You’ve probably heard of dropshipping, the online business model that lets you sell products without having to buy or store them yourself. It sounds like a dream come true, but there’s a catch.
Dropshipping is not as easy as it seems. It’s a highly competitive and saturated market, where you have to compete with thousands of other sellers who are selling the same products as you.
That’s why this dropshipping niches guide is for you. To help you avoid the common mistakes that most dropshippers make, and show you how to succeed in this lucrative but challenging industry, you will learn:
- What are dropshipping niches and how does it work
- How to find the most profitable dropshipping niches
- Most profitable dropshipping niches and niches to avoid
- …and much more.
This guide is packed with practical tips, examples, and resources that will help you launch and scale your dropshipping business in 2023. So, ready to start your dropshipping journey? Let’s dive in!
|💡 Based on your interest:|
What Are “Dropshipping Niches”?
Dropshipping niches are specific segments of the market suited for dropshipping businesses. One of the first and most important tasks in starting a new dropshipping business is selecting a niche.
Choosing a niche is one of the most important steps in starting a dropshipping business because it determines:
- What kind of products you sell
- How you design your website
- How you market your products
- Who your target customers are
You should choose a niche that is profitable, popular, in demand, and not too competitive. Make sure that the niche you’ve chosen matches your passion, expertise, or interest.
The sooner you pinpoint your niche, the earlier you can start learning how to start your dropshipping with ease.
How To Find The Most Profitable Dropshipping Niches?
Choosing a niche that fits your current skills and hobbies is good because the most prosperous dropshipping business owners have a solid understanding of the industry and the products they offer.
Selecting a market niche with established appeal and demand is equally crucial. Whatever dropshipping ideas you have in your head, use the following tactics to facilitate your process of finding the right dropshipping niches to sell.
Here are 6 fundamental steps to define your dropshipping niches:
Step 1: Start with yourself
Think about what topics, themes, or aesthetics appeal to you personally. What are your hobbies, skills, or passions? What do you like to learn, read, watch, or do in your spare time?
Make a list of these things and see if any of them can be turned into dropshipping niches.
Choosing a niche that you are interested in and enjoy can make your dropshipping business easier and more fun. You will have a better understanding of your customers and their needs.
Selling the products you love will give you more motivation and inspiration to work on your business, rather than focusing on the money, even when you face challenges or difficulties.
Step 2: Check out the trending dropshipping products
A great way to find the best niche for your dropshipping store is to look for the current trending products and take your chance to capitalize on this growing demand.
Where to go when finding hot and trending niches/products? Marketplaces. On their platforms, they have a page for best-selling products where they demonstrate the items from different categories that are sold the most.
You can find the best-selling items on AliExpress by browsing their Top Ranking page. This page shows you the most popular and trending products in different categories and niches, with their current selling prices and number of followers.
Step 3: Conduct market research
Without public interest, even the most outstanding things won’t be able to sell. Therefore, analyze the market to see if there is room for you to enter.
Numerous social media networks and search engines offer free resources to assess dropshipping niches’ potential profitability. Besides, you can utilize the insightful information provided by services like:
- Google Keyword Planner: By examining how frequently users of particular keywords enter them into Google, you can weed out markets and goods with lesser search volume.
- Google Trends: View the volume of searches for terms associated with your market and follow the evolution of product interest.
- Facebook Audience Insights: By looking at demographics, page likes, and location, you can have a better picture of your potential consumer base.
Look for areas where you may experience less competition and have healthy profit margins. In the same way, providing products that are in great demand or have little competition from other vendors will aid in expanding your consumer base.
Step 4: Understand customer behaviors
If you’re struggling to come up with the ideal concept for a niche, consider this way: Sometimes, finding a customer is more important than finding a product.
Do your research on online shoppers by going to the comments/reviews sections and see how they judge products, what they like about them, and what purpose they bought a certain item for.
