This is one of our cardinal rules of dropshipping.
Many e-commerce entrepreneurs aspire to grow their businesses into huge retail brands such as Amazon, AliExpress, and Walmart. However, doing so is incredibly difficult, mostly because brands that sell everything to everyone are hard to build, scale and maintain.
In this article, we’ll unpack the following:
The difference between a niche dropshipping store and general dropshipping store
The merits of launching a niche dropshipping store first
The difference between a niche store and general store
What is a Niche Market?
Shopify defines a niche market as a subset of a larger market with its own particular needs or preferences, which may be different from the larger market.
For example, within the clothing category, there are many different sub-categories or niches. Each of these niches appeal to a specific segment of buyers. From graphic t-shirts to yoga pants, you will find that the number of niches — and potential target markets — in this category are quite numerous.
Examples of Needs or Preferences within a Niche
Almost every market can be segmented by the specific needs and preferences of its buyers.
Some of the most common ways to define a niche are based on the following:
Geography (the buyer’s location)
Production quality (premium, high, moderate, low, affordable)
Price point (high, moderate, discount, off-price)
Demographic base (gender, age, income level, education level)
Psychographics (values, interests, attitudes)
What is a Niche Dropshipping Store?
A niche dropshipping store is one that sells a specific product or a set of products with a specific feature to a narrow segment of buyers.
For example, Five Below is a chain of discount stores selling cool stuff for $5 or less to various customer segments, including children, adolescents, teens, and women.
In the piece, they cited underscored that while “many retailers are closing stores, Five Below … can’t seem to open them fast enough.”
And furthermore, “unlike other bargain stores like Dollar Tree or Family Dollar that focus on necessities such as laundry detergent and toothpaste, Five Below is the place to come to find things you didn’t know you wanted, such as squeezable foam toys called ‘squishies’ that have gone viral on YouTube.”
This chain of stores, which sells everything from Spalding basketballs to Bluetooth headphones and yoga mats for $5 or less, might be the most successful retailer you’ve never heard of.
Other Examples of Niche Stores
Glambox (For Him) was launched in May 2017, in response to the booming rise of male interest in grooming and general well-being (the Hipster beard trend was a key factor!).
Particularly in the Middle East, male grooming is becoming the norm, yet the market offering still falls short of demand. That’s where Glambox For Him comes in!
Dog is Good
Dog is Good is a dog friendly lifestyle business that creates and markets gifts and apparel for dog lovers.
What Is a General Dropshipping Store?
A general dropshipping store sells everything to everyone.
It is usually comprised of several different niches and target markets. These include, but are not limited to, premium and discount buyers, pet owners and fur lovers, as well as tweens and octogenarians.
Like Amazon and Walmart, a general eCommerce store helps you reach a broader audience of buyers.
General stores aren’t usually very profitable given the competitive landscape, but they are a good way to evaluate the niches that perform well relative to others.
For example, a general dropshipping store includes products from multiple industries. Such as Clothing, Electronics, Home and Garden, and Computers. The users who visit them will buy one thing from any of the niches.
What are the Pros of Niche businesses?
Having more visibility is a benefit of niche businesses that not only results in more traffic but also amplified presence on search engines and across the internet.
Dropshipping stores that serve a niche market tend to be unique, and sometimes have an interesting angle that draws the attention of buyers everywhere.
For example, an e-commerce business that features a new or innovative concept, such as cleaning supplies with all-natural, non-toxic ingredients, will more likely grab the attention of media outlets than a business that offers cleaning supplies made of the same formula used by similar products in this category.
Getting in front of a subset of people who have a vested interest in your niche is more important than getting in front of a lot of people.
However, getting in front of a lot of people such as through these media outlets also has its benefits.
The more people who know about your business, the more people there are to recommend your business to a friend who fits the criteria of your niche market.
Traffic Converts More Efficiently
Traditionally, niche dropshipping stores target only a subset of buyers that are already interested in the niche.
While this usually results in a smaller target market, this market already has a vested interest in what you’re selling, thereby making it easier to convert first time or recurring visitors into buyers.
Better Customer Relationships
Perhaps counterintuitively, having a small customer base has its merits.
When you are engaging with fewer customers, you can more easily focus on nurturing your customers and understanding their preferences.
Your contact with them can be more personalized, your follow-ups more frequent and pertinent, and thank you notes more genuine.
