Niche selection is a vital part of starting a dropshipping business. With a niche in place, it’s easier to focus on a specific audience, refine your market, and develop better products for your customers.
However, choosing the right dropshipping niche can be tricky. Do you go with products you already know? Should you cater to a popular US market or think more globally? How do you even know if your chosen products will sell?
These questions can be hard to answer. If you’re thinking about opening a dropshipping store and aren’t sure where to begin, use this guide to help you find the best dropshipping niches.
What is a dropshipping niche?
A dropshipping niche is a specific market area in which your store focuses. In dropshipping, you don’t keep products in stock. Instead, when you get an order, you buy the item from a supplier, who sends it straight to your customer.
Selecting a dropshipping niche is important. A niche is a specific market section for people with similar interests or needs. For instance, eco-friendly products, personal jewelry, and pet supplies could be considered niches.
Choosing a niche helps you market to a specific group and make shopping feel personal. It also sets your brand apart and makes building your brand identity easier.
How to find dropshipping niches in 2024
It’s easier to meet demand than to create it. With dropshipping, you need to find niches where people already want the products. If your items don’t interest buyers, earning money will be a struggle.
Here are some tips to help you find profitable dropshipping niches:
1. Check demand with tools
Knowing how much people want a product, who else is selling it, and who wants to buy it is key before you start dropshipping.
Luckily, there are plenty of online tools to see how in demand a product or market is, which helps you find the best dropshipping niches:
Google Trends
Google Trends is a free tool you can use to analyze the popularity of a certain item or niche. Just enter the name of the product in the tool, and it will show you data across different regions or languages. Use Google Trends to check:
Interest over time: You can see how search interest changes over time for any given query. This helps you figure out if the interest in your niche is growing. For example, if you want to sell fitness trackers, you can check if more people are searching for them now compared to a year ago.
Top and rising terms: Find out what related searches are popular and which ones are growing the fastest. If you’re thinking about selling “organic snacks,” look at what specific types have been searched for recently. This can guide your marketing and SEO efforts.
Geographic concentration: See where people are searching for your term geographically. If you’re selling “camping gear,” you can discover which regions have the highest interest. Maybe some areas are more into camping than others. Use this information to refine your advertising and target specific locations where interest is higher.
Seasonality: Understand if your product’s demand changes throughout the year. For example, if you’re selling “holiday decorations,” you’ll probably see search spikes around festive seasons. Don’t assume this interest will stay the same all year—search trends might drop once the holidays are over. Check seasonal patterns to avoid stocking up or planning marketing based on peak demand alone.
Google Keyword Planner
Keyword Planner is another free tool available to the public. Merchants can use it to see how often people search for specific words each month. Just type in a word or phrase and you get the monthly search numbers. It’s super helpful if you want to dropship and need to gauge product demand.
In Keyword Planner, you’ll want to focus on the following:
Match types
When you look up search volumes, you’ll see three match types: broad, phrase, and exact.
- Broad match. Broad match gives you a wide range of searches that include your keyword in any order. It’s good for getting general ideas, but can be too broad for specific planning.
- Phrase match. Phrase match shows searches that include your exact keyword phrase, but it can be part of a larger query. It helps you see more relevant search trends without being too narrow.
- Exact match. Exact match gives the exact keyword phrase you typed in. This is the most precise option and helps you understand the specific search volume for your exact keyword.
Search location
Make sure to check if the search volume is local or global.
- Local search volume. Local search volume shows how many people search for your keyword in your country or a specific region. If you’re focusing on dropshipping in Australia, you should pay more attention to this area.
- Global search volume. Global search volume includes all searches from around the world. It’s useful if you’re targeting a broader audience but can be misleading if you’re only selling locally.
Long-tail variations
These are longer, more specific keywords. They might have lower search volumes but often bring in more targeted traffic. For example, instead of “shoes,” a long-tail keyword would be “women’s running shoes for flat feet.” They show more detailed intent and can help you find niche markets.
By focusing on these metrics, you can better understand how much interest there is in a product. If a keyword has lots of variations with solid search numbers, the market is likely robust. But if related searches drop off quickly, there might be less long-tail traffic to rely on.
Online marketplaces
Exploring online marketplaces to find the most profitable dropshipping niches involves checking out categories, filtering products, and doing some good research. Websites like AliExpress, eBay, Etsy, and Amazon can be great for identifying what’s currently in demand.
First, browse through the various categories these marketplaces offer. Categories could include electronics, fashion, or home and garden products. This gives you an overview of the range of items available.