Once you’ve identified who you want to sell to and their pain points, you can then develop customer personas for your audience. That will help you focus on the people who will be your “ideal customers” and assist you identify your unique selling proposition.
Your ability to comprehend and target your audience will be improved by creating buyer personas that are more granular and specific.
Step 5: Analyze the top competitors in the market
Another way to find profitable dropshipping niches is to learn from your competitors.
You can look for other businesses in your niche and see what products they are selling well and why they are selling them. Don’t forget to check for any of their products has poor performance and bad reviews, as well.
By doing this, you can avoid making the same mistakes as your competitors and find the best products for your niche, and find out what makes your products unique and valuable to your customers.
But how do you find and analyze your competitors? It can be a time-consuming and tedious process, especially if you have to do it manually. In this case, most dropshippers will turn to tools to track and find data on competitors for them.
💡 If you’re dropshipping on AliExpress, AliHunter will be the perfect choice to keep an eye on your competitors’ sales data in real-time and historically to optimize your own actions.
With its powerful features, you can save hours of research and get valuable insights into your competitors’ strategies and products. Here’s how to do it:
- Step 1: Install the AliHunter Chrome extension on your browser.
- Step 2: Visit any product or competitor’s store page on AliExpress that you want to track.
- Step 3: AliHunter will automatically hover at the bottom left corner of the page. You will see a dashboard with all the information you need.
- Step 4: Explore the different tabs and sections of the dashboard to access and evaluate various information, such as:
- Insights: Product details such as order statistics and pricing history.
- Review: Detailed information on product ratings and separated categories for positive and negative reviews.
- Supplier: General evaluation of the suppliers’ credibility based on several criteria.
- Step 5: Use the information you get from AliHunter to improve your own dropshipping business. You can find the best products and niches for your store, optimize your product listings and prices, and learn from your competitor’s strengths and weaknesses.
Step 6: Use the product research tools to find out the potential niches
Product research is a crucial component of product success because it aids in customer understanding and improves your ideas and initiatives for your products. You can accomplish all of this more quickly, effectively, and accurately with the use of research tools.
Many top-notch tools for product research can give you helpful information about various niche possibilities. You’ll be able to figure out the market’s level of saturation, whether there is a demand for your niche and any significant trends.
So, what are dropshipping product research tools to help you find the right one to sell? They are:
- AliHunter: This tool helps you find and research products for your dropshipping business. With AliHunter, you can explore millions of products on AliExpress, compare prices and suppliers, see the product’s social media performance, and spy on your competitors’ stores and sales.
- Hotjar: It offers you deep product experience (PX) and digital analytics to better understand user behavior and gain the voice of the customer input on your products.
- Make My Persona: A highly useful (and cost-free) tool made by HubSpot to aid in the definition of your product personas. For your product to be created or improved, it is essential to comprehend your consumers and their wants. Then, you can make actionable user personas after gathering sufficient data on them.
- Productboard: A product management tool that assists you in finding a product that you are confident your users will want. It can help you centralize consumer comments, and utilize AI to transform data into insights that can be put to use, create a roadmap for your product, and decide which features to prioritize depending on data.
6 Most Profitable Dropshipping Niches For 2023
To remain profitable, the majority of dropshipping businesses concentrate on particular sales areas.
Choosing your dropshipping niches is a technique that enables you to create the ideal business plan and choose high-demand goods to sell online.
So, what are the dropshipping niches that would be beneficial for your new online store in 2023? Let’s have a closer look with the help of AliHunter (as a reference).
1. Phone and Accessories
According to a Market Decipher analysis, the global market for smartphone accessories is anticipated to exceed $139 million by 2027. Given the ubiquitous usage of cell phones and the growing digitalization of our world, this is not surprising.
Companies will launch a new phone model every year, if not more frequently, as long as technology keeps developing. Many items can be sold online in your eCommerce business as phone accessories.
