Dropshipping saturation occurs when too many dropshippers promote the same product and use similar ads. This drives the cost per click up for that niche and makes the dropshipping product no longer profitable. To determine if a product is saturated in drop shipping, research to evaluate the following:
- Identify your target audience, their needs, and wants. Can this dropshipping product solve a problem, save time, or add value to their lives?
- Use dropshipping product research tools like PiPiAds, Amazon, or AdSpy to find high-demand items with low levels of competition.
- Run small test ads for a low budget to validate the dropshipping product.
- Search on Google using Google Trends or Google Shopping. What is the level of competition? How many people are selling this dropshipping product? Are there a lot of similar ads?
Data from Genius AI says that since 2020, "the number of Shopify stores have grown by over 200%, with 201.53% growth between March 2020 and January 2022". As a result, there is more competition in the industry.
Saturated dropshipping products are harder to sell, and they don't always get the profit margins achievable with an untapped item. In 2024, dropshippers can still make money with the business model. The key is to jump on market trends. Then, make a ton of sales before the market fizzles out. But you need to sell the right things. Don't waste time or money trying to promote something that won't sell well. Read on to learn the six revealing signs that can cause a dropshipping product to become saturated.
6 Revealing Signs Of A Saturated Dropshipping Product In 2024
1. There's no new demand for the dropshipping product
Use Google's Keyword Tool to assess the demand for this dropshipping product. Look for keywords related to your product. How many monthly searches are there? What other similar keywords are being used? If there aren't any searches, people aren't actively looking for or interested in this item. Next, use a third-party tool like Saturation Inspector to see who and how many others are selling it.
(Ideally, you want to sell something with a high search volume and low level of competition). Then, consider if this product is easy to find, solves a problem, has a wow factor, or saves time. Does it offer a decent profit margin? Will it elicit an emotional or impulse buy from your target market? Look at Shopping Insights to see if this product is a hot seller. Or is it just one trending product that has passed its shelf life?
PRO TIP
You can run a test market campaign on a small local scale through surveys on social media to assess market trends. The idea is to look closer at what your ideal buyers are talking about. What questions are they asking on the Internet? What problems do they have? Can this product provide them with their desired result? Check out eBay or Amazon's Best Sellers list. See what people are buying and if there is still an interest in what you want to sell.
2. Too many other dropshippers are selling the same dropshipping product
Check out sites like Facebook and TikTok and see how many other dropshippers are selling the same dropshipping product. Are people talking about this item? What engagement are other dropshippers selling the same thing getting? Look at Facebook Ads Manager. What is the frequency metric? How many people have already seen this ad? Are there a ton of likes, comments, and shares? Then, assess how old the ad copy or creatives are. If too many people in the same niche market have already viewed the video, or it's not getting a ton of engagement, it may not be worth pursuing.
PRO TIP
Sometimes, ad copy or a creative will become saturated. But this doesn't necessarily mean the item is saturated.
3. The review-to-order ratio shows more reviews than orders
The review-to-order ratio implies that this item might be a saturated dropshipping product. Of course, dropshippers need reviews to sell products and make money with their online store, but they want them from paying customers. (Not a dropshipping supplier or a competitor). Research shows that "77% of people read a review before they buy". MarketingLand adds that "reviews determine 90% of consumers' purchasing decisions".
To distinguish the review-to-order ratio, go to a site like AliExpress. Look at the number of orders. If there aren't many, the wholesaler might not be a reliable supplier. Next, assess reviews. How many are there? How old are they? If there are a ton of orders but not a lot of reviews, other dropshippers have probably made the orders, and the product might be saturated.
4. The dropshipping product is more than six months old
Dropshipping products over six months old have already been advertised by a ton of other dropshippers. As a result, there will be an influx of Facebook Ads or videos on TikTok that the right people have already seen. To determine how old an item is, use third-party software like Helium10, Niche Scraper, or Jungle Scout and assess the following:
PRO TIP
If the product is still getting a buzz online, or you can create a better marketing strategy than the competition, you can still make some money. The key is to test and track your metrics closely. If your ad doesn't produce sales, it's a clear sign that the product is saturated.
5. There are more than 1,000 orders for this dropshipping product on AliExpress
Check out AliExpress and determine the order count for the product you want to sell. More than 1,000? Then, it could be saturated.
PRO TIP
If there are endless pages for this item, it's probably hit the peak and won't sell well for much longer (if at all).
6. The dropshipping product doesn't present a chance to create a unique niche angle
Target evergreen dropshipping products that present a way to stand out from the competition and create a unique niche angle. This strategy allows you to tap into an underserved audience and connect to buyers with specific core beliefs and values. For example, Tom Shoes gives a pair of shoes to a needy child for every order.
Socially conscious people will relate to this approach. Another angle to focus on is sustainability. GreenHand Group says, "88% of buyers will be more committed to a business that supports social or environmental matters". Further data from Accenture states that "more than half of consumers are willing to pay more for sustainable products developed to be reused or recycled."
Can You Sell A Saturated Dropshipping Product?
