Finding less competitive niches to build an e-commerce company requires thorough research and analysis. Here is a step-by-step guide on how to identify and evaluate potential niches:

1. Brainstorm and Identify Interests: Start by brainstorming your own interests, hobbies, and passions. Consider what products or services you are knowledgeable about or have a personal connection with. This will help you stay motivated and engaged in the long run.

2. Analyze Market Trends: Look for emerging trends and changes in consumer behavior. Keep an eye on industry reports, market research, and news articles to identify new opportunities. For example, the increasing demand for eco-friendly products, wellness, or smart home devices could be potential niches to explore.

3. Conduct Keyword Research: Use keyword research tools like Google Keyword Planner, SEMrush, or Ahrefs to identify relevant keywords associated with your potential niches. Look for keywords with high search volume and low competition. This will give you an idea of the demand and competition level for specific products or services.

4. Analyze Competitors: Study your potential competitors within the identified niches. Look for their strengths, weaknesses, pricing strategies, target audience, and unique selling propositions (USPs). Tools like SimilarWeb, SpyFu, or Moz can provide insights into competitors' website traffic, backlinks, and SEO strategies.

5. Evaluate Profitability: Determine the profitability potential of your chosen niche. Consider factors such as the average order value, profit margins, repeat purchase rate, and customer lifetime value. Calculate the potential revenue and expenses to estimate the profitability of your e-commerce business.

6. Analyze Supply Chain and Logistics: Assess the feasibility of sourcing products for your niche. Look for reliable suppliers, manufacturers, or distributors who can provide quality products at competitive prices. Consider shipping costs, delivery times, and any potential logistical challenges.

7. Validate the Niche: Validate your niche by conducting market research surveys, focus groups, or interviews with potential customers. Gather feedback on their preferences, pain points, and willingness to pay for your products or services. This will help you understand if there is a genuine demand for your niche.

8. Assess Long-Term Viability: Consider the long-term viability of your chosen niche. Evaluate if the niche has growth potential, sustainability, and scalability. Look for niches that are not overly saturated and have room for innovation and expansion.

9. Test the Market: Before fully committing to your e-commerce venture, consider testing the market with a minimum viable product (MVP) or a small-scale pilot project. This will allow you to gather real-world data, customer feedback, and make necessary adjustments before scaling up.

10. Stay Updated: Continuously monitor market trends, consumer behavior, and competitor activities. Adapt your strategies and offerings accordingly to stay ahead in the market.

Remember, finding a less competitive niche does not guarantee success. It is crucial to build a strong brand, provide exceptional customer service, and differentiate yourself from competitors to succeed in any niche.

References:

• Shopify Blog: "How to Find a Product to Sell Online: The Definitive Guide" - https://www.shopify.com/blog/how-to-find-a-product-to-sell-online
• Neil Patel Blog: "How to Find a Niche Market and Make Money" - https://neilpatel.com/blog/find-niche-market/
• Oberlo Blog: "How to Find a Profitable Niche in Affiliate Marketing" - https://www.oberlo.com/blog/find-profitable-niche-affiliate-marketing