Time and money are the two primary elements you will require when you set out on the journey to establish a dropshipping business. Developing a profitable dropshipping business, much like any other business, demands substantial dedication and a long-term outlook. Thorough research accompanied by realistic expectations is the key here. You'll be less likely to feel disheartened if you approach your business with realistic goals and clear boundaries about the investment and overall performance.
Learn more of this along with other details such as:
- Identifying your dropshipping niche
- Learn about the best and the most profitable dropshipping niches
- Measuring competition in the business
- How to lead and be successful in your dropshipping business
- We shall also look at some categories like the highest performing, women’s clothing niches, jewelry, home and garden, beauty & health.
- Learn ways of finding dropshipping niches
- We shall also discuss some of the best dropshipping niches and products
- Besides, we will also learn about the best niches in the ‘new normal’ times, for custom products, and for repeat purchases.
- You will also learn about the best dropshipping niche that you could choose
- Lastly, we shall look at some of the best Product Research Strategies
What is Dropshipping and Dropshipping niche?
Dropshipping is a retail completion method in which a store does not hold stock of the items it sells. With a dropshipping model of business, the company buys the item from a third party and arranges to send the product directly to the client. In the process, the seller does not have to handle the product.
The seller fulfills orders by purchasing goods from a third party, which is usually a wholesaler or manufacturer. Dropshipping differs from traditional retail as the seller does not hold an inventory to sell the goods.
What Is a Niche Product?
The first step you would take in your dropshipping business is to decide on your niche. A niche is a product that aids in the development of an audience, aids marketing, and makes it easier to generate superior items for your target market.
However, picking a dropshipping niche can be difficult and you may be posed with several questions.
- Is it a good idea to create a store around things you're enthusiastic about?
- How can you tell if these dropshipping items will sell?
- Should you choose a niche that is popular exclusively in the United States or should you consider global options?
Whatever the answers are, you'll need to discover a niche to help you to achieve your business and attract the correct clientele.
If you'd like to launch a dropshipping business but aren't sure what is happening, follow the steps below to choose a lucrative niche.
How Do You Find the Best Dropshipping Niches?
It doesn't matter how brilliant your company idea is if there isn't a market for it. You'll have a tough time turning a profit if no one wants your stuff!
Fortunately, you can gauge demand for a product or market using a variety of interesting applications.
Let’s look at some of these effective tools and apps.
Facebook Audience Insights
Facebook Audience Insights is a fantastic tool for finding specialized markets and trends for dropshipping products with over 2 billion users worldwide. It is a free website that allows you to discover more about a specific group of people on Facebook. It collects data from Facebook users to assist in determining the size of a prospective dropshipping niche as well as the interests that are relevant to that niche.
It helps you with information such as:
- Page Likes
- The activity of the people
Google Keyword Planner
Google's Keyword Planner tool makes this information available to the public. Simply type a term or phrase into the tool, and it will tell you how many people are looking for it each month. The best approach to gauge online demand for a product is to look at how many people are searching for it on Google. All you need to do is type a term or phrase into the tool, and it will tell you how many people are looking for it each month.
Following these important metrics shall help you in the long run:
- Match Type: When it comes to reporting search volumes, Keyword Planner allows you to choose between broad, phrase, and exact-match categories. You should pick the exact match option which is highly recommended.
- Search Location: Knowing the difference between local and worldwide search volumes i.e. in your nation or a user-defined location is crucial. So, concentrate on local search volumes and ignore global results when you are selling in a specific country.
- Long-tail keywords: Long-tail searches or keywords are a word used to describe these more specific search terms. The majority of your search engine traffic will come from longer, more specialized, and lower volume search searches
When considering potential markets and niches to penetrate, you'll need to keep this in mind. If numerous variations of a search word are actively searched for, it indicates that the market is incredibly strong. However, if the number of search queries and related traffic drops dramatically beyond the first few high-level phrases, there is likely less linked long-tail traffic.
This tool could be better than Google's Keyword Planner as it provides comprehensive information. Although the keyword tool is useful for basic search data, many people prefer Google Trends for more in-depth analysis.
Search interest over time: You can examine the increase or decrease in search volume through time for just about any given search term.