Next, look for trending or bestselling products. Marketplaces typically highlight popular items in sections labeled “Hot Products” or “Bestsellers.” These sections can help you see what’s currently popular.
Then, use the filters available on the marketplace to narrow down your search. Filters might include price range, customer ratings, and shipping options. Products with many subcategories usually indicate a deeper niche. Set filters that align with your dropshipping goals.
It’s also important to check the competition and their pricing. High competition can make it tough to get noticed, so aim for niches with good demand but less intense competition. Look at how products are priced to see if there’s potential for a profitable markup.
Finally, explore sections dedicated to niche or specialty products. These areas might offer unique or trending items that aren’t immediately visible in broader categories.
Audience Insights
Meta’s Audience Insights is a tool that aggregates data about users of Meta platforms like WhatsApp, Instagram, and Facebook. You can use it to determine the size of a potential dropshipping niche and understand what interests people in that niche. Use Meta Audience Insights to gain information like:
- Page likes: Categories and topics that users are interested in.
- Demographics: Age, gender, lifestyle, education, job role, relationship status, etc.
- Location: Where people live and the languages they speak.
- Activity: Comments left, ads clicked, devices used, and more.
As an example, if someone wants to explore a dropshipping niche like eco-friendly products, they can enter keywords like “sustainable living” or “green products.” Meta will show how many active users are interested in these areas, their demographics, likes, and locations. This way, you can tailor your dropshipping strategy to fit their preferences and habits.
Target accessory-based niches
Accessories often come with high-profit margins, and buyers usually aren’t as concerned about prices. Think about it: Someone might spend weeks hunting for the best price on a laptop but won’t hesitate to pay $40 for a laptop sleeve from the same shop. The profit margin on that sleeve is often close to, or even better than, the laptop itself. Picking a niche loaded with accessories can mean higher margins and customers who are less picky about prices.
Get ahead with hard-to-find trendy items
Trends are your best friends. Aim for trendy items that people can’t easily find around town. You’ll capture most customers online while they’re on the hunt. It’s a balancing act, though. You want products that are tough to get locally but still in high demand. If you nail this, you’ve got a winner!
Target passionate enthusiasts
Find customers who love what they do. Hobbyists and enthusiasts will spend big on their passions. Cyclists, for instance, pay loads for light gear to make their bikes faster. Fishermen invest tons in boats and gear. If you can offer something that solves their problems or makes their hobby better, they’ll jump at the chance to buy from you.
Sell consumables for repeat business
Look into selling items that need regular replenishment. It’s easier to get repeat sales from happy customers than to find new ones. Offer products people use up and need to buy again, and you’ll build steady, recurring revenue.
Choose products with long lifespans
Opt for items that don’t change every season. If your stock shifts constantly, you’ll waste time and resources on updates. Choose products with a long shelf life so you can create a solid, enduring business.
The most profitable dropshipping niches
If you want to build a successful ecommerce business, start with a profitable dropshipping niche.
Research on top dropshipping products highlights some of the best niches for 2024:
Car accessories
The car accessories niche holds a lot of potential, with the market expected to grow by 5.8% annually through 2032. People love customizing their vehicles and are always on the lookout for new accessories. You can put together a versatile catalog to attract initial customers and build your store’s reputation.
Here are some dropshipping products to sell under car accessories:
- Dash cams and backup cams
- Steering wheel covers
- Microfiber cleaning cloths
- Roadside emergency kits
- Car trash cans
- Device holders and mounts
- Window shades and sun shades
- Leather conditioner
- First aid kits for cars
- Bluetooth car adapters
- Cleaning gels
- Seat covers and organizers
- Air fresheners
- Car chargers
- Portable vacuum cleaners
- Exterior underglow LED kits
- Wiper blades
- Interior LED light strips
- License plate frames
- Floor mats
Home and bedroom
Everyone loves a cozy home—so home and bedroom products stay in demand. The home décor market was worth $126 billion in 2023 and is set to grow 4.77% annually through 2028. Searches for “home and bedroom” peak in January and mid-year.
Small online retailers excel in home interiors because these are common needs. Everyone needs items like rugs and pillows, but preferences vary, making them great for niche marketing.
