Nowadays, dropshipping is one of the most popular, if not the most popular, forms of online business. With the huge rise in dropshipping merchants, finding the best dropshipping niche is becoming an increasing challenge.
Entering a niche market with quality products by establishing yourself as the brand for a specific target group comes across as not only credible but also successfully serving the right dropshipping niches can be hugely profitable.
In this blog, you will discover the best niches for dropshipping that are still profitable in 2022.
How to find the most profitable dropshipping niches
The first step in starting a dropshipping business is identifying the most profitable niche. Even if you have such a good business idea or product, the profit margin will be insufficient if there is no demand for it. So look for an exclusive niche where demand is high, and supply is relatively small.
It is important to make your idea or product unique to your target market and find a way to gain a competitive advantage based on price, selection, choice, availability, quality and user experience.
This guide will cover the first and possibly one of the most important steps in building your own business: choosing a profitable niche. Choosing a niche can make or break your dropshipping business.
There are two types of niches, bad (unprofitable) and good (profitable).
The selection process is not difficult, but there are quite a few methods that you need to know to choose the profitable product for your dropshipping business. When looking for a good profitable dropshipping niche, you will want to use these methods:
Brainstorming
Before you can test the different niches to profit from, you need to think about the key axes to test; this means you need to take some time and focus on brainstorming and studying.
When you first brainstorm profitable niches, list at least 40 good products that fit the above criteria.
To find new ideas, you must consider what you recently bought online. In addition, you can ask family and friends what they recently bought. Then you must write everything down, even if it seemed questionable at the time. Then I grab this list and start running Tests. Once you have an initial list of niches, you must look at the following:
- Competition: Discover other drop shipping stores and see which products are most saturated. You don’t want to sell those products;
- Prices: The higher the price of the products, the higher your profit margin;
- Loyalty: Don’t look for a niche or product dominated by the national brand;
- Weight: Shipping is expensive, but the profitable product is a high-priced product with low shipping rates;
- Return: Do not select a product with size and style preferences because will have a big return rate.
Research and Evaluate Dropshipping Trends
eBay is still a good marketplace to check if items are sold online, but don’t base your price on eBay. They are very low. Although not relevant these days, it’s still a good place to brainstorm ideas for a profitable niche.
Many niches are profitable, but that doesn’t mean you should rush into choosing.
Two more tips for choosing a niche from the experts:
Here are two tips you should know when searching for profitable niches:
Think outside the box
What is the biggest tip for choosing a highly profitable niche? It would help if you hardly thought outside the box.
When people choose a profitable niche, they often fall into one of two categories. Either people choose a very popular idea or a faraway idea “out there. Common synapses are often oversaturated. Choosing a popular idea leaves you in a highly competitive market where you must fight to prosper.
The other mistake is choosing an alien niche. Something very specialized makes it very difficult to get consistent sales without a lot of extra work. Again, if you search properly, you’ll see that niches like this one feel like real robotics stores (the kind that will give you freedom).
The real way to excel at dropshipping is to pick a product idea ready to go.
Go out and open your mind
Everyone struggles with this, but what you have to do is open your mind. Go to stores and supermarkets for a day, and pay attention to what’s around you as you walk. It’s amazing how many possible winning options you can find.
Also, when you use Google Shopping, you can search for broad words like outdoor or furniture. You will get many interesting ideas by scrolling through all the pages. Using broad keyword search terms can reveal things you never thought of before.
Finding a profitable dropshipping niche is the most important factor in creating a successful dropshipping store.
From Zero to E-commerce Hero: Woocademy’s 7-Day Challenge for Your WooCommerce Dropshipping Store Launch!
Best niches for dropshipping
Now that you know how to find a profitable dropshipping niche, we want to list the best niches for dropshipping and if you start a high ticket dropshipping business you can also check the best high ticket dropshipping niches.
1. Pet supplies
Pet supplies flaunt the top spots on the lists of popular dropshipping niches. Globally, millions of people have a pet. Research shows that the demand for pets has grown steadily over the past five years. People like to buy functional and fun pet supplies for their furry housemates. So it is a niche where you can successfully reach a specific target audience and remain profitable over the years.
Read also: Best dropshipping pet supplies platforms
2. Beauty
The beauty industry lends itself perfectly to dropshipping. The industry can be very profitable despite stiff competition with the right business model. It is a niche where many people are happy to spend money on things they don’t always need. We recommend a high-quality inventory and low prices to succeed in this market.
3. Gadgets
Nowadays, people want the latest gadgets in their pockets yesterday rather than today. Goods and technology that make our lives easier are popping up like mushrooms. We advise you not to opt for the highest possible quality in this niche, as gadgets are returned more than average.
4. Nutritional supplements
More than half of the population uses dietary supplements. This number is only expected to increase in the years to come. People use supplements for many reasons, including health, religious reasons, environmental impact reduction, and animal welfare. A niche with opportunities for dropshipping.
5. Gym and working out
The demand for sports and workout gear continues to grow. If you want to target specific niches within this niche, cycling clothes, running shoes and yoga mats, among others, are interesting. Make sure your offering is innovative, as this is a niche where people spend a lot of money.
6. Baby stuff
The world’s population continues to grow; people continue to reproduce. Parents and caregivers need functional and complementary products for their babies. If they can trust that you have high-quality or child-friendly products, then you have a good chance of succeeding within this niche.
7. Home office equipment
Working from home has gained popularity recently, especially after the corona crisis, so this trend has gained momentum. Now that the pandemic is behind us, many employers are letting their employees work from home for anything from a few days to a full working week. It is a unique opportunity to target this niche.
8. Car Accessories
Air fresheners, car mats, cleaning items and repair parts: the demand for car accessories remains very high. Moreover, car enthusiasts are always looking for new items for their cars. A niche with opportunities.
9. Photography
Photography enthusiasts spend quite a lot of money on their hobby. Tripods, lights, batteries and bags are especially popular. Make sure you have an exclusive and high-quality offering, and then you can succeed within this niche.
10. Travel and tourism
Many travellers look for new gear for their holidays or tours just before departure. Travel and tourism are very competitive niches, but when you find the right products, you can make this a very successful business.
Conclusion
I have briefly explained how to find the most profitable and the best niches for dropshipping. The right niche for your business depends on your organizational goal, product range and market demand, among other things. If you want to start a dropshipping business, WooCommerce is the number one on the list of best ecommerce dropshipping platforms solutions. WooCommerce allows you to sell in many different areas worldwide, is user-friendly, can work alongside your existing site and is cost-effective. With a plugin from Woosa.com, you can easily start your dropshipping business and integrate your shop with different wholesalers and marketplaces.
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Best niches for dropshipping: FAQs
Is Dropshipping Still Profitable in 2022?
Absolutely yes; although various statistics show that the dropshipping industry is saturated, it still has a lot of potentials and is not on the verge of extinction. The market value of the dropshipping industry is expected to reach $ 557.9 billion by 2025.
What are dropshipping niches?
Dropshipping niches are products in a particular category that attract people with similar interests and needs. When choosing a niche for your online shop, it is important to research supply and demand, as not every product category will consistently generate sales and be profitable.
What is a profitable dropshipping niche?
A profitable dropshipping niche is one with sufficient demand for your idea or product and where you can gain a competitive advantage and profit margin based on price, selection, choice, availability, quality and user experience.
