You’ve decided to start an online business website, but you have no idea what your niche is.  If this is you, know that you’re not alone.  One of the biggest obstacles faced by new digital entrepreneurs is choosing a profitable niche.  This is the point in your startup where you can tap into huge profits or fail miserably.

The reason many entrepreneurs fail at choosing a profitable niche is that they make too many assumptions.  They assume they have chosen a niche market that’s relatively untapped based on their own perceptions surrounding their target audience.  It’s called confirmation bias – thinking something exists and therefore it does. 

So, they push on to blaze a trail in a market they’re passionate about, only to find several months in that they’re not making any money.  The passion is there, but the niche wasn’t profitable.

So how do you avoid making this mistake?  It’s possible to create a brand-new niche market, but it’s challenging, and there’s no guarantee of success.  A better strategy is to start an online business in an existing and established market and sell something people already buy.  It’s not only easier, but you make significantly higher profits.

Instead of just listing the best online business niches for you to choose from, let’s also take a look at how to find low competition, profitable niches for your online business.

What is an Online Business Niche?

An online business niche is an area your business will focus on.  It will be the starting point that guides your decisions about what products you promote, what partnerships you might accept, what type of content you’ll produce, and what customers you want to attract. 

Most of the time, you will choose a broad niche and then focus on a more specialized niche within that area. 

An example of a broad niche:  Home Décor

Sub-niches within Home Décor:  Decorating on a budget, decluttering, minimalism, home renovation, DIY projects, luxury furniture.

Why Do You Need a Business Niche?

It will be easier and faster for you to build your online business if you choose a niche.  Niches allow you to:

  • Focus on a single area of expertise
  • Connect with your target audience
  • Make your business rank in search results (this is a different topic entirely, but it’s essential!)
  • Make it easier to connect with advertisers and sponsors.
  • Give you a clear direction for developing content and choosing products to promote on your site.
  • Narrow down your market by providing a clear message and purpose.

Profitable niche websites can eventually turn into authority sites, but you need to establish yourself as an expert in your field to do this. In addition, you will need a customer base that trusts you.  This is essential for turning your target audience into paying customers.

Don’t the most profitable niches have too much competition? No, they don’t!  Except for online gambling and adult industries, everything is fair game for your online business niche.  It doesn’t matter whether you choose drop-shipping, affiliate marketing programs, ad-based programs, or e-commerce; there are niche options that are still untapped.

Finding a profitable niche industry requires

  • An investment in the form of time or money
  • Innovation and creativity
  • Effort

Take a niche like health and fitness.  It’s easy to assume that this niche is way too competitive to make a profit.  After all, there are thousands of websites devoted to weight loss methods and new fitness crazes.  How could you possibly still make money in this industry?  Is there really anything new? 

Turn on your home shopping network, and you will notice a ton of people selling fitness equipment, fad diets, diet supplements, and weight loss programs.  They generate millions of dollars in sales because someone is always looking to pay for what they sell.

Dating is another example.  While this market appears saturated, if it indeed were, we wouldn’t be seeing companies like e-Harmony,, or Tinder seeing such great successes. Instead, these online businesses offer a solution to a problem that people are willing to pay for.

How do you gain visibility in a competitive niche market like the ones above?  You have two options:

  • Take an existing idea that has proven to make money and improve it to be ignored.
  • Invest several years of your life trying to dominate the niche.

Keep in mind that you don’t need millions of customers for your online business to turn a profit.  If you have 1,000 loyal customers that spend $10 each month on your site, your business will receive $10,000 in revenue.  The key is to have loyal customers that buy from you regularly.

The Best Online Business Niches

Some niches offer high profits but have become over-saturated and dominated by authority sites run by corporations.  They have vast numbers of employees to create content, run their social media accounts, and generate sales.  These are the niches you want to stay away from. 

Here is a list of online business niches that are still accessible

Translation and Languages

If you’re reading this article, you speak English. But only 21% of the world’s population speaks the language.  It is estimated that by 2050, the United States will have more people speaking Spanish as their first language than English.

People are traveling more and doing business globally with people from around the world. As a result, they like to learn new languages.  What this means for you is that a vast market exists for language coaching, language software, and anything else that’s related to learning a new language.


The pet niche is exploding!  People will not likely stop keeping pets, so this market isn’t going away, and it has massive income potential.  There are a ton of people who choose to have ‘fur babies’ over children, and many of them are more than willing to spend money on the latest and greatest things for their animals.

Options within the pet niche are many, but here are a few examples of how to profit in this niche.

  • Start a website about a specific dog breed
  • Start a YouTube channel reviewing cat toys
  • Start an authority site on how to care for exotic reptiles

Pet owners are passionate about their animals, so profits in this niche can come from toys, food, and health supplements.


So, it’s probably not realistic to profit off preparing people for a zombie apocalypse. Still, recent events worldwide have many people realizing that they need to be prepared to care for their families in an emergency. So, whether it’s a pandemic, extreme weather, a violent storm, it’s best to be prepared.

Profits in this niche can come in e-commerce or a drop-ship business for supply distribution.  Or it could be an affiliate marketing website about emergency preparedness for newbies.

This niche market expands much further than you might think and can include things like gunsmithing, blacksmithing, knife making, candle making, food preservation (think canning), wilderness survival, homesteading, growing your own food/gardening, or generating off-grid energy.

One warning about this niche – don’t overextend yourself.  Target the needs of one group within the niche.  You can always expand into other areas when you’ve developed a loyal following of customers.

Dating and Relationships

This one isn’t going away any time soon.  In a world where many of us communicate digitally, the most significant problem people have with dating and relationships is finding someone to have a relationship with.  There are numerous ways to engage in this niche market. 

E-books are popular and can turn a profit of over $100 per day when self-published with Amazon or Kindle.  Or design a digital product targeting a common relationship issue.