If you’re exploring the home interiors niche for dropshipping, here are some product ideas to consider:
- Satin pillowcases
- Laundry baskets
- Weighted blankets
- Blackout curtains
- Fairy or string lights
- Linen or bamboo bed sheets
- Holiday décor
- Ceramic vases
- Rugs
- Microfiber bedsheets
- Handheld clothes steamers
- Shower curtain liners
- Frames
- Ready-to-assemble furniture
- Non-slip hangers
- Pillows and poufs
- Essential oil diffusers
Phone accessories
Phone accessories are one of the most profitable niches in dropshipping, with most items allowing retailers to keep a good margin. You can find items for less than $1 and ship them in bulk at a very low price.
Products like phone cases and screen protectors are always in demand—peaking during phone release seasons and remaining steady throughout the year. And advancements in smartphone cameras are fueling demand for accessories tailored to phone photography. For example, there’s an increasing demand for lenses, tripods, and lighting tools specifically designed for smartphones.
To get started in the phone accessories niche, consider the following product ideas:
- Ring lights
- Car chargers
- Cleaning kits
- Custom cases
- Phone cooling accessories
- Phone grips
- Phone mounts and stands
- Portable chargers and power banks
- USB-C power adapters
- Waterproof cases
- Bluetooth speakers, earbuds, or headphones
- Screen protectors
- Selfie sticks
- Smartphone wallets and card holders
- Tripods
- Wireless charging stations
Home office and office supplies
Do you work from home whenever you can? So do millions of people worldwide. The global home office market is worth $18 billion, making it a promising niche for dropshipping.
From desk organizers to ergonomic chairs, people need supplies to make their home workspace functional and comfortable. You can take advantage of the back-to-school rush by bundling items like pencil cases with markers, pens, and erasers. Plus, products like refillable mechanical pencils offer a chance for repeat business and building customer loyalty.
If you want to start dropshipping in this niche, consider the following products:
- Desk lights
- Wireless charging pads
- Ergonomic desk accessories (mouse, chair, keyboard)
- Pens and holders
- Notepads
- Mechanical pencils
- File folders and storage bins
- Heavy-duty packaging tape
- Office décor
- Webcams and microphone sets
- High-quality notebooks and journals
- Corkboards
- Desk pads
- USB hubs and adapters
- Staplers
- Dry erase markers
Kitchen and dining
Kitchen and dining products have proven to be reliable sellers over the years. The home appliances market alone is valued at $720 billion and expected to exceed $900 billion by 2028. Items like portable blenders and electric kettles are popular choices in this category.
If you’re considering dropshipping kitchen and dining products, here are some top picks:
- Air fryers
- Electric kettles
- Insulated mugs
- Silicone utensils
- Kitchen organizers and storage
- Portable blenders
- Water filters
- Compostable paper plates
- Coffee pods
- Stainless steel tumblers
- Electric kitchen scales
- Shaker bottles for protein shakes
- Peppermint tea
- Leak-proof bento-style kids’ lunch boxes
- Latte mixers
Sustainability
Sustainability is no longer optional—consumers expect brands to make it part of their ethos. According to a Specright report, 40% feel uneasy buying from brands that don’t track their sustainability efforts.
Shoppers also aren’t shy about spending to make a point. About 74% prefer doing business with transparent companies, and 71% plan to make more eco-conscious purchases in 2024. Plus, 58% said they would pay more for items that are environmentally sound.
For a dropshipping niche focused on sustainability, consider selling items like:
- Bamboo or stainless steel straws
- Beeswax and similar food wraps
- Compostable bowls, cups, and plates
- Solid shampoo and conditioner bars
- Reusable coffee cups
- Travel cutlery and silverware
- Tote bags
- Vegan consumer-packaged goods
- Chemical-free cleaning products
- Solar-powered electronics and lighting
- High-quality water bottles
- Sustainable activewear
- Products made from organic fabric like bamboo, cotton, or hemp
Child and baby
There are a lot of opportunities in the child and baby market, a growing sector expected to be worth $88 billion by 2026. You can explore products like baby healing ointment, stroller fans, teething toys, and sponge bottle brushes for dropshipping.
The latest trends indicate consumer hesitation around safety, cosmetic, and food items. If you’re looking to dropship these, make sure to work with credible suppliers who follow all the necessary protocols and maintain high-quality standards.
Here are some top products to consider dropshipping in the child and baby niche:
- Stroller fans
- Organic baby clothing
- No-touch forehead thermometers
- Diapers
- Teething toys
- Hydration multipliers
- Water-based wipes
- Breast milk storage bags
- Sponge bottle brushes
- Hypoallergenic baby diaper wipes
- Baby healing ointment
- Baby bottles
- Booster seats
- White noise machines
- Chew toys for infants
How to analyze competition in your dropshipping niche
Before setting your sights on a particular market, make sure to analyze the competition you’ll face. You’ll want to balance your approach, because too much competition makes it tough to get traffic, while too little might mean there’s no demand or potential for growth.