You can also start to learn how to personalize the experience even further.
For example, you may be able to accommodate special requests and offer custom services based on the individual needs of your customers. Each of these practices will help you better address your customers, thereby enhancing your relationship with them and cementing their loyalty to you.
Word of Mouth Referrals
Another benefit of a niche store is that it is very word-of-mouth-friendly.
Customers in a niche are usually in frequent communication with others in that niche. This creates more opportunities to get the word out about your brand and the products you sell.
For example, expectant parents attend prenatal education programs where they may meet many other expecting parents. The same is true for parents whose children pursue a particular sport. These parents are more likely to brush shoulders at the same sporting events and tournaments.
When you have a highly specific product or service and are targeting a smaller, segmented market, chances are that there is either zero or very little competition.
It’s also much easier to connect with the target audience when you specialize in a particular niche.
As an example, there are millions of companies out there that sell ceramic mugs.
There are fewer companies that sell ceramic mugs with images of a cat, and yet fewer that offer this product with your cat’s image on them.
The more specific your product or service, the fewer businesses there will be to compete with you for customers, and the harder it is for those businesses to reproduce the strategies that make you different.
It is important for companies to have competitors, but low competition is sometimes preferable.
The fewer competitors you have, the less you have to be concerned with monitoring the competition, especially competitive pricing.
By the same token, the more unique the product is, the fewer buyers there will be.
Low competition is only a benefit when there is a significant audience to compete for. Understanding whether your niche includes buyers with a willingness to spend on that niche is important.
Save on Marketing Dollars
With niche marketing, you can get more bang for your buck and save big on your marketing spend.
Furthermore, since you are confined to a specific person and a specific need, less focus is required on digging into your data to understand and keep up with their needs.
You will also be doing less trial and error with your methods, which also can be resource-heavy.
Niche marketing is extremely cost-effective.
By contrast, businesses with a wide or general audience will have various customer segments to target within that audience. The mix of advertising — successful content, ads, and other direct communication channels — will look different for each customer segment, and catering your messaging to each segment requires particular effort and bandwidth.
When you target just one specialized segment, your job will be more straightforward.
You can also dedicate your energy and attention to this one area, iterating the strategy over time based on more data and feedback.
[UPDATED] Want to know what the best dropshipping products to sell online in 2020 will be? If so, you’ve come to the right place.
The e-commerce industry is growing at an aggressive rate, making it even more important for online stores to find the best products to sell online. Doing so, will keep you differentiated and ahead of the competition.
A new year is often accompanied by new trends and preferences. What sold like hot cakes in the previous year can suddenly experience a drop in demand in 2020.
But knowing what’s trending and what’s out of fashion doesn’t need to be guesswork.With data from Google Trends and a bit of research, you can discover the best drop shipping products to sell in 2020.
Whether you’re refilling the stock of your existing online store or launching a new one from scratch, these picks will help you generate revenue with minimum marketing spend.
Finding Trending Products to Sell Online
If it were easy to start a successful online business, everybody in the world would be billionaires.
We understand those Youtube ads where a talking head tells you they made $100,000 in a month might make eCommerce seem like a piece of cake. While they’re telling the truth about their success, these ads aren’t telling you all that goes into the process.
Namely, those drop shipping gurus are experts at product selection and have a defined process that ensures they’re buying and selling at a substantial profit.
As an ecommerce novice, you can’t create that process out of thin air. You need a starting point—which is what we’re offering below, firstly with different places you can find the right products for your online store:
Look in the Mirror
You’re an entrepreneur, so you probably have some pretty great product ideas. It’s always worth investigating something you’ve already thought of before desperately scouring the internet for that one magic product idea.
It’s wise to consider particular products, niches, and industries in which you and your friends are interested. After that, brainstorm any potentialpain points or inconveniences you experience in your own life.
Look to Your Surroundings
The answers you seek may lie in your local community. Meaning, you don’t necessarily need to embark on an epic journey to Middle Earth or – even worse – the dark web to find your product.
You can visit local brick-and-mortar establishments and assess trends. Therein might lie a ground-breaking product idea that you can take into the eCommerce space. Take a few weekend afternoons to study the newest and most exciting retail concepts and products.
Alternatively, if you aren’t into galavanting around town searching for ideas, local newspapers feature innovative products being developed and sold in your community.