For your dropshipping store, some examples of smartphone accessories are:
- Memory cards
- Phone cases
- Headphones and earphones
- Screen guards
- Portable speakers
- Chargers, batteries, and portable power banks
Make sure your store sells high-quality, long-lasting accessories with precise product descriptions if you want to be successful in this niche. If not, you can see a lot of returns and negative reviews.
2. Mom & Kids
You don’t have to be a parent to understand that having a baby also carries a lot of bills with it. Families must get ready for the new member even before they are born.
Kids’ and babies’ products are actually among the most well-liked dropshipping niches due to the ongoing demand. As kids get older, their parents buy them new items to keep them cozy and secure.
The market for baby products, which was valued at $215.1 billion in 2021 and is anticipated to reach $325.57 billion by 2028, presents a great opportunity for dropshipping businesses.
Online retailers are a great place for parents, grandparents, members of extended families, and friends to purchase goods for babies and children like:
- Baby Clothing
- Toys and accessories
- Nursery decor
- Baby blankets
- Diapers and wipes
Keep in mind that safety is a top concern for parents. So, running a dropshipping business specializing in children’s products requires constant attention to safety recalls, advisories, and reviews.
Additionally, it’s critical to provide customers with items that look good and function well. When choosing the merchandise you’ll sell, aim for vibrant colors and enjoyable designs that will keep youngsters interested and amused as they eat, play, or travel.
3. Office Supplies
Whether working onsite or remotely, a nice workplace raises motivation, encourages teamwork, and boosts productivity. In that sense, office supplies can simplify your workday and add enjoyment to routine duties. It follows that the huge demand for tools that enable people to excel at their jobs is not surprising.
Office supplies are frequently purchased in bulk, which raises your profit margin. Customers frequently buy goods on a regular schedule and make emergency purchases in between, making recurring sales a prominent aspect of this niche.
This lucrative dropshipping niche features goods like:
- Pens, pencils, markers, and highlighters
- Scissors and paper cutters
- Desk accessories
Establishing your target market is essential if you want to create a dropshipping business for office supplies. Along with large companies, you should target small and medium-sized firms, educators, and independent contractors in your marketing campaigns.
Furthermore, even though clients in this market segment are more inclined to purchase many items, be careful not to underprice them. Your rates should be reasonable and competitive, but if you constantly undercharge for your goods, you won’t be able to develop a successful business.
4. Gaming Accessories
The popularity of video games and online gaming has skyrocketed, making it a desirable area for dropshipping goods. A significant factor that makes gamers a fantastic audience is their passion.
Online gaming competitions known as eSports draw peak audiences of up to $5.41 million for live events. You may sell the best accessories to players who want the best gear to help them break records through your new dropshipping business.
You have a gold mine on your hands when you choose a market with devoted consumers. Sales are eventually produced by passion since it stimulates curiosity and action. Just consider the potential of a 2.95 billion-strong gaming community.
With that kind of fan base, it should come as no surprise that the video game industry’s income is predicted to reach $384.90 billion in 2023. And if you believe there isn’t much more opportunity for growth, reconsider; by 2027, the market is expected to reach $521.60 billion in volume.
Some of the gaming industry’s most lucrative dropshipping goods:
- Gaming mouse pads
- Gamer chairs
- Gamer headsets/headphones
- Gaming controllers
- Video game merchandise
5. Kitchen Appliances
More and more people are getting into cooking, which has increased the market opportunities for kitchenware. 50% of respondents in the US stated they were interested in learning more about cooking during the Coronavirus outbreak.
More than that, 36% of respondents said they now cook at home every day, and 54% said they were cooking more. Kitchen products are a strong contender as a dropshipping specialty.
A productive cooking procedure enables us to incorporate our passion for food into our meals. By providing top-notch kitchen tools, your dropshipping store can give home cooks all over the world enjoyable culinary experiences.
Some examples of popular kitchen products:
- Electronic scales
- Can openers
- Kitchen towels
- Kitchen Appliances
6. Pet supplies
Which of your friends, family members, or co-workers owns a dog, cat, bird, or fish?