To get a clear picture, look at the top organic sites on Google’s first page for your keyword. Competing successfully here will be key to attracting visitors and growing your business.
Authority of competing sites
When analyzing how competitive a market is, check the authority of the top sites. Google values links from high-quality, reputable sites over links from less known sources. For instance, a link from a popular, well-respected news outlet like the BBC is far more valuable than one from a small personal blog.
Google uses PageRank to measure a webpage’s authority, helping determine how important the page is. To understand your competition, look at the PageRank of top sites. You can check this by manually using tools like Check PageRank.
Here’s a simple way to understand PageRank scores for a website’s main page:
PageRank 1 to 2 (low authority): This range signals a small amount of influence. It usually suggests the market isn’t very competitive or large.
PageRank 3 to 4 (moderate authority): This range is common for top sites in competitive niches. Getting to this level takes work but is manageable and rewarding for dropshippers.
PageRank 4 to 5 (high authority): Reaching this level means having substantial influence. You’ll need many links from well-known, authoritative sites, plus a fair number of other links.
PageRank 6+ (very high authority): This is top-tier influence. Competing here requires a dedicated SEO and marketing team. The market at this level is tough to break into.
Number of linking domains
Google ranks websites by looking at how many different sites link back to them. Generally, the more links a site gets, the higher it appears in search results. Knowing the link count helps you understand the work needed to rank your own site higher.
A key measure is “linking root domains.” This shows how many unique sites link to a webpage, ignoring repeated links from the same site. For example, if one blog links to a competitor 20 times, it’s counted as one unique link.
To analyze the competition, examine the linking root domains for the top Google results (positions 1 and 2) and the last spot on the first page (position 10). This shows the number of unique links the leading sites have, giving a rough idea of the effort required to rank on the first page where most users click.
Here’s a simple guide for interpreting unique linking domains. These numbers provide rough guidelines but should help make sense of the competitive landscape:
- 0 to 50 unique linking domains: This is typically low for valuable markets. Most sites can achieve this level within a year with decent content and some targeted marketing.
- 50 to 250 unique linking domains: This is a common range for top sites in moderate-sized markets. Building this many links might take a few years, but it’s possible for most dropshippers and small teams.
- 250 or more unique linking domains: Getting more than 250 unique links is tough and requires a lot of effort. This doesn’t mean it’s impossible, but be prepared to compete against well-established sites.
Qualitative metrics to consider
It’s also important to look at a few qualitative factors before launching a dropshipping store:
Site reputation and customer loyalty
An ecommerce website might earn a solid reputation by treating customers well over time, even if its design is old and dull. On the other hand, a modern-looking site could have a bad rep for poor customer service. Appearances can be deceiving.
Check the Better Business Bureau for any complaints against the company. Also, search for reviews on social media and in forums. If top competitors have poor customer service, you might have an opportunity to launch an ecommerce store with better support.
Site quality and usefulness
Imagine yourself as a customer and visit the top sites in your market. Do they look inviting or outdated? Are they easy to use, or do you struggle to find basic info? Can you find clear, detailed product descriptions, or are the images low quality?
In short, how likely are you to buy from these sites? If they seem impressive, it might be hard to compete. But if you see a chance to improve or offer something extra, that’s a good sign.
When you search for a term on Google, the search engine adjusts the results based on your location, browsing history, and personal settings. This means the results you see aren’t always the same as what others might see. For a true view of the competition, you need to bypass these personalized results.
Here’s how to do it:
- Private browsing: Use your browser’s private or incognito mode to search without Google using your history or settings. In Chrome, open an Incognito window by going to File > New Incognito Window or clicking the three dots in the upper right and selecting New Incognito Window. Firefox and Safari also have private browsing modes.
- Region-specific searches: To view results from another country, add a bit of text to the end of the Google search URL. For example, if you’re in the UK but want to see US search results, add “&gl=us” at the end of the URL and hit Enter.
How to succeed in your niche dropshipping business
Identifying a popular, low-competition product is just the start. To build a successful dropshipping business, you also need to:
Understand your ideal customers
If you’re stuck on a niche idea, start by figuring out who your customers are instead of what to sell.
