Promising and challenging niches for starting a dropshipping business
Promising and challenging niches for starting a dropshipping business
Dropshipping is a type of e-commerce that is actively growing. In 2022, the global dropshipping market is estimated to be worth $225.99 billion. Experts predict that by the end of 2023, this figure will be $243.42 billion. The compound annual growth rate (CAGR) is expected to be 23.4% from 2023 to 2030.
So what is dropshipping? It's a commodity business model where you sell products from different brands, but you don't stock them or worry about shipping them. The suppliers themselves ship the goods to the end customer on your behalf. Dropshipping is good because it allows you to run your business on a tight budget. In the beginning, all you really need to spend is on creating a quality website, online shop and advertising.
At the beginning of their journey in dropshipping, entrepreneurs ask themselves the question: what to sell? Finding the answer to this question is one of the first and most important steps in organising a dropshipping business.
The specialists of Selpway Trading ltd have selected several niches in which you can effectively start. They also told you about niches you should not enter at the beginning of your way in business.
At the beginning of their journey in dropshipping, entrepreneurs ask themselves the question: what to sell? Finding the answer to this question is one of the first and most important steps in organising a dropshipping business.
The specialists of Selpway Trading ltd have selected several niches in which you can effectively start. They also told you about niches you should not enter at the beginning of your way in business.
Promising niches for a start in dropshipping
Goods for pets. The main advantage of this niche is that it has a specific, clear target audience. It has a lot of different "aches and pains" and problems that can be solved with the help of certain products.
There is usually a very strong emotional bond between people and their pets. As a result, pets are treated as someone very close to them. This makes it easy to bribe people with advertising and motivate them to buy a product. There are many ways to organise an online shop. You can specialise in products for dogs and cats separately, or sell them together. You can also specialise in products for certain types of pets. For example, parrots. You can create a shop that specialises in products for aquariums.
Goods for pets. The main advantage of this niche is that it has a specific, clear target audience. It has a lot of different "aches and pains" and problems that can be solved with the help of certain products.
There is usually a very strong emotional bond between people and their pets. As a result, pets are treated as someone very close to them. This makes it easy to bribe people with advertising and motivate them to buy a product. There are many ways to organise an online shop. You can specialise in products for dogs and cats separately, or sell them together. You can also specialise in products for certain types of pets. For example, parrots. You can create a shop that specialises in products for aquariums.
Products for gardening, homesteading, etc. There are many problems in this niche and many products to solve them. Irrigation equipment, fruit and vegetable harvesting equipment, various tools and equipment, grass cutting equipment, etc. This niche has a wide range of products that could be in demand.
Fishing goods. This target group is willing to spend money. There are many products for every price range in this niche. Boat-mounted rod holders; bait storage devices; fish locators; lures that mimic fish behaviour as closely as possible; radio-controlled boats that deliver bait to where you want to fish; containers to store your catch and much, much more. There are a lot of cool products in this niche, and there is a buyer for each one, because fishermen are fans of what they do.
Goods for motorists. A car is really a small house. Many people love their cars and want to make them as comfortable as possible. Boot organisers, compressors, phone holders, cup holders and even cabin humidifiers are in demand. And, of course, from time to time there are technical problems, large and small, that need to be solved and for which you will need a product or two.
Fishing goods. This target group is willing to spend money. There are many products for every price range in this niche. Boat-mounted rod holders; bait storage devices; fish locators; lures that mimic fish behaviour as closely as possible; radio-controlled boats that deliver bait to where you want to fish; containers to store your catch and much, much more. There are a lot of cool products in this niche, and there is a buyer for each one, because fishermen are fans of what they do.
Goods for motorists. A car is really a small house. Many people love their cars and want to make them as comfortable as possible. Boot organisers, compressors, phone holders, cup holders and even cabin humidifiers are in demand. And, of course, from time to time there are technical problems, large and small, that need to be solved and for which you will need a product or two.
Difficult niches to start a dropshipping business in
Jewellery. There is a lot of competition in this niche. It requires a lot of advertising. In addition, people prefer to buy jewellery from companies with a name rather than from some unknown online shop.
Clothing. If you want to sell ordinary clothes with no special features, forget about it.
The clothing niche is one of the most competitive. You can buy clothes from a nearby shop. If you want to be successful in this niche, you need to sell unique items and offer attractive conditions (price, delivery time, return policy, etc.). For example, you could sell stylish clothes for dog owners of a certain breed.
Furniture. This is not the place for beginners. To work in this niche, you need a deep understanding of marketing, user behaviour, etc. Furniture is an expensive product. In niches with big cheques, people will not buy products in shops they see for the first time. You have to spend a lot of money on advertising to make people aware of you. At the same time, even if a person is interested in buying a high-cost product, it can take a long time to make a decision: three months or more from seeing the first ad to making the purchase.
Gadgets. Do not enter this niche if you want to sell goods without a wow effect. In addition, people often prefer to buy such goods from trusted offline shops. Electronics from China should not be sold as these goods have a high percentage of defects.
Finally, a few tips on how to choose products that are worth trading:
Jewellery. There is a lot of competition in this niche. It requires a lot of advertising. In addition, people prefer to buy jewellery from companies with a name rather than from some unknown online shop.
Clothing. If you want to sell ordinary clothes with no special features, forget about it.
The clothing niche is one of the most competitive. You can buy clothes from a nearby shop. If you want to be successful in this niche, you need to sell unique items and offer attractive conditions (price, delivery time, return policy, etc.). For example, you could sell stylish clothes for dog owners of a certain breed.
Furniture. This is not the place for beginners. To work in this niche, you need a deep understanding of marketing, user behaviour, etc. Furniture is an expensive product. In niches with big cheques, people will not buy products in shops they see for the first time. You have to spend a lot of money on advertising to make people aware of you. At the same time, even if a person is interested in buying a high-cost product, it can take a long time to make a decision: three months or more from seeing the first ad to making the purchase.
Gadgets. Do not enter this niche if you want to sell goods without a wow effect. In addition, people often prefer to buy such goods from trusted offline shops. Electronics from China should not be sold as these goods have a high percentage of defects.
Finally, a few tips on how to choose products that are worth trading:
- The product attracts attention with unique features: the desire to buy a product increases significantly if it creates a "wow" effect;
- The product solves a specific problem, a specific "pain" of the customer, or saves the customer time or money;
- The product allows a person to stand out from the crowd. Many people like to have things that others do not have in order to attract more attention;
- Good quality goods.
- Looking for professional advice. Selpway Trading is an expert in dropshipping. We can help you define your niche and create an action plan to start your business. With dashboards and built-in analytics, Selpway measures the effectiveness of all marketing campaigns. You can also calculate the demand for new, old or additional product categories and analyse data on products in your chosen market.