Richard

Niche marketplaces have a number of competitive advantages over horizontal platforms: a product focus that simplifies the searching process for customers and increases variety within a specific category, a loyal and unique audience that comes to a marketplace with a specific request, high sales conversion, profitability owing to lower commission, lower barrier to entry for sellers and a high expertise of the platform in working with the target niche.

A niche focus fosters clear communication: sellers can tailor their offerings to a well-defined audience, increasing the likelihood of sales. Research shows that 48% of online shoppers head straight to large marketplaces, but these platforms struggle with personalization due to their vast product ranges.

Niche marketplaces, on the other hand, allow sellers to develop targeted strategies and build long-term customer relationships. This focus on customer experience is crucial, as 73% of consumers say it directly impacts their purchasing decisions.

Niche marketplaces offer a curated selection of stores within a specific segment. This fosters healthy competition between sellers, ultimately benefiting the customer with a wider variety of high-quality goods.

Unlike global platforms, where sellers compete across a broad spectrum, niche marketplaces allow sellers to target a passionate audience within a specific category. This eliminates price wars and helps sellers maintain their brand positioning. Customers, in turn, benefit from a well-organized platform that allows them to find exactly what they’re looking for easily.

Niche marketplaces’ key to success lies in effectively communicating this internal segmentation through their user interface. Clear category labeling, filtering options and product descriptions highlighting a seller’s unique selling proposition are crucial. By facilitating targeted communication, niche marketplaces create a win-win situation for both sellers and buyers.

In three steps, you can build your own successful niche marketplace.

Related: 5 Lessons Entrepreneurs Can Learn From Niche Marketplaces

Step 1. Embrace simplicity

While providing access to otherwise difficult products has demonstrable value, your marketplace will build trust and loyalty by simplifying the user’s choices and asserting a high level of quality.

As we have seen with Uber, which first launched using the exclusivity of luxury cars, successful niche marketplaces have limited options with high quality for time-poor yet quality-driven audiences. The marketplace’s role here is as a marquee, offering a limited amount of space and housing only those sellers that meet its full criteria to provide the best possible user experience.

My company, Flowwow, began in the fertile ground of the floral marketplace. Since then, we have strategically evolved into a comprehensive platform for local gift-giving brands. Recognizing the potential to elevate the gifting experience, we strategically expanded our offerings to encompass a wider range of high-quality local brands.

This horizontal expansion now includes various products, from delectable sweets and unique dеcor to handcrafted jewelry. But we remain true to our niche roots, still operating within a narrow market with a specific message.

By maintaining a focus on curated selections and a tightly-knit community, we ensure a consistent, exceptional customer experience. This meticulous vetting process allows us to partner only with the best sellers, ultimately enhancing the joy of gift-giving for our users.

Related: How Niche Micro-Companies Will Rule the Business World

Step 2. Set yourself apart with excellent content

Operating within a niche offers a distinct advantage: you already understand your audience and have access to an engaged community. However, keeping them interested and returning for more requires a strategic approach. Attracting users is just the first step; the true challenge lies in fostering long-term engagement.

Within your broader niche audience, there exist various sub-groups with distinct needs. Some prioritize affordability, while others require faster delivery times. Niche marketplaces empower sellers by facilitating targeted interactions with these diverse customer segments. Through effective user interface design and clear segmentation strategies, the platform ensures customers encounter sellers best suited to their needs. This win-win situation allows customers to discover the perfect product while sellers gain access to a highly relevant and engaged audience.

Beyond targeted interactions, niche marketplaces can enhance user experiences through features that encourage repeat visits and purchases. Studies have shown that features like purchase history and recommendations based on past views and orders can significantly increase repeat purchases (e.g., a 7% increase observed on Amazon).

Related: How to Stop Online Marketplaces From Robbing Your Brand

3. Remember that communication is a two-way street

Once you have matched your audience and vendors, create a direct, personal way for them to interact and build ongoing relationships.

Carefully consider media channels in each country to engage both customers and sellers. For example, Flowwow uses several Twitter, Instagram and TikTok accounts to connect our marketing campaigns with the perfect audience, tailoring content to resonate with local preferences.

eBay showcases this effectively with its country-specific Instagram accounts. In Germany, their account leveraged the excitement of Euro 2024, featuring the couple’s outfits and game-related content.

