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How to Find a Dropshipping Niche That Works for You

The first step in starting a dropshipping eCommerce store is choosing a niche for your dropshipping store. A niche helps you build an audience, influences your marketing and content efforts, and makes it easier to create better products for your ideal customers.

With so many different dropshipping niches in the market, choosing the right one can be difficult. After all, choosing a niche can make or break your dropshipping business. Here are some tips for budding eCommerce entrepreneurs on finding a niche that is most likely to result in a successful dropshipping business.

Market research for dropshipping niche

It may sound simple enough, but it is not easy to find the best dropshipping niche. When deciding on the best dropshipping niche, there are two options – to fill an existing demand or to create it. It is much easier to fill existing demand than trying to create it. You might have an idea you think is great, but without demand, it doesn’t matter, as you are unlikely to make any sales.

However, there are several ways and tools that measure the demand and niche popularity of a product or market. This way, you can find out which existing niches are in greatest demand but also see if there is any niche market for your specific niche idea.

Join the existing online retailers’ profitable dropshipping niche

If you want to start a profitable eCommerce business with the best chance of success, you can’t go wrong by entering a dropshipping niche that’s already proven to be popular. For several years now, and likely in the future as well, any search engine will list the following search results as the top dropshipping niches.

Wardrobe and accessories as a dropshipping niche

One of the most popular dropshipping niches, and one with very low-cost products, is clothing and accessories niche products. Yes, everyone offers it, but the key is to set yourself apart and define your brand. Choose a particular theme, text, offer a better price – options truly are endless. 

Apparel personalization is also a very profitable dropshipping niche with a large profit margin, as you can tell by looking at some big-name designers such as Gucci, Christian Dior, and even Ralph Lauren. So by offering personalization variations in colour, images, or text – your dropshipping store already stands out from some of the other dropshipping stores.

Health and personal care

Health and grooming niche is also a popular dropshipping business today. Since grooming dropshipping products generally cost very little to produce, you can increase these margins fairly easily while targeting a market that has a consistent need for repurchasing.

Packaging is easy to personalise with your own brand, while also having a large potential for cross-selling. Cross-selling simply means being able, at the same time, to sell accessories that go with it. For instance, with a shower gel, you could add a loofah. With a brush, sell a set of hair ties.  You can choose and adapt it to whatever other dropshipping products you sell, from phones and accessories to bags.

Office products as a dropshipping niche

This is one of the best dropshipping niches. For one, there are so many dropshipping product ideas. There are desktop items like mugs, notepads, keyboard trays, as well as other always trending products. They are all great choices for your dropshipping model.

These dropshipping products are generally low-cost and customers don’t expect them to be of very high quality or last long, so it is one of the lowest-hassle and lowest-risk niches. There’s also a very large market for it, particularly if you can tap into office trends and popular culture. Most often, the trending dropshipping products are office products.

Car accessories

A majority of people own at least one car, and they often spend a lot of time in them. Look into items like car decals and stickers that potential and existing customers can purchase to personalize their cars. Also, useful car accessories, that can make the driving experience more pleasant for your customers, are also popular dropshipping products.

If you’re not interested in the popular niches above, you can always research other niche markets. You can do it using online tools such as Google Trends. You can also benefit from search engines, or by placing your marketing efforts into conducting old-school research.  

Search interest for the best dropshipping niche markets

It’s all about preparation and research. Doing a ton of market research gives you the best chance of success, once you’re ready to launch your dropshipping business. Of course, selecting in-demand, low-competition dropshipping products for your dropshipping store is just one part of the success equation. To build a successful dropshipping business, you’ll need to understand your ideal customers.  

One of the easiest ways to find potential customers is by looking at your own life and interests. If you are an expert in a given field, you know the little details that help you choose the best niches for dropshipping products in that particular field. Sometimes you need to find a customer first for your online store, and then the dropshipping products. Once you’ve figured out who you want to sell online to (and their pain points), how you want to sell it to them will come naturally.

Brainstorm different dropshipping niche ideas

Before you can find a good dropshipping niche and start calculating a profit margin, you need to think of niches to test.  When first brainstorming profitable dropshipping niches, make a list of at least fifty niche ideas. To brainstorm new ideas, think of things that you’ve bought online, either recently or in the past. Also, ask family and friends what they’ve recently purchased. Think of possible ‘pains’ that a potential customer might have and what products you could provide as solutions. 

To find a good niche for your dropshipping business, think of what people do on vacations and money passionate hobbyists, for instance. Think of daily and annual standard activities, online shopping stereotypes. Once you’ve got the list of niches down, comb through them and analyze them further to find the best dropshipping niches. Ask yourself whether the related dropshipping products are already present on the market. Scout out other dropshipping store trends to find out which dropshipping products are over-saturated, and steer clear of those niches. Also, don’t go for a niche market or a product that is dominated by a national brand. You will have a hard time selling products the national brand is known for.

