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"The Art of Finding Winning Products"
Dropshipping is, by definition, an alternative retail service. It’s a type of order fulfillment service – but dropshippers don’t actually hold stock of the products they sell. Instead, dropshippers buy products on an as and when basis from a dropshipping supplier to fulfill orders their customers have made through their dropshipping site.
At the moment, dropshipping products are in demand. And that consumer demand is trending upwards with the global dropshipping market size forecast to grow at a Compound Annual Growth Rate (or CAGR) of 23.64% between 2023 and 2032. So the potential of your success in the dropshipping retail world is immeasurable. As long as you adhere to some dropshipping best practices that is.
And when it comes to best practices in dropshipping, the first step is choosing a viable niche. Dropshipping niches are a careful balancing act of identifying a gap in the market for which there is a consumer interest. Basically, you want to look for a niche that’s popular, trending upwards, and where the market isn’t already oversaturated.
Read on to learn all you need to know to choose a profitable dropshipping niche like a pro.
A niche becomes profitable when there is ample consumer demand. There are three different types of niche products, and for your dropshipping store to remain profitable year-round, it’s best to have a good mix of all three. These are:
Evergreen niche products: These are in demand consistently all year round. While trends may cause a fluctuation of consumer product searches throughout the year, demand remains consistent Y-o-Y (year-on-year).
Trending niche products: These can be trending upwards over time or a fleeting trend that requires fast action. In dropshipping, there are no restrictions. The key is to identify rising trends early on and add them to your dropshipping store on an ASAP basis.
Seasonal niche products: These are the niche products that are in demand at a certain time of year on an annual basis. Seasonal dropshipping products can help to boost profit during peak shopping seasons such as Black Friday, Thanksgiving, and Christmas. But there are other holidays that see a spike in consumer demand for holiday-based products too. These include Valentine’s Day, Mother’s Day, and Easter.
There are also a number of factors to consider when selecting a niche. Before diving in head first, it’s a good idea to get your ducks in a row. Here are the top tips and things to consider before finalising your niche:
Start with research
If you don’t know much about consumer demand, it’s best to start at the beginning. And, as with the majority of online content, that begins with keyword research. Use a free SEO such as Google Trends to identify consumer demand in different areas (i.e. women’s clothing, tech, accessories, etc). If there is a product demand consistency, or demand appears to be growing Y-o-Y it’s a great niche to consider for your dropshipping store.
Weigh up the competition
If you want to know how competitive a keyword term (aka a dropshipping product niche) is, you’ll need to sign up for a free subscription or trial of an SEO analytical software service such as AHREFs or SEMrush. These tools give you an idea of how easy it will be to enhance visibility in a specific niche.
When in doubt, choose a niche you know
Knowledge is something you can’t buy. In choosing a niche you’re familiar with and passionate about, your expertise will resonate with the likes of Google as well as your customer base. And that expertise will help with your marketing efforts, building brand awareness, and improving visibility leading to more organic traffic.
Choosing an evergreen niche is the key to ensuring the success of your dropshipping business. Here are some examples of evergreen niches you might want to consider:
In the post-COVID world, we’re all more aware of the importance of looking after ourselves than ever before. Health and wellness products were in demand beforehand, and that demand has continued to rise Y-o-Y since.
Whether you’re considering health and fitness or mental wellness products as your dropshipping niche, you’re sure to see success with some dedication and time.
Another niche that has grown in popularity in our post-COVID world is home improvement products. Since COVID, more of us are working from home on a regular basis. And that means more time spent at home.
In turn, that means that we’re constantly looking to get on with those home improvements we’ve been planning for the last decade but never seem to get round to.
That’s where your dropshipping ecommerce store comes in. Offering customers access to tools and related aesthetically pleasing products such as light fixtures and decorative door handles could be a really viable avenue for entrepreneurial dropshippers!
When it comes to pet supplies, demand is definitely on the rise. A massive 66% of US households have at least one pet and when it comes to market saturation, the demand appears to far outweigh the retailer competition.
Spocket's dropshipping suppliers can provide high quality pet products for both evergreen sales and seasonal sales too.
Beauty and skincare products have always and will always be big business. If you’re looking for an evergreen dropshipping niche that will keep your business in the green year-round, beauty and skincare is a great option to consider.
What’s more, it’s an evergreen product that generally sees an uptick in demand during many of those seasonal shopping periods too. Given that people love to receive beauty and skincare products as gifts, consumer demand increases organically.
