The best dropshipping niches have an extensive selection of products that invoke impulse buys or benefit people's lives. Dropshipping is an order fulfillment-style business model. You're like the middleman between the customer and a dropshipping supplier. You don't need a ton of capital or even have to store inventory. Instead, find a reliable dropshipping supplier. It's their job to get the items into your customer's hands, and you don't even have to touch the product.
Drop shipping is a low barrier to entry business model and is super competitive. But it's an industry experiencing massive growth. Analysts predict that by 2023 dropshipping will reach $243.42 billion. But unlike the local lead generation model, that's a learned skill set. Dropshipping is a low-barrier-to-entry model. To succeed, you need to research and be ready to hustle.
The key is to stay one step ahead of the curve and jump on trends before they become saturated. Pick one of the best dropshipping niches and find products that fill a gap in the market, have a WOW factor, or solve a problem. Then focus on how you can add value to people's lives. And be a better marketer than the competition.
What Is A Dropshipping Niche?
A niche is where people with similar interests band together. But in ecommerce, a niche is a segregated part of the market. One that appeals to a specialized percentage of the population.
But beware as not all are created equally. In fact, one of the most common dropshipping mistakes is choosing the wrong niche. But to make money with dropshipping, you're looking for a few key factors like:
Features Of A Profitable Dropshipping Niche:
Choose a dropshipping niche with a medium to high sales volume. In an evergreen market with various product ideas that you can sell in your dropshipping store. Use research tools like Google Trends or Google Keywords. These tools will help you determine monthly search volume, seasonality, etc.
Software like AdSpy and EcomHunt will show you what the competition's doing.
- What's working?
- Where do other dropshippers fall short?
Take this information to find your marketing angle. And how you can create your unique selling point.
"44 million people made purchases using a Shopify online store last year." ThriveMyWay
How To Find A Profitable Dropshipping Niche:
Sales volume is the core of a profitable niche. No matter how cool you think a product is. Or how passionate you are personally about a subject is mute if there isn't a demand for your proposed idea. Listen to your instincts as a buyer and consider things like:
- What would you want to see as a customer?
- Would you immediately feel tempted to buy this item?
You need to look at the data. One of the disadvantages and risks of dropshipping and a big reason why people fail with this business model is that they don’t take the time to perform due diligence or consider research data around issues like:
Accessing The Data:
Drop shippers also need to consider geographical location.
What country(s) do you plan to target?
Where do you plan to advertise?
Luckily there are a few free research tools to help you search for a profitable niche. The three primary players include Google Trends, Google Keyword Planner, and Facebook Audience Insights (Meta Business Manager):
Offering an in-depth analysis, view comprehensive information from several filters, including:
Search Interest Over Time: Set the search volume index for your keyword's length of time (1-5 years).
Top & Rising Terms: Find out which keywords receive the most search queries to help pick popular products.
Geographical Spread: Start with the worldwide setting and dial down your country of preference.
Predictability: Tells you if this is an evergreen or seasonal market.
Google Keyword Planner
Another free Google tool that helps conduct keyword research. Enter a term or phrase to see how many people search for this phrase every month. Metrics to be mindful of include:
Match Type: You can pick exact-match keywords (recommended), broad phrases, or synonyms.
Search Location: Set the filter to your preferred country(s) to determine local search volumes for specific keywords
Long-Tail Keywords: Words that describe your product in more detail.
Pro Tip: You're looking for markets with a wide variety of keywords and high search volume.
Facebook Business Suite & Business Manager Audience Insights:
Facebook is used by over 2 billion people worldwide, making it the perfect platform to find information about your target audience. From groups to interests and trending products.
You can use a variety of filters to determine things like:
- Page Likes
- Age & Gender
But your research shouldn't end there. You need to be sure there's an audience. Remember you're looking for a group of people passionate about the best dropshipping products you can sell in this market.
- What are people saying on Reddit and Quora?
- Is there a buzz around this niche?
- Does it have an active and engaged audience?
Use social media platforms like TikTok and Instagram. Check out competitor ads with software like AdSpy or Social Ad Scout to determine:
- Can you replicate but do better?
- How can you add value?
- Will you be able to cement a customer base and become an established store?
“Trust the numbers more than your instinct.” Marc Popov (drop shipper)
You can also take advantage of research tools like SellTheTrend or Niche Scraper. Find drop shipping stores and see what's working and where you could do better. Or see what best dropshipping products they’re spending money on with paid ads.
You should also take advantage of a site called MYIP.MS. Here you can find drop shipping websites by selecting Shopify as the host. Or conduct a simple Google Search. Either with a reverse image lookup for a niche/product. Or by entering the name of the niche or product + Shopify.
Go on sites like Amazon, eBay, and WatchCount. Or Alibaba and AliExpress and look at the bestseller lists and trending products. Products with high sales volume and in demand right now are worth additional research.
Pro Tip: If niche products are restricted on Amazon, it might be worth considering. Because you won't be competing with them for customers.
What Are The Most Profitable Dropshipping Niches In 2023?