Personal Finance

The COVID-19 pandemic has taught many of us some hard lessons concerning personal finances.  It’s incredible how quickly your savings dwindle once your source of income disappears.  This reality might, in fact, be why you’re starting an online business in the first place.

Excellent websites in this market involve informational content about budgeting, self-employment, and financial coaching.  You can target a sub-niche like how to live without your cable subscription or how to reduce your mobile phone bill, or a week’s worth of family meals for under $10 each.

Home Security

Most families have addressed the issue of home security at one point or another.  While no one wants to think about it, crime isn’t going to end, so the only way to protect yourself is to invest in security.  This is a fast-growing market with many sub-niches.

Home monitoring software and smart home devices are growing in popularity, with things like lighting systems, video cameras, and garage door openers that can be accessed from your Smartphone.

You could also attack this niche from a self-defense standpoint offering nonlethal solutions or classes in self-defense.


The population of our planet has doubled in the last 40 years, so it’s safe to say that babies are being born at a pretty high rate—386,000 of them each day.  The market for baby items isn’t shrinking.

New parents spend approximately $4,000 per year on baby supplies.  Amazon affiliate sites are a great way to tap into this niche, as the number of fad baby products is endless.

Blogs are popular in the baby niche, particularly those targeting new moms, first-time parents, or challenges in parenting. However, don’t rule out topics such as adoption, international adoption, challenges of interracial parenting, etc.  Anything that parents might seek support on is fair game.

Best Online Business Niches

Weight Loss

The United States, United Kingdom, and Germany are in the middle of an obesity epidemic.  If you can find a way to sell losing weight and keeping it off, you will likely see profits.

Niche sites, YouTube channels, customized meal plans, personal training, the options are endless.  Yes, it’s a super competitive niche, but it is possible to compete with extra creativity and effort.

If you choose to run display ads with the Amazon affiliate program, you can make a killing.

Learning to Play a Musical Instrument

This niche isn’t for everyone, especially if you’re not musically inclined. Musicians can spot a marketer who isn’t knowledgeable from a mile away, so you have officially been warned.  With that said, many people aspire to learn how to play a musical instrument.

A popular approach for online businesses in this market is to develop a membership site for music lessons.  YouTube channels are a great option, too.  You can teach instrument-specific lessons or teach how to play classic rock songs on the guitar, for example.  Digital products for guitar or keyboard effects or amplifiers for performance are also great options.

Electronic Entertainment

Take a look around your house at how many electronic devices you own.  How many of them do you use for entertainment?  You probably have a smartphone at a minimum, but you might also have a tablet, a Kindle reader, or a laptop. 

You likely subscribe to a streaming service as well like Netflix, Disney +, or Spotify.  Electronic entertainment devices are part of our life whether we like them or not.

While the Western, developed world is up to date with tech devices, the developing world is just starting to catch on. As a result, there will be a massive market in developing countries for electronic entertainment over the next decade.

To make money in this market, you will need to find a focused sub-niche—for example, a YouTube channel about video streaming services or one that focuses on gaming platforms.

Energy Niches

This entry to the list is a little deceiving because it includes five different niches emerging in the marketplace.

Renewable Energy

As the world supply of fossil fuels is gradually depleted, demands for renewable energy are naturally increasing.  Renewable energy includes everything from Tesla cars, solar panels, and wind generators. 

If you’re still unsure about the market for this niche, research Saudi Arabia.  One of the world’s biggest oil producers has set a goal to become a world leader in solar energy sources by 2030.   As a result, the renewable energy market is primed to explode!

Biodegradable Consumable Products

It’s a mouthful to say, but we can all see it’s beneficial to avoid plastics clogging up landfills based on current environmental trends.  Any product that falls into the biodegradable category that is consumed regularly can become profitable in this niche. 

Recent trends have targeted drinking straws and water bottles.  But most people don’t like cardboard straws.  A little innovation to develop a biodegradable product that people actually want to use could spell success for your online business.

Subscription Boxes

If you have a Facebook account, you’ve likely seen a ton of ads for subscription boxes for all kinds of interests.  Books, dogs, horses, travelers, outdoorsmen, skincare, fitness, etc.  Subscription boxes are like the mail-order catalogs of the present day.  It’s definitely providing profits to companies that offer parcel delivery service. 

The key to success in this niche is to provide quality products at a reasonable price and focus on a very narrow sub-niche. 

Virtual Reality

Technological advances have made virtual reality a reality. It’s a great idea for providing entertainment.

Tiny Homes

With minimalism, tiny homes have become appealing for people looking to lead simpler lives.  For people who want to live off the grid, tiny homes are a way for them to affordably achieve their goals. 

They have also become popular in the form of ‘Granny Pods’ for individuals who wish to have elderly family members live in their yard while allowing them independence or some people use them as a home office.

What Makes A Niche Profitable?

One fundamental principle to niche marketing that we haven’t covered is selling something people are already buying.  Niche marketing is all about tapping into a problem that people need help with.  Those with disposable income spend it on stuff.  When people with disposable income love a product, they will repeatedly spend money on it.

  • Individuals with acne or skin issues are willing to pay money to fix it.
  • People with pets are willing to spend money on pet products to enhance the well-being of their pets.
  • Anyone who is struggling with their income levels needs help budgeting or learning how to make extra income.
  • Movie fans spend money on collectibles.

The most profitable online business niches will always be those that solve a problem for people.  You don’t have to sell a product. You could sell a service to people who want to sell products, like SEO optimized content for your dental business or how to start a dog walking business, or even write a top-selling e-book on how to feed your family on a budget.

Find something you’re passionate about (because you’re going to spend a lot of time working on it), find a problem people have related to your passion, and profits will follow.

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