Dropshipping is a business model, which works for goods from various categories, from car spare parts to home gym accessories. But it is crucial to pay attention when choosing a niche because there are more profitable and less profitable ones. Concentrating on this aspect pays off at the initial phase of starting your eCommerce business. However, as dropshipping requires minimal initial investments, which allows you to try our several niches and find what suits you most. Below you will find some advice on choosing the best niches for dropshipping in 2022.
How To Find the Best Niches?
The markets are constantly evolving, and what is currently in demand may become less popular next year. So, here are some general ideas, that help you to identify top dropshipping niches in the US by yourself, no matter how the market changes.
The idea of conducting market research may seem intimidating, but here there are specialized tools which help to find out, what is popular within your audience or which demographics you need to target to advance in a particular niche
- Google Trends gives you data, that illustrate, what items are people searching for, and how the trend changes with time. It is possible to compare several search requests to find out, what is in higher demand, determine, what is gaining popularity now, or look for seasonal trends. Do not forget to specify the country, because the results for various regions are often highly different.
- Google Keyword Planner is another effective tool, that helps to highlight good niches for dropshipping. Basically, it shows, how often people search for a particular word or phrase, and how the trend changes on a monthly and yearly basis. This tool is also very useful if you need to make your niche definition more narrow and specific, because to develop an eCommerce store effectively it is advised to concentrate on a narrower category.
- Facebook Audience Insights is a free tool created by Facebook to explore the characteristics of your potential audience. It allows one to check, what people are interested in a certain niche, what are their demographics, and what else are they searching for. This tool is effective in defining sub-niches. For example, if you plan to start with clothes and fashion dropshipping, by researching the topic with Audience Insights you find out, which sub-niches gather more interest (for example, winter clothes, fitness clothes, causal style, etc.).
What is A Good Dropshipping Niche?
In your search for the best dropshipping niches, knowing the distinction of two types of them proofs itself very useful. Both provide profits, but one of them is less beginner-friendly, due to the difference in the approach to marketing.
- Steady, or evergreen niches, are those, that have their presence in the market with no dependence on the current season. Imagine, if you offer household appliances, it is sure to say, that clients will buy them all year round. There can be some increase in demand before major holidays, but this doesn’t mean, that the market will remain low in other periods of the year. The necessity to improve something at home can arise at any time, which provides you with a steady stream of buyers all year round.
- Trendy niches rise for a short period of time, but eventually, the demand will lower significantly. If some toy is hyped (like it was several years ago with fidget spinners), many people will search for an opportunity to buy it, but next year you will barely find one or two customers who sears for the same item.
In most cases, the best niches to dropship are evergreen ones. By trying to catch on and sell in a trendy niche you risk wasting money on marketing your store in the category, where the high demand won’t hold on for long.
Now, when you know what niches for dropshipping niches are and how to check, what profits they can bring, it is time to generate ideas. Try brainstorming using the prompts below, and then apply the tools described in the previous section to estimate, which of the niches have a chance to bring higher profits:
- What are your hobbies and passions? If a niche is related to your own interest, the knowledge you already have helps you to get your bearings and find the right course.
- What hobbies are popular in your area? Selling tools and accessories for popular hobbies are often a good source of profit.
- What problems and demands do other people have? With this approach you have a chance to stumble upon a small but profitable niche.
You can also get ideas of popular niches for dropshipping in the US by exploring major online stores, such as Aliexpress or Amazon. Study their categories and subcategories to find out, what offers are they concentrating on, and what is losing popularity. Avoid niches, that is too broad or too obvious, as you don’t need to face high levels of competition.
Most Popular Niches in the US
The status of most niches varies from country to country. The US market is one of the biggest in the world and very diverse. So, to make your choice even easier, here is the list of the best niches for dropshipping in the US, which will be especially useful for those who is just entering the market.
Clothes and shoes
This is one of the major evergreen niches with multiple subcategories. Note, that selling clothes online supposes a higher probability of return. Be prepared for that, provide your clients with accurate information about size and measurements or start with one-size-fits-all items to eliminate the problem at its root.
Health and fitness
Paying more attention to own health and well-being is in fashion over the last few years, and likely it will continue. You can sell products for a particular diet or accessories for a certain fitness activity. Note, that the regulations for health-related goods can vary in different US states – consider that when planning your marketing campaign. Home gym equipment is another promising category to explore.
Kitchen appliances and accessories
Home cooking is also a steady trend, so if you sell kitchenware, you will always find a market. In this category, there are many US-based suppliers to work with, with eliminates the need for overseas delivery and ordering from Aliexpress.
Home and decoration
The desire to improve and decorate their own home makes people buy the items from this category all year round, making it one of the best dropshipping niches. If you manage to quickly adjust the inventory for a seasonal peak in demand (adding Halloween decorations in the autumn or Christmas-related items in the winter), your store becomes a stable source of profit.
This is another example of an evergreen niche. You can offer products of major brands or concentrate on lesser-known experimental ones. The market of beauty products is highly diverse, so in any case, the store finds its audience. Moreover, this category typically provides a higher profit margin than the others.
No matter, what category you choose, you need an effective way to manage your store. The easiest way to do this is by using plugins. They give a convenient way to find out and add products, set prices, track orders, and automate other tasks, that arise when you run a dropshipping store. This way, you will be able to quickly adjust the inventory when needed and react to the changes in your niche. With this advice and effective tools to gather insight and manage your store, as described above, you have all chances to establish a successful eCommerce project.