Meanwhile, their Canadian account uses local influencers and films Reels against the backdrop of the CN Tower. They also have an Instagram account for sellers with promotional tips and FAQs. Furthermore, providing valuable website features like a categorized wish list section can significantly enhance user experience and encourage repeat visits. Gift cards with customizable occasions (birthdays, congratulations, etc.) are another excellent way to keep your audience engaged and drive future purchases.

It’s crucial to refine your approach, based on local preferences to ensure smooth marketplace experience for both buyers and sellers. Keep constantly improving your product by listening to locals, personalizing market model and creating unique experiences.

In the vibrant greenscapes of Maryland, Nature’s Friends Landscaping stands as a pillar of craftsmanship and dedication in the landscaping industry. Here, Cliff Bressler nurtures every garden and tree and tree with the same passion and precision as those in his own backyard.

In 1999, Bressler transitioned from the corporate world to follow his love for the outdoors. This shift marked the beginning of a new era for him with his profound knowledge of plant life and a commitment to sustainable beauty. Bressler and his team ensure that each project they take on enhances the lives of their clients, and Nature’s Friends has, in turn, become synonymous with exceptional quality and unwavering reliability.

“My big goal for this business was to not have to travel far for work,” Bressler says, highlighting his focus on cultivating local gardens and building strong community ties through personalized service. His business approach is built around a cornerstone of meticulous attention to detail and respect for the environment, and this philosophy extends beyond landscaping to fostering connections between his clients and their outdoor spaces. Listen to the episode below to hear directly from Bressler.

Nature’s Friends distinguishes itself by offering comprehensive solutions tailored to each client’s unique needs. Bressler’s commitment to excellence is evident in every project, driven by his belief in delivering value that justifies his pricing. “I’m usually middle to high-end,” he says. “For the work I do, I will be on the upper end of cost, but I can guarantee clients [they’re] going to get great quality service.”

Liz S., a loyal customer and Yelp Elite, echoed this sentiment. “I can’t say enough great things about Cliff and his crew,” she says. “If you’re looking for someone who knows plants and trees, cares about his clients, is clear and communicative, as well as really nice to do business with, look no further.”

Further reinforcing the value he provides, Bressler takes the time to really get each client’s vision just right, transforming their outdoor spaces in ways that go beyond just looking good—they’re about creating sustainable and beautiful environments everyone can enjoy.

Liz regards Bressler’s attentiveness and interactions with customers as what sets Nature’s Friends Landscaping apart. “Cliff responded very, very quickly. He’s really on top of his business. And I also want you to know that he shows up,” she says. Her testimony underscores the trust and hallmark dependability of Bressler’s approach, illustrating how effective communication is woven through every interaction.

Moreover, Bressler’s flexibility and responsiveness are particularly valued in unexpected situations, which Liz experienced firsthand. “It was a Sunday. I sent him a text. He showed up that day at five o’clock in the afternoon,” she says, impressed by his commitment to resolve urgent issues promptly, a rare quality that fosters loyal customer relationships.

Bressler’s influence extends beyond individual gardens, impacting the local community through his service and environmental stewardship. In fact, he says he has “turned down a lot of business in really great areas” because it would take him 45 minutes to get there. This selective approach underscores his commitment to being available for his local clients and minimizing environmental impacts associated with longer commutes.

Nature’s Friends is also deeply integrated into the community, participating in local initiatives and building relationships that reinforce a collaborative and supportive local network.

“I found it a lot easier to manage myself with the client and the three guys that work full time for me,” Bressler says of his desire for autonomy, which allows him to engage more profoundly with local projects and community efforts.

Recognizing the broader impact of Bressler’s commitment, Liz appreciates this local focus, noting how Bressler’s community involvement and employee care enhance her trust. “He is very loyal to guys that have stayed with him,” she says, emphasizing how Bressler’s treatment of his team translates into high-quality service and consistent customer satisfaction.

Through strategic partnerships and a focused business scope, Bressler ensures that Nature’s Friends both transforms spaces and strengthens community bonds. His efforts to maintain a concentrated service area allow him to respond swiftly to client needs and engage more intimately with the local ecosystem.

