Identify the studs along your shower walls, using a stud finder. Find a space between two studs where you would like to place your shelf. Opt for a hanging shelf instead of a recessed one, if you cannot find a stud-free spot where you would like to put a shelf.
Begin tiling the wall, starting at the bottom and a few feet away from where you will put your shelf on the same wall. Continue tiling upward until you reach the height of the bottom edge of your shelf. Use the level as you tile, to maintain even grout lines throughout. Select the position of the shelf so that it matches up evenly with a grout line of the tiling, to avoid cutting any tiles.
Use the level and the tape measure to trace a horizontal line from the top of your tiling work to the bottom edge of where you will put the recessed shelf. Trace the shape of the shelf on the wall. Cut it out using a saw.
Insert the ready-made niche structure into the gap in the wall. Affix the niche into place using silicone sealant. Apply the sealant wherever the niche touches the studs or the back of the wall. Allow sealant to dry thoroughly, following the manufacturer's instructions.
Continue tiling the shower wall, covering the inside of the niche. Use bullnose tile, with rounded corners and different dimensions, to evenly tile the inner sides of the recessed shelf. Allow the grout to dry completely, as per the manufacturer's instructions, before using the shower.