Decide if the local trends could sell in the digital sphere. Some products sell better in physical locations than they do in the digital space – and vice versa.
Adhere to the Experts
Online consumer trend publications will steer your business in the right direction.
Within trend publications are experts whose jobs are to be accurate and discerning about the latest trending products. By reading them, you’ll start getting a sense of consumer inclinations – or in layman’s terms, what’s selling and what isn’t. You’ll also be privy to what other entrepreneurs are bringing to the market.
These publications will also bring to light new product categories and industries you otherwise would have never known.
Trend Watching’s team of 30 professionals throughout London, Singapore, Sydney, and Largos report on a smorgasbord of worldwide trends.
Those seeking a more mainstream trend publication will enjoyTrend Hunter – the largest of its kind.
With a global network of 137,000 members and 3,000,000 fans, Trend Hunter is brimming with inspirational product ideas that might help get your business off the ground.
Turn to the Top Dogs
Reinventing the wheel is virtually impossible.
It always helps to look at what’s worked in the past and working in the present, then use those examples as starting-off points.
Once you have an idea of your preferred market or industry, there are multitudes of online tools, such asTopsy andFollowerwonk, that’ll aid in discovering influencers in those spheres.
Leading ecommerce and drop shipping professionals can teach you a lot. By using their example as a template for success, you’ll be in way less over your head than if you try conjuring up a business model from scratch.
From the Mouths of Critics
The truth lies in product reviews blogs. You can find out the ins and outs of any product, market, or industry based on this valuable content.
Reviews will let you know about failures in products, gaps in the market that you could leverage, and the type of people to whom you’ll be selling.
These blogs will also offer a well-rounded look into the newest trends on the market and can provide another source of inspiration.
Niche review sites are ideal if you’re considering a product that isn’t mainstream. It’s stellar practice to choose a product that is a proven seller but has low competition. Niche blogs act as a conduit to finding those types of products.
Social Curation is Your Key
The following two social curation sites have built-in social signals that can offer an immediate sense of a product’s popularity:Pinterest contains 100s of thousands of images that contain exciting new products. There are 50 million users and a dedicated ‘popular’ section that shows trending items.
Fancy is equal parts store, magazine, and wish list. It’ll offer you a strong sense of new trends that’ll give you great product ideas.
Reddit is Your Realest Product Source
Other than being the largest social media news aggregator, Reddit is ostensibly the most powerful digital platform. There’s a reason the online powerhouse is known as the front page of the internet.
Within Reddit, there are thousands ofsubreddits offering a window into virtually any niche topic you can imagine – making them one of the best places to find product ideas.
No matter the industry or product niche, it’ll be on a subreddit.
Don’t believe us? Just search, and we guarantee you’ll find a subreddit for the most obscure products you could imagine. Then, you’ll know if there could be a viable interest. Since Reddit is interactive, you can engage directly with your target market to gain further market insights.
Evaluating which Trending Products to Sell
When choosing the right products to sell, you must evaluate the market and the product itself.
First, let’s look at the pros and cons and what to consider when assessing the market:
The Size of Your Playing Field
You must initially hypothesize the market size for your product.
Start by using common sense. Running shoes for males between 18-25 are going to have a large market with high demand. Whereas, a tracksuit catered to 40-50-year-old plumbers with an active lifestyle is too much of a niche for your business to make waves.
The Stiffness of Competition
Are you selling a product with no competition?
Well, that’s likely due to the product not being attractive to consumers.
Conversely, if the market is too saturated, despite the product probably being a great seller, the competition will make it difficult to get a strong foothold in the market. In this instance, you must find a way to set your product apart with creative branding to find any success.
The safest strategy is choosing a product that has a few successful competitors and is on the rise. Though, playing it safe doesn’t guarantee success.
The Shelf-Life for Selling
Under any circumstances, avoid getting caught up in a product fad.
The returns will be very short-term because the demand will die out quicker than you can say ‘why me?’
It’s possible to capitalize on a fad if you buy in and out at precisely the right times – but those are tricky waters to navigate since the lifespan of a fad is highly unpredictable.
A trend is akin to a fad’s more charming and reliable brother. While trends do have a shelf-life, they grow and decline at a far steadier rate than fads and are, thereby, far more lucrative. Trends can develop into long-term stable markets, but much like fads, it’s tough to predict.
