There are many ways of doing business online, but dropshipping has its own benefits. But you just can’t offer anything to the potential customers before knowing its value in the market and expect a good profit in return.
You need to choose a particular dropshipping niche to score high. So if you’re not sure what this business is? And how you can find some of the best profit-making dropshipping niches, then this article is for you.
What is Dropshipping Niche?
To understand what dropshipping niche is, you should be aware of the ‘dropshipping’ concept.
In simple words, dropshipping is an eCommerce business model in which you don’t have to stock products. Whenever a customer places the order, you pass on the requirements to the supplier, who then ships the items to the same customer.
A dropshipping niche means you are working on a model that serves only a specific market segment to potential customers rather than offering general or mixed items to the masses.
For example, “Basketball Men’s Clothing” is a niche, and if you’re dropshipping it, it means you’re running an niche eCommerce business based on the ‘dropshipping niche.’ All your potential buyers will be men trying to purchase basketball clothes.
How to Find Dropshipping Niches?
Fortunately, there are some authentic ways to recognize some of the best dropshipping niches. However, research is the key. But where to begin from is a puzzling question.
1. Finding Dropshipping Niches on Social Medias
When it comes to social media networks, Facebook’s name is the first one to pop into peoples’ minds. The platform has more than 2 billion active users each month. And an average US adult spends 38 minutes on this site.
Facebook Audience Insights is a great place to look for dropshipping niches and trends. It helps you learn about the audience by aggregating details about users. You can also determine dropshipping niche’s size and peoples’ interest relevant to that specific niche.
There are different options to help you give the insights about the potential niche, such as:
- Demographics: You can find age, lifestyle, education, gender, relationship status, job role, gender, etc.
- Page Likes: You can see what topics and categories fascinates the audience.
- Location: This option tells you where the audience lives and the language it speaks.
- Activity: How many people clicked Facebook advertisements, passed comments, and from what types of devices, and more.
For example, if you want to get information about the meditation market. You can see that about 250 million global Facebook users are interested in it.
That means, if you refine your research, you can actually get information about the niche.
So, when you look specifically at niches, such as meditation music or yoga pants, you can see that women are more interested than men in this niche.
And if you make “yoga pants” as your dropshipping niche, the chances are that you can target a great audience and make your dropshipping niche business successful.
Likewise, you can also see what people in a specific region or country are interested in?
For example, if you’re willing to target potential customers in the US, you can search the country to find out people’s top interests, like this.
In this scenario, you can see that nearly 30 million US Facebook audience is interested in “Women’s Clothing Store.” Then, the next top category is “Specialty Grocery Stores,” and the list goes on. You can also further refine the search to see niches in the main category.
Doing so will surely give you an idea of what people are more interested in, especially in the US, to start dropshipping by targeting the specific niche.
You can also use Instagram to choose a dropshipping niche. While this social media platform doesn’t include in-depth insights like Facebook, you can still get an indication of a profitable niche for dropshipping.
So type your category in the search field to see accounts and hashtags relevant to the category name you’ve just searched, along with the number of posts in each hashtag.
For example, if you want to make “women fitness clothing” your dropshipping niche, you can search the name to see the results like this.
You need to check each account to see the number of subscribers. The best dropshipping niches are those, which have at least 10 accounts with more than 30,000 followers.
2. Finding Dropshhing Niches with Online Tools
Google Keyword Planner
Another way to analyze any dropshipping niche demands is to know the number of people looking for it. Fortunately, Google makes this easier by launching the Google Keyword Planner tool that allows you to see the search volume of any specific niche.
You need to type the keyword or phrase to see how many people are searching the term every month.
For instance, you can see “meditation” has been searched pretty well over the previous months.
Similarly, you can also filter the keyword to find the most searched niche, like this.
This is just an example of how you can use this tool. You can surely try searching for other keywords of your choice on this platform to see the authentic results.
This is also another great tool to see details of your dropshipping niche. Google Trends gives you a whole lot of new information that you just can’t find anywhere else.
So if you are searching for a “women fitness clothing” dropshipping niche in the US.
You can see that this topic has been a real trend with 100% searches in the last week of September 2021.
However, only New Yorkers have searched this term out of all the US.
That means “women fitness clothing” could be a profitable dropshipping niche if your target audience will be from New York.
There are many other great tools you can use to find tremendous dropshipping niches. And fortunately, you can see the names along with details in this article.
3. Finding Dropshipping Niches on eCommerce Platforms
While AliExpress is a great place to shop economical, high-quality products, you can use this website to look for the best dropshipping niches.
For example, if you want to find a high-demand dropshipping niche in gardening. Here’s what you need to do.
Step 1: Visit AliExpress.com
Step 2: Type “gardening” in the search field to see all the related niches. And look for a niche with a high number of orders, lower price, and supplier rating above 4.
In this case, you can see that “Artificial Leaf for Privacy Fencing” has all the above standards.
So if you make this your dropshipping niche, it can be beneficial for your business.
Undoubtedly, Amazon is the world’s biggest eCommerce platform with all types of products, making it one of the finest places to find profitable dropshipping niches.
Here’s the step-by-step process for finding a dropshipping niche on Amazon.
Step 1: Visit Amazon.com and click on the “All” option to see the main categories.
Step 2: Click on the specific category of your interest to see all the related niches to the category.
In this example, “Baby” as the main category and “Baby Care” as a niche is selected.
Step 3: Find products with the highest rating and number of orders.
In this scenario, a forehead thermometer for babies proves to be a high-demand dropshipping niche.
4. Analyzing Competition
Google and social media platforms can help you identify your competition.
