[UPDATED] It is one of the most popular questions new entrepreneurs ask.
You may be tempted to add products from as many different categories as you can, with the thought that a bigger variety leads to more sales. In reality, though, not every category is a “hit” with consumers. On top of that, a chaotic range of product lines can cause buyer confusion and lost revenue.
How do the successful dropshipping stores sweep audiences from the internet? How do they avoid low-performing categories? If you haven’t figured it out yet, these businesses are constantly researching the top product categories to drop ship. Get the idea?
At Modalyst, tens of thousands of store owners are using our platform to add products to their online businesses, which gives an opportunity to identify popular trends. Recently, we pulled some data and found the following product categories are on the rise:
This category has managed to perform better than any other in the last 12 months.
There are several niches that fall under Womens Clothing & Accessories, including those that don’t have a high demand – such as jumpsuits and jeans.
That said, we’ve spotted and listed three winners for this and all other categories. The following items steal the show in the Womens Clothing & Accessories category.
The most interesting finding is that this niche is seemingly recession-proof. How is that possible?
According to Edited, “during a recession, underwear is an inexpensive treat and to the consumer can feel more justified and ‘necessary’ than buying into a specific garment trend.”
Intimates & Lingerie had the highest sell-through of any niche in any category in 2019, and it’s on pace to do it again this year. Remarkably, this was true across price points, with luxe lingerie experiencing the highest sell-through across all price segments.
Here are examples of some of the Intimates on Modalyst that perform well:
The accessories category is enormous, accounting for nearly 20% of the entire apparel market.
It’s also growing at an incredible pace. So far this year, the entire market has 4% more product retailing than the prior year.
This niche is large and varied, and there is no concise way to describe the products that fall into this bucket.
It’s essentially lots of small items, including jewelry and watches, hair accessories, handbags and purses, hats, sunglasses, belts and scarves, and gloves. It also includes things like statement earrings, which have risen in popularity in 2020 due to the selfie or Instagram effect. Edited describes this as:
“when you’re taking pictures of your face, earrings have a better chance of getting in shot and making a statement about which kind of cool you are. And given the soaring interest in beauty, when influencers are sharing, they’re sharing face. (And ear.)”
Aside from the rising tide of consumer interest we see in statement earrings, the following accessories trends are likely to have staying power for the rest of 2020 and beyond: pearls, animal prints, brooches, and bucket hats.
This is a broad niche that continues to perform well year after year.
Based on the runway trends, keep your eye on cargo pants. This particular product is likely to make a resurgence in late 2020, led by luxury brands.
There are several factors pointing to huge gains for online stores in the Home & Garden category. Internet Retailer explains that two distinct demographics are driving the demand in this category: boomers and millennials.
Millennials represent an influx of shoppers who will want to transition from a college dorm to an entire house.
As this group ages, and home decor becomes a part of their personal identity, millennials will represent the highest-spending age group across all Home & Garden products.
Baby Boomers are aging, too, but they’re mostly focused on niche products that make home life easier and more practical.Grab bars, ramps, and walk-in tubs are some examples of the most popular products amongst this demographic.
It’s also true that many boomers are buying second homes and apartments, and are looking for stuff to fill up these new properties. Interestingly, they’re being turned to the brands that millennials love, including the ones they hear about from their kids and see on social media.
Broadly speaking, Home & Garden is the category where you’ll discover items for your living room, kitchen, bedroom, patio, and more. There are several products that will resonate with potential buyers, including some practical picks designed to make people’s lives easier.
This niche has been going strong for years.
It presents consumers with items that add some life and personality to their homes.
According to Digital Third Coast’s latest design trends study, which is based on Google search data from 2004 to 2019, earthy garden items such as terrariums, succulents, and mason jars are all the rage right now in the home & garden category.
A combination of fun and useful, like the mugs below.
The overall business of beauty & health continues to defy gravity.
This product category has been on a tear for the last several years, and remarkably about half the growth is online.
This is remarkable for an inherently “experiential” category. An interactive in-store experience used to be required to emotionally influence a consumer and shape their perception of the product they’re wearing.
According to Forbes, one of the most significant factors in the growth of sales in beauty products is the attitude of consumers, mostly women, who are actively seeking new brands and finding new products :
“This is part of a larger generational shift of younger consumers rejecting the large brands their parents preferred and seeking out locally-made, artisanal, natural products in all consumer categories. The need to be Instagrammable at all times also helps.”
Ranking third in top drop shipping categories in each of the past three years is the Beauty & Health category.
This category comprises of niches that are good for your wellbeing. Examples include Massage oils, makeup, skincare, and other similar items.
This niche of products to sell doesn’t include things like surgical instruments and medicine. Instead, it contains popular products like massage oil and muscle recovery pads.
Makeup is more self-explanatory.
Power brushes, eye shadows, lipstick, etc. While this dropshipping niche is exclusive to females, that hasn’t stopped it from occupying the Beauty & Health space in recent years.
The niche contains products that boost the appearance of your skin.
However, set realistic expectations rather than wild promises by writing a custom product description if you import this or another similar item in your store.
Womens Clothing & Accessories might have topped the list of best-performing dropshipping categories, but Jewelry is also enjoying considerable success as a product to dropship.
The category consists of things like necklaces, earrings, bracelets, bangles, pendants, etc.
Necklaces have been topping the list of niches in the Jewelry category each year. Items within this niche sell online and are especially affordable for retailers. Hence, you can enjoy a good markup on the wholesale price, even if you price the product in the $2-$5 range.
Bracelets like the one you see below are associated with China, Bangladesh, Nepal, India, and other Asian countries.
Coming in third place, the Rings category is yet another product that is popular amongst consumers and inexpensive to source for ecommerce websites.
Sports & Entertainment occupies the fifth place in the list of top-selling product categories.
Almost every household has an individual who needs sports equipment. Additionally, there are plenty of adults who play just for entertainment. No shortage of demand here.
Coming in first as the top-performing niche in the Sports & Entertainment category, workout clothes include items such as gym tanks, sleeveless cuts, and more.
These are used as fashionable headgear or during physical activity such as running and exercising.
This product niche is also experiencing a rise in demand.
Our compilation aside, you can use a tool like Google Trends to gauge search volumes for specific different types of products.
It will show you whether a category has a peak month that rises at the same time each year, or is it on an overall rise. We recommend using the range “last 5 years” because that offers a detailed overview of a category’s growth.
When deciding which category to pick products from, always consider how you’ll promote it.
Do you have good connections with influencers in the Jewelry space? Are you familiar with the Sports and Entertainment market? For existing online stores, is the category something that can be used to up-sell items from other categories to existing visitors?
For instance, if you sell womens clothing and accessories you can increase your AOV by offering necklaces, earrings, and other jewelry pieces after potential buyers add an accessory to their cart.
Select a category that you are truly passionate about. The reason for going with your interest is that if you’re working with items you are truly interested in, you’re more likely to have better luck promoting them and reaching your goals over the long period. Plus, you’ll likely have industry connections and access to groups/forums where you can post about the category’s items.
Focus on categories that have a sustainable demand or that you can easily promote.
Get started now rather than later, and experiment with other categories as you go. With Modalyst, you can add products from top product niches in a matter of minutes and start taking orders right away. If you have any questions or require help, get in touch with our support team.