Do you know that it is easy to start dropshipping products? Find out how to begin this lucrative online business with the aid of the many tips that have been provided in this guide.
What is Dropshipping?
It is an eCommerce method of passive income earning that involves acting as a retailer by relaying orders for goods to the wholesaler, manufacturer, or third-party supplier without keeping them in stock. Presently, dropshipping is considered to be one of the most lucrative online businesses to venture into.
In 2019, the global market size for this industry was valued at about $122 billion. The business is most popular in the United States—followed by the United Kingdom, Australia, Canada, Germany, France, Scandinavia, Spain, and so on. Statistics have shown that the venture has been adopted by roughly 27% of eCommerce retailers.
How to Select a Niche for Dropshipping
Dropshippers can be successful if they concentrate on the right niche at the right time. They need to choose specific market segments for their businesses. The process of selecting the best niches for dropshipping can be very challenging. You need to be sure that your chosen niche is feasible. Check the tips below.
- Consider the amount of profit you want to make
- Understand the competition
- Research future trends
- Understand how timing is important
- Know the type of customers you will be dealing with
- Consider the Amount of Profit You Want to Make
Since you are starting the business mainly to earn money, ensure that the niche has products that will surely yield the kind of profit margins you want. The most profitable dropshipping niches are those that have high ticket items to dropship and sell fast. Having a diversified inventory under the same niche is a good idea to keep customers from checking other competitors for unavailable products.
2. Understand the Competition
It should not be a surprise if you realize that there is high competition in the most profitable dropshipping niches. Nonetheless, try to see how you can thrive in a competitive one. A positive mindset is needed to avoid being scared out of an idea without proper insight.
Conduct an online search to check the number of strong competitors that are in that specific market segment. If they are too many, it will be best to play safe by moving on to another niche idea. Although you have to be cautious about this too. Few available competitors may mean that the market is too small for the product.
3. Research Future Trends
Will you be able to thrive in that niche in the long run? You can never truly know unless you conduct dropshipping product research. This will be elaborated on later.
In view of future trends, dropshippers should always seek to upgrade their eCommerce sites on a regular basis, apart from embarking on dropshipping product research. Patronize the best web development experts that you can afford to have the very best ecommerce system for your site.
4. Understand how Timing Is Important
Dropshipping product research will give you the data required to know the projected demand for an item at certain periods of the year. Is the demand and supply for the product going to be affected by seasonality? For example, if your niche is thick clothing, you can be sure that sales will start dropping as the summer season approaches.
The best dropshipping niches you can choose would be the ones that thrive in every quarter of the year. However, if you realize that you can make enough money during a peak window while focused on a seasonal niche, then you can decide to give it a try.
5. Know the Type of Customers You Will Be Dealing with
Imagine having high ticket items to dropship and still be able to sell them all year round. Do the potential buyers have the tendency to demand the products in that niche consistently? If so, then it will be a good prospect for you. In view of the other criteria discussed earlier, it will become one of the best dropshipping niches available to you.
Eventually, you may be convinced to opt for low-profit items. Why? If they are fast-selling products, the profit margins will add up to an impressive total at the end. For example, perishable consumables like pastries tend to sell fast and can be sold all through the year. Remember that your success is also dependent on great customer relations and effective marketing.
Top Dropshipping Niches in Trend
Soon, we will get to the best dropshipping products. For now, the spotlight is on the best dropshipping niches in 2020. This may just be the information you need to turn around your eCommerce store for the better. All you would need to do is to pick from the list of the most profitable dropshipping niches below.
- Power tools
- Tech supplies
You can deal in the sales of drones and their accessories if it is a niche that piques your interest. There are various types of drones and drone accessories to sell including professional drones, mobile drones, remote-controlled drones, drone cameras, and so on.
Do you know that you can earn a six-figure income just by concentrating on the lifestyle niche? You would need to have a well-executed advertising campaign to gain as much as that from this venture. There is a big market for you in this niche. You are looking at potential customers of all ages.
This is one of the best niches for dropshipping because it has sub-niches that are relevant to human life on a daily basis (throughout the year). Examples of lifestyle sub-niches are fashion, nutrition, health, beauty, travel, fitness, etc. You will definitely find some of the best dropshipping products to sell here.
3. Power Tools
In recent years, there has been a steady demand for power tools because more people want to make their work easier. Products in this niche are considered as some of the best items to dropship. Examples of power tools include washing machines, drills, vacuum cleaners, snow blowers, sewing machines, power wrenches, nail guns, lawnmowers, chain saws, etc.
4. Tech Supplies
This is another niche that has some of the best dropshipping products. The relevance of tech supplies to the modern world cannot be overemphasized. Demand for them will keep getting higher as the years roll by.
