5 Best Dropshipping Niches to Start a Business in 2020

5 Best Dropshipping Niches to Start a Business in 2020

Starting a dropshipping business is easy, but deciding what to dropship can overwhelm even the most experienced entrepreneurs. You don’t want to choose the wrong niche, but you also want to sell in a category that you’re passionate about. However, just because a niche aligns with your passion doesn’t mean it’s the best option for you. If there aren’t enough products available in that niche, or there are only a handful of people you can target, you won’t be able to make enough profit to stay in business. Identifying profitable dropshipping niches takes some research, but we did that for you in this article. 

Based on search trends and internal analysis of dropshipping stores on Exchange, we’ve compiled a list of the top 5 best niches for dropshipping. But before we get into their specifics, let’s look at the definition of a niche (or, more specifically, what it means to choose a dropshipping niche).

what is a niche

What Is a Dropshipping Niche?

Your dropshipping niche represents the product category that your store deals in. For example, your online store can sell products in the pets and animals category, toys and games category, fashion, beauty, home, etc. You can also narrow down your niche by finding targeted market segments inside a bigger category. For example, you can divide the fashion and apparel niche into sub-niches like teens, adults, and elderly clothing. Age group division is just one example, as there are hundreds of other areas you can tap into as well. And while your audience will be smaller, it will be much easier and more cost-effective to generate sales since it has a targeted focus.  

The idea behind dropshipping niches is that you can really appeal to the intent of the audience in a way the big players like Amazon and Walmart can’t. The success formula here is to offer unique and excellent products in a select category and run targeted campaigns on social media platforms. From a marketing perspective, you can easily collaborate with influencers who appeal to the audiences in your niche. The right partnerships will also give you opportunities to start conversations around your brand.

Best Niches for Dropshipping

Now that you have a basic understanding of a niche, let’s put the best dropshipping niches under a microscope and look at the specific opportunities inside these categories. 

Fashion

five best dropshipping niches

Fashion has always been a profitable niche, likely because there are so many sub-niches to target – and the products are relatively cheap to source compared to other niches like home and furniture. It’s also known that fashion products trigger an emotional response, especially if they’re geared towards the target audience’s preferences and tastes. Plus, they’re some of the most marketable items on Instagram, TikTok, and other social media platforms. 

But fashion itself is a relatively broad category, so you’d need to narrow down by targeting distinct segments within this niche. A profitable segment is fast fashion, which you can divide further by offering fast fashion products for women, men, and children. Searches for fast fashion are on the rise, and there are gaps in the market that brands like H&M haven’t filled.

fast fashion niche

Alternatively, you can set up a dropshipping store that exclusively sells women’s jewelry. Jewelry and accessories also come under fashion, so you’ll also find opportunities along these lines. Plus, you can create an exclusive image by offering unique products like wooden sunglasses and French style jewelry. 

Dropshipping stores targeting the fashion niche

Cloutgods

Cloutgods offers hypebeast clothing and affordable jewelry to young people. It’s one of the most profitable stores on Exchange targeting a fashion segment that’s usually difficult to market to. A 20,000+ social media follower base indicates that it has been successful in attracting younger audiences. 

Gone With The Wind Streetwear

This brand targets individuals interested in the streetwear culture. The person behind it had the vision to blend the street fashion styles of Asian Streetwear and American hip hop culture to offer unique and high-quality clothing. What’s unique about this store is that it’s profitable despite pricing no item over $100. 

Health and Beauty

dropship health and beauty products

You won’t believe how many people are ready to click the buy button for things that can improve their health. Likewise, people don’t shy away from spending on items that can enhance their overall appearance. That’s why we added health and beauty to our list of best niches for dropshipping. Emarketer estimates that US retail ecommerce sales of health, beauty and personal care products will surpass $62 billion this year. That’s proof that there’s a lot of money to be made with dropshipping items in that niche.

There are several different sub-niches in the health and beauty niche, too. You can target people suffering from frizzy hair, excess weight, knee arthritis, or facial skin disorders. Another opportunity is to appeal to individuals who’re interested in organic and ethically sourced cosmetics. Especially with all things organic on the rise, any item that includes organic ingredients and helps people look beautiful should be successful.

product demand for organic

By the way, if you manage to find a health and beauty product to dropship, make sure to be extra careful with product descriptions. Using the default ones from your suppliers might provide false hope to your customers (or worse, land you in legal hot water). So make sure to pay attention to detail when selling anything related to health and physical well-being – no wild promises or claims. 

Dropshipping stores targeting the health and beauty niche

Nikita Youseful 

This one-product store sells a keratin treatment for soft and smooth hair, which is a health product with great demand. Its owners launched the business after seeing rising interest in hair softening and straightening items like their flagship product. Keratin items such as the Brazilian Blowout line are also trending on Instagram, so you can expect this store to continue doing well for the foreseeable future.

Nettle House

Nettle House offers natural detox tea that helps people lose weight. The store has a product with a nice profit margin and attractive packaging. Plus, the dropshipping suppliers of this store probably supply items worldwide, as the brand offers free international shipping to consumers.