The goal of your dropshipping business is to make money. But to be profitable, you need to find a lucrative niche. Figure out how you can position your store as the authority in the market.
- What's your angle?
- How will you separate yourself from the competition?
Look for niches with a solid level of social proof that also has the following criteria:
Determine if a brand or group of brands dominate the market or a single product. This is a sign that the market doesn't need other products to compete. Because an established dropshipping business already dominates the market. This type of niche is hard to beat, and you want to avoid ones that are too competitive or oversaturated. The key is to understand the consumers' thought processes.
- What are the reasons why people should buy from your dropshipping store?
- Does this niche offer a product(s) that you can sell for profit?
You need to be willing to invest the time and money to succeed with dropshipping. But if you want to speed up the process, you can check out our list of the 17 best dropshipping niches here:
1. Baby Products
The baby niche is a global market headed for over $15.6 billion by 2026. From cosmetics and toiletries. To skincare, convenience, and safety. The baby niche continues to see massive growth at 5.1% and shows no signs of slowing down. We're heading into 'the second baby boomer’ generation and google trend reports crazy levels of search volume with at least 100 searches/day.
And if we take a look at AliExpress, we can see that orders on search are rising. Proof that baby products are selling well. People will always have babies, so your products won't be seasonal or a fad making this one of the best dropshipping niches to consider.
This specific niche is a broad market with a ton of options. Here's where you need to test multiple dropshipping products. Check out aliexpress dropshipping center to see what's in high demand. Use software like ecomhunt or Pexda to find your high ticket item. Then focus on sourcing vertical items. Things that compliment your hot ticket seller.
Consider adding quantity breaks, bundles, or upsell/cross-sells to maximize your profitability. It's also a good idea to run the numbers. Make sure you choose inventory that you can sell for a profit margin. Don't waste time on low-priced or poor-quality stock. That kind of ecommerce store might have worked in the 1990s. But it's not cutting it in 2023.
3. Fitness & Workout
It's a global industry worth over $768 million globally-and the data doesn't lie. Google Trends shows average searches for fitness and workout-related items at over 100/day. Products are hitting the AliExpress best-sellers list. Many grabbing four and 5-star reviews with over 7000 sales and tens of thousands of views.
People are more focused on their health now than ever. So you have an abundance of niche product ideas to choose from. And all are designed to solve a problem. This is a key component for any potential niche or when considering what to sell in your ecommerce store.
An industry that's always going to be in demand. Clothing is a market that never experiences significant fluctuations. There isn't a lot of spiking down or spiking up. So, to be successful in this niche, all you need to do is stay current and jump on new trends fast. Start selling best dropshipping products in your store as soon as they hit to get maximum exposure and profits. Design killer creatives and find a unique selling feature.
5. DIY (Home Improvement)
A market that surpassed $762.9 billion in 2020 and continues to grow by over 4.3%. Even more impressive is that online sales have doubled since 2020. And is now the fastest-growing channel for the DIY and home improvement industry.
But what makes this one of the best niches? Because people love renovating all year round. So there's no issue around seasonality. And if you sell products that help solve a problem they're having with a project, you will always make sales.
Home improvement dropshipping product options also offer instant gratification. This invokes impulse buys, which only adds to the evident trend of continued growth.
It's a broad market that will always stay trendy. One that offers multiple products. A wide variety of price points and guaranteed sellers.
The online pet market has almost quadrupled since 2013 and has a global market valuation of $261 billion. You have a group of people who are passionate about their pets. Individuals willing to spend money on just about anything. And that includes products and accessories to make their pet happy.
Most people get a pet before they have kids. So there will always be a demand for products in this niche. Assess the data, and you can see that pets and pet products get well over 50 searches/day on Google Trends. Plus, posts and videos on social media around pets and pet products regularly go viral-ideal for dropshipping.
If we dig a little deeper, we can see that AliExpress offers a variety of hot ticket merchandise. All have a minimum of 500 purchases, a lot of views, and reviews.
Use research tools like AdSpy or DropShip Spy to source products getting a ton of engagement. When you find one, this is a great sign that you should be going all-in on this profitable dropshipping product.
Shapewear is an evergreen market that's always in demand. Unfortunately, your Facebook ads might get flagged with this type of inventory. But this will depend on the merchandise your store sells. So you need to be willing to leverage alternate platforms (like TikTok as they have less restrictions).
Use software like PiPiAds to assess competitor ads. See where they're failing. How can you do better? Google Trends show consistent searches. And there are plenty of items on AliExpress you could focus on selling. You just need to come up with effective strategies to advertise your dropshipping store.
8. Luxury Jewelry
Selling luxury-looking jewelry for an affordable price is a hot market. But let the customers know that your items aren't the real deal-they only look like the real thing. Take advantage of ads on Google Shopping. Or TikTok (paid ads or organic).
9. Blue Light Glasses
Blue light glasses are a sub-niche of the eyewear industry. And one that's on fire right now. Google Trends shows a steady stream of searches. And merchandise is booming on AliExpress.