Search volume and search results help in finding dropshipping niche

We cannot talk about dropshipping business without mentioning two giants – eBay and Amazon. Going through their search volumes gives you quite a lot of information and helps you see the most profitable dropshipping niches.

Measure search volumes on eBay to help your online business

Go through different categories on eBay and change your search results to show “completed listings”. Look through products that are in red and green. Red means the item did not sell. If it’s in green it means the item sold.

Look closer into green and search for completed listing only for that specific product. This is a tedious, old-school way to find a niche. However, if you do it over and over you will identify several products within one niche that almost always sell. There’s your perfect dropshipping product that’s guaranteed to draw potential customers.  

Finding a niche with Amazon’s drop shipping business model

With Amazon, you can find some very specific profitable niches and dropshipping products. In any given search query, you can find a list of categories or ‘niches’. You can then go down into a subcategory, and further down into more specific sub-niches.

If you choose ‘best sellers’ from the navigation bar, you’ll see what’s currently selling best. Amazon’s “Best Sellers” page is updated hourly which gives you quite accurate information on the most profitable products!

Finding a niche market by using online tools

When you use search engines to perform a search, it’s important to realize that Google personalizes the results you see based on your geographic location, browsing history, and other factors. When you’re analyzing a market, you need to see unbiased results, so make sure you research using an incognito search.  All of the following tools will help your marketing and SEO (search engine optimization) efforts, and help you find a good niche dropshipping store.

Facebook Audience Insights

With over 2.23 billion monthly active users, Facebook is the largest social media network. For this reason, Facebook Audience Insights is a great free dropshipping product research tool that can help you find niche markets and trends. Use it to find useful information like demographics, page likes, location, and activity.

For example, type in any keyword in the keyword tool and Facebook will show you how many monthly active people are interested in this niche worldwide. You also can see how many people are interested in a topic, their likes, and their location. You can also look at sub-niches, and any related interests to explore different dropshipping product ideas. The estimated size of your audience will change depending on the interests you include, but you can refine this audience by location.

Google Keyword Planner

The best way to measure demand for an item online is to see how many people are looking for it. You can do that using a search engine like Google and its Keyword Planner tool. This search volume publicly available tool is great in so many ways! Simply type in a word or phrase and the tool tells you how many people are searching for it every month.

You have several options for matches, but you should use the exact match option. This will give you a much more accurate picture of the applicable search volume for the keyword.  Since search location is customizable, make sure you look at the difference between local search volume and global search volumes. This is important for your online store, depending on whether you want to sell online locally or globally.

For more detailed insights, a lot of people use Google Trends. It has tools such as Search interest over time and Trends. This tells you if the niche you’re entering is growing – and you want it to! For any search query, you can see the growth or decline in search volume over time. Google Trends also has a Top and rising terms option, where you can see the most popular related searches. It tells you which queries have been growing in popularity the fastest. This way, you know which ones to pursue further for your dropshipping method.

Geographical concentration can help you identify where your customer base for a niche is most heavily concentrated. It also tells you where the majority of your online store customers will come from. Another very important Google trend it gives you information on is Seasonality. This tells you if the demand for a product changes dramatically at different points in the year. This is important if you’re selling seasonal items in your online store.

Tips for making the most of your eCommerce business

Look for accessory-heavy niches. Accessories are usually inexpensive to produce and depending on customization, the profit margin can be significant. If you’re not quite sure which accessories, Google trends can be quite helpful in guiding you.

Find customers with passion. Passionate hobbyists will spend a large amount of money if you cater to their needs.  If you can offer a product-based solution to a painful problem, you’ll find an audience eager to buy.

Aim for niches with low product turnover. Repeat customers are essential to any business. If your product needs to be re-ordered on a regular basis, you’ll be building a profitable business with recurring revenue. Provided you keep your customers happy, of course. For ideas, research Google trends.

Add value in non-pricing terms. Offer valuable information that complements your products, such as expert advice and guidance within your niche. Make it your unique selling proposition, an additional reason why customers go to you.

Be customizable. Customizable products are perfect for adding value through content. Look for products to sell online that have a lot of styles and variations. For instance, size or design, and can be customized in general. Customers don’t mind waiting for a product that is unique.

Find niches perfect for cross-selling. Focus on dropshipping products that are related and will be useful for cross-selling in your online store. For example, if you sell notepads, you could also look into selling pens, pencils, and more.

Focus on Quality. You cannot grow a successful dropshipping business on the back of low-cost, low-quality products. Quality is imperative so find dropshipping suppliers that you can rely on.

Count on Camaloon

Finding a profitable niche is the most important factor that goes into building a successful dropshipping store. However, when running a dropshipping eCommerce store, you want to have reliable suppliers for your dropshipping online store. Trusted dropshipping partners help you with everything, from automating dropshipping fulfillment, to helping with products.  You can find the best dropshipping Google trend and then have it all ruined with dropshipping suppliers that are not reliable.

Camaloon has been in business for over a decade and is trusted by dropshipping businesses such as your own, globally. Just tell us what you’re like to sell in your store and we’ll take care of the rest.

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