The world of online shopping is getting bigger and bigger by the day. Thousands of consumers are spending money every day on the internet in the best dropshipping or e-commerce niches.
In fact, the statistics of e-commerce in 2021 are mind-blowing. In the US, more than $843.15 billion in sales are made for more than 256 million buyers.
Even if the market seems saturated, there is still room and money to be made. All you need is the right strategies. If you also want to get into e-commerce or dropshipping, this article will be a great orientation guide for you, especially if you don’t know where to start.
By the end of this article, you will be able to choose your niche among the best dropshipping or e-commerce niches.
What is a dropshipping niche?
In e-commerce, a niche is defined as a sector, market or audience that is very specific to a type of product. As a niche, we can mention the beauty niche in which only beauty products are sold or the pet shop niche which is only dedicated to pet products and accessories.
Having a niche store means focusing on a single area of activity and selling only products related to this area. The niche can also take into account a group of people who are interested in a particular type of product.
For example, athletes can be a niche, as well as musicians.
Importance of specializing in a niche
In 2021, more than 177,000 new merchant sites were registered in France. This means that competition exists and that to make money, you will have to stand out.
Statistics dropshipping US 2021
Dropshippers are known for their specialization on trendy products. They look for a few products that already work on the market and start reselling them in their stores.
However, the trendy products do not last long enough in the market. These dropshippers are required to recreate new stores and start the whole marketing process again every 2-3 months.
This is not the case with niche stores. According to statistics, the online stores that are in the best niche dropshipping are the ones that make the maximum turnover. Indeed, by creating a niche store, you will have an easier time scaling your dropshipping business and making it your own Brand.
Moreover, by specializing in a niche, you will have more ease to offer upsells (additional products or additional options of the initial product offered at checkout) to your customers in order to increase your average basket.
But where to start?
How to choose your dropshipping niche?
Learn more in the next chapter.
How to choose your dropshipping niche?
When you are a beginner and you don’t have any experience in the virtual market, you can be confronted with the difficulty of choosing your niche. Many beginners make the mistake of choosing a niche by chance without doing market research and expecting results. This usually results in losing capital and giving up.
Here are some tips that will help you choose a niche among the best dropshipping niches.
What do I want to sell?
Choosing your niche starts with an analysis of what you would like to sell on your online store. It’s not about blindly selling products you like.
But, by answering this question, you will find a starting point on which you will deepen your research.
The ideal here is to list all the areas that you are passionate about or areas that you have some knowledge of. You can also make a list of the areas you spend the most money on.
In reality, being a consumer or an enthusiast already, you certainly have knowledge of the different needs of the field. These areas you choose will be the keywords on which further research will be conducted in the following steps.
Find the best dropshipping niche : Keyword Research
This step of keyword research consists of using the different keyword research tools available online to check the trend of the different domains you listed in the first step.
The goal here is to eliminate any areas or niches that do not present an opportunity in the market. This will prevent you from starting to sell products that no one is buying.
In this case, the data we are interested in is the monthly search volume for each keyword.
Repeat the process for all the domains you have chosen, and note the monthly search volume for each keyword.
If you want to create a store and sell your products on the French market, you should only consider words with a monthly search volume of at least 2500. On the other hand, if you want to sell on the English market, where the competition is a bit higher, you should only keep keywords with a search volume of more than 5000.
After your research, eliminate all other keywords from your list that do not meet this condition. You will continue the process of choosing a niche with the other keywords. However, if none of the keywords on your list have a sufficient monthly traffic volume, you must then repeat the first step to find new keyword ideas.
Checking the trend on Google Trends
After the volume of keyword searches, it is also necessary to check the trend of the different domains. This step allows you to see a global view of the evolution of the niches over the last years.
In dropshipping, it is advisable to opt for niches that are growing. Indeed, Google Trends is the best tool you can use to identify the trend of a niche. All you have to do is search for a keyword and the tool will provide you with its trend in the form of a curve.
An upward trend means that the niche has potential and is increasingly being searched for on search engines.
For each keyword in your list, appreciate the trend of its curve. At the end of your analysis, you should only retain the niches with a more or less upward trend curve.
Statistics from social networks
Social networks remain the main source of traffic acquisition for online stores. It would therefore be wise to check if there are products that sell in the niches you have selected.
If you notice that there is a niche that makes a lot of sales on social networks, it means that there is a market and that you can also position yourself in this niche.
Indeed, to have statistics about products of a niche on social networks, mainly on Facebook, you can use Dropipsy which is basically a winning product search tool.