Dig a little deeper, and Facebook Ad Library shows a ton of people trying to sell this item. But most are falling short on their creatives and sub-par advertising. You need to use UGC (user-generated) content to leverage this market. Find a unique selling point. Design a compelling hook, and you can dominate the industry.
10. Home Décor
With a market seeing an 8.81% growth rate from 2022-2025, this niche offers a ton of options when it comes to merchandise. But be mindful of the size and weight of the items you choose. It would be beneficial to connect with a US dropshipping supplier to cut down on shipping costs. But you have an identified target market. Find things that solve a problem or save people time, and you will achieve massive payouts with this suggestion.
11. Art-Paint & Drawing
Consider targeting specific locations or niche market. Here the goal is to sell inventory that resonates with your brand's image. Tap into people's emotions. Use local options to increase loyalty and increase sales. Conduct research to determine things like:
- What are the most popular items on Google Trends?
- Are there any ads on Google Shopping?
- What kind of content is on social media platforms?
- Are products selling well on AliExpress?
Use specific keywords and look for gaps in identified markets, and that's where you'll find massive profit potential.
12. Tattoo Sleeve Replica (Kids)
This is a popular industry that's not only new but is currently underrated and not too competitive. With only a few people selling this item there's a massive gap in the market for you to leverage.
Determine the profitability of a target niche by using Exchange Marketplace. Search for stores listed for sale that are selling in your focused market. Assess their expense sheet for things like:
- Profit margins
- Ad spend-how much and where they're spending
Don’t forget to research several keywords to assess the competition.
13. Car Accessories
It's a $522 billion global market. And one of the most thriving industries in the world. New technological advancements mean that new and trending products will constantly be entering the market. AliExpress shows high levels of searches for various items. And with about 88% of Americans owning a vehicle there's a massive opportunity to make money in this niche.
14. Fast Fashion
It's about selling fashionable clothing fast. But this means you're always selling new products. So the key is to focus on trends. What's popular right now? Fast fashion is a lucrative opportunity for dropshippers. Because most people shy away from fashion due to issues around sizing and quality control. This leaves an untapped market you can capitalize on. An example of a fast fashion ecommerce store doing exceptionally well that you can check out is Miko & Mollie.
15. Sustainable & Eco-Friendly
People are ready to embrace change. And that includes using eco-friendly and sustainable products. A market with an untapped market of profit potential in the ecommerce business space. You can sell things like:
- Bamboo Straws & Toothbrushes
- Reusable Make Up Remover Items
- Kitchen Packaging
- Shopping Bags & Carry-Ons
Check out views, reviews, and sales on AliExpress. Then target items that fit the criteria and aren't easy to find.
Design ads that showcase the benefits of your items and focus on how they can help make people's lives easier.
Influencers on social media are the best way to market and advertise beauty products. Focus on platforms like TikTok and Facebook to connect with your potential customer. Beauty is another one that's about jumping on trends and staying current. So you need to be on your game.
Use third-party and spy software like Dropispy or BigSpy to see what the top players are doing. Then, develop your own angle with some UGC and better creatives for your beauty products to outplay the competition.
17. Personal & Self-Care
It's new, it's trending, and hot right now. A few popular self-care options on AliExpress include:
- Ear Wax Camera
- Ear Stick Picker
- Laser Hair Removal
- Massage Gun
Product research is critical for this best niche idea. So if you see items popping up or people talking about them. It might be worth doing some investigating.
Is Dropshipping Still Profitable In 2023?
Absolutely! It's not too late to start dropshipping in 2023. In fact, there's more opportunity than ever to be successful with this business model. If you're willing to do the work, you will make money. It's easier than ever to get started. But if you want to succeed, you need to mix up your strategy. The market is competitive, so you need to find products that people actually want to buy. And reliable dropshipping suppliers that offer fast shipping and quality inventory.
You need to be on point with your ad copy. Be able to design killer creatives. Know the secrets to creating a dropshipping video ad. And be prepared to test and fail more than once before you find your high ticket products. It's about knowing how to create value in the eyes of the customer. Then, becoming the best marketer and trumping the competition.
Why Lead Generation Is A Better Business Prospect In 2023
Local lead generation doesn't require selling products or relying on wholesale suppliers. Unlike dropshipping, with lead gen, you fully control every aspect of your online business. The approach is simple. Build and rank micro websites in the right city with the right service. Then use local SEO hacks to rank those sites at the top of Google searches. Once they're at the top, they are in front of a ton of eyeballs—people who are actively searching for right now.
So unlike drop shipping, which relies on interruption marketing, with lead generation, people are looking for your service. Because the focus is on the local market, you can rank your sites in 6 weeks-6 months. When they start producing leads, sell them to a local business owner for profit margins as high as 85%-90% (compared to dropshipping profit margins between 10%-30%). Once you understand the process and dial in your systems, you can scale fast. In 2023, that's how you earn passive income and harness time freedom.
I can vouch for car accessories. I've helped people use Oberlo to dropship car parts and accessories on their Shopify store.