If you are going to sell online, the first question should be how to find the best dropshipping niche. In other words, you should clearly understand what type of goods you want to sell.

Dropshipping niche is a set of products which have similar features and usually one general idea. Besides that, they are unique, hard to find, and interesting to the buyers. Some of them are not recommended by the experts to try out, others bring profits and have a high potential. To be sure, searching for the “perfect” niche is irrational. Every group of products has its own pros and cons and only you can decide if it ticks all the boxes.

However, if you will be well informed about the main strengths and weaknesses, you can avoid the biggest mistakes while choosing your dropshipping niche.

Brainstorm dropshipping ideas

The first thing you should start with is looking for a great dropshipping idea. This affects all your future success. Take a piece of paper and a pen and write down all possible ideas coming into your mind. If you have some difficulties with it, you can focus on the following things:

1)     People’s passions and problems

Look around and double down on what people are talking about. You can look up forums, social nets and websites to see what kind of problems people are discussing or what they are grumbling at. Your aim is to identify holes and gaps in the market and to fill them. Make a list of the most popular troubles and try to find problem-solving products.  

Besides that, people’s passions can become a great source of inspiration to you. People usually tend to spend tons of money on their hobbies and you can profit from it. Think about what people like doing in their free time or ask your friends what hobbies they have. The answers will give you some ideas.

2)     Pop culture

It’s not a secret that some products are more popular than others. They are the hottest topics of the day and usually discussed by lots of people. Concentrate on the things that are extremely attractive to people at the moment and seek for your own business idea. It will be far easier if you are a big fan of something.

3)     Random browsing

Sometimes it makes sense to explore as many online stores as possible to find the unique product category. For example, the biggest platforms like AliExpress or Amazon make giant lists of bestselling or highly promoted products. You may be surprised that people are interested in wares you have never heard before. For example, one of the most popular goods last years was a selfie spoon that lets people take photos while eating.

Consideration of niche ideas

Probably, you have found hundreds of dropshipping ideas. The next step is choosing the best from the wide range of them. Take into account the following aspects:  

1)     Target group

Who is your potential client? He or she? Age? Marital status? Country? You should clearly understand what your target group is. Is it numerous? Are your clients solvent? Imagine your future customers and try to think about their shopping preferences. The better you know your customers’ intents and expectations, the more successful you organize your business.

2)     Quality

There are many factors influencing the customer’s choice, but one of the most critical is product’s quality. If you want to get repeat customers, you should offer them high quality goods. Satisfied clients recommend your store to their family and friends and you get more profit. Low quality products will be your big problem. If you know that all the suppliers in this dropshipping niche can offer you only poor quality wares, it’s time to scratch it from the list.   

3)     Delivery time

People are impatient, especially if they want to get an ultrafashionable dress or a new digital device. If your delivery time will be extremely long, you can easy lose your customers. The best solution is to find suppliers that can offer different shipping options.

4)     Seasonality

Some kinds of niches are affected by seasonality. It means in winter people often buy snowboards and mittens and in summer they prefer sunglasses and shorts. If your dropshipping niche depends on the season you will sell the products during the particular period of time.   

5)     Price

All products are usually in different price brackets. What kinds of wares do you want to sell – low end, mid-range or high end? Maybe all of them? You need to set a price point and focus on it. Besides that, keep in mind, that the price is fully connected with a target group. Some people can well afford to buy 3 pairs of expensive training shoes at one time, others are aimed at low-end products or buy something only for the most compelling reasons. If you guess that your target group consists of 13-year-old girls getting pocket money from their parents you should understand that the price is of a great importance for them.

Competitor analysis

Perhaps your niche is chosen and now it’s high time to analyze your potential business rivals and gain useful information.

First, find the best stores in your niche and browse the websites. Try to see your competitors’ stores through the customer’s eyes and write down all advantages and disadvantages you’ve found out. You can also make a comparative table that will help you analyze different dropshipping stores. Don’t avoid reading the reviews or comments on the websites, because they pretty well illustrate the level of customer satisfaction.   

Secondly, pay attention to SEO tools. With their help, you can rate how strong your competitors’ websites are or which tricks they use to get more traffic to the store. The most common tools are Google Keyword Planner, SEOquake, SEMrush. Using all of them, you can see which keywords are the most profitable and what content is superb.          

And thirdly, remember, your competitors are not your archenemies. It’s a tough thing, but stay off writing negative feedbacks or fake stories on their websites. Instead of this, rate your chances of success and focus on your own webstore development.  

The best and the worst niches

As it has been mentioned above, nothing is perfect and every niche has some advantages and disadvantages. However, from year to year many people publish different lists of the best and the worst dropshipping niches to attract attention to particular products. Despite of differences, all these lists have common features. Let’s look at them.     

Features of the most profitable dropshipping niches:

–        Let you make much money;

–        Have high profit margins;

–        Require low customer support;

–        Are greatly demanded by the audience.

Features of the worst dropshipping niches:

–        Have no sales and many problems;

–        Need high amount of customer service;

–        Have small margins;

–        Are not popular among the customers.

As you see, the most profitable niches stand in contrast to the worst niches. It’s quite simple – the first will bring you time and money, the second will take them.

After starting the business, you cannot know exactly if it is doing well or not, but if you see the features of the worst dropshipping niches, it’s time to change something.

To sum up, the dropshipping niche selection is a complicated process with many aspects to consider. All your next steps will depend on it.  If you will act responsibly, you can avoid the biggest mistakes that the majority of first-time entrepreneurs make.

We hope that after following our short guide, you will get a clearer idea about the process of a niche evaluation and the parameters that should be considered – it will surely help you make the right choice!