The best dropshipping niches

Dropshipping is one of the leading topics in the online business world. However, getting started and making it in this industry is easier said than done. One of the greater challenges that new online entrepreneurs face is deciding the best and most profitable dropshipping niche for them.

Choosing the right dropshipping niche requires adequate research to steer your business in the proper direction. Luckily, this product review has conducted all the research you need to point your dropshipping business in the right direction.

What is a dropshipping niche product?

A niche market is a small section of the market with a target audience that has similar interests. Businesses who focus on niche markets dedicate their efforts to selling products that suit the needs of the specific group of people, instead of focusing on competing to gain a significant market share in trending markets.

As such, niche products are those products that fit the needs of the people in the niche market. Often, these products are available in small quantities. Niche is available in two varieties; the trendy and the steady niche.

The trendy niche refers to the one that is hot at the moment, but it will eventually die off. For instance, thee fidget spinner was a trendy niche product that had big hype in the dropshipping business, but then its demand died down.

It is crucial for businesses who follow trendy niches to know that the hype around the trendy product eventually waters down, decreasing the number of sales. Trendy niches have a larger market pool and many retailers who follow this niche aim to capitalize on these trends, despite facing intense competition.

best dropshipping niches

The steady niche, also known as the evergreen niche, is a niche product that is on-demand all year round. For instance, dog products and accessories are a steady niche since people will have dogs all year round.

If you are not sure about a steady niche product, consult Google Trends, and determine whether your product features on the list. A steady niche consists of a smaller market than a trendy niche market, but retailers face less competition in sales.

However, it is possible to find a proper balance between trendy and niche products with adequate research on current and past trends

Why do drop shippers need to find a niche product?

Many entrepreneurs find it challenging to decide which niche product to focus on. By finding the best niche product for your online business, you are likely to face less competition when it comes to your target market. Niche products focus on a specific audience with similar interests.

As such, selling these products minimizes the level of competition by offering a specificity of the product. Niche products make your business a big fish in a small pond.

By focusing on a particular niche product, you can focus on a clear target audience, allowing you to perform your research around this target market to find products that are most suitable to this particular audience.

More so, drop shippers with niche products can easily find and reach out to their target audience.

Niche products are specialized products that focus on a small segment of the market. Once you conduct the proper research and find the right product, your customers will be willing to pay higher for them, meaning more profits and higher revenue streams for your business.

More so, customers are likely to show more loyalty and build trust with your business as long as you provide high-quality products and exceptional customer experience.

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How to find the right dropshipping niche for your business

Product research and discovery is an essential part of starting a dropshipping business. Drop shippers have to stock niche products that will sell, allowing them to earn huge profits and grow their business.

Finding the right dropshipping niche for your business requires adequate time and a deeper understanding of the psychological tiers of the consumer market. Here are some guidelines to follow when looking for the right dropshipping niche.

1. Look for a passion interest

dropshipping niches

When you are passionate about a particular item or subject, it is likely that you know more about that specific topic, and you will continue to have an interest in it as time passes. Similarly, when it comes to finding the right dropshipping niche, it is advantageous to find niche products related to your passion interests.

As such, it will be easier to tell which products are of premium quality and which ones will sell more.

More so, you will market these products better as you know what people in the niche market are looking for and what issues they are looking to remedy. Information on the market and industry will naturally come to you due to your knowledge base.

Another added advantage of working with your passion interest is that it is easier to dig in and push through when things get tough because you like and enjoy what you are doing.

2. Find a niche related to your professional experience

When considering your dropshipping niche in relation to your professional expertise, find products that you have grown familiar with using them due to experiencing them in your daily career or profession.

Find a product that you know all its information about, what it has to offer, and what issue it remedies. You might not be passionate about the products in particular, but you have thorough knowledge about them, and you also find them easy to sell despite the market conditions.

More so, selling products related to your professional experience allow you to fill a market gap that you might have noticed in your years of professional experience.

Such market gaps could never be uncovered by someone outside your specific career or market, giving you an added advantage in your niche market.

3. Niche products that solve a customer’s problems

An effective tactic of finding the right dropshipping niche for your business is focusing on products that solve your customer’s pain point. Choose products that address the consumer’s frustration or actual pain.

These products do not have to be trendy or revolutionary to solve the customer’s problems. All they need to be is to have a large market that experiences the same ‘pain.’

As long as your product aids in solving a problem your consumer faces frequently or helps in assisting them in performing a task more efficiently, you have already discovered your dropshipping niche.

For instance, retailers who sell the Apple iPod solve the problems of those looking to enjoy easy access to thousands of songs without having to carry around large boxes of cassettes and a tape player. Similarly, products like Aspirin aid in alleviating headaches and other types of physical pain.

