Strategy

Niche

A specific, focused category or customer group (e.g., "sleep products for night-shift workers"). The narrower the niche, the cheaper it is to become known in it.

A niche is a specific, focused category or customer group — "sleep products for night-shift workers" is a niche; "sleep products" is a category. The narrower the niche, the cheaper it is to become recognizable within it, because there are fewer competitors and the audience self-identifies more clearly.

Niche selection is one of the highest-leverage decisions a new dropshipper makes. A narrow, passionate niche (climbers, hobbyist woodworkers, new-parents of twins) typically has higher CVR, higher LTV, and more durable unit economics than a broad category (general health, kitchen gadgets, beauty) — because the audience is desperate for products that speak to them specifically, and word of mouth compounds.

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