You can sell a saturated dropshipping product in your Shopify store or other ecommerce platform like Wix or WooCommerce. But getting attention and generating sales for your dropshipping store will be infinitely more challenging. Dropshippers who want to sell an item facing product saturation or in a saturated niche need to create a unique angle or increase the item's perceived value. Next, tap into psychological principles like:
Focus on creating brand distinction and a solid understanding of your buyer persona. Learn how to tap into their emotions and elicit an impulse response. Forbes says that about "60% of millennials prefer to purchase products that express their personalities".
Emphasize the unique elements of your profitable product. Use UGC or videos with virality potential to connect with your audience. Build trust and provide a better shopping journey than the competitor.
The key to getting sales with a saturated product in one of the best dropshipping niches is better marketing. Then, understand how to get attention from the right people and offer value. In 2024, consumers want a connection with the brand they buy from. The more you know about your audience, the better offer you can present and the more profit you'll make with your winning product in your online business.
Why Should You Avoid Saturated Dropshipping Products?
You should avoid saturated dropshipping products in 2024 because the supply is more than the demand. Research from Web Builder states that "there are 12 million-24 million ecommerce sites in the world". Add that "33% use the dropshipping model" and rely on order fulfillment to deliver items to the consumer.
As a result, getting attention from potential customers will be harder. To make sales, look for products that are hidden within the niche. Things that differ slightly from the saturated item can still be winning dropshipping products. But you need to develop an unusual angle or increase the perceived value of the dropshipping products you sell.
Do You Have A Lower Chance Of Succeeding With A Saturated Dropshipping Product?
You have a lower chance of succeeding with a saturated dropshipping product because all the right people have seen the same ads, the same item, and the same call to action hundreds of times already. Sitefly shares that in 2024, "the average person sees around 10,000 ads per day."
As a result, you need to work even harder to create a unique angle and get attention from your target audience. But, when a dropshipping product is saturated, it doesn't matter how great your ad is or how compelling your creatives are. If there isn't buyer demand, your product won't sell, and you won't make money.
What Are The Most Saturated Dropshipping Products In 2024?
The most saturated products in 2024 are yoga pants, general electronic items, watches, and earphones. To determine if a product is saturated:
If any of these benchmarks are met, the product is likely saturated. But the dropshipping niche might still be evergreen or offer an alternate item that doesn't yet have a saturated market. So, it's essential that you do your research. Be ready to test multiple products before you find a winner.
How Do You Know If A Product Is Good For Dropshipping?
You know if a product is good for dropshipping when there is a high consumer demand but a low level of competition. Research shared by Yaguara says that "dropshipping equates to $85 billion in global sales". In 2024, it is the order fulfillment method used by nearly one-quarter of online purchases. But for a dropshipping product idea to be a winner, it needs to fill a market gap, offer people value, and be hard to find or trending right now:
Why Is Product Research So Important For Your Dropshipping Store?
Product research is so important for your drop shipping store because:
- It can show you winning products and things that are selling well right now.
- It tells you what items people are buying online, trending products, and things getting a lot of attention.
- Product research can help to identify trends in a specific product category and assess consumer demand and competition in a specific niche.
The dropshipping business model is super competitive. Studies confirm that “interest in dropshipping between 2022-2023 grew 156% in the USA”. Product research is the best way to find products with high demand, low competition, and a good profit margin.
Use research tools like Google Trends, Ecomhunt, or Sell The Trend and assess things like:
- What keywords people are using to search for products
- How many products are being sold right now
- Price points on multiple platforms
- Products that are currently trending
- Other dropshippers selling the same item
Next, check out social sites like TikTok or Facebook and forums like Reddit and Quora. What questions are people asking? What products are generating a buzz online? Can you offer a more enticing angle or develop a better marketing strategy? TrueList reports that “51% of online shoppers continue to increase their online shopping habits”.
Further data reveals “41.8 million online shoppers aged 25 to 34 in 2022”. Product research is a way to learn more about your target market. Then, you can avoid selling a saturated product. Instead, you can focus on things that will sell well and will make you money with your online store.
PRO TIP
Look for products that solve a problem, save time, have a wow factor, or are hard to find.
Related Dropshipping Articles
- Is Dropshipping Saturated?: Learn why product saturation exists and how you can still be profitable with the business model.
- Is It Too Late To Start Dropshipping In 2024?: Read more about the biggest challenges facing dropshippers in 2024 and how to increase sales and profits for your dropshipping store.
- Dropshipping Niches To Avoid: This article lists the top nine niches to avoid and what to look for when choosing a profitable niche.
Why Local Lead Generation Doesn't Face Product Saturation
The dropshipping model involves selling physical products, but the market is super competitive. So many people are trying to sell the same things to the same target audience. As a result, a dropshipping product becomes saturated and harder to sell. It can also reduce your profit margins, which are already razor-thin (10%-30%).
The local lead generation business model sells digital products. You can make profit margins as high as 85%-90%. With lead generation, you're building digital assets. You build simple websites that rank at the top of Google. Once they produce leads, you connect with a small business owner. Then, you can sell your leads for recurring monthly income. (Each site can earn $500-$2,000+/month).
In 2024, there are over 41,000 postal codes in the USA; each market has untapped potential. There's no limit to how many sites you build or how fast you scale. For more about the lead generation business model and how it can make you passive income, check out our lead generation coaching program, which has over 7,200 students.