4. Capitalize on trends early

Launching your dropshipping business with a trendy product is not a bad business idea.

However, such entrepreneurs need to identify the trending product early in advance and get your products selling to your target audience to set yourself as an authority in that particular market before your competitors have the opportunity.

Selling trendy products requires you always to be ahead of the trend and continuously update your inventory to keep up with the market. Similarly, your products have to be part of an active market that will not blow up one day and disappear the next day.

As such, focus on a trend product that fulfills a specific need and solves a particular problem that does not go away.For instance, 3D printing is an example of a growing trend that seems not to be going anywhere.

Many people enjoy using it when printing household objects or artificial limbs for people.

As such, you can capitalize on this market by selling 3D printers, or the material products and accessories required to print the products physically.

5. Branded products

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If you want to run a long-term dropshipping business, selling branded products aid in building a reputation in the ecommerce industry. Retailers have to dedicate their efforts and time in researching these products, their markets, and the target audience. 

However, you need to exercise care when selling branded products because you have to ensure they are genuine and represent the manufacturing company in its full light, without infringing on their rights.

6. Use Amazon to find your dropshipping niche

Amazon is the largest market platform for retailers across the globe. The platform sells everything from anywhere in the world. Therefore, if you want to find your own profitable niche in the dropshipping niche, you must consult Amazon.

With the help of this platform, you will find a super-specific product for a particular audience and the best-selling products across the globe.

The ‘Best-Sellers’ page on Amazon, available from the navigation bar at the top of the page, below the search box, is updated hourly, making it a reliable source to find dropshipping niches for entrepreneurs.

The top 10 best dropshipping niches of 2020

1. Kids and baby gear niche

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Selling baby clothes and other kid’s accessories is a gold mine when it comes to dropshipping. The baby care market is approximately worth $73.86 billion, according to Statista.

More so, an average of 360,000 babies are born every day all over the world, meaning every day is an opportunity to make money from selling kids and baby products. People are creating families each day and want to offer the best possible care to their little ones.

If you are selling kids and baby products, you need to keep in mind that your target market is parents, uncles, aunts, and grandparents, among many others. So, you have to think about what products are most appealing to these types of people.

Whether you are selling toys, feeding accessories, clothes, body care products, diapers, or snack accessories for kids, you have to ensure they do compromise the child’s safety and are of high-quality.

Kids and bay products are light in nature, meaning they are easy to ship from anywhere in the world. They are also available at reasonable prices, often between $20 and $200.

The kids and baby care niche is, no doubt, quite a lucrative business as the market is massive, but it is only limited to a few. Therefore, any new drop shipper can take advantage of this market and advertise various promotion activities to sell yourself as an authority in the market.

2. Fashion niche

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If you are looking for a niche that easily triggers compulsive purchases, fashion products are your best bet. Often, these products bring about an emotional response among buyers, motivating them to hit the ‘Buy Now’ button without much afterthought.

Fashion handbags are some of the most profitable fashion items to sell in the dropshipping business. Usually, retailers gain a significant profit when they sell a single item, and their delivery is much cheaper and easier than many other things in the dropshipping business.

However, entrepreneurs in this niche must ensure their products are of premium quality and have unique design and practicality to compete effectively in this industry.

Other items you can sell in the fashion niche include women’s shorts, metallic clothing, and lace clothing. Since women tend to change their dresses more often than men do, selling women’s attire is also a lucrative business.

Furthermore, dresses are easy to deliver, and every woman wears a dress at one point in their lives. 

3. The tech supplies niche

dropshipping niches

With each passing day, the tech industry is growing tremendously. There are numerous inventions discovered each day, ideal for making the lives of human beings more comfortable and easier.

Due to these innovative inventions in the tech industry, the demand for products in the industry is ever-increasing. Wireless technology is a good pick for your dropshipping store.

According to the WhatTech reports, the wireless router industry is set to reach $3200.92 million by the year 2022. Similarly, smart headphones are estimated to grow by 45% every year for the next five years. The wireless audio market is also set to expand to $31.80 million by the year 2023.

So, why not invest in this promising niche?

4. Lifestyle niche

how to find dropshipping niches

If you are interested in offering your customers with products that will bring to their lives, then the lifestyle niche is definitely the right market for you.

Kitchen trends have taken over the lifestyle niche as there is extensive use of smart devices for cooking, cleaning, and organizing processes in the kitchen. Therefore, you can opt to invest in the kitchen industry and sell smart kitchen devices that make kitchen processes easier to complete.

Another lifestyle niche you can invest in is tourism gear. Many tourists enjoy exploring and going on various adventures. As such, they are looking for the necessary equipment to make these adventures more fun and easier to conquer.

