Chapter 7 - Category Trend Validation

Once a potential niche has been identified in the Hot Categories report, analyze the sales patterns in that category over a two year period to validate whether that category shows patterns consistent with a niche market.

The Category Trend report will appear automatically after clicking on a category name in the Hot Categories report. The trend chart will display up to two years of sales activity in the category. You can select any two performance indicators from a list of options including Total Sales (revenue), Total Sold Listings (volume), Average Price and more.

How to use the Category Trend report:

  1. Run the Hot Categories report and click on a category name in the list of results.
  2. A Category Trend will appear. Select 2 years of activity.
  3. Toggle the performance indicators if necessary

What to look for:

  • Categories with month over month or year over year sales growth.
  • Categories with increasing average price
  • Categories with stable sales activity
  • Categories with predictable seasonal sales patterns

Troubleshooting:

If the category sales patterns look discouraging, return to the Hot Categories report and keep browsing for other niche ideas.

If the chart show less than two full years when you have the 720 day option selected, that means the category was probably restructured.  We will display whatever history is available for the category.

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