One factor that dropshippers need to be mindful of is the constant advancement in technology. You need to know the best time to switch to selling new products. Examples of items that can be sold are mobile devices, personal computers, printers, sound systems, etc.
It is advisable to go deeper by checking out the sub-niches under the best niches for dropshipping explained above. For example, you may want to focus on drone accessories instead of everything about drones.
How to Find the Best Dropshipping Products
It is only right that you should ask for directions whenever you find yourself in an unfamiliar place. As a newbie in the industry, you should think about where the best dropshipping products are, while learning the ropes. Let the following steps guide you:
- Browse for product search platforms
- Look for all the relevant information you need
- Check the site’s forum
- Browse for Product Search Platforms
This can easily be done via Google Search. You can opt for more specific search terms such as the “best Shopify niches”. Other platform examples include Engage, Product Mafia, Repick, etc. Your surest bet would be to choose from the top search results on the first page.
2. Look for all the Relevant Information You Need
Examples of the type of information that may be sought are demographics and interest selections, profit margins, CPA (cost per action), etc. Still, a better way to get information faster is to use specific keywords like “best Shopify niches”.
3. Check the Site’s Forum
Many of these platforms have forums where dropshippers can have discussions. For example; Shopify Dropshipping Facebook group, Product Research Lab Facebook group, etc. Now, you know that you can visit Shopify’s forum for dropshippers, apart from searching for the best Shopify niches on Google.
20 Best Dropshipping Products
You are about to know 20 of the best items to dropship and realize that your chosen niche does not have to be one that has high ticket items to dropship for huge profits. Marketing them effectively via SEM (search engine marketing) and social media platforms will help you earn as much as was projected. See them below.
- N95 Respirator Masks
These are first on the list of the best products to dropship because they have become important items globally as a result of the COVID-19 pandemic.
2. Hand Sanitizers
This is also second on the list of the best items to dropship for the same reason as the first—the recent pandemic.
3. Fitness Trackers
This item can be packaged as a gift for the holiday season. There is likely going to be high demand during that period.
4. Ear plugs
Since they are easy to misplace, it means that they can be categorized under repeat purchase items. You can sell them for double their cost price.
5. Melatonin Tablets
Many people all over the world experience difficulty in sleeping and that is why this product is in high demand. It helps people sleep.
Slime became a trending internet sensation this year. It can come in various forms depending on its uses. You are advised to sell this product for 100% profit.
7. Neck Phone Holders
This product offers an alternative to holding your phone with your hand. This is why more and more people are seeking to purchase it.
8. Magnetic Charging Cables
Magnetic charging cables let you switch between various USB types. Hence the high demand for them.
9. Rice Cookers
The popularity of this product is increasing, and for good reasons. It makes the cooking of rice easier and faster.
10. Posture Correction Belts
Check Google Trends to see how the popularity of this product has risen in recent years. You can sell them for 250% of their cost price.
11. Waterproof Floating Phone and Tablet Cases
Take advantage of the expected high demand for these products during the summer season when people would go to swimming pools and beaches more. You can sell this for over 400% of its cost price!
12. Moon Lamps
Demand for this product is expected to rise during the holiday season because it would be an innovative addition to decorations. It can be sold for 250% of its cost price.
13. Mirror Alarm Clocks
This is another “250% the cost price” item to take advantage of. Google Trends shows a steady rise in the product’s popularity over the years.
14. Portable Mini Air Conditioners
You can rest assured knowing that the demand for this product will be very high during the summer.
15. Waterproof Shoe Protectors
These products will sell well in countries that experience high levels of rainfall. You should target rainy or monsoon seasons while selling at 300% of the cost price.
16. Magnetic Face Masks
This product is still selling well since it became popular a couple of years ago. Your major targets will be aged women.
17. Deshedding Pet Gloves
You can key into the massive market of pet lovers worldwide.
18. Desktop Punching Bag
Why is this one of the best products to dropship in 2020? Many people relieve stress by using punching bags at the gym. Now, they easily do so while at their work desks. Sell this to make 200% profit.
19. Wireless Chargers
Ensure that you sell top quality chargers to beat the competition. Now that Apple has launched its new iPhones with wireless charging, you can be sure that there will be an increase in demand for the item.
20. Organic Tea
Why is this one of the best products to dropship? You can sell these in any season, in addition to the advantage of consistently high demand.
Your chosen products and niches will determine the success of the venture. It is advisable to test your niche ideas for feasibility before deciding to implement them fully. Learn more about how to select the best dropshipping products to sell by watching this tutorial video: