Are you looking for the best dropshipping niches in 2021 to start a profitable business?
Imagine having a dropshipping store you can build with just one-click, with millions of products, free shipping worldwide, and where you can get up to 2,000% margin.
To do that, you need to find first a niche that is working but does not have fierce competition. And that is exactly what you will find here.
In this post I am going to show you:
- How to find a profitable dropshipping niche
- The best dropshipping niches in 2021
- Tools to succeed with dropshipping
Let’s dive in!
*Disclosure: I only recommend products I would use myself and all opinions expressed here are my own. This post may contain affiliate links that at no additional cost to you, I may earn a small commission.
How do you find the best dropshipping niches?
When it comes to the top dropshipping niches, you want to focus on evergreen products that people are already buying.
Next, you should choose a niche you have a passion for or at least some interest in. You will be creating a lot of content, so it better likes you.
The combination of those 2 factors are key to build a profitable dropshipping business for your selected niche.
How to find the top dropshipping niches
- Look for niches where people are already spending their money.
You want to bet for something which is already working.
- Focus on evergreen and popular products.
By doing this, your business won't be depending on trends and will make money all year round.
- Look for a niche with competition, but not a lot.
If there is competition there is money. The trick is to find a niche without much competition
- It should be profitable.
At the end of the day, you need to find a niche where you get a decent margin and profits.
1. Look for niches where people are already spending their money.
Method 1. Using Amazon Bestsellers
Step #1. Go to Amazon Bestsellers
Step #2. Analyze the top-selling products by category. For instance, let’s check “Toys and Games” number 1 suggestion: It has 5 stars and 16,319 reviews, which means it is a great niche product to sell.
Step #3. Click on the product and a new page will open. At the top, you will find the category this product is. These are the perfect sub-categories or micro niches you could use for your dropshipping business.
Although you can filter directly by categories and sub-categories to find micro-niche ideas, by doing it this way you’ll find out in which category are the top-selling products.
Method 2. Using AliExpress Bestsellers
Step #1. Go to AliExpress
Step #2. You’ll find a selection with the top-selling products.
Step #3. Click on any, and you should be able to see the store categories where this product is selling. This will give you a good idea of which categories contain the best-selling items.
Step #4. Additionally, you can also find the top-selling products by categories clicking in the blue bar at the top.
These two methods are simple but very powerful to find dropshipping niches where people are already spending their money.
2. Focus on evergreen and popular products.
When choosing a niche for your dropshipping website, you should focus only on demanded products that show positive or at least a stable trend.
For instance, let’s follow the example used above and say we want to check the niche “kid’s electronics” or “electronic learning toys”
Some terms related to these niches we could check are:
- Learning robot
- Toddlers Computer
- Learning Tablet
Let’s take a look at relevant queries on Google Trends and analyze their dynamics in the last 5 years:
Step #1. Go to Google Trends
Step #2. Type the products you want to check. In this example, we are going to examine “Learning Robot”, “Toddler Computer” and “Learning Tablet”.
As you can see, in this example there are some things they all have in common:
- They are stable throughout the year, with peaks on the Xmas seasons.
- The interest over time is growing in the last years.
This would suggest these kinds of products make sales all year round. But also looks like the sales are starting to increase since we are in a technologic era. Also, it would be recommended to promote these kinds of products during the Xmas season, where they have a clear spike.
An example of a product or category you should not choose is when the graphic trend goes down, and if the interest over time number goes down to cero often.
3. Look for a niche with competition, but not a lot.
If a niche has competition normally means it is a profitable niche. But you don’t want too much competition.
For instance, let’s check the top category from the previous example, which would be “Toys and Games” vs the sub-category “electronic learning toys”
You can observe that when looking for “toys and games online shopping”, not only the companies showing on page 1 are bigger companies. But also the results include the keyword or the name in the title.
This means they have targeted specifically this keyword and would be harder to outrank them.
However, if we check “electronics learning toys online shopping” you can observe a few different things.
Only a few results match the exact keyword. This probably means that the rest of the results are ranking for similar terms because there are not more specific stores with these terms. Also, you can see most of the companies appears even twice, which suggests there is not as much competition.
So it will seem that a store for electronic learning toys could be a great idea vs a more generic, toys and games.
You could even niche down even more and go for electronic learning toys for toddlers niche. This will take away even more competition.
4. It should be profitable.
Let’s see some real examples with numbers to see how to find a profitable niche.
According to a Statista study, Amazon Prime members spent an average of $1,400 on Amazon, whereas non-Prime members spent around $600 per month.
Now, if we make an average between both we’ll get $1,000 per month. If we divided by 30 days we get that $33.3 would be the average spent per person per day.
