Top Dropshipping Niches to Grow Your Online Store
You may have heard of the expression “to carve a niche”. This usually means that you identify and occupy a secure position that you’ve organized around yourself. Interestingly enough, this concept can also apply to running an online store. A “dropshipping niche” is a smaller, more focused segment of a wider retail market. In other words, choosing a dropshipping niche allows an online retailer to find segments of the retail market that have less competition and more potential for profitable sales.
Why Should You Pick A Niche for Dropshipping?
There are various benefits to choosing a niche when dropshipping, including:
- A dropshipping niche allows you to focus on a segment of the market that may have less competition.
- Potential customers will consider you to be an expert and they may be more willing to pay premium prices.
- It’s an easier and more efficient way to build trust and recognition with potential customers.
- Choosing a niche in something you’re passionate about will make work more enjoyable and fulfilling for you.
- An e-commerce store with a more focused or specialized inventory can be less overwhelming for online shoppers.
- Create loyal customers by turning one-time visitors into regular customers.
- You can also jump on emerging trends without running the risk of getting stuck with unsold, surplus inventory. This is because dropshipping is a zero-inventory business model.
How Can You Compete With The Retail Giants?
Retail giants like Amazon, Walmart or Target have the exact opposite retail model: they have no niches. Instead, they offer consumers practically anything they can think of, making them virtual “one-stop shops”. Will this make your dropshipping store obsolete? No, it won’t. Let’s take a look at why.
Remember that the retail giants have to pay massive overhead to store and ship this inventory. In fact, Amazon has over 90 fulfillment centers all over the world and the largest of these is nearly 1.3 mill square feet. Obviously, with your dropshipping store, you won’t be able to compete with their huge selection. However, you can still run a profitable dropshipping store.
Despite their huge inventories, shopping at these websites is fundamentally an impersonal affair. Think of your dropshipping store like a “mom and pop” store, with more personalized connections with your customers. Plus, you should always offer them a superior consumer experience, making your customers feel unique and valued. This builds trust, recognition, and loyalty!
Finally, if you choose a dropshipping niche that you know a lot about, then consumers may view you as an expert in that particular niche. That way, they’ll hold your narrower, more focused inventory in higher regard than the enormous and impersonal selection that you find at the retail giants. A dropshipping niche that you’re personally passionate about is even better – online shoppers will sense that passion and likely respond to it by becoming customers.
What Are the Top Dropshipping Niches for Your Online Store?
It’s important to remember that a dropshipping niche has a narrow focus. In order to better examine the various potential niches, let’s break the potential retail market down as follows:
Shopping for clothing online is especially popular. This means that there are plenty of opportunities to carve out dropshipping niches within this wider category.
In this context, a niche would be a type of clothing that can either target a specific:
- Activity – It can include work wear, formal wear, or fitness clothes.
- Demographic – It can target children, teenagers, or adult
Let’s take a moment to examine just how popular this niche is using SEMRush. This tool shows you the number of Google searches per month for a given search term. For instance, let’s take a look at the SEMRush data for “workout clothes”:
As you can see from the SEMRush data, the search term “workout clothes” has over 60,500 monthly Google searches. Plus, you can look at related niches that have high search volume, including “workout clothes for women” at over 33,000 and “workout clothes for men” at over 18,000 monthly Google searches. Finally, you might even find some niches you hadn’t even thought of, like “plus-size workout clothes” with over 12,000 searches and even “80s workout clothes” with nearly 10,000 searches.
Additionally, it’s important to remember that any niche can be further refined and focused down. For instance, “beach clothes” or “fitness clothes” would be clothing niches targeting customers who shop for a specific occasion.
Baby Products Niches
If you decide to sell baby products, you can find plenty of profitable niches to focus on a specific type of needs. Baby products can be highly profitable for your online store as according to TABS Analytics, 20% of all baby products are sold online.
As you can see, there are 5,400 monthly Google searches for “baby products”, as well as an additional 6,000 monthly Google searches for related search terms.
GreenDropShip offers an extensive selection of goods in the baby products niche including:
- Bath, hair, and skin care products
- Diaper care
- Baby-safe laundry detergents
- Infant/toddler food
- Baby medicine
Health & Wellness Niche
Selling health and wellness products online can be very profitable. This is because “Health & Wellness” is a huge category that covers a wide variety of niches.
For example, “Fitness Products” is a large niche that has proven to be very popular for online retail. Under the broad banner of “Fitness Products”, you can find plenty of other great retail opportunities, including exercise equipment, sports/gym apparel, supplements, and even accessories like headphones or braces.
Of course, you can refine other niches as well. “Health Supplements” can include niches such as “protein supplements” or “bodybuilding supplements”. Plus, the Health & Wellness products category can also include more “New Age” items like aromatherapy products or essential oils.
Finally, let’s take a closer look at the search interest for some of these niches. For instance, the SEMRush data for “essential oils”:
As you can see, there are over 300,000 monthly Google searches for “essential oils”. Additionally, there are 90,500 searches for “essential oil diffuser”, which is a product that’s used with essential oils.
Let’s also take a look at the SEMRush data for “supplements”:
The search term “supplement” has a lot of search volume at 110,000 monthly Google searches. However, there are other niches that you could tap into, each of which have considerable search volume as well.