Top and rising terms: When it comes to marketing and SEO, focusing on certain terms can be beneficial. You will, therefore, get to see a list of major-related terms, as well as which inquiries are gaining the greatest popularity.
Geographical spread: This can assist you in determining where your niche's client base is most concentrated.
Predictability: a market's seasonality indicates if demand for a product varies dramatically over the year.
The Most Profitable Dropshipping Niches for 2021
You won't be disappointed with a dropshipping niche that's already proved to be successful. An already successful product ensures that you are on your way to building a profitable business online with the best possible result.
We have aligned some of the finest niches for 2021, according to our study on the best dropshipping products:
How to Measure Competition in Your Dropshipping Niche
You'll have trouble developing traffic and competing with established competitors if there's too much competition. It can be difficult to do a competitive analysis on a potential market. A lesser competition can imply a small market, limiting your ability to expand significantly. Some dropshipping companies will invest in paid advertising, but the majority will focus on free traffic from search engines to grow their business.
So, the simplest way to gauge overall market competition is to look at the authentically listed non-advertised sites on Google's first page for a certain term.
Here are the measures you may adopt:
The number of domains that are linked together
Links play a big role in Google's ranking system. If all other factors are equal, a site with more links will rank higher in the search results. Knowing how many links point to a site offers you an indication of what kind of work you'll have to do to supersede your competition.
The number of unique domains that connect to a website is useful for measuring a site's ranking strength. You may understand this like this: when you receive a personal recommendation for a store from a known person, you are more likely to visit it. As these recommendations come from independent sources, you are more likely to rely on them.
Likewise, a domain might link to a site multiple times, but it's only one distinct suggestion, which is why typical SEO metrics like the total number of links can be misleading when assessing a site's authority. Alternatively, you could look at the amount of unique connecting domains to get a better understanding of how challenging it will be to outrank a site in the search results. This is because Google prioritizes unique connecting domains.
Here are some tips that would help you assess the number of unique linking domains:
- 0 to 50 linking domains: Within a year, most sites with good content and dedicated efforts in marketing and SEO should have been able to achieve 50 linked websites.
- 50 to 250 linking root domains: This might take a lot of effort and several years but is not impossible to achieve.
- 250+ linking root domains: This is extremely difficult to achieve and requires some serious dedication and effort, but again, not impossible.
Rankings of competing sites
The quality of the links is also important to Google as it is on the basis of the quality that determines a site’s rank.
Here’s how you can achieve this:
Page Rank ranges from 1 to 2: There is only a modest amount of power. For the top homepages, PageRank in this range most certainly suggests a limited market.
Page Rank ranges from 3 to 4: Independent dropshippers will find that markets in this category offer the best labor ratio. It's not simple to rise to this level of power, but it's also not impossible.
Page Rank ranges from 4 to 5: This level would require a lot of links from other reputable sites.
PageRank 6+: This is a very good score and you would probably need a mighty team that looks after the marketing and SEO of your website to accomplish this.
Weighing the Qualitative metrics
The quality of the website is as important as the other factors discussed in the above-mentioned points.
Here are some more points that you could collect from your competitors’ websites:
- Website quality in terms of information and usefulness
- Website reputations among its customers
- Overall customer base
Aside from these components, you must ensure that while you carry out the search, you get personalized Google results based on factors such as browsing history, geo-location. Moreover, if you reside outside the US and aspire to sell in the country, so you must fetch results that pertain to the said location to know exactly who you will be competing with.
How to be Successful with Your Niche Dropshipping Business
Following any one of the following strategies can help you lead the way in your dropshipping business. Let’s check what these are:
Understanding customers’ thought-process
Creating a buyer’s persona would be the best technique to accomplish an understanding of the ideal customer. More detailed the persona, the better the prospects to understand them. Fundamentally, you want to create an image or a character sketch of the people who are your target customers.
Step into manufacturing your product
Being the sole owner of the product gives you total access to the price commanded by the product. However, this is not an option for the dropshippers as dropshipping involves selling the existing goods.
Arrange exclusive agreement for pricing and distribution
Getting into an agreement with a manufacturer or supplier for an exclusive price can help you sell the product at a profitable price without actually manufacturing it. This is a lucrative option who can look forward to adopting.
