Etsy Analytics – Discover High Demand & Low Competition Niches

Are you struggling to discover the perfect niche for your Etsy shop? Do you find it challenging to identify profitable niches that have a high demand but low competition?

Look no further; you've arrived at the right place.

In this blog post, we will delve into the art of brainstorming niche ideas and uncovering hidden gems that are primed for success on Etsy. By following our expert guidance, you can streamline your efforts, saving precious time and energy.

Let’s dive right in.‍‍

How To Brainstorm Etsy Niche Ideas

Inspirations On Etsy

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:

Your Own Passions & Interests

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.

Your Unique Advantages

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 Autocomplete

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.

When I typed in "shirt", Etsy suggests some popular niches that shoppers are interested in with their autocomplete function.

5 Tips Of Spotting Profitable Niches On Etsy

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:

  • High in demand
  • Low in competition level
  • Suitable for you in terms of passion, skills and unique advantage

Here are my 5 tips to spot good, profitable niches on Etsy:

Look For Indicators On Etsy For High Demand Niches

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:

  • The niche keyword appears in the Etsy search bar autocomplete function
  • Many ‘bestseller’ and ‘popular now’ badges in the search results
  • Red text ‘In xx carts’ appears in multiple listings
  • Many sellers with high number of sales and reviews
  • Trending product ideas outside of Etsy, for example, trending on Instagram

Check Competition Levels On Niche Ideas

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:

  • Number of listings - The higher the number of listings competing in the same keyword, the more likely that the niche is competitive. However, with Etsy’s updated search algorithm, some of the listings ranking under a keyword may not actually fit the search keyword, which means that there may be fewer listings that compete directly with you than the number of listings indicate. So keep that in mind when estimating the level of competition.
  • Number of successful sellers competing - If there are a large number of big sellers competing for sales in a niche, it may be hard for a new Etsy shop to break in the market. Look for niches that only have a small number of big sellers competing.
  • Quality of the best selling listings - If the best selling products are high quality with well-optimised listings, then it could indicate that the competition is strong in that niche. But if the best selling products are pretty average in quality and you are confident that you can create something better, then you can consider entering that niche.

Explore Sub-Niches Of Popular Product Categories

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:

  • Jewelry: Instead of selling just "jewelry," consider selling a specific type and style of jewelry, such as “ceramic statement earrings” or “brushed silver necklaces”
  • Home decor: Instead of selling just "home decor," you can niche down by selling “rustic farmhouse planters”  or “boho macrame wall art”
  • Clothing: Instead of selling just "clothing," focus on a smaller product niche like “white vintage dress” or “eco-friendly knitted t-shirts”

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.

Analyse Etsy Reviews To Identify Potential Market Gaps

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.

Understand The Profitability Of Potential Niches

It’s also important to understand the profitability of potential niches before investing your valuable time and money. Here are some factors to consider:

  • Cost of materials - Estimate the cost of the materials needed to create your products.
  • Production time required - Consider how much time it takes to create your products. You should work that in as your cost of labour.
  • Shipping costs - Factor in the cost of shipping. Keep in mind that heavier products will be more expensive to ship, especially internationally. This can affect your profitability if you're going to offer free shipping.
  • Average product price - Check Etsy and see what are the usual price range that the product is selling at.

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.