A recent survey found that 66% of U.S. homes have pets. I don’t have to tell you how much money people spend on their canines if you’re one of them. There are a ton of people that treat their animals like there’s no tomorrow.
Just in the US, the entire pet business has increased to $136 billion in 2022. There are many ways to enter the pet supply market but to increase your chances of success, focus on a particular niche. Some dropshipping products in the pet supplies niche are:
- Food bowls
- Pet clothing
- Pet travel bags
- Treat dispensers
- Custom pet portraits
- Pet grooming
Top 4 Dropshipping Niches To Avoid (Thank us later!)
Although there are several opportunities in the dropshipping industry, not all dropshipping products are made equal, particularly if you’re just getting started.
In some markets, it’s very impossible to turn a profit that will last. Also, you should be aware that others have additional difficulties, such as high return rates, etc.
So, what are dropshipping niches that you would want to steer clear of for your online store? The answers are:
Apparel is a niche that you should avoid for dropshipping because it is incredibly saturated and competitive. According to Statista, the global apparel/fashion market was estimated at US$768.7 billion in 2023. Without a doubt, the competition is fierce and customer expectations are sky-high.
There are way too many stores that sell clothing, shoes, accessories, and other items that people wear, and it is hard to differentiate yourself and attract customers. You also have to deal with regular issues such as sizing, quality, shipping, and returns, which can be costly and quite time-consuming.
Unless you have a unique selling proposition, a loyal customer base, and a reliable supplier, you should stay away from this niche.
If you want to succeed with apparel, though, you need to offer something that no one else can, such as a distinctive style, a social cause, or a personalized service.
Cosmetics is another niche that you should avoid for dropshipping because it involves a lot of risk and challenges. People use these products directly on their skin, so they are very sensitive about the quality and safety of the products they buy.
If you sell subpar or harmful products, you can damage your reputation and face legal consequences. You also have to compete with many established brands and influencers who have a large following and trust in the market.
To make it in this niche, you need a lot of capital, high-quality products, and a strong marketing plan.
Healthcare is a niche that you shouldn’t jump into as a newbie due to the difficulties associated with it. Health products are supposed to improve or maintain the health of your customers, so they have high expectations and standards for the products they buy.
If you sell poor-quality or fake products, you can harm your customers’ health and well-being, and face legal repercussions. You also have to be careful about making false or misleading claims about your products, as they can violate the regulations and laws of different countries.
To sell in this niche, you need to have a lot of knowledge, expertise, and credibility, as well as unique products like natural supplements, digital health devices, or telemedicine services.
Although this is one of those dropshipping niches that have some promise for large profit margins, it is highly crowded.
According to GrandViewResearch, the global watches market is expected to grow from $50.1 billion in 2018 to $117.8 billion in 2025, expanding at a compound annual growth rate of 13.0%.
Some of the well-known players in this market are Seiko, Fossil, Casio, Rolex, and Apple. They have established their brand image and customer base over the years.
To stand out in this niche and compete, you need to sell high-quality and expensive watches that have a unique design or function. However, this requires a lot of investment and marketing skills. If you sell cheap or low-quality watches, you will lose customers’ trust and loyalty.
Dropshipping Niches FAQs
1. What are the best niches for dropshipping?
- Smartphone accessories
- Baby products
- Office Supplies
- Kitchen products
- Pet supplies
2. What are the most saturated dropshipping niches?
- Health products
Dropshipping can be a rewarding and profitable business model if you choose the right niche to enter. You can start your own online store in a matter of hours and become a successful seller in a few months.
But how do you find the right dropshipping niches for your dropshipping business? You need to do some research and analysis to identify a niche that has high demand, low competition, and good profit margins. We highly recommend using the methods we discussed in this article to easily find a niche that meets these criteria.
Don’t wait any longer, start your dropshipping journey today!