Emerging dropshipping product trends are a great option for new dropshippers looking to test the waters. When a niche is emerging, competition usually remains low. Here are the top emerging product niche trends to consider:
Consumers are becoming more and more aware of the negative effects of climate change. And this growth in awareness has sparked a U-turn in consumer shopping habits. And we’ve noticed just how in-demand natural, sustainable and eco-friendly products have become.
Lucky for you, you’ll find a massive range of eco-friendly products to add to your dropshipping store through Spocket. Everything from metal water bottles and bamboo toothbrushes to biodegradable dog poop bags, recycled toilet tissue and beyond are great examples of eco-friendly dropshipping products you could consider selling through your store.
In 2023, AI dominated the news worldwide. And its popularity is abhorrent. As is the popularity of smart home gadgets. Smart plugs, smart light bulbs, smart plugs, and smart speakers are just a few examples of products that are highly sought after by consumers at the moment.
If you’re a fan of technological advancements, the smart home gadgets niche is one that you could embrace on your dropshipping journey.
Tech is as popular as ever. But we’ve spotted a rise in the demand for tech accessories at an affordable price. This is what makes this emerging dropshipping niche a really viable business opportunity for new dropshippers.
The focus is becoming less brand-orientated and more spec and review-centric. Again, you’ll be pleased to know that all of our dropshipping suppliers’ products are high-quality and meet both EU and US standards.
Again, in the wake of COVID, as a world we are far more invested in pastimes. Be that shared or solo pastimes, evidence suggests that hobbies and leisure activities are great for our mental wellbeing.
And the great thing about this niche is that you can choose to be as diverse or as specialist as you prefer. Jigsaws, arts and craft supplies, knitting and crocheting accessories, and even musical instruments are all profitable avenues you can trial.
But don’t forget about those outdoorsy hobbies and leisure activities. Sports equipment is in high demand. As is camping equipment, along with fitness and GPS trackers too. So, choosing a specialist niche within the hobbies and leisure activities dropshipping category doesn’t mean limiting you opportunity for expanding your product offering.
Seasonal niches help to boost your profits during peak shopping periods. Seasonal products include holiday-themed products, summer clothing and accessories, back to school essentials, and winter clothing and accessories. Some niches will naturally find it much easier to add seasonal lines to their existing dropshipping catalogs whereas others may have to think outside of the box a bit more.
Here are our top picks in the seasonal niche category:
There are literally hundreds of holidays throughout the year, each of which provides a unique opportunity to boost your dropshipping earnings by adding holiday-themed products to your catalog. In the US, the biggest holidays of the year include Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas and New Year.
But, there are also a number of other holidays that provide a unique opportunity to boost dropshipping products. Valentine's Day, Easter, Mother’s Day, and Father’s Day all see shoppers eager to spend on loved ones. So, in the interest of boosting sales year round, seasonal giftware is always worth consideration.
From summer clothing to sunglasses and sliders or flip-flops to sun hats, beach towels and beyond, there’s a summer holiday-themed product that’s a good fit for most dropshipping platforms. Fashion dropshippers can turn to summer clothing trends; beauty and skincare dropshippers can trial the sale of sun creams and aftersun lotions; and tech dropshippers should see sales of wireless headphones and earbuds spike as we head into the warmer months and people are getting out and about more and more.
Sometimes, when deciding which summer essentials you should add to your dropshipping store, it’s best to put yourself in your customers’ shoes. If you were shopping for summer products, what would you be looking to buy? Chances are, your customers will be looking for those same things. And a quick check on Google Trends will either confirm or deny your idea.
Back to school time comes about thrice a year. Following the summer holidays is the biggest back to school seasonal push that can help boost dropshipping sales. But, if you find your business does really well during this initial wave of sales, it could well be worth trialing back to school products both after the Christmas holidays and again after the Easter holidays too.
Back to school products include everything from lunch boxes and drink bottles to backpacks, stationery, and beyond. And if you notice a popular trend (e.g., an increase in the popularity of Anime) and cater to that trend, you’re sure to see a spike in your dropshipping sales too.
Our top tip? Keep your ears to the ground and your eyes open for new and emerging children’s trends. Stay in touch with your friends and family who have children and query their interests often.
And just as seasonal accessories can boost your sales in the summer, winter wardrobe demands bring about different opportunities for dropshippers. As the colder weather becomes more prominent, everyone turns to winter woolies. Hats, scarves, and gloves will all fly off your virtual dropshipping shelves.