Offer the lowest possible price
This could be a good way to attract initial clients. But do keep in mind that you would be pulled into a pricing war, probably with the eCommerce giants, and may eventually suffer the losses. So, weigh your options before getting into this one.
When competing in a dropshipping business, you want to set yourself apart and stand out amongst your prospective customers. You could offer some solutions, expert suggestions that add value and make a difference to your customers. You could also provide important information regarding the product to highlight the product.
Collaborate with Competent Suppliers
For having a successful dropshipping business, ensure that you collaborate with efficient suppliers and wholesalers. Workout prices, shipping costs, get automated dropshipping, and other market research by working together with them.
The Highest-Performing Categories of Dropshipping Niches
We bring to you a list that enables you to locate a niche and select and promote the proper products to your specific audience.
Lifestyle Products: Most of the lifestyle products are high-end and expensive. People in the dropshipping business have made good profits through these products. Therefore, these could be a hot favorite among people desiring to have exquisite lifestyle products; also, this makes them a great choice for a dropshipping business.
Tech Supplies: The tech industry is one place that will possibly never die out. Therefore, considering tech supplies as a choice for dropshipping could mean handsome profits in the business.
Beauty and Health: These are universally loved products. Loved across all ages and genders, beauty and health products certainly are the products to be considered for a meritorious dropshipping business.
Power tools: These have been trending for five years and the trend seems to continue and grow in 2021. With the products also showcasing seasonal upsurge, you can certainly count on the
Drones and Accessories: Drones have shown a lot of rising and promise in recent times. With an increasing number of industries banking on drones for their security, surveillance, and other business purposes, you can opt for the niche in this group.
Dropshipping Niches in Women’s Clothing
The women’s clothing niche is consistently growing and is expected to rise by 5% by 2025. We have compiled some very promising trends in this category. Let’s learn more:
Women’s joggers: Sportswear is one of the most popular niches in this group. With a steady increase in its global demand, you can positively look to grab it for your store.
Women’s undergarments: Seamless, lightweight, inexpensive, and profitable are some of the adjectives that could describe this group. Increasingly popular, these products are wanted for their glamorous look and feel.
Soft padded hairbands: Most sought-after products since they were first introduced, the padded hairbands have been persistently well-liked products. You can enhance conversions by offering a diversified range of colors and designs.
Women’s bucket hats: They go with all seasons and with all occasions. Be it summers or winters, there’s a hat for all instances. With an easy appeal and charm, you can count on these lovely hats for positive outcomes in your dropshipping business.
Dropshipping Niches in Jewelry
Set to achieve the $475 billion mark by 2025, jewelry is one area that you can maximize your profits with. Let’s learn about some of the most demanded products in this category:
Hoop earrings: The product has been enhancing the beauty of numerous women across the world. With over 50,000 global searches the product almost sets the tone for the success of a dropshipping business.
Necklaces with Initials: They carry a lot of emotional and loving feelings and have grown as a dropshipping product in the past times. With more than 17,000 searches per month, they offer the advantages of being cheap and easy to dropship.
Neck chains: A great unisex product, these have been enticing people across the world. The product has recorded 11,000 universal searches per month and is, therefore, one of the finest products to consider for dropshipping.
Bead wristlet or bracelet: A product that cuts across ages and shows an immense increase, especially in summers, this is a product you can vouch for in 2021 as well.
Dropshipping Niches in Home & Garden
With a major part of 2020 spent at home by people all through the world, there has been a rise in home and garden decor. The trend has enlarged the expenditure in the home and garden sector. Let’s catch up with some items in the category that have been trending in 2020.
Dog Beds: With a whopping 54,000 searches globally per month, pet lovers have loved this product. It comes in a lot of variants and offers shoppers a lot of options to choose from. Having a great online market value, you can certainly consider this product a success.
Artificial houseplants: With people spending more time in their homes, the beautification of homes has taken a center stage. One product that adds aesthetics to your indoors is the artificial houseplant. They offer a huge variety, colors, sizes and are apt for keeping indoors. With over 37,000 searches globally per month, we can easily estimate its competency as a dropshipping product.
Inflatable swimming pools: With the pandemic playing havoc across the world, people have been looking for creativity and recreational activities within the four walls of their homes. The inflatable swimming pool offers them much respite from the stress at work. With over 3000 searches per month, there is enough potential for the product.