Electronics

electronics dropshipping niche

Electronics and gadgets are an integral part of everyone’s life. They help people remain connected, watch their favorite shows, and even finish professional projects. So why not start selling products in this niche? The key to cracking this niche market is to offer unique items that aren’t available on Best Buy and similar marketplaces. For example, funky mousepads, custom-designed headphones, etc.

You can also consider dropshipping drone parts and accessories. With companies like DJI raising the prices of drones, many individuals are buying second-hand drones and upgrading their parts to extend their gadgets’ life. Unsurprisingly, search trends mostly indicate a rising interest in this Electronics sub-niche. As a merchant, you’ll be able to sell many types of products, including remote controllers, propellers, chargers, screens, and memory cards should you decide to enter the drone accessories market. 

profitable dropshipping niches

Dropshipping stores targeting the Electronics niche

Limitless Gadgets

This is a professional online store that offers the trendiest accessories for different gadgets. You can find custom iPhone covers, marble fountain pens, LED selfie lights, and more on Limitless Gadgets. 

AGILE MATS

AGILE MATS sells cool, high-quality mousepads that don’t drain the wallet. The owner of this store started the business because all the mousepads he’s seen are boring. So he decided to switch things up by sourcing hip-looking, video game-themed mousepads. The designs are likely a hit with consumers as the store earned $1k in profit within the first 60 days.

Sports 

dropshipping sports goods

Sports is the rising star in this list of dropshipping niches. People around the world are taking up sporting activities, and there’s also no shortage of individuals supporting their favorite teams and athletes. This means there’s plenty of opportunities to sell custom sportswear and equipment. Worldwide interest in outdoor sports is also on the rise, so you can also consider targeting people in this niche market. Dropship running shoes, kayak products, snowboards, etc. 

dropshipping sports goods

You can also target people based on the type of sports they’re interested in. From hockey to cricket, football to soccer, badminton to tennis, you’ll find several sub-sections in the sports niche to build a brand around.

Dropshipping stores targeting the sports and recreation niche

Walter’s Lures 

This online store targets people interested in recreational fishing. The owners of the store selected this niche because fishing is the sport of enthusiasts and enthusiasts purchase more frequently. 

EDC Stores

A full-time-at-home freelance designer launched this Shopify store to learn the basics of online storefront management. It targets nature people and outdoor enthusiasts alike and has lots of potential given the rising interest in outdoor sports.

General

general ecommerce store

The general niche consists of dropshipping stores that sell everything to everyone. You can think of it as a departmental store where you can buy a range of different items. While most entrepreneurial opportunities steer clear of this niche due to the fear of entering a saturated market, there are actual benefits to starting a general online store. With a broad range of items, you’ll have the competitive edge of having more potential customers. Plus, you’ll find it easy to adapt to changing consumer preferences since the niche doesn’t require you to focus on a single product category. You can add a range of new products from different niches at will and even cross-sell the wide range of items on display.

The key to success with broad dropshipping niches is to find in-demand products before they become mainstream. This is more important than you think. Once a product becomes a success and starts trending on social media apps, the competition gets fierce. So you’ll need to be on your toes to find upcoming best-sellers that aren’t the current focus of big online stores and marketplaces. 

Examples of dropshipping stores targeting the general niche

FantasticGiftz

FantasticGiftz offers several different products that make great gifts. It’s geared towards German-speaking countries and mainly attracts people via social media advertising. 

 

What’s Up Shop

This is a travel-focused online general store selling travel widgets, gadgets, bags, and other accessories. It was just a start-up business when the current store owner purchased it. With some marketing and a few ad campaigns, he managed to turn it into a profitable business. What’s Up Shop also has space for a blog where you can write conversational content about products. 

How to Pick a Dropship Niche

When it comes time to finalize your niche, make sure to consider the following:

1. Reach

You’ll need to engage prospective customers, and so you have to find a way of reaching them. The easiest way to reach your audience is through the internet, and so you can select a niche where people search for the products on Google and/or get recommendations from blogs and other online sources. As you start out, you need to avoid dropshipping niches that need expensive forms of advertising such as magazines and publications.

2. Expertise

Having some expertise in your niche will help shape your unique selling proposition (USP), making your business stand out. You, however, don’t need to know much about the niche, just enough so that you can be able to add value easily. That said, it can pay to choose a product category that allows you to promote products based on your actual experiences.

how to pick a dropship niche

3. Audience interest

You’ll need a dropshipping niche that is in demand and sparking interest from the audience. To find these, you can analyze what your friends are buying, what products are being talked about on Quora and other social media platforms, etc. However, it will take some time to create your listing and market your products, so you need to ensure that the popularity of the niche is consistent and not a fad.

Conclusion

Alright, that’s it for our list of 5 best niches for dropshipping. We included tips for selecting a dropshipping niche because people often pick product categories on a whim, rather than through careful research. Factoring these considerations into your decision should help you choose the ideal niche for your dropshipping business. Also, the product ideas we mentioned for these dropshipping niches are just some of the items you could sell. Many others out there also make the cut for high-potential dropshipping items. To find gems before your competitors do, keep a close eye on products that keep up in social media conversations. And if you’re looking to start dropshipping quickly, you have five niches and several product ideas that can help get your business off the ground. 

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