But the opportunities don’t end there! Thermals are becoming increasingly popular too. So we’d urge both fashion and sports and leisure dropshippers to add thermal base layers, thermal socks, and heat-conserving solutions to their offerings during the winter months.
And for those in the wellness or beauty and skincare business, winter is the time when shoppers rely a little more heavily on supplements due to their lack of Vitamin D intake at this time of year. What’s more, the colder weather is harsh on our skin. And the constant flux of temperature caused by the disparity between that indoors with the central heating on full blast to the arctic-style blasts of the outdoors sees the demand for moisturizing skin care solutions go through the roof.
Choosing a specialized niche could also lead to building a viable dropshipping business. The nature of the specialized niche just needs to have enough demand to warrant dedicating your dropshipping store to it. Plus, having a little hands-on expertise won’t hurt.
Here’s a rundown of our top recommendations in specialized niches:
When it comes to niche-specific gadgets and tools, there are a great many options to consider. If you look at the automobile (aka car) industry, there’s an increase in the demand for dash cams right now. Not only that though, car tools are a household essential for novice mechanics and pros alike. As you expand your catalog, you could consider adding car accessories such as air fresheners, floor mats and more too.
Alternatively, niche specific gadgets and tech also works with camping or hiking. Consider stocking GPS navigation systems, smart watches, as well as climbing essentials, tent pegs, and even roll mats to sleep on.
You could even apply niche specific gadgets or tools to the skin care and beauty sector. What with epilators, derma rollers, and facial brushes; there’s plenty of opportunity to offer customers a niche yet compelling product catalog.
There comes a point in every man and woman’s life that a hat is essential. Why not create a dropshipping store that’s dedicated to every person’s headwear need and become the go-to for hats.
Alternatively, you could always be on the lookout for celebrity trends. By offering your customers access to those hot, fresh, and unique fashion accessories, growing brand awareness shouldn’t be a difficult task.
Collectibles are a hot topic. And limited edition collectibles are sure to sell like hotcakes in your dropshipping store. Look out for trending movies, TV shows, and genres in general. This will help you keep up with the demand.
Customized or personalized dropshipping products make great gifts year-round. By offering customers the opportunity to put their own personal stamp on products at an affordable rate, your business is sure to grow rapidly in popularity.
With our print on demand partners, you’re sure to find access to great quality printing services that will secure the success of your dropshipping store.
Before deciding on your niche and diving into the world of dropshipping, you will need to evaluate the market demand. But don’t worry, we have some more tips and tricks up our sleeve which are sure to help you succeed.
Market research tools such as Spocket help you find winning products. We work with many reliable dropshipping suppliers to ensure that you can access all the product variety you need. But not only that, we also keep an eye on what’s selling like hotcakes and recommend them to dropshippers just like you.
Other market research tools (such as Google Trends) can help you keep tabs on top trending products right now. If a product is growing in popularity over time (or trending upward) or if there’s suddenly been a spike in interest on a particular product, Google Trends will display the data visually for easy analysis.
We’ve all seen the success stories of dropshipping businesses. And it’s these success stories that are part of the driving force behind us starting our own dropshipping businesses. But, you need to analyze your competitors' success stories in detail.
A detailed competitor analysis can be confined to 6 simple steps:
Once you have this information, you’ll be in the perfect position to launch or enhance your dropshipping business.
Identifying your target audience preferences can help you ensure that you market your products properly. You will need to study up on your intended customer base. Put yourself in their shoes and embrace everything from their language preferences to their design preferences. To achieve this consider their life experiences - are they married, parents, or single twenty-something professionals? There is no right or wrong answer - just think about the type of person you expect to buy things from your dropshipping estore.
A proper marketing strategy ensures you are targeting the right audience for your dropshipping business. This should be a key component within your dropshipping business plan if you want your store to succeed. Here are some things you should try to work into your dropshipping business marketing strategy.
Harness the power of social media and use it to your advantage. Share new and exciting dropshipping products with your audience via any of the big social media platforms in a way that will be visually engaging for your target audience. This will not only keep your current followers engaged with your brand, but will also help to attract new customers to your dropshipping store too.
And don’t forget about hashtags. Hashtags help increase visibility and the impressions of your post. As impressions rise, so too do the number of clicks you’ll receive. Another effective marketing tactic that works really well on social media is incentivizing your followers to share your posts. Competition giveaways are a great way to improve brand visibility fast.
Influencer collaborations have the potential to be very effective at boosting engagement and driving conversions for dropshipping businesses. If you choose to partner with social media personalities with high following and engagement numbers, you’ll be able to tap into their credibility, and their already engaged audience to help build brand awareness.