However, you have to be quite careful when choosing the tourism gear you sell as the buyer’s health and safety largely depends on the quality of your products.

Home gardens are a huge thing in 2020. Plants are going to be everywhere as the human race purposes to safeguard the earth for its future generations. As such, indoor gardening tools are an excellent dropshipping niche for any new drop shipper.

Just like any other type of fashion item, swimwear has its seasons.

However, this particular lifestyle niche can be re-imagined every new season, making it an exceptional opportunity for drop shippers. You can target swimming training fans or vacation-goers and sell them fancy swimwear of various designs, colors, and cuts.

High-end water bottles are a statement accessory for many people in the 21st century, making it a profitable dropshipping niche. Not only does it solve multiple user’s issues, including dehydration, but it also saves them money, they would have spent on other beverages.

Using high-quality water bottles also aids in sustaining the environment as it prevents plastic pollution.

5. Beauty and health niche

The best dropshipping niches

Who does not want to look beautiful and stay healthy for a long time? Health and beauty are two sides of the same coin. Everyone wants to look attractive, meaning this niche is not as challenging to break into by new drop shippers.

In the United States alone, the cosmetics industry is worth an estimated $64 billion, while the Canadian hair industry was worth more than one billion CAD in 2019.

More so, these huge figures do not even begin to scratch the surface of the beauty and health market as a whole. Beauty and health extend all the way to nutrition and fitness and much more, meaning there are more products to be introduced into the market as the years’ pass.

New online entrepreneurs have thousands of products to pick from in this niche, and they can carve a name for themselves and make a lot of money. Furthermore, the products in this niche are easy to ship as they are lightweight.

6. Jewelry

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Glitter and jewelry are good every once in a while. Many people wear jewelry as a representation of their sophistication and unique sense of style.

As such, the jewelry industry is just as popular as the fashion industry.

In 2018, the jewelry industry was worth $271 billion and is estimated to grow to $645 billion by 2035.

Jewelry is very lucrative, and it is easy to stock and ship. Some of the top-selling jewelry items include earrings, crowns, hairpin, fascinators, bangles, bracelets, and many others.

Although you may not earn a considerable profit by selling single items, there are massive profits to gain if you sell these products in bulk.

7. Home décor niche

Another excellent dropshipping niche for entrepreneurs is home décor. Everyone lives in a home, and the need to furnish and decorate your living space rises at one point or another, regardless of whether you want to renovate or update your existing furnishes.

The home and gardening market ranked fourth in global consumer goods between 2013-2023, according to Euromonitor’s data.

The home décor niche consists of products that sell quite fast, increasing the stream of revenue in your business. From ornaments to wall decorations to flower vases to pillowcases to frames, the collection under the home décor is vast and immensely profitable.

8. Pet accessories

If you are a lover of pets, then the pet niche is an excellent dropshipping niche for you. The entertainment and well-being of pets are of paramount importance to any pet owner.

More so, purchasing pet accessories from online stores is more convenient for pet owners than buying from a brick-and-mortar store.

Drop shippers in the pet niche gain huge profits due to the wide selection available in the market. Whether it is pet treatment equipment, foods, beds, potties, cleaning accessories, or various pieces of apparel, the pet niche consists of a vast selection.

It should not be too challenging to get a buyer for a puppy’s sweater by posting an attractive picture of the dog wearing it.

9. Home gaming niche

dropshipping niches

Home gaming products are increasing in demand despite their popularity in the market. Young people are always looking for the newest game in the market, and nine out of ten times, they are ready to purchase it.

It is one of those few dropshipping niches where people do not mind spending large chunks of their money. In the U.S. alone, the gaming industry is worth $40 billion every year. The niche has grown even bigger due to gamers who stand to earn money by posting videos of them playing the games online.

There are millions of loyal gamers across the globe, meaning you could profit from this passion interest. However, the competition in this market is fierce due to numerous retailers in the niche.

Luckily, new and innovative home gaming products are available to the public at regular intervals, giving you an edge on maintaining steady sales.

10. Weight loss niche

The best dropshipping niches

Anyone who has an interest in skincare, beauty, and weight loss should look into the weight loss niche in the dropshipping business as it is quite lucrative.

Half of the population in America says that they are willing to lose weight, meaning that you already have a hundred million potential customers already.

You can read a few resources and familiarize yourself with digital marketing to get fully acquainted with weight loss and its products.

It is also advisable to write a few reviews and articles about the benefits of your products to inspire loyalty and build trust with your customers, allowing you to rake in money in no time.

Conclusion

Now that you have an idea of some of the most lucrative dropshipping niches of 2020, it is your turn to actualize this information and ideas to start making money from dropshipping.

We hope you find a startup idea from this list to begin your ecommerce journey in 2020.

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