When looking to limit ups-and-downs, selling a product that exists in a stable market could work – which has undeniable lasting power and does not fluctuate.
This fact does mean, however, that the market is unlikely to grow, so your success will hit a ceiling.
Lastly, there are growing markets that show steady improvement and an ability to cause a long-term market shift.
The Convenience Factor
How easy is it for your consumers to get the trending products you intend on selling?
Is purchasing a simple matter of heading down to the local strip mall? Then it might not be the best product choice. On the other hand, if a product isn’t easy to find, people are far more likely to search for it online.
The Customer Psyche
Get a good feel for the type of customer that your product appeals to, including knowing their online shopping proclivities.
For instance, selling to teens comes with the obstacle of your target not having a credit card to make an online purchase. Whereas, selling to baby boomers means your target customer will be technology-averse and generally won’t purchase online.
In the case of catering to teenagers, you may benefit from directing your marketing efforts towards their parents, as they’ll make the purchasing decisions. With baby boomers, positioning your product as a gift might work. This way, your advertising would appeal to the children of boomers, who’d purchase your product for their parents.
Now, we’ll take a look at product evaluation:
Markup Can Make You Crazy
You’ll be amazed at the mountainous list of fees that render each sale bereft of profit.
As such, sufficiently marking up your product is a must before trying to sell, especially right off the bat. You’ll need to offset those selling fees on top of the other costs associated with getting your business off the ground.
Click here for an example of the fees you might be stuck with when selling a product. It’ll give you a good idea of why some eCommerce businesses mark products up nearly 1,200% to generate a reasonable profit.
The Selling Price Sweet Spot
The sweet spot for eCommerce pricing is estimated to be around $75-$150.
You won’t need to move tons of product to generate a return, nor will you be stuck with hefty marketing and operation costs.
When a product is too inexpensive, you’ll have to sell an enormous number of units to turn a profit. Then, there’ll be mix-ups and issues with customer service due to the volume of sales.
On the other side of the spectrum, expensive products come with extended sales cycles and pickier customers.
Finding the perfect product for the ideal price is vital in being efficient as a dropshipper, where you’re already wearing many hats and need to streamline operations as much as possible.
Subscribing to Success
Turning customers into subscribers is the best way to get continued business. It also automates the selling process which requires less effort and decreases operating costs.
Even if your product isn’t traditionally subscription-based, try to do whatDollar Shave Club did with razors. It could turn into one of the most profitable decisions you make for your business.
Size Does Count
The size and weight of a product can eat directly into your profit margins.
Shoppers won’t settle for anything less than free shipping, and you may have to eat the costs associated with more substantial items.
Decide whether the market demand can offset the size and weight-related costs of your product.
Durable Products Could Mean Enduring Success
Fragile products will cost more in replacements, exchanges, and protective packaging.
While it’s possible to be effective at shipping fragile products, it requires considerable strategy so that it doesn’t devour your profits.
Is Your Product a One Season Quitter?
Seasonal products won’t necessarily sink your business, but they come with more challenges than products that sell year-round.
Ensuring consistent cash flow with seasonal products requires marketing to different countries at different times of the year.
This tactic works very well with winter and summer clothing, as opposed to holiday-based products. Seasons happen differently all over the world, whereas most holidays happen on the same day, regardless of country or continent.
Product Turnover Could Mean Profit Turnover
There are products, like smartphone cases and running shoes, that regularly need new designs to meet the latest demands of the market. Meaning, the older models need to sell before the newer ones hit the market.
Otherwise, there’ll be a massive stockpile of outdated product.
Selling items that need to be refreshed and updated continually is risky, so planning and adhering to a turnover schedule is a must.
Can these Trending Products Grow with Your Dropshipping Business?
Okay, so your ecommerce store is in its infancy. Maybe you’re using Shopify or Wix to get to market quickly. And perhaps you’ve scoured Spocket and Oberlo and even AliExpress to find your initial dropship suppliers.
Amid all the initial hiccups, planning to scale your business is a tall task.
Regardless, accounting for scalability from the building-block phase of your business will equip you for long-term success.
If you’re selling spices from a local butcher, will the butcher be able to get you enough product to meet an increasingly growing demand? Will you need more employees to handle the increase in sales? How can you know whether your newest dropshippers are trustworthy and able to deliver as advertised?
Those are just a few of the questions you’ll need to consider when evaluating the best drop ship products to add to your online business.