“I provide a level of service and quality that I’m proud of, and that commitment will continue as we grow,” he says. “We’re about more than just landscaping; we’re about creating spaces that people can love and thrive in for years to come.”

Nature’s Friends Landscaping relies on these principles for success:

• Commitment to high-quality customer service. Bressler focuses on detailed communication and responsiveness. Prioritizing transparent and consistent communication ensures customers feel valued and well-informed throughout their service experience.
• Maintaining a local focus. Bressler’s decision to limit his service area allows for more personalized service and quicker response times, showing the benefits of catering intensively to a local market rather than diluting efforts over a broader area.
• Fostering community engagement and sustainability. Bressler’s engagement in local community projects and his commitment to sustainable practices resonate well with customers who value environmental consciousness and community support.
• Caring for your team. By ensuring his team is well-compensated and valued, Bressler creates a positive workplace culture that translates into high-quality service for customers.

Subscribe to Behind the Review for more from new business owners and reviewers every Thursday. Available on Spotify, Apple Podcasts, Google Podcasts, Pandora and Soundcloud.

Editorial contributions by Charlotte Che and Kristi Lindahl

This article is part of our ongoing America’s Favorite Mom & Pop Shops™ series highlighting family-owned and operated businesses.

It’s no surprise that return-to-office mandates leave some employees dismayed — many workers don’t want to give up their work-from-home setups and begin commuting again.

A new report from Bamboo HR found that roughly 25% of Vice Presidents and C-suite executives hoped that implementing strict return-to-office policies would help bring on “voluntary turnover” among employees. Meanwhile, 28% of remote employees surveyed reported they would consider leaving their jobs if mandated to a five-day-a-week in-office model.

Related: Salesforce Will Require Employees in Office 5 Times Per Week

Bamboo HR referred to this concept as “layoffs in disguise.” Still, around 40% of executives and managers surveyed said they had to implement a round of layoffs within the last year because fewer employees actually quit than expected after the new in-office mandates.

“This level of dissatisfaction could lead to a further drain of talent, affecting not just morale but also the stability and innovation potential of the workforce,” the study said regarding employees unhappy with being mandated to return to the office.

Related: Elon Musk Says Remote Workers Have ‘Marie Antoinette Vibes’

The return-to-office debate has been top of mind at major companies, including Amazon, Tesla, and Salesforce, which will require certain employees in the office four to five days a week starting October 1.

According to Desk Bird, an estimated 90% of companies in the U.S. with office space will return to in-office work by the end of 2024.

Staying ahead of the curve by managing expenses effectively is key to long-term success. The Microsoft Visual Studio Professional 2022 + The 2024 Premium Learn to Code Certification Bundle offers a unique opportunity to gain essential coding skills and powerful development tools for just $49.99 (reg. $1,999).

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StackSocial prices subject to change.

Costco warehouses are beloved by members for the large selection and low prices on bulk items, but if you’re hunting for a deal on the company’s website, some items might be more expensive than anticipated.

A new report by House Beautiful found that some products, from furniture to Halloween decorations, have higher prices online than in-store, even though Costco advertises that members get free shipping.

Related: Costco CEO Raises Hourly Wages for Employees

For example, the outlet notes that a bouclé swivel chair was reportedly $249 in stores but was listed at $399.99 online, meaning shipping fees must have climbed to $150 for that specific item. An animatronic werewolf was found to be $249.99 at the warehouse, but $339.99 online.

“Each product on Costco.com has its own shipping fee attached (although many items are shipped at no additional charge). If there’s a shipping charge, you’ll find it on the product detail page to the right of the product picture,” Costco’s shipping policy states.

The outlet also pointed out Reddit boards (some years old) dedicated to deciphering the fees, including one with a spreadsheet.

Costco online vs store price for my recent visit
byu/ponder_life inCostco

Costco explains that most items are shipped directly from vendors and manufacturers who set their own shipping charges, so the warehouse chain cannot waive the fees.

Earlier this month, Costco revealed that it would be increasing annual membership fees for all tiers across the U.S. and Canada, effective September 1, 2024.

Related: Costco’s CEO Says This Product Is the ‘Most Important Item We Sell’

The news was announced after the company reported fiscal Q3 2024 earnings in May, including $1.123 million in membership fees, up 7.6% from the same time last year.

Costco was up over 44% year over year as of Friday afternoon.

