, and most people love to receive gifts. It’s a wonderful feeling to be able to surprise your loved ones with something they will cherish forever. Gift products have demand throughout the year, albeit a bit lower than the holiday season.
The gift industry is booming industry and has been growing at a fast pace. And more importantly, people are now mostly buying a gift online to save time and for more convenience. Thus, this can be a great idea to start an online shop.
10. Digital Products
Digital products are like physical products but in digital format. It’s the new trend in the eCommerce business. Digital products can be any type of product but most of the time they are software, games, eBooks, audiobooks, and videos. Online courses can also be termed digital products.
Digital products are very easy to sell because they don’t require any physical delivery to customers like physical products, so there is no additional cost.
11. Multivendor Marketplace
All the ideas that we shared above are for single-vendor eCommerce, meaning you sell the product to customers. However, you can also opt for a multi-vendor eCommerce marketplace.
The idea of a multivendor marketplace is to offer a service where sellers can list their products, and buyers can find them in one place. This means that you’re not competing with other vendors, but rather providing a common service for them. So you won’t have to sell the products yourself, you can just earn commissions from the sales by the vendors on your marketplace.
Many people think that multi-vendor marketplaces are hard to build and cost a lot more to maintain the technology. However, that is not right at all. Today there are also cost-effective solutions to start a multi-vendor marketplace.
Frequently Asked Question on Starting an eCommerce Business
Now let’s share answers to some of the common questions from the users regarding the initiation of an eCommerce business.
Below are the most profitable eCommerce business ideas in 2022.
1. Apparel Products
2. Shoes & Footwear
3. Fashion Accessories
4. Groceries & Fresh Fruits
5. Health Supplements and Medicines
6. Baby Products
7. Electronic Gadgets
8. Pet Products
9. Gift Shop
10. Digital Products
11. Multivendor Marketplace
There are 4 major types of eCommerce business.
1. B2B (Business to Busines)
2. B2C (Business to Consumer)
3. C2B (Consumer to Busines)
4. C2C (Consumer to Consumer)
Most eCommerce businesses fail due to a lack of planning while starting. Choosing a good niche is essential to sustain an eCommerce business for the long term. After that, it is important to set proper goals and act according to them, in order to ensure success.
Fashion, footwear, and electronic gadgets are some of the hottest eCommerce niches online at present.
A profitable eCommerce business idea is one that will be able to generate a profit. Profitability is the most critical aspect of any business that you are planning to start up. If your idea is not profitable, then there will be no point in spending money on it or getting involved in it.
Overall, a profitable eCommerce business can be defined as one that is not only able to sustain itself, but also grow over time. The business should also have a higher return against your eCommerce business budget.
As we talked about above, the first step of a profitable business is to find the right eCommerce idea that will enable business growth and help you maintain a decent ROI. In the following sections, we have talked about some ideas or niches that are proven to be successful and should be your best bet going forward.
You Can Be Successful If You Have the Right eCommerce Business Idea!
A great business idea is the starting point of any successful business. So, before starting an eCommerce shop, it is very important to know the right idea. The success of an eCommerce store depends on having the business idea and market research. If you can find the right idea for the eCommerce shop, it will help you to come into a market with more demand compared to the competition.
However, the concept of what makes a good eCommerce idea is quite difficult to define. So in this article, we shared some of the ideas that are in demand, to help you in your quest of “what eCommerce business should I start?” We hope this blog will help you start your dream eCommerce website.
So which new eCommerce business idea do you think is more suitable for you? Let us know in the comment down below.