Shelf Organizers: A study reveals that on an average home in the US comprises over 3500 items. Organizers, therefore, have found acceptance widely and the trend seems to be growing with every year. It has shown approximately 3000 global searches every month.
Smart Mirrors: We have already seen the advent of smart lighting, smartphones, smartpens, and more; these smart products have been accepted and loved among people from all over the world. Smart mirrors offer customization and can display dates, daily reminders, weather, and whatnot! Unsurprisingly, the product has seen expanding popularity.
Floor Pillows: Staying indoors for such a long time has led to people finding unique ways to make living inside comfortable. Floor pillows are the latest addition to the development. The product has been consistent in performance and sees a rise in its trends and popularity.
Dropshipping Niches in Beauty & Health
The cosmetic sector is one sector that is barely showing signs of decline; moreover, it has assured longevity owing to people finding newer ways to enhance beauty and aesthetics. In the US itself, the cosmetic market is worth over $90 billion. Therefore, we bring to you some of the most worthwhile products in the beauty and health category that can add value to your dropshipping business.
Wigs: The recent observations have shown that the inhibition around the product has seen a decline and people have been more accepting towards it. Not only does it offer a great option to combat hair loss, but is easy to use. With a massive number of 160K searches per month globally, we know we can expect good response for this product.
Air-purifiers: 282,000 searches and still rising, these are the numbers of the searches conducted by people in one month for air-purifiers. eBay to ship, easy to carry, these small in size products are a good value for money.
Neck pillows: The work-from-home culture has added to the health woes for most people. However, this is the reason why products in the health category have also been on a steady magnification. Neck pillows provide the much-needed rest to the neck after a hard day at work. It is a good consideration for a dropshipping business.
Face-slimmers: Quick-fix is the order of the day and face-slimmers work like magic for people looking for easy fixes. Easily marketed, cheap and light in weight are some qualities of this unique product.
Massage Guns: These are often used as a post-workout remedy in case there is a muscle issue. Since its introduction in 2019, the product hasn’t seen a dip in its popularity and is set to grow this year as well.
How Do You Find Profitable Niches?
With over 40% of startups failing within a short time of starting, leads to the discovery that they were unable to find a suitable niche for the online business. We shall discuss some measures you can adopt to avoid such mistakes and ways to find a suitable and profitable niche for your online business.
What is a Niche?
Let’s define a niche first: A Niche refers to a segment of products that has a concentrated audience who are ready to purchase the product. The niche product offers solutions to the problems of the consumers; and having understood the solutions, you may promote the niche to the intended consumers.
Industry: Health and Beauty
Sub Niche: Jewelry > Necklace
Sub-sub Niche: Jewelry > Necklace > Chain with Initials Pendant
9 Powerful Steps to find profitable Niche for your business
Let’s learn about the important steps in this section:
Step 1: Follow your Passion
Assume you are passionate about jewelry and want to know what type of jewelry will sell best and what type of sub-niche or jewelry will encourage a jewelry audience to buy anything online.
If you can break into a niche industry that you are already enthusiastic about, you will be able to make a lot of money. It is not necessarily required for the niche you are passionate about to be profitable. As a result, make a list of at least 5 niches you're interested in and then go over them step by step.
Step 2: Assess Market Value of the Niche
Having a clear understanding of what value the niche holds is extremely crucial. An instance would be of the cosmetic industry which is rising considerably. From over $11 billion in 2017, the industry is forecasted to reach approximately $20 billion by the year 2025. Assessing these values could further streamline the process of finding your niche.
Step 3: Evaluate the Trends
This is a simple process. All you need to do is visit https://trends.google.com/trends/ and just type in your niche.
Step 4: Identify the Issues in your Niche Market
You must introduce your niche as a problem-solver.
This is to say that most people have some or the other problem that they find hard to deal with. They are looking for solutions online. Your niche has to be that solution.
Example: Pet-lovers find it difficult to keep their pets comfortable at home. Introduce your product, such as a pet-pillow, pet-rug, that offers to keep their pets comfortable while they work from home and complete office chores.
Step 5: Have Enough Variety to Sell Online
Visiting the Amazon website will give you a fair idea of what this is about. When you go to the drop-down of any category, say Sports and Fitness, you will come across various sub-niches such as sports clothing, running, swimming, team sports, and so on.