Dropispy collects information about all the ads made on Facebook. The tool has a huge database filled with advertisements and is updated daily. The tool also has filters that allow you to optimize your search results.
In our case, we will use the keyword filter to search for all ads related to a specific niche. Enter a keyword from your list and see if there are any ads for that keyword type.
To make your results more accurate, you can use other filters such as the type of store platform that made the ad (Shopify, Woocommerce), media type (video), date of creation, country, and language.
This will allow you to optimize your search and display only dropshipping or e-commerce ads.
If you find several ads with huge interactions (high number of Likes, shares, and comments) for a keyword, it means that there is demand for that keyword. So you can test products in that niche in your store.
Also, feel free to check out the biggest online stores to identify the products that are selling the most using Dropispy’s store analytics feature.
To succeed in dropshipping, it is always advisable not to try to reinvent the wheel, but rather to do what already works on the market. That’s why you should also take a look at the most famous marketplaces like Amazon, AliExpress, LeBonCoin, eBay…
On these different marketplaces, go to the bestsellers tab and check the categories of the most sold products.
For instance, if you notice that products from the beauty niche are selling the most on these platforms, it will simply mean that there is a market and a demand for these products.
As you filter your starting list through all of these steps, you will notice that there will be only a few niches left on your list. Your final niche will then be among this filtered list.
Now that you know all the techniques for choosing your dropshipping niche, here are some high potential niches you can test on your dropshipping store.
The best dropshipping niches
In dropshipping, there are certain niches that make the most sales every year. By choosing good products in these niches, you are sure to make sales.
1. Beauty and accessories for women
The women’s beauty and accessories niche is one of the best dropshipping niches. The stores that specialize in this niche are mostly making very good sales.
Women spend a lot of money on the internet for beauty products like makeup, hair accessories or jewelry.
The advantage with this niche is that it is not seasonal. These are products that are always in fashion. So you can sell women’s beauty products or accessories all year round (LIEN COCON VERS ARTICLE FINAL DE LA BRANCHE)
Although many dropshippers don’t like to venture into the textiles niche due to size issues, this niche is still the largest niche in the e-commerce market. It’s a versatile niche that covers the whole year. You just have to propose clothes adapted to the period of the year (LIEN COCON VERS ARTICLE FINAL DE LA BRANCHE).
Example: sweaters will sell better in winter than in summer.
Don’t forget that in dropshipping, you have to offer products that potential buyers can’t find in department stores.
3. Fitness and entertainment
More and more people are getting into sports, especially home fitness. The period of the COVID pandemic was very lucrative for sellers of products in this niche.
Today, this niche continues to work, as many prefer to exercise directly at home than to go to a gym. The products in this niche solve a problem: they allow the user to exercise at home and reduce their expenses at the gym.
However, this niche is more for a group of people. It is not like the beauty and accessories niche that almost all women are interested in. So to succeed in this niche, you need to focus your marketing on your target. Influencer marketing is the best way to spread the word about your fitness products.
4. Home and interior design
Home decor and interior design items are sold very easily these days through dropshipping. In fact, it’s a niche with a lot of demand, because we always need a small device to help us do a household task quickly: the case of a robot vacuum cleaner.
To make money in this niche, you need to find a particular product that solves a problem or makes the user’s daily life easier. Decorative products, on the other hand, are trendy products. You will not sell the same products in December and February.
5. Pet products
This niche has had a huge explosion in the last couple of years. It is also a very specific niche like the fitness niche. You can further specialize in this niche by selling only dog products or cat products, for example.
This is a very profitable niche, but with a very high competition. You must therefore find innovative products to differentiate yourself.
6. Phone and accessories
The phone accessories niche is also a very profitable niche because of the new products that are released every day. From connected watches to wireless chargers are products that have worked very well and still continue to work.
The increase in the number of content creators on social networks has also led to excessive consumption of products in this niche. The demand is always increasing as it is a niche that includes everyone.
Dropshipping niches are very profitable if you find the right product. They allow you to have a stable store throughout the year. Although some months will be more profitable than others, you still won’t have to search for products or rebuild new sales stores every month.
It is also important to tailor a specific marketing strategy to each niche product you sell in your store.
Frequently Asked Questions
What are the most profitable niches in dropshipping?
In dropshipping, the most profitable niches are textile, beauty, phone accessories, fitness, entertainment and decoration. However, it is still possible to make good sales in any niche. You just need to find the right product and strategy.
Is the clothing niche recommended for dropshipping?
Yes, the apparel niche is actually one of the most profitable niches in the market. You just need to make sure you offer the right sizes that fit your audience.