Please take note that this page has been updated to provide
the most recent details on dropshipping and lucrative niches.
Our guide to picking profitable niches is updated annually.
Knowing the trends in digital and eCommerce can help you understand how quickly
things may change. Even so, this is fantastic news for you!
This is due to the fact that it is becoming increasingly
simple to investigate the profitability of a niche product before you begin
setting up your dropshipping business. You\’ll get a clear image of market
trends, product releases, and strategies to make money in a big, over saturated
niche thanks to this (hint: sub-niches).
This article will address choosing profitable niches, which
is perhaps the first and most crucial step in creating your own successful
eCommerce business.
Don\’t rush the process of choosing a
niche
Choosing a specialty is one of the first steps in eCommerce,
and it\’s also where most people get stuck. While you shouldn\’t make niche
selection any more difficult than it already is, it\’s more crucial to take your
time.
You shouldn\’t rush this step in the dropshipping process
because choosing a specialty can make or kill your business.
When it comes to niches, there are two categories:
profitable niches and non-profitable niches (profitable niches). Let\’s start
with what defines a \”good\” niche:
Guaranteed Methods for Finding
Profitable Niches
When searching for a successful niche that\’s ideal for the
dropshipping model in 2020 you\’ll want to employ these four tactics that I have
learnt from more than a decade in eCommerce.
To give you a little background, my very first eCommerce
store started producing money within 24 hours of going live. I made a sale for
$485 the FIRST night that my store was able to accept orders.
I’m not telling you this to show off. I’m telling you
because I want you to know the key to my dropshipping strategy. The exact
strategy I used to produce over $3,000 of sales in just over three weeks.
People are sometimes astonished when they hear this since it
sounds like I just threw together an online shop and starting making money
through chance. But the truth is I invested A LOT of time previous to starting.
In truth, it’s all about the preparation.
Before my store debuted, I conducted a ton of market
research in order to have the best chance of success once I was ready to
launch. There was one reason that I made $485 within hours of launching. It was
because I located a profitable niche that matched a certain criteria.
It\’s not hard but there are a few things that you need to
know in order to properly select a profitable dropshipping product.
Keep reading to learn all the specifics, plus step-by-steps
of my favorite methods to research the current profitability of any eCommerce
specialty.
Method #1: Focused
Brainstorming
Before you can test different niches for profitability you
need to think of niches to test. This doesn’t mean you think about it on the
route to a friend’s place, you need to set off time and focus on thinking.
TIP: When first brainstorming profitable niches, establish a
list of at least 50 good niches that fulfill the requirements above.
To generate fresh ideas, I typically think of things that
I’ve just acquired online. As well as asking family and friends what they’ve
lately purchased. Also, consider about what you’ve bought in the past.
Here are some more action tasks that will help you
brainstorm a big list of successful niches.
·
What are the last five products you bought
online?
·
What do people like to do on vacation?
·
What are the hobbies of your family and friends?
·
What\’s the most expensive object in the room
you\’re in right now?
·
Think about all your family and friends and what
they have in their residences.
Write everything down, even if it seems doubtful at the
moment. I then take this list and begin running them through my “tests\”.
Tons of niches are profitable, but that doesn’t mean you should rush into them.
Once you have your first list of niches, view them via these
five lenses:
·
Competition – Scout out other dropshipping
stores and identify whether products are over-saturated. You don’t want to sell
those.
·
Loyalty – Don’t go for a niche or product that
is dominated by a national brand(s) (s).
·
Pricing – It’s easy: the higher the price of the
products, the better your profit margin will be!
·
Weight – Shipping is expensive but a winning
combo is a high-priced product that has low shipping weights.
·
Returns – Don’t pick a product with sizing and
style preferences, they will have an enormous return rate.
Method #2: Research
and Evaluate Current Dropshipping Trends
If products sell online but don’t base your prices off of
eBay\’s. They’re far too low. Even though it’s not as relevant these days, it’s
still a wonderful area to explore potential topics.
Once you’re on eBay, you want to locate things in different
areas that are pricey (to me, that’s $500 or more, but it’s up to you). Then go
through different categories on eBay and adjust your search results to show
“completed listings”.
If the completed listing is in red it signifies the item did
not sell. If it’s in green it signifies the item sold.
Look carefully into the products that are highlighted in
green and look for completed listing specifically for that specific product. I
used to do this over and over until I identified roughly 20 products inside one
niche that virtually ALWAYS sold (10+ units per day).
TIP: Tons of niches are profitable, but that doesn’t mean
you should hurry into them.
When I started I wasn\’t dropshipping. I was importing from
China, so I contacted a couple suppliers that I had identified on Alibiba.com
and asked price lists for these particular products. I next contacted a customs
broker and acquired shipping rates for a container of the merchandise.
Method #3: Utilize
Amazon\’s assistance to choose very specific profitable niches
The biggest store in the world, Amazon, offers virtually
every product imaginable. This makes it one of the finest locations to locate
lucrative niches and \”red hot\” products.
Here is how you use Amazon to uncover lucrative niches step
by step:
When you select the \”All\” tab to the left of the
main search bar, a list of categories or \”niches\” will appear.
Select the category that most interests you by clicking (or
at random).
Then click \”Go\” after leaving the search field
empty.
A new page will appear with a long list of subcategories or
\”sub-niches\” appearing on the left side.
You can drill down into the niche by selecting a subcategory
to find a more focused sub-niche.
You can now delve even deeper into niches that are more
specialized.
The best place to identify a highly precise niche and the
best-selling products is on Amazon. Even better, you can view the top-selling
items by selecting \”best sellers\” from the navigation menu in the
search box area at the top of the page.
On Amazon, you can certainly uncover a lucrative niche or at
the very least have a fruitful session of idea generation. The \”Best
Sellers\” page on Amazon is regularly updated, making it a reliable tool
for choosing lucrative niches.
Think Like A Marketer, the fourth
strategy
Now that I\’m aware of it, neither you nor I should continue
to sell anything on eBay. However, a lot of this guidance is still relevant in
the dropshipping industry today. The first (and most crucial) piece of advice
I\’ll provide you for establishing a lucrative niche for dropshipping is to SELL
EXPENSIVE ITEMS!
In my experience, dropshipping often yields a net profit of
around 20% of your overall sales. In essence, you\’ll make 20% profit on a
$1,000 item and a $10 item, which means that you may make $200 or $2 for each
transaction. You must sell pricey products if you want to generate money.
Nothing further needs to be said. Not really that difficult,
is it?
Finding some prospective \”future competitors\” is
necessary after you have recognized these items. who are currently selling
these goods online. Sadly, there is currently no way to determine how much
money they make from each sale. BUT by observing whether the providers uphold
MAP policies, you may determine whether this market is lucrative.
If your search results indicate wildly disparate pricing,
this provider does not impose MAP. You\’ve probably located a supplier who
upholds MAP if the search results read something like \”$999 from 3
retailers\” and there aren\’t any other pricing shown for the exact same
item.