There will be people buying very expensive stuff and also very cheap of course. But it is also telling us that $33,3 is a good ballpark figure to have in mind when checking which products to sell. It is a quantity people feel more comfortable spending before they think is too much.
With that on mind, let’s see now a couple of examples.
Let’s stick with learning tablets example.
If you look in Amazon for learning tablets, you’ll get something like this:
Now, let’s look for learning tablets in Ali Express:
By checking both items in different platforms we can learn that:
- Price is within range people are willing to pay without much thought.
- It is a popular product with many sales.
- You can obtain benefits from both. But in this case, your margin if you use AliExpress as a dealer your profit margin could be much bigger since you can price it closer to the Amazon product but cheaper.
This would be an example of what a profitable dropshipping niche could be.
Lastly, I suggest you check Spocket vs Oberlo post. You will find out the best dropshipping app for your Shopify store and will learn how to use them.
You might want to read:
The 10 best dropshipping niches ideas.
When it comes to the best dropshipping niches, you should focus on finding evergreen niche products.
Do not create a business based on a specific trend. It might be profitable for a few years, but in the end, it needs to be sustainable during the year.
If you follow the steps above, you should be able to find good dropshipping niches by yourself. And that is already more powerful than any list I can give you.
By doing a bit of niche research yourself, you will be on a better position to understand how that market works.
In any case, you still probably want some dropshipping niche ideas for inspiration. So I am going to provide you with a list of the best dropshipping products.
1. Toys and Games.
This category has a lot of potentials since kids get easily bored with their toys. So parents normally want to make sure they have some new toys and games to get them happy and distracted.
Also, the offer on toys and games is big, so buying a few toys won’t break the bank (in most cases). This is what we discussed before about selling demanded items under $33,3. That is why this could work great.
- Keep updated with the current trends, as it turns out to be a dynamic category. Gaming kits, video games, chess, brain games, learning games, and other memory games go very well.
- Customize your online store with the products that can ensure a high ROI (Return On Investment).
2. Electronic Accessories & Gadgets
With technology taking over these days, this is with no doubt one of the best dropshipping niches.
And the good thing is that this trend only seems to keep going up.
However, it is also the most competitive one. Big brands vastly dominate the Electronics and Gadgets category
It is hard to imagine our lives without technology today. Electronic accessories, smart devices, and gadgets are one of the integral parts of our lives. In the previous year, over 60% of Google searches were done on smart devices.
- Fill a small niche and appeal to a motivated audience. This will reduce your competition
- Make sure not to go too high-end. Include useful products in day-to-day lives and also fall within two-digit figures.
3. Video Games
The popularity of video games has not only grown but also changed drastically over the years.
The revenue for the gaming world depends primarily on – Hardware (screens, controllers, processors, and accessories) and Software (games).
And since both keep changing drastically with their technology being improved by the month, it makes this niche one of the best dropshipping niches at the moment.
- Promote your video game’s product availability on Twitch created by Amazon
- Use Aliexpress to increase your hardware profit.
4. Beauty And Personal Care
Who does not want to look after their skincare?
We all like to look good, so it is no surprise the beauty business is massive online and offline.
But since trends are changing to buy more online products, this sector is experiencing a big revenue. That is why there is a good chance of profiting from this niche.
- Go for beauty products that have natural ingredients. People love organics products and will help you set apart from competence.
- Research for new beauty tools and accessories to be ahead of the competition.
Surprise! One would not think that in this digital era there is a place for books.
But if you are a reader or know one, you would know people still prefer physical books.
That would explain why books are normally on the best selling products on Amazon constantly.
- Get specialized in a sub-category (it could be adventure, photography, or anything). That way you will build a very targeted audience that will come to your site for more.
- Use bots to gain customers. Most of the people will want advice or opinion about a book or a topic. Bots can be very useful for these sites and land you some customers
6. Camera & Photo Accessories
The time of selfies arrived to never leave.
And not only that, people take pictures of everything these days. Their food, coffees, training, beaches, etc.
Covid-19 might have complicated travel for now, but the trend shows people were traveling more than ever. If you add that to the fact that more than half of the world now uses social media, that is a lot of people who surely will want to snap some pictures!
- Focus on cameras with interchange lenses over compact cameras. That will increase the business opportunity since you can also sell more expensive cameras accessories.
- Review posts about cameras adding a “buy button” at the end of the article convert really good.
7. Clothes, Shoes, and Jewelry
Clothes and shoes are basic needs for any person.
And there is no easier way to shop for your basics at a lower price than online. That way you can always compare products and prices.
Also, most of the companies make it very easy to return a product. Which encourages people to buy from the comfort of home.
If you manage to create something simple but trendy, and overall, useful, you’ll have your share in this niche market.
- Use keyword research to avoid too much competition. This way you can target your audience and make money in this competitive niche.
- Make the whole process painless. People want fast delivery and easy return in case something does not fit or simply is not what they expected. If you can excel in this, your chances will be much higher.
8. Health and Household
This category provides Amazon entrepreneurs with an average profit margin of 20%.
For the same reason discussed in the previous point, health and household are part of the basics we all need for our day-to-day life. Meaning this is another profitable dropshipping niche.
You can check in this post health and wellness niche trends and market. You will be surprise about the opportunities.
- Check trends and go micro-niche. For example, dietary supplements and sports nutrition, are doing very well.
- Make sure you don’t choose a restricted category within health and wellness where selling products can be trickier due to laws.
9. Arts, Crafts & Sewing
This is one of the best dropshipping niches in terms of high-profit margin.
And the cool thing about this one is that you can be your own dealer. If you are creative and enjoy crafts, you should consider this online business.
- Try to target products you can use to reach a wide range of ages. For example, you could use minimalist decorating items at an affordable price and people from any age could buy it for its house.
- People like unique things. If you take your time in the item description saying how different and unique your products are, you could do much better in business.
10. Pet Supplies
67% of U.S. households, or about 85 million families, own a pet, according to the 2019-2020 National Pet Owners Survey conducted by the American Pet Products Association (APPA).
With this number is easy to see that a pet supplies dropshipping store can only be profitable.
- Go product specific for things that need to be replaced or buy continuously. Like food, dog waste bags, etc.
- Pet owners are big users of Facebook groups. Use them wisely for your marketing strategy.
You might want to read:
Dropshipping niches to avoid
Although we have discussed the best dropshipping niches, there are also some dropshipping niches you should avoid.
With the resources I have provided you in this post, you should be able to see by now if a dropshipping niche can be profitable and if there is a space for you on it.
But in any case, here are some tips for the dropshipping niches to avoid:
- Any topic in which people have lost interest over time. i.e. fidget spinner
- Any generic topic as competence tends to be fierce as they are over-saturated. Niche down all you can until you find a good micro-niche with less competition
- Niches where people are not spending money already. The most likely is that these niches won’t make you money.
In any case, with the resources in this post, you can check by yourself if the niche you chose is good or not.
Amazon FBA vs AliDropship: What is best?
Let’s say you know your niche already.
The next step would be to decide which platform and tools you will use. I suggest you read how to create a niche website from scratch so you can implement what you have learned here.
Although there are many platforms you can use for your dropshipping business, in this section, I am going to provide some insights about Amazon FBA vs Alidropship. Which probably are the biggest out there.
|Higher Profit Margin|
AliDropship is a plugin that lets you create a dropshipping business by selling AliExpress products.
The advantages of this product are that the investment you need to do is the plugin itself, the platform is less competitive than Amazon and also has a lower risk.
All you need to do to use it is to install AliDropship Plugin. It offers a complete set of features that allow you to easily start and run a successful dropshipping online store in minutes. With this plugin, you can easily search for and add products to your site just by specifying categories, keywords, purchase volumes, and other filtering options to find the best products.
When to use Alidropship?
If you’re just starting your online business it makes it easier and a cheaper option.
Fulfilment by Amazon (FBA) is a storage and distribution service provided by Amazon for sellers. This is the preferred solution for many doing online arbitrage.
The product is stored in Amazon’s fulfillment center (in the one that is closest to the customer base). Amazon packs and ships your product (as soon it is purchased) as well as takes care of the customer service.
Then the seller sends products to Amazon Fulfillment Center.
If you decide to go for Amazon FBA, you should also invest in some tools to make your experience much easier and increase your profit.
Amazon Dropshipping tools.
- SellerApp: SellerApp is the leading provider of eCommerce data intelligence software with expertise in Amazon Product & Keyword Research, Listing Optimization, Amazon PPC Management, Amazon SEO Tools, and much more.
Think about this tool as a way to surpass your competition and to find the most profitable products from day one. Believe me, you need to treat this as the business it is, and every business with the right investments grow faster. And this is a must.
- Seller Snap: Seller Snap is designed to think like an Amazon seller. They analyze thousands of price decisions every minute to detect the behavior of your competitors to give you the optimal strategy to outsmart your competition.
When to use Amazon FBA?
If you already have an online business and want to further scale. I suggest read this guide to Amazon online arbitrage.
You might want to read now:
Are you ready to start your dropshipping business?
There you have it. The procedures explained in this post will help you to find the perfect dropshipping niches for your business.
Niche down, and when possible, niche down even more. Only that way you’ll have a targeted audience and will have a better chance with your competition.
As an alternative, you could also start an affiliate marketing site. Take a look and see which one suits you better
Now I’d like to hear what you have to say:
Did you choose a dropshipping niche already?
Let me know by leaving a quick comment below.
Don’t forget to share this article!