Consumer vs Business Niches...Preference??

by BillyDeason 5 replies
Hi guys,

I'm currently in the research phase for my eCommerce stores (dropshipping model) and have nailed down some good niches. Yet to contact manufacturers/wholesalers yet as still finalizing research..

Anyway to the point: what I've found is that most of those good niches I've got nailed down are in the business market rather than consumer market.

In Plain English instead of selling an ipod (which is typically for a consumer) I'm selling a product predominantly bought by business owners (can't think of example now actually lol :p).

Anyway this got me thinking: I was wondering if some experienced eCommerce store owners out there could comment that maybe have a few stores.
1) If they've found any striking differences between business and consumer markets respectively?
2) Anything to watch out for?
3) Just any general comments like whether you've found these markets harder to break into etc?
4) Does your portfolio of eCommerce stores consist mainly of business (typically) or consumer (typically) products?

I mean I don't need to hear the obvious stuff like business owners have money (I know that) and tend to make quick buying decisions. More so anything I might be overlooking.

I look forward to your responses!

Thanks!
Billy
#ecommerce sites, wholesaling & drop shipping #business #consumer #ecommerce #nichespreference
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  • Profile picture of the author BillyDeason
    no responses
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    • Profile picture of the author OnlineStoreHelp
      In my mind, a market with a need is a market with a need right? It doesn't matter if it's consumer or business. Business customers still buy stuff online. I have done a few websites for wholesale distributors and mainly they need restrict pricing and access to their wholesale customers. Is this something you need to do or will it be like a traditional ecommerce site anyone can buy from? Also, are the products those that get bundled with other services or products?
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      • Profile picture of the author BillyDeason
        Originally Posted by OnlineStoreHelp View Post

        In my mind, a market with a need is a market with a need right? It doesn't matter if it's consumer or business. Business customers still buy stuff online. I have done a few websites for wholesale distributors and mainly they need restrict pricing and access to their wholesale customers. Is this something you need to do or will it be like a traditional ecommerce site anyone can buy from? Also, are the products those that get bundled with other services or products?
        Yes I agree with you and thanks for your response. I plan to make it like a traditional eCommerce site that anyone can buy from. With the niches I have nailed down I don't plan to bundle at this stage...I like keeping my niche stores very tight and focused around core products.
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  • Profile picture of the author firebringer
    BillyDeason,

    I don't think it will really matter for you.

    But I would consider a B2C business much more valuable than a B2B one (my answer is eCommerce specific - but could be relevant).

    B2B business could be considered tougher since buyer power tends to be higher than a B2C business. This leads to buyers demands that squeeze the business - onerous payment terms (90+) and frequent demands for 'discounts'.

    The buyer power in the B2C business is virtually nonexistent - and all good B2C businesses operate on their customers money (bill the customer, receive payments and the ship the good or deliver the service).

    A flip side is that it is difficult to establish a B2C business - it has to be a consumer driven hit while a B2B business is easier to establish (you could get a couple of large clients who could set your business up and running for the first year or so).

    If you closely follow the VC investment scene, you would notice that consumer businesses tend to get valued much higher than a B2B business. (8X of revenue for a consumer business while 5X for a B2B business).

    Also - most of the large B2B companies which have been getting a lot of press (Dropbox, Yammer etc) have been pioneers in the 'consumerizing' the B2B sales cycle. Both Dropbox and Yammer have used individual teams/workers to gain acceptance within an organization before having to through a typical purchase/IT department.
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  • Profile picture of the author chenyanroger
    1.For some industry products, you should know more technical data not products themselves.
    2.The sells determined by the requirement.
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