So, the same should be the case with your online store, Offer multiple options to the purchasers which increases your chances of conversion multiple times.
Step 6: Analyze Reviews
This is an important step to consider before you eventually finalize your niche. Learn if your target audience or customer is willing to pay the price that you believe your product should earn.
Step 7: Evaluate Existing Competition
This can be easily achieved by typing in Google a search query. Check if your rivals appear against a search query. You may use this information to design your website accordingly.
Step 8: Check Existing online advertisements of your niche
How significant is your niche in the market, after all?
Learn about this from google which shows the willingness of companies to invest in advertisements for the given niche.
Step 9: Learn about Affinity
Affinity is an essential parameter that indicates the association of the target customer with the niche you have selected. If the product depicts a strong affinity, then it is good to go. You should already start working on establishing your business.
Best Dropshipping Niches and Products: What’s Next?
Now that you have figured out the best dropshipping niches trending for 2021, it is time to introspect on certain points. You have done a lot of homework with respect to selecting your ideal niche and working out a strategy around your business, but is that enough?
Let’s move onto some more aspects that are relevant to your dropshipping business.
Is it a trending or niche product?
Before finally moving on to launching your business, it would be of importance to distinguish between a niche and a trending product. Before you finalize the products, it must be understood if they are just trending for the season and have shown a temporary upswing, then they are just trending products. A niche is a particular segment of the market which shows promising longevity.
Some dropshippers have made huge profits by identifying the early signs of a potential niche. Bottom line is that if you can identify a niche much early on before it starts trending, you will have to fight with minimum competition.
Is it a business or hobbyist product?
Selling to businesses can be a good option as that implies orders in bulk. Alternatively, if you believe selling to hobbyist individuals would be your area, then here, too, you could craft a name for yourself by specializing in the area.
Is it a repeatable product?
A rule that you could blindly follow in business is to always be attentive towards your repeat customers. They are the ones who trust you and keep coming back. Besides, identify those profitable dropshipping products that are repeatedly ordered. If a product is repeatedly demanded, then it certainly qualifies as a great dropshipping good.
Best Dropshipping Niches for "The New Normal"
The year 2021 has been all about learning to equip oneself with the ‘New Normal’. People have quickly adapted to indoor life, working from home. The usual daily expenses for the working class have gone down. Less commute, lesser travel have reduced the usual routine expenses for most. This also means, they have more time at home and are probably looking for thighs they need, now that they are at home all the time.
Based on this, we have presented a list that specifies niches but would be apt for the new normal that everyone is living with.
Top 10 Dropshipping Niches in 2021, the New normal
Here’s the list of the 10 best dropshipping niches to watch out for:
Home Gym: To keep lethargy at bay, a home gym is something that has been the most sought-after product. Fitness is one category that can boost up your business by many miles.
Wine Refrigerators: With moving out not an option for most people, chilling wine at home could be a great option to rely on.
Outdoor furniture: With people making savings owing to a drop in expenditure, they could invest in some timeless furniture that suits their taste.
Home Bar equipment: The home bars are another area where people are spending time and money in the new normal era.
Water Recreation: The paddleboards and floats are some of the tools under this category. This is also a zone where people love to spend leisure time.
Kids Workspace Equipment: With kids also adapting to the new changes in lifestyle, parents also look to give them the best while they study at home. Kids’ desks, chairs, tables, and other learning equipment has been gaining momentum in 2021.
Home Gaming system: The definition of enjoyment has changed, too, in the new normal. From popcorn machines to hockey tables, and other requirements for an amazing game room have been in demand in the past year.
Alternative Bicycles: Electric bikes and tricycles are considered great for a dropshipping business in the current times.
Kitchen Utilities and supplies: With eating out not an option, an increasing number of people are cooking at home. More cooking means more kitchen supplies. Maximize these products for the success of your dropshipping business.
Pet supplies: Pet parents want to give the best to their pets, irrespective of the pandemic. Dropshipping pet supplies are at an all-time high and we recommend not letting this opportunity pass away.