Entrepreneur reached out to Costco for clarification.

Uncover the truth about AI in marketing and why it’s a ticking time bomb for unprepared businesses! As AI revolutionizes the marketing landscape, understanding its long-term impact is crucial.

In this video, I dive deep into the reality of AI marketing, exposing the myths and revealing strategies to stay ahead of the curve. Learn why AI might play in your favor for the next 3 years, but could spell trouble if you’re not prepared for what’s coming. Discover how to leverage AI tools effectively while developing a future-sighted approach that will keep you competitive in an AI-driven world.

Download the free ‘AI Success Kit‘ (limited time only). And you’ll also get a free chapter from Ben’s brand new book, ‘The Wolf is at The Door – How to Survive and Thrive in an AI-Driven World.’

In 2024, organizations faced an average of 1,308 cyber attacks per week in Q1, a 28% rise from the previous quarter and 5% year-over-year. And what’s even worrisome is that cybercrime losses reached $12.8 billion in 2023 and are expected to hit $23.84 trillion by 2027.

Undoubtedly, securing your business in today’s digital business landscape isn’t just about protecting against cyber threats — it’s about resilience.

You can always fall for the latest threats since cybercriminals are becoming increasingly sophisticated while sneaking into business networks. Hence, you need a more robust cybersecurity plan backed by cyber resilience that goes beyond conventional cybersecurity strategy.

Cyber resilience isn’t a buzzword; it’s a necessity and a proactive approach that goes beyond conventional security. It ensures your organization withstands and recovers from potential threats without much impact on your business.

In a nutshell, cyber resilience is about building walls of protection and having the resilience to bounce back stronger.

Let’s discover why embracing resilience should be a top priority for businesses to ensure continuity and future success in the ever-expanding cybersecurity landscape.

Related: There’s No Margin for Error in Cybersecurity — Here’s How to Build a Strong Online Defense through Everyday Habits

Why your business needs cyber resilience

Cyber resilience is your organization’s ability to prevent, withstand and smoothly recover from various cybersecurity incidents. Cyber resilience isn’t about preventing cyberattacks — it’s about ensuring your organization can swiftly recover and continue to operate after an incident.

Nobody can predict the next threat to your organization and customers, especially in an era where machine learning and artificial intelligence have broadened the horizons and increased threat vectors.

Hence, a robust incident response plan is undeniably the need of the hour for businesses that are about to reinvent their cybersecurity posture.

Remember, a cybersecurity strategy lacking a robust incident response plan is good for nothing since cybercriminals are already exploring new ways to target end users and customers to exploit their personal information and gain access to sensitive business details.

On the other hand, cyber resilience not only ensures stringent cybersecurity against immediate threats but eventually mitigates long-term costs. Hence, investing in cyber resilience would surely safeguard your business from financial devastation and ensure smooth continuity.

Now that we’ve learned about cyber resilience and its importance, let’s emphasize how you can incorporate it into your business.

Related: 3 Reasons to Increase Your Cybersecurity Protocols in 2024

Is your organization truly protected?

Most businesses mistake cyber resilience for cybersecurity. However, they are pretty different and hold their own importance at different levels.

Securing your organization against modern threats is crucial, but it’s also important to prepare for the worst. For example, you must have a plan to deal with a data or privacy breach.

If you wish to protect your organization from the latest threats, your cybersecurity must include a comprehensive cyber resilience checklist.

Whether it is regular audits, employee training, or advanced threat detection through technology, you must always be geared up to handle any cyber incident.

Your cybersecurity checklist to supercharge your cyber resilience

1. Regular security audits

Scheduled audits are crucial to uncover potential threats and vulnerabilities before cybercriminals can exploit them. Addressing the issues well in advance can help you prepare a solid plan for the worst-case scenario and bounce back stronger.

Here’s what you can do:

• Look for outdated software: It’s crucial to check and update your defense software and firewalls since outdated software is more susceptible to ransomware attacks and other threats.
• Incidence response drill: Organizing an incident response drill will help identify gaps in your communication protocol and eventually help you overcome the delayed response time during a cyberattack. Hence, scheduling quarterly incident response drills is crucial once you’ve completed the security audit.
• Engage third-party experts: Involving third-party cybersecurity experts can provide an unbiased evaluation of your security measures and help create a robust cyber resilience program. Experts can uncover vulnerabilities your internal teams might overlook and help prepare an action response plan accordingly.