There are a number of other content marketing approaches you can take to secure the success of your dropshipping business.
One thing that’s definitely advisable is creating a blog. Blog posts are an easy way to expand your keyword universe (more on that in a moment), demonstrate your expertise, and even keep customers engaged with your brand post-purchase.
And if your marketing budget allows for ad campaigns, targeted advertising can be a fruitful investment. Campaign tools are particularly useful during peak shopping periods. Google Ads, Facebook Ads, and Instagram Ads can help you reach a higher number of potential customers.
Email marketing is another useful tool you can use to your advantage too. Your customer email address list is invaluable when it comes to strategic marketing. Email marketing helps to build long-lasting relationships between your brand and your customer base. By actively staying in touch with your customers, you can boost your dropshipping sales all year round.
SEO tactics is a massive part of improving your dropshipping site’s visibility. And as Google is the go-to search engine for the majority of shoppers, it’s their hoops you’re going to need to jump through if you want to rank highly.
That’s where SEO tools such as Plug In SEO and Strong SEO come in handy. Both of these are compatible with both Spocket and Shopify and will be invaluable on your SEO journey. Plus, once you’ve learned the inside tips and tricks, all you need to do is apply them.
Remember, in a world where your Domain Rating impacts how highly you rank in the SERPs, the game of backlinks begins. You want to gain backlinks from sites with a high domain authority as doing so will improve your own. And to do that, you need to create fresh, engaging and informative content in the form of blog posts.
Digital PR services can help you to build a strong, natural backlink profile more efficiently. But digital PR doesn’t come cheap so that might be a consideration for the future.
There are some big no-nos in the dropshipping industry and unfortunately, those same no-nos are the most common mistakes made by entrepreneurs. These include:
Oversaturated niches are not viable. If the market is oversaturated then generally the competitors outweigh the opportunities and a new niche needs to be identified. Otherwise, simply put, you’ll set your dropshipping business up to fail.
Failing to notice and add seasonal trends to your catalog of dropshipping products is also going to cause your business to suffer during peak sale periods. Pay attention to seasonal trends and wherever possible, add relevant seasonal products to your existing lineup.
If you don’t create a USP for your dropshipping business, you become one of many. Come up with a unique selling proposition that sets you apart from your competitors and cements your dropshipping store as a go-to.
Okay, we know this is the boring bit, but if you want to get your dropshipping business off to the best start, it’s best to be on the right side of the law. Here we’ll explain the need to know info.
Dropshipping is entirely legal. However just as in any business, you will need to adhere to local, national, and international laws relating to the sale of merchandise. It’s worth mentioning here that all of Spocket’s suppliers have been well-vetted and have proven that their products are high-quality and meet both EU and US standards. So, as long as you conform to any other local, national or international laws, your dropshipping business model will have very little personal liability risk.
Again, partnering with reliable suppliers is a biggie and that’s where we can help. To be a Spocket supplier, you need to be able to adhere to the below criteria:
Managing customer expectations in terms of shipping times is key to avoiding those “where’s my stuff?” emails that customers are so fond of sending. Remember to allow time for picking, packing, and dispatching items on top of the advised shipping times. This will prevent the majority of customers from getting in touch before their forecasted delivery date.
Case studies are a great way to learn more about success stories in the world of dropshipping. Learn more below:
Discover how an entrepreneur earned $178,000+ in just three months dropshipping dog products. Or dive into how a working mum earned $442,000+ through two dropshipping ventures - one focussed on women’s fashion and the other on baby clothes. And there’s even a case study of a student who earned $224,000+ by dropshipping with Spocket in just 3 months too.
Whatever niche you’re considering, hopefully these testimonies of success will spur you on.
Every entrepreneur faces challenges. And in dropshipping, you’ll need to be ready to take it one day at a time. Dedication, drive, and a willingness to succeed are the three tools in your arsenal that will help you overcome obstacles.
Remember to manage your own expectations from the offset. And try to set SMART goals (Specific, Measurable, Attainable, Relevant, and Time-based). These will help you monitor your dropshipping business successes on a daily basis.
Once you’ve established your dropshipping business, scaling up is the next logical step. Here’s how to scale up your dropshipping business in a nutshell.
We strongly advise you to welcome any and all feedback - be it positive or negative. A negative review can highlight business weaknesses and provides valuable first-hand insight on how you can better improve your dropshipping store. Learn more below:
Customer reviews can make or break your dropshipping business. What’s more, a single 5-star review holds more power than 100 3-star reviews. Good reviews reflect positively on your brand and will help to build trust with new customers as you continue to attract them.