Best Dropshipping Niches for Custom Products
The dropship customized items business is at its innovative best, allowing the dropshippers to provide quality service to their consumers. In today's industry, dropship customized items have allowed e-commerce businesses to attract more clients
Let’s look at the list of the Top 10 custom product dropshipping niches:
- Billiard Tables
- Garage Organization Systems
- Closet Organization System
- Warehouse Shelving
- Outdoor Kitchens
- Crown Molding
- Home Theater Seating
- CNC Machines & Tables
- Stone Pavers
Best Dropshipping Niches for Repeat Purchases
Here’s a list that showcases the top 10 repeat purchases niches:
- Bow Hunting
- 3D Printing
- Mobile Bars
- Racing Bicycle Wheels
- Commercial Restaurant Equipment
- Automatic Pet Feeders
- Skeet Shooting Launcher
- Pottery & Ceramic
- Grills / Smokers
- Video & Photography Lights
Which Dropshipping Niche Should I Pick?
Having been through a detailed survey of the various niches in the dropshipping business now is the time to evaluate the ideal niche for yourself. However, before that, we would recommend you get answers to some questions that would simplify the process.
Let’s look into what these questions are.
- What are your favorite blogs and websites?
- Do you have any products that you accumulate?
- What types of online retailers do you shop at the most?
- Which social networking sites or pages do you love following?
- Ask your friends to explain your main likings.
- Are you looking for dropship products that you love or are you in them for money?
Once you find answers to these, note them down for a detailed analysis. In case, the majority of your answers point towards your inclination of making money, then again, going through the following questions would be recommended:
- Which eCommerce stores have recently experienced a surge in popularity?
- Evaluating the products that are actually selling.
- Which products are extremely popular now?
- Which items have the best profit margins?
- Which niches have the most followers?
Product Research Strategies
If there isn't a market for it, even the most amazing product idea is meaningless. You also don't want to splurge on a product that really doesn't perform. This is where product development research plays an important role. Product research allows you to spot potential problems and avoid unnecessary mistakes.
This is how product research helps:
- It helps in determining whether your product has a market
- It helps you know where you can perform better.
- It also helps you know how much buyers will pay.
To evaluate how different components of your design, such as names and packaging, interact with your core demographic, test them out. Examine any roadblocks and think about how you can improve the product.
Top 7 Tips for an Efficient Product Research
Use these pointers to acquire crucial data while you create and promote a profitable product.
Researching on the highly demanded products
Looking around for inspiration is the key here. You may go inside physical stores to examine what they're offering and how they're organized. Take clues from the most popular hashtags and pins on Pinterest, as well as Amazon's greatest products.
Try and be positive as you try to figure out how much is the demand for the said product. Instead of believing that your concept is already good, we suggest you to truthfully estimate the demand; and if your concept wins, then you are on the right track.
Analyze Reviews and Ratings of similar products
Remember to read reviews while you study products similar to yours. When you conduct research on Amazon, you gain additional insight into how customers think during the purchasing process. Customers frequently describe their critical issues as well as specific enhancements or features that they would rather see.
Consumer perceptions are a goldmine of information on what people liked and didn't appreciate about goods. You might come up with a great idea for a product package or a fantastic cross-selling technique. If you operate an online store, Amazon research is very useful.
Download or acquire case studies from organizations that have previously marketed similar items. In most case studies, the company's challenges are identified first, followed by an explanation of how the situation was resolved. You can think across prospective difficulties and fix them before they happen by looking at reviews and case studies.
Employ Competent Product Engineers
Product engineers can assess your design and test the application to guarantee that they are of high quality and usable. You may even hire them on a contract basis. Their expert opinion and unbiased comments in the creation of your product could be beneficial. They can also assist you in analyzing market data, developing design concepts, and overseeing the development of your product.
Invite or Hire Specialists
To evaluate your product, hire people who are similar to your targeted audience. Give a description of the product regarding its features and resemblance to other products. You may look for answers to these questions from them:
- What do people, in general, like the most about the product?
- What did you hate about the product?
- Why would you buy/ not buy the product?
Although this may not be the most effective technique, it could assist you in obtaining certain key information about the consumer perspective.
Focus on product marketing
If you don't have an eCommerce platform for your goods, you should research e-commerce software to see which system is ideal for your needs and target market. To attract more customers:
- use search engine optimization (SEO)
- e-commerce marketing
- compelling copywriting
- social networking sites preferred
- Where do people get their ideas for the things they want to buy?