2. Strengthening your human firewall through employee training and awareness programs

Human error leads to cybersecurity breaches. Ensuring your employees are well-trained to handle any vulnerability is critical to building cyber resilience.

• Regular training sessions: Regular training and updating your employees on the latest threat vectors and best practices are essential. Using real-world scenarios to illustrate various threats and their corresponding responses would shield your organization from potential threats and minimize losses during an unforeseen event.
• Phishing simulations: Implementing phishing simulations to test your employees’ ability to recognize and respond to phishing attacks is crucial for safeguarding sensitive information. Using the results to identify improvement areas will help tailor training to minimize human error.
• Clear policies and procedures: Establishing clear cybersecurity procedures and policies within your organization is crucial to building resilience. Ensure the policies are easily accessible and understood by everyone in the organization.

3. Building a robust incident response team is your frontline defense

A dedicated incident response team is all you need for swift and effective action during a cybersecurity incident. This will help minimize the impact, leading to fewer financial and reputational losses.

• Define roles and responsibilities: You must clearly define roles and responsibilities for every team member regardless of their job title and experience. It’s crucial to ensure that everyone knows their duties and responsibilities promptly during an incident and the situation.
• Invoke the potential of modern tools and technologies: Using threat intelligence tools, data encryption, multi-factor authentication (MFA), and Zero Trust architecture can reinforce your overall cybersecurity resilience program.
• Continuous improvement: Conducting a thorough review to identify areas for improvement after every drill and incident. This will help you continuously update your incident response plan based on the recent findings.

Final thoughts

In this modern digital business landscape, the increasing cyber threats and sophistication of cybercriminals demand next-level security — cyber resilience.

Cyber resilience is a vital strategy for businesses to ensure they stay up and running even in the event of a cyber incident and can quickly contain a breach without financial and reputational losses.

Hence, embracing cyber resilience shouldn’t be a luxury; it must be an essential pillar of your cybersecurity foundation.

Managing travel expenses is a crucial aspect of running a cost-effective business. And if you travel often for work, it could be helpful to add a support tool to help you cut costs and streamline the time spent searching for flight deals.

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Your burrito bowl might be getting bigger.

After uproar from customers alleging that Chipotle was serving smaller portions, the company’s CEO is addressing the concerns.

During a Q2 204 earnings call on Wednesday, Chipotle CEO Brian Niccol emphasized to investors that “generous” portion sizes are a “core brand equity” at Chipotle and the complaints are being addressed.

Related: Wells Fargo Analysts Tested 75 Bowls at Chipotle — the Portion Sizes Were Wildly Inconsistent

“There was never a directive to provide less to our customers. Generous portion is a core brand equity of Chipotle. It always has been, and it always will be,” Niccol said. “With that said, getting the feedback caused us to relook at our execution across our entire system with the intention to always serve our guests delicious, fresh, custom burritos, and bulls with generous portions.”

Niccol added that the company is working on retraining employees at Chipotle locations where “outlier” customer satisfaction scores were received on portion sizes to ensure that all restaurants and employees are “consistently making bowls and burritos correctly.”

“Our guests expect this now more than ever, and we are committed to making this investment to reinforce that Chipotle stands for a generous amount of delicious, fresh food at fair prices for every customer visit,” he said, on the call.

Chipotle reported strong quarterly earnings, with an 8.7% increase in restaurant traffic and a net income of $455.7 million, compared to $341.8 million at the same time last year.

Related: Chipotle’s Robots Can Make Almost 200 Burrito Bowls an Hour

Last month, a report by a group of Wells Fargo analysts went viral after they ordered 75 burrito bowls the same way at eight different locations and found that portion sizes and weights of the bowls were wildly inconsistent.

“The portions have not gotten smaller,” Niccol said during an interview with Fortune in May. “We always want to give people big portions that get them excited about the food.”

Chipotle was up nearly 23% year over year as of Thursday afternoon.