When you know who you want to sell to, and what their problems are, deciding on your products and how to market them gets easier.
Create profiles for your target audience. These profiles, or personas, help you pinpoint your ideal customer. The more detailed they are, the better you’ll know who to target and what they need.
Get access to exclusive deals
If you can secure a special arrangement for pricing or distribution from a manufacturer or dropshipping supplier, you can sell products online profitably without developing your own line. These agreements can be hard to get, but networking with suppliers and proving your market potential can make it happen.
Avoid selling at the lowest price
Selling at rock-bottom prices might attract lots of buyers. The issue? It’s not sustainable. If price is your only selling point, you’ll end up in a price war that eats up all your profits. Competing with giants like Amazon on price alone usually doesn’t work out well.
Offer extra value beyond price
Set your store apart by giving customers useful info alongside your products. For example, if you sell skin care items, provide tips on routines or skin care guides. Sharing your know-how makes your dropshipping business unique and lets you price your products higher.
Add value in ecommerce
Some products and niches make it easier to add value through educational content. You should look for a few key traits that allow you to execute this strategy:
Complex components
The more parts a product has, the more likely customers will need help figuring it out. Think about it: Is buying an exercise machine more confusing than buying a simple water bottle? An exercise machine might involve multiple settings and attachments. If you sell products like workout equipment, customers will probably look online for advice on what fits and works best. You can provide that advice.
Confusing or customizable
Products that are confusing or customizable are perfect for adding value through helpful content. For example, would you easily know which indoor gardening system works best for your space or which type of wireless pet fence suits your backyard? Offering specific advice on what works best for different situations helps your customers and can make your online store the go-to place for these products.
Technical setup or installation required
When products are tricky to set up or install, it’s easy to offer helpful guidance. For example, if you’re selling car accessories that require complex installation, a website with a detailed installation guide might be more appealing—even if their prices are slightly higher.
You can add value in complex niches by:
- Creating detailed product descriptions and listings
- Making in-depth videos showing how the item functions
- Sharing comprehensive buyers’ guides.
- Offering installation and setup instructions
When your online store offers this extra help, it makes it easier for customers to choose your store over others.
Partner with reliable dropshipping companies
After launching your ecommerce dropshipping store, look for dependable suppliers or wholesalers. They can help you set product pricing, figure out shipping rates, conduct product research, and even automate dropshipping fulfillment.
For instance, platforms like AliExpress offer a vast range of popular products. You can browse their collections to pick items for your store. Place a direct order with AliExpress or use tools like Spocket to find, upload, and manage products in your Shopify store. You can also explore options like Amazon dropshipping to expand your inventory and reach more customers.
Dropshipping niches to avoid
Not all dropshipping products offer the same opportunities. Some niches are highly competitive, making it challenging to earn a consistent profit. Others come with specific challenges, like high return rates or regulatory hurdles.
Here are a few categories to be cautious about:
- Clothing. There are many options in the clothing sector, but competition is fierce. Making your first sale can be difficult in such a crowded field.
- Watches. The watch market is flooded. Although profit margins can be high, it’s easy to get stuck with poor-quality watches if you’re not well-versed in the industry.
- Health products. Although in demand, selling health items carries risks. Poor-quality products are challenging to sell, and there are legal issues with health claims.
Ready to profit from dropshipping?
Starting an online dropshipping store is not an easy task, but having the motivation to sell your merchandise will keep you going every day.
Think about what you can sell at your new store—or maybe what you can add to your current store—and keep these niches in mind. They have been moving the dial for years.
Dropshipping niches FAQ
What is the best dropshipping niche?
There’s no single best dropshipping niche. What works for your store might not work for another business. To find the right fit for you. consider your target audience, available resources, and expertise.
Here are a few niches to consider:
- Women’s clothing and accessories
- Jewelry
- Beauty and health
- Home and garden
- Baby care
- Car accessories
- Pet supplies
- Sports and outdoors
- Sustainability
Is clothing a profitable niche for dropshippers?
Although clothing offers a great starting point for dropshipping, it’s one of the most competitive niches out there. With new clothing stores popping up everywhere, you’ll need a clear strategy and unique products to really make an impact and grow your store.
How do I find my dropshipping niche?
- Use tools like Google Trends and Meta Audience Insights to spot market trends.
- Explore lists of top dropshipping niches for inspiration.
- Check how competitive your chosen niche is.
- Calculate the potential earnings from your niche.
- Research upcoming trends to stay ahead in your market.