Bad reviews, although not as great as the good ones, are equally useful for your business. Find out where your weaknesses lie and address them. This will also help you earn trust with your customers as they will feel their feedback is important to you. And in the world of online dropshipping retailing, it definitely is.
Staying aware of new and emerging market trends is essential to your dropshipping business’ survival. You must be able to adapt to changing conditions to stay relevant.
This can be done by conducting thorough market analysis. By identifying those emerging trends, changes in customer preferences, and new competitors early, you’ll be able to preempt changes in the market and implement changes to your dropshipping store through informed decisions.
Earning trust with your customers is a really important part of building and asserting your brand’s authority with both Google and potential new customers. And a great way to earn their trust is to listen to their suggestions and take steps towards their recommendations.
You don’t have to go all in on their suggestions, just demonstrate that you have listened to what they have to say. Let’s look at an example scenario:
Your customer has rated your dropshipping business 2 stars. This is based on a lengthy delivery service.
Their suggested action is to add next-day delivery to your shipping options. Consider the viability of doing this - if you can, you might as well. And if it’s not a wise move for your business, compromise by offering an expedited service for a fee.
While you’re not obliging their request for next day delivery, you have addressed their complaint and implemented an alternative, faster delivery option for future customers.
Keeping track of the viability of your dropshipping business is integral to success in online retailing. But analyzing ROI needs to be done on a regular basis.
The niche of your dropshipping business and your current goals will stipulate the type of metric you analyze. You can analyze your return on investment based on revenue, profit, customer satisfaction, engagement, productivity, or reputation. Or you can measure any combination or all of the above in relation to your ROI.
If something has gone array with your ROI metrics, it could be time to adjust your strategies.
So, if your customer satisfaction levels have dropped, you know you’ll need to focus on improving your customer service and your customer journey. It’s also a good idea to revisit those customer reviews to see if you can unlock the reason behind their dissatisfaction with dropshipping through your store.
Equally, if you’ve see a drop in your profits yet your order numbers remain similar, could your dropshipping supplier have increased their prices? And if so, how can you pass that price increase onto your customers without losing their loyalty in the process?
Let the metrics inform you whether your current strategy is working well or not.
In your quest to find a profitable dropshipping niche for your business, the best advice we can give you is to choose a niche that you know. In choosing a niche that you’re knowledgeable and passionate about, that knowledge and passion will shine through. And that becomes your very first USP.
Don’t forget about the importance of customer reviews - they can make or break your dropshipping business after all. Through careful marketing and SEO strategies you’ll be on your way to building a successful start-up in no time. And that’s when you can implement phase 2: scaling up.
On your dropshipping journey, don’t be afraid to experiment with different niches. In the early stages it’s a lot about trial and error - learning what works for your store, and what doesn’t. All knowledge is valuable, so be it positive strides or backwards steps, embrace each and every step on your journey.
Finding reliable suppliers for dropshipping businesses is easy when you partner with Spocket. We ensure that all of our dropshipping suppliers are of good reputation, maintain an orders success rate of 95% and above, can supply high-quality products that meet both EU and US standards, and can provide fast shipping services with order tracking. Sign up today and secure reliable suppliers for your dropshipping store.
When it comes to dropshipping, there are a number of risks that are unavoidable. As you’ll have no control over the supply chain, delays to orders can be unpredictable. Then there’s the issue of product quality. Having never handled the dropshipping products yourself, you may find that some customers report their quality as inadequate upon delivery. By partnering with sprocket, you can rest assured that our dropshipping suppliers have proven themselves able to deliver high-quality goods that adhere to both EU and US standards.
Given that dropshippers only pay for the products they sell after a sale has been made, dropshipping is ideal for budding entrepreneurs. It’s an easy way to launch a low-risk business and with a little research and dedication, even beginners can be turning a profit in little to no time at all.
Staying competitive in saturated niches has become a common issue in the world of dropshipping. But, knowing who your competitors are and carrying out SWOT assessments of those competitors will enable you to keep hold of your competitive edge.
Don’t forget about your USP (Unique Selling Proposition) - this is what stands your brand apart from the rest. And dedicate time to delivering consistently high levels of customer service to stay ahead of your competitors too.
Gemma has a passion for writing, an enthusiasm for eCommerce, and a flair for creating informative content that drives others to follow their dreams. Her work foundations are built on thorough research to allow you to find all the need-to-know info in one place.