For founders, building the right team is critical to lasting success. But the right one isn’t always what we assume it to be, and choosing wrong can prove detrimental at best to a start-up and ruinous at worst. In fact, in his 2021 Harvard Business Review article “Why Start-Ups Fail,” Tom Eisenmann, Howard H. Stevenson Professor of Business Administration, notes that “a broad set of stakeholders, including employees, strategic partners and investors, all can play a role in a venture’s downfall.” Put more bluntly, a “dream team” may end up being a wolf in sheep’s clothing.

A critical component of this group should be a war chest of related experience, along with a high degree of self-awareness, emotional intelligence and on-the-ground maturity. Strong advisors will also integrate well with the cultural and leadership dynamics of a start-up — keeping it consistent with founders’ visions — and provide a non-biased and knowing perspective when offering direction on integral decisions.

For founders, the need for strong advisors early is more pronounced today than it was even five years ago. A quick look at Forbes 30 Under 30 Venture Capital 2024 makes it clear that many founders are now being funded at notably early stages of their careers, without a host of prior ownership cycles to reference. And there’s much on the line: According to Carta, the median early-stage seed check from venture capital firms in 2023 was $3.1 million, requiring greater founder-led financial responsibility earlier. Products, meanwhile, are continuing to become more specialized and complex, requiring a heightened level of subject matter expertise. All of this can increase the progress-based burn rate while shortening the time horizon for success.

All these dynamics make it even more imperative for founders to identify and hire advisory boards early on, and when they do, they must get it right.

Here are key ways of attracting, hiring and retaining the best.

1. Understand the puzzle and identify missing pieces

Every company is unique, with its own strengths and weaknesses. A 20-year-old founder may sport a high level of intelligence yet lack a track record of creating multiple companies and the necessary years of subject-matter-related development. An industry veteran, meanwhile, may be less in touch with next-gen consumer behavior. As a founder, it’s vital to assess your company’s early-stage landscape — identify areas of strength (the same qualities that likely led others to invest in you), spot the gaps, and hire advisors with particular relevant expertise to address them.

2. Develop an advisor-specific compensation system

A founder’s inclination may be to formalize an advisory team only when a company is big enough or far enough along and instead be inclined to form an informal team of familiar colleagues early on who offer services and support free of charge. While this may buy time and save money/dilution in the short term, the reality is that it will ultimately amount to a lower value-added during a critical period of early development. A better move is to create an advisory compensation system — from the start — so that a team feels truly invested in the company and, in turn, can be held accountable. That can include a percentage equity grant and associated timeline (usually one to two years). The amount to grant depends on two factors: the value-add of the advisor (time and expertise) and the stage of the company (the earlier on, the higher the grant).

Related: Why Every Entrepreneur Needs a Board of Advisors

3. Create a mutually agreed-upon goals list

As a founder, the more clarity you provide to an advisor, the more empowered they will be to add value. So, before signing an agreement, you and a prospective candidate(s) should create a set of goals and expectations. The latter can include an estimated number of hours dedicated per month, required percentage of attendance at meetings and general availability for advice and reference calls. Outlining goals will be more akin to a high-level job description or a position overview. It will also identify critical areas where a candidate plans to add value, along with a map of how they intend to execute accordingly.

4. Introduce advisory team members to each other and communicate frequently

Once your team is identified and hired, it’s essential to then host a meeting that allows members to get to know each other. The more each person feels a part, the more they will operate with investment. In addition, it’s important to remember that the sum is greater than its parts: a multi-member brain trust usually results in members devising better solutions than if they worked independently.

Also, provide regimented communication cycles (with updates) that offer realistic assessments of the current state of company endeavors. Sugarcoating a challenging experience will only hinder an advisory team from adding critical value.

Related: 5 Tips for Finding a Great Advisor for Your Start-up

5. Continue to evaluate your team, and don’t hesitate to make changes

As founders, we can become emotionally attached to advisors; after all, they are mentors, advocates and stewards who helped raise and nurture our “baby.” But as that infant grows, needs naturally change. A company may increase in size, pivot product category, or align with a new partnership vertical. Some advisors may be capable of growing with you throughout, but others will not, so they need to be assessed on a regimented basis. The right team is not always simply the available one.

As we view today’s founder through a 21^st-century lens, we are reminded that no one founding person or group of people can do it all. That doesn’t change the market demand and associated expectations, however. With make-or-break nearly always on the line, a properly established advisory team is often a foundational ingredient to lasting success, provided it’s built the right way.