Why You Need to Find Dropshipping Niches To Be Successful

The right dropshipping niches are crucial to an online store's success

Dropshipping Niches and Online Retail

Running a dropshipping store can present you with various challenges – some great, others small. First and foremost, it is tough to choose the right products to sell. Consider that retail businesses used to market themselves as “one-stop shops”, the kind of place where you could shop for just about anything. However, with the advent of the internet and online retail, this has changed considerably. Nowadays it’s more prudent and savvy to be a kind of specialty provider, meaning that your dropshipping store focuses on some specific subset of goods. This are also known as a dropshipping niches.

Why Are Dropshipping Niches So Important? 

Dropshipping niches will drive sales for your online store

The right dropshipping niches are absolutely crucial in order for your online store to succeed, especially in today’s highly competitive market. Consequently, it’s important to find your niche for the following reasons: 

  1. When you have a dropshipping niche for your online store, potential customers will probably consider you to be an expert. That means that it’s best to study up on your niche so that these same potential customers come to you first and avoid non-specific retailers. 
  2. Potential customers are usually willing to pay premium prices if they perceive you as particularly knowledgeable in your chosen niche. Essentially, these consumers will view a specialty niche organization as the “experts” in some given part of the retail marketplace. Consequently, you should have a blog on your website that allows you to connect with these potential customers and act as a de facto voice of authority. 
  3. As mentioned above, consumers are willing to pay a little extra in order to shop with someone who is an authority or expert in a given niche. Of course, that extra money goes into your pocket. As you can see, this means that dropshipping niches have more prominent benefits. 
  4. Dropshipping niches require that the inventory offered will be precise and targeted. As a result, it is likely that it will be less demanding and expensive to set up. Imagine that a one-stop shop will require a great deal of preliminary legwork to communicate with potential customers due to the size and scope of their inventory. 
  5. Choosing the right niche can be a boon to your e-commerce ventures, and the best dropshipping niche ideas are those that you are knowledgeable or passionate about.

In fact, choosing a niche may be the single most important step on your road to e-commerce success.

Dropshipping Niches Are A Highly Effective Business Strategy

Dropshipping niches are meant to be more targeted and specific

Dropshipping is inherently flexible. That means that you have a certain amount of leeway when you try to find your niche. Consequently, it’s helpful to keep the following in mind:

  1. Analytics are intrinsic to this business model – In this day and age, data is supreme. However, gathering this data can be very difficult. How do you know what people like? Well, if you have a visitor to your niche online store, then you can reasonably assume that this niche is one of their interests. Now that you know this about the customer, you can try to pivot to other products they might be interested in. 
  2. Dropshipping niches create loyal customers – In order to succeed in e-commerce, the trick is to convert one-time visitors into loyal customers. How do you do this? Sell niche products to discerning customers while providing them with an excellent user experience. Niche audiences are also more likely to generate good word-of-mouth regarding your store. Remember that the dropshipping model effectively allows for you to focus on connecting with customers, so be sure to take advantage of this fact. 
  3. Niche markets make online shopping less overwhelming – Nowadays, we are constantly bombarded by content; it can be utterly overwhelming at times. Browsing the inventory or sites of the giant retailers can feel like an arduous task rather than a positive user experience.   
  4. Provide potential customers with your expertise – Having additional content for your online store can help with search engine optimization (SEO) and driving traffic to your site. Because a given niche will have highly specific keywords, the additional content on your site will most likely be evergreen content, meaning that it stays relevant over time. 

But Amazon and Walmart Sell Everything! 

Retail giants don't need dropshipping niches

Online retail giants like Amazon.com or Walmart.com have different business models – they emphatically avoid selecting niches. In fact, they are most known for selling just about everything. You may think that this will render your dropshipping store obsolete, but the opposite is actually true. In fact, these retail giants aren’t really your competition. Remember that thee retail giants can avoid choosing niches, but their startup costs, amount of infrastructure, and operational costs are astronomical. 

Let’s consider Amazon’s infrastructure: they have over 90 fulfillment and sortation centers located worldwide These centers are massive, with the largest one being 1,264,200 square feet in the city of Schertz, Texas. The size and scale of this infrastructure allows for Amazon and its Amazon Marketplace sellers to offer over 350 million different products! 

Your online store and dropshipping niches, on the other hand, require a different business model. As a dropshipping retailer, remember that you don’t have to store, pack, or ship inventory. All of that is handled by your dropshipping provider (also referred to as a dropshipping supplier). This makes it easier for you to connect with your potential customers. 

Remember that a dropshipping business does not have to: 

  1. Own and/or operate a warehouse. 
  2. Handle the packing and shipping of products to customers. 
  3. Track inventory for accounting. 
  4. Order new inventory due to market or customer demand. 
  5. Handle product returns. 

In fact, it’s best to consider that a dropshipping business is most effective when it is pared down to its most important elements. Avoiding overall bloat will allow you to connect with customers and target their demands more specifically. 

The Best Dropshipping Niches and Your Competition   

Use your dropshipping niche to connect with customers

In general, choosing the right niche will partially depend on your particular interests. Remember that your potential customers will think of you as a voice of expertise on the niche, so it’s best to choose something that you know a lot about. This will ensure that consumers see you as a dependable source of information and will trust your reputation. This is the dynamic that will turn one-time visitors into loyal customers. When choosing your niche, follow these basic steps: 

  1. Identify your interests and areas of expertise – Potential customers will be more likely to shop with you if are especially knowledgeable or passionate about the niche. 
  2. Do the research – You will have to identify a gap in the overall market. Filling this gap will be the foundation of your niche dropshipping store. 
  3. Determine demand and mind the competition – You will have to identify a niche for which there is high demand but low competition. If the niche has hit market saturation, then it is less likely that you will catch consumers’ attention. 

The increase in specialty retail organizations has made your average consumer more discerning in their wants or tastes. That means that your success in e-commere 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 niches. 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.     

 

 

Marcin Ossowski
Marcin Ossowski is a writer based in Los Angeles, California. At GreenDropShip, he writes about e-commerce, lending his expertise to online retailers and entrepreneurs on how to best drive sales and market their online stores. In his downtime, Marcin spends a lot of time outdoors and is actively pursuing his passion for writing fiction, creative nonfiction, and satire.