Your marketing approach should align with the thoughts of the prospective buyer.
Utilize Soft launching
You may inform the interested people about your product and its launch. Provide a survey for interested persons to fill up, and then stay in touch with them and let them know when your product is ready. Soft launches are a sort of test marketing that allows you to try out your product and predict sales.
If the trial fails, you can make changes to the product before investing additional money. Soft launches are effective but are expensive to conduct.
Keep up the market research
Continue to solicit customer feedback, track metrics like repeat sales, and evaluate the success of your marketing activities. Try out techniques like a referral program or a loyalty program. Stay updated with your competition as well as any developing industry trends. Product research is a continuous process and the more it is done, the better are the prospects to improve your product.
How Do You Find Profitable Niches?
While you have figured out most of the ‘How-to’s..’ of the dropshipping business, this section will highlight only 3 steps that assist you in finding the profitable niches around.
Here they are:
- Examine your passions and problems
- Examine trends
- Assess your marketing strategies
Examine your passions and problems
It is time to grab a notepad and a pen to jot down all the passionate items that cross your mind. In a separate list, write down any troubles you're having in your life. This could include even the most personal factors such as love life, health, finances, or any other challenges or concerns that you come across daily.
This will help you assess things from the standpoint of your customers. A thorough assessment of these lists can certainly let you come up with concepts that could be profitable.
This will lead you to land with a lot of insight on the popular and the trending profitable niches. Amazon could prove to be most beneficial at this point. We shall move ahead with this step-by-step guide:
- In the main search bar of Amazon, you shall find a list of categories, which can be termed niches.
- Click on any random category that interests you.
- Leaving the search bar blank, click ‘Go’.
- You will be taken to a new page with a new list of subcategories.
- Clicking on any of these sub-categories will lead you to even more specific sub-sub niches.
The best seller you come across on amazon could be your niche.
Fundamentally, we are trying to get down to the root of the niche you selected and evaluate how it is performing in the current day market. This is called trend assessment.
Assess your marketing strategies
This step requires you to don your marketing hat and have conversations with people based on the product you have selected. Again, there are these steps you could take to expedite your process of zeroing in on a niche.
- Talk to people
- Catch up on the latest news about the niche
- Simultaneously, write down the problems you may face.
- Keep observing and writing down the products you observe around you.
- Note down the things that make people happy or turn them down.
- Make a note of activities you did, and also note if people are willing to pay for those activities.
We recommend you write all of this on a notepad to avoid forgetting it at a later stage.
By the time you complete these 3 steps, you would have come up with a number of niches that could show immense potential as a profitable dropshipping niche.
We have compiled a list of the most profitable niches and sub-niches for 2021.
How Can Deskera Help with Dropshipping?
All your dropshipping problems can be resolved with the help of Deskera’s Ultimate Guide on Dropshipping. Even if you are a beginner, you can now learn the tricks of the trade along with How to Start a Dropshipping Business.
Dropship with Deskera Books
Your one-stop destination for Dropshipping Accounting Automation destination with which you can completely focus on your dropshipping business. Deskera Books is your all-time Online invoicing, paying bills, accounting, and inventory partner for your business. Creating invoices, tracking expenses, and getting a real-time view of your inventory is now easy with Deskera books.
With Deskera’s ERP Account Management, you may record accurately, maintain your financial information in one place.
Conclusions on Dropshipping Niches
Let’s quickly take a look at the highlights of this article:
- Dropshipping is a retail completion method in which a store does not hold stock of the items it sells.
- A niche is a product that aids in the development of an audience, aids marketing, and makes it easier to generate superior items for your target market.
- Facebook Audience Insights, Google Trends, and Google Keyword Planner are some of the best methods to estimate the best Dropshipping niches.
- Ranking of the competing sites and the number of domains linking together are ways to measure your competition.
- Understanding customers’ thought-process, Step into manufacturing your product, Offer the lowest possible price, Unique Value-Add, and collaborating with competent suppliers are some ways to be successful with your dropshipping business.
- A Niche refers to a segment of products that has a concentrated audience who are ready to purchase the product.
- The niche product offers solutions to the problems of the consumers; and having understood the solutions, you may promote the niche to the intended consumers.