Food & Beverages Niche
This is another enormous category that includes a wide selection of niches to choose from for your dropshipping store. Some examples of profitable niches for “Food & Beverages” include:
- Natural and organic products
- Vegetarian or vegan food
- Gluten-free products
Let’s take a moment to examine the search interest for “gluten-free”:
The SEMRush data shows that “gluten-free” has 135,000 monthly Google searches, signifying a lot of search interest. This means that it has the potential to be a highly profitable niche.
Finally, you can always combine multiple niches to have an ultra-targeted online store. For example, you could focus on vegan fitness supplements that are also natural and organic, including dropshipping niches like “vegan protein powder” or “vegan energy bars”. Let’s take a look at the SEMRush data for “vegan protein powder”:
As you can see, the monthly Google searches for “vegan protein powder” are 49,500 and “best vegan protein powder” is nearly 15,000 per month.
GreenDropShip is the ideal dropshipping supplier for many of these niches. While we don’t deal with the product category of clothing, we do offer our members over 20,000 natural and organic products, including Food & Beverage, Health & Wellness, and Household Items.
Top Market Research Tools to Find a Niche
As you build your dropshipping store and you want to choose the best niche, make sure you look out for the following criteria:
- Level of competition. Choose a niche with high demand that is not overly saturated. You can start by going to Google and entering the search query allinurl:niche name (for example: allinurl: essential oils). Google will then generate all the websites that have your keyword in the URL.
- Pricing. Setting the right price is also important. You want to make sure that your price is appealing to customers while still allowing you to make a profit after you pay for your overhead and operational costs. It’s important to always set your price to maximize your profit margin – that means charging at a higher price than the wholesale price, but not so high that customers shop elsewhere.
- Shipping weight. Shipping is always expensive, so the best paradigm to follow is a high-priced product with a lower price point. That’s a winning combination!
- Returns. If possible, steering clear of product niches that have size and style preferences will lower the return rate.
- Reliable dropshipping provider. You have to be certain that your dropshipping provider is reliable and has an extensive inventory for your product niche.
Of course, you’ll need to generate some dropshipping niche ideas before you can analyze them. Here are some of the best tools you can use to find them:
This is a free tool that displays search interest for a given keyword or key phrase over a specified period of time. For example, let’s take a look at the screenshot above. If you’re considering selling essential oils in your dropshipping store, then you can input the search term “essential oils” and track how search interest has increased over time. In this particular case, we’re looking back ten years to 2010.
Additionally, you can use Google trends to analyze search interest by:
- Showing how search volume changes over time.
- Identifying the most popular search terms.
- Providing the geographic location of the people using these search terms.
- Determining if the interest in the search term is seasonal or year-round.
However, when using Google Trends, just make sure you follow these steps:
- Choose a category of product (essential oils, for example).
- Go to Google Trends and type this category
- Look at the results. You can also use the following parameters to narrow your search down for a more granular level of analysis:
- Geographic region of interest.
- Time frame (over years, months, or even days).
- Type of content.
Amazon Product Search
While Amazon may seems like an unbeatable retail giant, you can use their massive inventory to your advantage when researching dropshipping niches. This relies on using the search function for the Amazon store.
Let’s just break down some simple steps:
- Go to the search bar.
- Search one of these product categories/niches.
- You’ll be presented with search results that have an entire list filled with categories and niches.
- Choose one of these niches and Amazon will direct you even further down to a subcategory or niche.
- You can now arrange the search results by price or customer review.
Jungle Scout is an incredibly useful and comprehensive all-in-one seller’s tool that’s available as a paid Chrome browser extension. It has a wide variety of functions, including its Niche Hunter tool , which lists a database of over 1 million niche opportunities that are updated in real-time. There are a number of categories, including Groceries & Gourmet Food. You can also organize the results by category, price, level of competition, or monthly demand.
Jungle Scout also has an extensive Product Database, with over 70 million products that you can sort through by using a set of advanced and finely-tuned filters. Plus, you can then take the products from this database and further analyze them with the Opportunity Finder, a powerful tool that helps sellers find high-profit, high-demand, and low-competition niches in the general marketplace. When using the Opportunity Finder, you can sort through the data using filters like competition level, niche score, and the number of units sold per month.
AliDropship is the WordPress dropshipping plugin for AliExpress. Not only does it make dropshipping easy and convenient, but it also provides a powerful tool that helps you analyze potential niches. First and foremost, you can input your search terms or keyword to generate a list of the number of items found on the platform. You can then use the AliDropship tool to analyze the following criteria on a scale of 1 to 5:
- Popularity of the niche
- Price comparison with other online stores
- Seasonal demand or trends, using the data you gathered from Google Trends.
- Promotional potential
- Competition in the niche
- Your average consumer has become more discerning in their wants or tastes. That means that your success in e-commerce will depend largely on how well you connect with these consumers. It’s crucial that you choose a dropshipping supplier that is reliable and offers inventory that fits your dropshipping niche. Let your supplier handle the logistics while you focus on providing the best user experience for your customers. They will trust your expertise and return to your store in order to meet their niche interests.
- GreenDropShip is a premium dropshipping supplier with over 20,000 natural and organic products, most of them made in the USA. With our huge inventory, there are plenty of niches for you to choose from!