So if you’re examining your competitors on Google, you should focus on the organically listed websites on the first page of this search engine. Contrarily, you can use Facebook and Instagram to find dropshipping niche stores offering similar products as yours.
List out the names, learn their strategies, and know their pricing before entering the dropshipping niche.
Remember, analyzing your competition can be a bit tricky. If there is extreme competition in any dropshipping niche, you will face difficulty driving audiences and competing with established platforms.
On the other hand, if you’re choosing a dropshipping niche with little or no competition, it could indicate that the market is tiny and will limit your growth.
So it is on your research skills to find a niche with moderate competition so you can survive and enhance in the dropshipping business.
5. Finding Dropshipping Niche through Pricing
The next step is to find the price range of your dropshipping niche. Before you get started, you should know about the price people are willing to pay to your competitors in the same dropshipping niche.
So, if your dropshipping niche is about t-shirts for plus-size men and women, and you’re planning to sell one tee for $10. Whereas the same product is on sale at $6 by your competitor, chances are your competitor will win the race.
But if you’re offering the same t-shirt for $6 or less, it can turn the table in your favor.
However, make sure you don’t go broke to compete because there are several other factors to consider to know if your dropshipping niche will bring profit or loss.
6. Profit and Loss Estimation
Do not close your dropshipping niche hunt before estimating profit and loss.
For example, electronic products are high in demand but have lower profit margins. Opposite to that, home furniture is comparatively a low-demand niche but with a high-profit margin.
You will also have to consider the shipping costs before entering any dropshipping niche. Because in most dropshipping agreements, your supplier charges you the shipping fee.
So, for instance, if your supplier is in Boston and your buyer is in Los Angeles, you will have to pay the shipping fee according to the product’s weight and dimensions.
That means, if you select “home furniture” as your dropshipping niche, you will have to pay high shipping costs, and you may gain lower profits and even losses. In contrast, finding a suitable dropshipping niche in electronic items will have lower shipping prices, allowing you to make more sales and earn more profit.
Important Factors to Dropshipping Niches
So you have chosen your dropshipping niche but are not sure where to sell the products?
No wonder Amazon and AliExpress are the top-notch places to sell your dropshipping goods. But it doesn’t mean that these are the only marketplaces for dropshipping.
You can join other places to target your potential dropshipping niche customers. Some of the prominent platforms for dropshipping niche are:
- eBay: Best for all types of products.
- Etsy: There’s a separate section for dropshippers.
- LightInTheBox: Deals in a wide range of categories, including electronic goods, household items, and clothing.
- Banggood: Known for consumer electronic products, but also deals in general items. Plus, they also allow dropshipping.
Your products’ price matters a lot. The price range in a specific niche helps potential customers to decide whether to buy from your store or land on the competitor’s platform.
However, most dropshippers believe that offering cheap-priced products will help them gain more customers and win over their competitors. But this is a big misconception.
If you have a good budget, you can overcome your competition by offering high-value and expensive unit-price products. In other words, you can choose a dropshipping niche with high-priced products with advantageous features. In that way, you can also enjoy high-profit margins.
3. Weight, Size, and Shipping Country
When thinking of products for your dropshipping niche business, it is always wise to consider essential factors like the weight and size of the product and the shipping country.
Your number one preference should be offering compact niche products that have less weight and can be shipped from a region or country with speedy and efficient shipping.
These factors will ensure that your time and shipping costs are minimized, allowing you to make more profit.
4. Aesthetics, Features, and Packaging
Ask yourself if the products you’re offering are good-looking? It sounds strange, but your product’s appearance, features, and overall aesthetics play a vital role in making your dropshipping niche business prosperous.
Remember, the more exciting and neat your products look, the more customer attention they will gain. As a result, engagement will increase, and there will be more chances of getting orders.
5. Need, Want, and Demand
Some products are essential for human needs, such as clothing. But, with a bit increased purchasing power, a customer, who was previously satisfied by wearing second-hand clothes to fulfill the basic needs, will now want to shop for new clothes. And when the purchasing power grows further, the same customer would demand to buy new clothes from a particular brand.
The above example is to help you understand that purchasing power decides customers for your niche business, and then, of course, there should be a niche market – buyers to purchase products.
Your business will fail to proceed further if your dropshipping niche doesn’t include any of these elements according to the market requirements. Therefore, your product must consist of these factors to satisfy customers’ needs, wants, or demands.
6. Avoid Extremely Fragile Products
Try to avoid heavy and massive items during your product selection process, such as large fitness equipment, furniture, amusement facilities, household appliances, etc.
As sometimes, shipping costs make the product more expensive than its original cost. And, in case the item gets broken during the shipping process, customers can go for disputes to get their money back.
Therefore, it is suggested to ignore dropshipping products, like ceramic items, glassware, and other fragile or heavy goods.
7. Offer Novel Items
Unique and creative products, which are in demand, attract more customers than ordinary items. Contrarily, customers can find common products at nearby stores.
So if you’re providing standard products that can be easily purchased from the next door shop, why would a buyer purchase from your online dropshipping platform and wait for several days to receive the item?
8. Sell Easy-to-Use Products
Some complex products look excessively appealing, and customers immediately buy them. But, in the post-purchase phase, the same customers are disappointed and leave negative reviews, which ultimately affects your dropshipping business.
So always choose dropshipping products, which are uncomplicated and easy to use. Doing so will satisfy the customer, and you will have positive reviews on your store.
Tools to Find Dropshipping Niches
There are other great tools, which can also help you find profitable dropshipping niches, such as:
1. Niche Scrapper
Niche Scrapper is a SaaS-based tool to help dropshippers find winning products to offer on various eCommerce stores, such as WooCommerce, Shopify, or anywhere else.