Facts: There are 16.6 million websites, In the face of statistics, what does a small online retailer do? I would encourage pursuing
several strategies simultaneously to find the "sweet spot" for you.

Site Marketshare

eBay 26.2% Amazon.com 4.2% Yahoo! Shopping 1.8% Walmart.com 1.8% BestBuy.com 1.6% eBay Motors 1.4% Target 1.2% Dell Computer 1.2% Lower My Bills 1.1% Half.com 0.9%

CircuitCity.com 0.9% Sears.com 0.8% eBay Stores 0.8% BizRate.com 0.8% Sprint PCS 0.7% JC Penney 0.6% Ebates 0.6% Barnes&Noble.com 0.6% Hallmark.com 0.6% QVC.com 0.6%

       Source: Hitwise

What sectors were big sellers at Christmas? (in millions of dollars)
Apparel, clothing $3738
Toys, video games $2197
Consumer electronics $2044
Computer hardware, peripherals $1650
Video/DVD $1619
       Source: Goldman Sachs, Harris Interactive and
       Nielsen//NetRatings eSpending Report, Dec 2003.

How can you fine your online "sweet spot"?

1. Look for narrow niches that are unfilled or poorly filled. Just because websites exist in the area
   doesn't mean that they're successful. The lights may be on, but nobody's home. Instead of selling
   products across an entire sector, find narrow product areas you can fill with excellence, far better
   than the more generalized retailers. It's much better to set up five microstores where you can have a
   laser marketing focus on a narrow product line, than a general store with lots of departments.
   Look for niches where your company's staff and experience can add value. You're not just selling a
   product; you're selling service, understanding, and expertise.
2. Look for niches in which Pay Per Click keywords and keyphrases are not so high-priced that you can't
   afford them.
3. Look for niches with a high Keyword Efficiency Index (KEI). KEI is an exclusive WebCEO.com
   feature that compares the number of searches for a word with the number of competing sites in the search
   engine. Ideally, you're looking for niches with a high number of searches and low number of competitors,
   which you can spot with WebCEO’s KEI ranking. You can spend $7.85 for a day of keyword research at
   WebCEO.com, which is probably all you'll need to find some "sweet spots."
4. Look for niches where products have a moderate to high profit margin and a product sales total of $15
   or higher.
5. Consider selling both on eBay and the open Internet. eBay enables you to test the market quickly and
   assess the competition. You can set up both an eBay Store and a standard online store and take advantage
   of both marketplaces. Some kinds of goods sell better on eBay, some do better in online stores, and some
   do well in both environments.

Date: Oct 1, 2004