Trending Products to Sell Online
1. Vape cartridge
Google Trends confirms that vaping is a growing trend, so it makes sense to sell vape products and accessories.
Vape cartridges are one of the hottest items in this category. Buyers can either use them as an old-fashioned vaporizer or as an eVape pen. Some of them also contain pre-filled liquid of a certain flavor.
Whatever the case, there is certainly a growing community and a lifestyle element you can capitalize on to make sales in this rapidly evolving industry.
Plus, there’s profit to be made as plenty of suppliers will drop ship these for as little as $1.
2. Posture Corrector
Nowadays, a lot of individuals spend a major portion of their day working at their desks, studying or managing paperwork in a sedentary position.
That makes them look down instead of sitting in an upright position and look forward, which has a negative impact on their postures. Hence, there’s no better time to sell a posture corrector than now.
Google Trends’ data reveals that the demand for these items is on the rise.
You can sell multiple varieties of these including posture correctors that keep the back straight, the ones that place balanced pressure on your trigger points, and more.
3. Stove Cover
Do you dislike removing spilled food particles and grease from a stove?Most people do, which is one of the main reasons why they’re taking out their credit cards for stove covers.
In addition to keeping the inside of a stove clean, stove covers are dishwasher safe and highly reusable. Whoever buys them won’t have to do any scrubbing. For store owners, the best thing about this product is its portability.
The fact that stove covers are quite easy to ship makes them a great drop ship product to add to your store, especially if you’re in the household goods niche.
4. Minimalist Jewelry
There’s a certain demographic that likes owning finer things in life.That’s why minimalist jewelry continues to see a steady rise in demand from around the world.
Becoming popular in the 90s, the first minimalist jewels had Yellow Gold as their color, so most of the production involved Yellow Gold rhodium plates.
Today, this sort of jewelry comes in three forms of gold: White, Red (rose), and Yellow. Each of them has distinct characteristics but follow the basic mantra of “less is more.”
You can promote minimalist jewelry by partnering with lifestyle influencers on Instagram. Etsy and Shopify have a strong network of suppliers and sellers in this category as as well.
Once you add these types of products to your ecommerce store, use hashtags like #minimalist to help you gain traction among the right audience.
5. WiFi Security Camera
Tech trends to be as wireless as it could be in this day and age, and the verdict applies to security monitors too.
No one likes to see a big wire passing their lawn, so an increasing interest in WiFi security cameras isn’t surprising.
Such devices are known to add comfort and convenience in people’s lives, especially when it comes to security.If you’re already promoting security cameras, you might want to include WiFi-equipped models to stay up-to-date with the trends.
Aliexpress has tons of suppliers offering this type of product. We recommend using Oberlo to find different dropship suppliers whose products you can sync to your Shopify store. The eBay marketplace is also a great resource with its dozens of sellers in this dropshipping niche.
If you’re about to launch a new home appliances store, don’t be shy of considering this as your go-to trending item to sell.
6. Wireless Charger
Wireless chargers made waves in early 2015 but there is still a hype that you can capitalize on to make sales online.
One way to beat your competitors to the punch is to source wireless chargers of a higher quality.
As most internet entrepreneurs are selling Chinese wholesaler products, quality is a big concern for the buyer.High-quality wireless chargers will enable users to charge their devices within minutes. Plus, they don’t look ugly.
Overall, the demand for wireless chargers is poised to grow now that Apple has officially integrated wireless charging capability in its newest line of iPhones.
7. Touchscreen Gloves
With winters set to break records, it’s a no brainer to predict that people will be looking for touchscreen gloves to provide safety to their numb, cold fingers.
Because traditional gloves don’t help much when it comes to interacting with a touchscreen, the demand for Touchscreen Gloves has grown.
Google Trends indicates it’s especially high between September and February.
These uniquely manufactured gloves allow people to use their phones without exposing their bare hands to fierce winds.
You can promote these through an unboxing or demonstration video on YouTube. Make one yourself or hire an Instagram influencer for the job.
8. Makeup Travel Bags
These are must-sell hot products for online stores across the world, especially when it’s winter.
The idea behind makeup travel bags is simple – people make a ton of plans for travel and adventure, and most of them take some time to pull off.
During those long journeys, makeup travel bags protect makeup, beauty and health products from the wet weather while withstanding the bumps and knocks of continuous travel.