Imagine, for a second, that you’ve stumbled upon a profitable dropshipping niche. Not only is it popular but less competitive—two ingredients needed for dropshipping success—but it also doesn’t require much work from you.
Everything is automated: From the way you process orders to the way the dropshipping supplier ships the orders to customers…to the way your courier handles shipments and returns.
Wouldn’t that be awesome? You bet it would be! Well, this scenario is not entirely a dream because thousands of experienced dropshippers nowadays live that scenario every single day.
This article teaches you what you need to know to become the next super-star dropshipper.
To find a lucrative dropshipping niche:
- Consider the Niche You’re Passionate About
- Narrow Down Your Available Options
- Use Google Tools to Search for Profitable Niches
- Research and Evaluate Dropshipping Trends
- Use the AliExpress Tool to Find out What Is Trending
- Forecast Demand in Your Niche
- Evaluate Seasonal Fluctuations in Demand
- Calculate Your Niche’s Profit Margin
- Evaluate Competition in Your Niche
Let’s get to the bottom of it!
1. Consider the Niche You’re Passionate About
To spot a rewarding niche for dropshipping, look for a product you’re passionate about. Check the niche you love so you can explore the opportunity further. List niches you’re interested in, then check whether you can profit from each one.
Acknowledge every niche’s value to determine its profitability—that’s the first action that influences your success in the dropshipping world.
Think about the products you’re enthusiastic about and your knowledge of these products. Be more passionate about your niche so you can conveniently talk about it and sell it to potential customers—this plays a significant role in becoming a successful dropshipper.
Make sure there is demand for the products you want to dropship. Get reliable suppliers for the products to dropship so that you’re not stuck with a supplier who can’t provide you with the products you need.
2. Narrow Down Your Available Options
To discover a lucrative niche for dropshipping, narrow down your search to the options you can successfully handle. Zero in on the niches you want to list in your e-commerce store in an effort to reduce competition. Focus on a few specific products with a high profit potential and become an expert in those areas.
Listen: You’re not going to be a millionaire dropshipper overnight, but focus on specific, super-profitable niche so you can start the process that leads to dropshipping stardom. Don’t sell all products you discover—pick a few “critical” ones and try them out in your store.
Keep in mind the sourcing requirements, supplier reliability and product profit margins when searching for lucrative items for dropshipping. Consider some trending niches with low-profit margins—some products have low margins but are higher in demand.
Go through the data you gather—and pick products that have potential, according to your research.
3. Use Google Tools to Search for Profitable Niches
To find a valuable dropshipping niche, use Google tools such as Use Google Keyword Planner and Google Trends to search for—and find—potentially profitable items.
Find keywords with high search volumes, but pay attention to the competition ranking. That way, you have a clear idea about how easy or hard you can rank on Google. Note that the lower your competition, the easier it is to rank well on Google.
Use Google Keyword Planner to measure monthly demand for a product and know the number of people searching for it each month.
Use Google Trends to understand search volumes and trends, geographic concentration, and seasonality so you can get insights that hopefully optimize your marketing efforts. (Understand the product’s seasonality to know its behavior in the market).
4. Research and Evaluate Dropshipping Trends
To find a lucrative niche for dropshipping, do thorough research and evaluate your search results. Zero in on industry trends so you can sell products that can help you profit from your dropshipping business. Study online resources such as Google Trends and AliExpress’s Supplier Directory so you can discover valuable information. Evaluate your search results to choose the niche with the most demand and high-profit margin.
Analyze the market, think about the items and determine the trend direction. (Target the products in demand but tough to find).
5. Use the AliExpress Tool to Find out What Is Trending
To figure out a successful dropshipping niche, visit AliExpress and use its built-in tool to find trending products. It is one of the great ways to see the products selling well and ones that are not.
Go to the AliExpress Tool homepage and enter your keyword in the search bar to find lucrative niches to dropship in your online store.
Filter the results from the search, and look for Best Sellers or Hot Products to see the products with potential. (There are lists of hot products you can find on the page: Those are top-selling products on AliExpress at the time of checking. Check through to see information about the orders. Scrolling down the page, you’ll see a list of famous categories on AliExpress.)
Estimate the product quantity on AliExpress through the product’s information, and review the comments and feedback customers have left after ordering and using the product.
6. Forecast Demand in Your Niche
To discover a lucrative niche for dropshipping, forecast demand in that specific niche. Recognize changes in customer demand for products so you can adjust your product offers and balloon your business. Never select products without researching thoroughly.
Research customer demand trends, the timeframe a particular product trends, and seasonal products. Sell high-demand products that have massive profit margins and that you can easily. Think deeply about the niches you want to dropship before evaluating their profitability potential.
Create a list of niches that match your search result and go through them one by one. Check other dropshipping stores and see whether the products you want to sell are highly competitive there. You don’t want to struggle when you start, do you?
Stay away from niches that national or established brands dominate.
7. Evaluate the Seasonal Fluctuations in Demand
To spot a profitable niche for dropshipping, think about products that fluctuate within a particular niche. Want to know the goods in demand but highly seasonal? Identify the items based on seasons. Nothing wrong with having seasonal products in your store as long as you mix them up with regular, non-seasonal items.
Not sure whether your desired dropshipping niche is seasonal? Want to know more about the public’s interest in various products? Use Google Trends to know how the product behaves in the market.
8. Calculate Your Niche’s Profit Margin
To spot a rewarding niche for your dropshipping business, calculate the niche’s profit margin. Look for suppliers offering the best rates for the niches you’re considering.
Thinking about going with the supplier selling the items at the cheapest rate? Not so fast. Take it easy and keep in mind the cheapest product is not always the best. Know that product quality plays a pivotal role in the success of your dropshipping business.
Don’t order any product sample until you’ve thoroughly researched it. That way, you can choose the best product possible for your business. Get an idea about the average lowest price you can find for the product.
9. Evaluate Competition in Your Niche
To detect the ideal niche for your dropshipping business, evaluate niche competition status. Get to work and look at people selling the items you’re considering selling. List dropshippers in the same niche and compare their prices.
Check out customer reviews at your competitors’ stores to ascertain the quality of their products. That way, you understand your competitors’ pros and cons. Keep your profit margin competitive so you can build your brand and establish your ecommerce presence.
Evaluate the market and pricing to know the niche worth spending time on.
Conclusion
To find a lucrative niche for dropshipping, consider the product you’re passionate about and narrow down the options available. Use Google tools to research and evaluate dropshipping trends in a specific niche.
Find out what is trending using AliExpress tool and forecast demand for your dropshipping niche. Evaluate the seasonal fluctuations in demand and calculate the product’s profit margin. Evaluate your niche’s competitive nature to figure out whether it’s worth entering.
