In this first part of the tutorial, I developed an easy method that will help you come up with a profitable niche.
It starts with choosing the website category before selecting the website’s niche. The first thing that should come to mind before starting an online business is thinking about its category.
To what category does the website belong?
The answer to this question is very important in that it will help a lot in finding a profitable niche.

1. What Are the Different Types of Website? 


To answer this question, here are the categories (but not all) in which most of the websites fall into:
  1. A Personal Website: Personal websites are as the name suggests, centered on a person: their information, pictures, hobbies, families, etc.
  2. A Business Website: is a website that showcases your business. It usually contains only a few pages detailing your business information. Today’s websites put all information on one page only, separated by some cool scrolling effects similar to a PowerPoint slideshow. (known as parallax scrolling effects.)
  3. Online Storefront Website: websites can also be used to sell products or provide services in return for a specified amount of money. The operation is known as E-commerce, short for electronic commerce.
  4. Content Publishing Website: blogs and magazines are a typical example of this category. Websites that publish information, update and create a relationship with readers can be categorized as content publishing websites.
Let’s suppose, the website you’d like to create is an online storefront website, the next question will be how to choose a niche for an online storefront (e-commerce) website?

2. How to choose a niche for an E-Commerce Website?


A niche is generally a specialized interest (in this context, it is a specialized market), that is limited to a few topics (or a few products) by contrast to a general one that wants to be like an encyclopedia (or a general store).
The biggest disadvantage of this latter is that it is difficult to master and control: By choosing a general market, it’s going to be difficult for your website to compete with general markets like eBay and AliExpress, for instance.
To make it clear, let’s say you are interested in Electronics (a general market) to sell electronics… As a starter, your first difficulty is going to be filling, selling, and maintaining hundreds of electronics, unless you have time a big budget to hire people to do it for you.
Next, it will also be difficult to rank well on Google pages, because not only you need to fill your storefront, but also to maintain it and advertise it: Thus, a website with many categories and hundreds/thousands of products will not be an easy business to maintain.
It’s wise then to start with a specific interest and then grow up as needed.
The following steps will help you come up with a profitable niche:

Step 1: Know the Categories


To know what is general and what is particular, you should first know the main categories of your website.

For a storefront website, it’s easy to get the main categories. You can simply visit any well-known e-commerce website like eBay or Aliexpress and then check the different categories that are on those websites.

Step 2: Narrow-down your interest


Now that you know the categories, a general interest/market/category should be selected – let’s say “Electronics”. The category should be narrow it down until it becomes easier to master and control.

In the case of “Electronics”, “Smartwatches” could be a good choice, so let’s say “Smartwatches” or a more specific keyword like “Chinese smartwatches”.

Step 3: Check the Level of Competition


In this step, one needs to check the level of competitiveness in the specified niche: “Chinese Smartwatches”.You can use Keyword Planner by Google Adword for free to see how difficult the competition is in the specified niche.

If the competition is high, it means that it’s going to be difficult to rank well on Google Ads.

Step 4: Tuning the Keyword


What if the competition is high, what should I do?

A solution to this is to tune the keyword a little bit by reversing the words and adding other keywords such as “Smartwatches Made in China” or “Android Smartwatches Made in China”.

You can try the new combination on Google Adwords again to see if it’s better.

Okay and what if the competition is always high? What should I do?

– The following is an Alternative Solution.

3. Alternative Solution: Observing and Creating a New Category


If you narrowed down your niche at a point that you’re able to master and control your business, but you always find that the competition is high, that doesn’t mean that you will not be able to succeed in your business but it only means that it’s going to be difficult to compete with other businesses and you’ll probably need to spend more money on advertisements.

If you really would like to come up with a business in which there’s low competition, you should be creative and more importantly a good observer.
One of the ways to come up with a good niche is to find a new category for a set of products that have a common feature but aren’t categorized in the same category on eBay and Aliexpress.
As of now, if you look at Aliexpress and eBay, it looks like there’s no category for products that can be used to turn an ordinary house into a smart house, you can then start a niche of ‘’Smart Houses’’ or ‘’Smart Homes’’.
As of now, the keyword “Smart House” has a low competition and a high search volume. It’s a good niche for a new business.

Let’s go for Smart House then!

smart house keyword on Keyword Planner by Google Adwords

Now that you came up with a niche, it’s time to explore the available options that allow you to make a website.

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