How To Find the Best Dropshipping Niches in 2024 - Shopify (2024)

To build a successful dropshipping store, you need a niche.

A niche helps you define a target audience and find ideal products for your customers.

Choosing a dropshipping niche can be challenging. Should you build a store around products you already know and love? Should you pick a niche that's popular in your location, or globally? How do you know if your products will sell?

If you want to open a dropshipping store but aren’t sure where to start, use this guide to determine the best dropshipping niche for you.

What is a dropshipping niche?

A dropshipping niche is a specialized segment of a market that can be served by dropshipped products.

For example, fitness gear, eco-friendly pet supplies, or home office furniture could all be considered niches open to dropshipping.

Dropshipping is a retail fulfillment method where a store doesn’t stock its products. Instead, when the store makes a sale, it purchases the item from a third party, which ships it directly to the customer on the store’s behalf.

Selecting a dropshipping niche allows you to focus your marketing to differentiate your brand from competitors and create a strong brand identity.

How to find a dropshipping niche

Businesses often succeed or fail based on the extent to which they serve consumer demand. If nobody wants your product, you’ll have a hard time making any money. As the old saying goes, it’s much easier to fill existing demand than to try to create it.

Here are some dropshipping tips to help you find the best niches:

1. Use tools to research demand

Understanding a product’s demand, competition, and suppliers will be important to making an informed decision.

Fortunately, a number of online tools allow you to measure demand for a product or market, which is especially helpful for finding the top dropshipping niches:

Audience Insights

Meta's Audience Insightscan help you find niche markets and trends. It aggregates informationMeta users (i.e., Facebook, Instagram, and WhatsApp users) and helps determine the size of a potential dropshipping niche and their interests.

You can use Audience Insights to find information like:

• Demographics: age, gender, lifestyle, education, job role, relationship status, etc.
• Page likes: categories and topics that interest an audience
• Location: where people live and the languages they speak
• Activity: ads clicked, comments made, promotions redeemed, devices used, and more

For example, if you want to explore a dropshipping niche like fitness and wellness, you can type in keywords and Meta will show you how many active monthly users are interested in this niche worldwide.

You also can see how many people are interested in a topic, their likes, and their location.

Google Keyword Planner

Google makes search volume publicly available via its Keyword Planner tool. Simply type in a word or phrase and the tool tells you how many people are searching for it every month. This can be incredibly useful for shaping your business strategy and growing your online store.

Keep the following three metrics in mindwhen searching for dropshipping opportunities:

1. Match type. Keyword Planner lets you select broad, phrase, or exact-match types when it reports search volumes. You should use the exact-match option unless you have a good reason to do otherwise: this will give you a much more accurate picture of the applicable search volume for the keyword.
2. Search location. Make sure to check the difference between local search volume (in your country or a user-defined region) and global search volumes. If you’ll be selling primarily in the US, you should focus on local search volumes and ignore the global results.
3. Long-tail variations. It’s easy to fixate on the broad one- or two-word terms that get massive amounts of search volume. In reality, longer, more specific, and lower volume search queries will make up most of your traffic from the search engines. These more detailed search terms are commonly referred to as “long-tail” searches.

Remember these metrics when you’re looking at potential markets and niches to enter. If a search term has many variations that are actively searched for, that’s a good sign the market is fairly deep with lots of variety and interest. But if search queries and related volume drop off precipitously after the first few high-level words, there’s probably less related long-tail traffic.

Google Trends

For more generalsearch insights, use Google Trends. This tool offers you information that Google’s Keyword Planner doesn’t provide, including:

Search interest over time. Ideally, you want the niche you’re entering to be growing, and Trends can let you know if this is the case. For any given search query, you can see the growth or decline in search volume over time.

Top and rising terms. You’ll also be able to get a snapshot of the most popular related searches and which queries have been growing in popularity the fastest. Focusing on these terms can be helpful when planning your marketing and SEO efforts.

Geographic concentration. Another useful feature is the ability to see where people are searching for a term geographically. This can help you identify where your customer base for a specific niche is most heavily concentrated. For example, if you’re selling canoes, you’ll want to determine where the majority of your customers will come from.

Seasonality. Understanding the seasonality of a market—that is, the demand for a product at different points in the year—is crucial. Because the keyword tool provides data on a monthly basis, you can draw some misleading conclusions if you measure search volumes during the wrong time of year.

For example,search interest in“canoes”peaks in the summer months. If you measured demand in the summer, and expected itto remainconstant throughout the year, you’d grossly overestimate the size of demand.

For any product you’re seriously considering, you’ll want to spend time understanding the intricacies of the niche’s search volume.

Online marketplaces

ExploreAmazon, eBay, Etsy, AliExpress, and other online marketplaces to find out what products are trending.

Start by exploring the various categories or departments on the marketplace, such as electronics or home and garden.

Then, identify trending or bestselling products. Look for sections or features that highlight trending or bestselling products within each category. These are often labeled as “Bestsellers,” “Hot Products,” or something similar. This can give you insight into what products are currently popular among consumers.

Usefilters and sorting options to narrow down your search. You might also see product subcategories—the more subcategories there are, the deeper that particular niche. By setting specific criteria, you can focus on products that align with your dropshipping goals.

This is also a good time to check out the competition and their pricing strategies. Assess the level of competition for the products you’re interested in. Consider niches with a balance between demand and manageable competition. Make sure to analyze pricing to see if there’s room for a profitable markup.

2. Look for accessory-heavy niches

Customerstend to beless price-sensitive about accessories, allowing for largermarkups.

A buyer mightbrowse for weeks to get the best deal on a TV, but wouldn’t think twice about dropping $30 on an HDMI cable. However, there’s a good chance the business made nearly as much profit margin on the cable as it did on the flatscreen.

When you choose a niche with lots of accessories, you’ll enjoy significantly higher profit margins and fewer price-sensitive shoppers.

3. Find customers with passion

It’s amazing how much money passionate hobbyists will spend. Mountain bikers will drop hundreds on lightweight accessories to shave a few pounds off a frame, and avid fishermen will invest tens of thousands of dollars in boats and related accessories. If you can offer a product-based solution to a painful problem, you’ll find a captive audience eager to buy.

4. Look for trendy products you can’t find locally

Pick trending products that are hard to find locally and you’ll be able to get in front of the vast majority of your customers as they search online. While you ideally want something difficult to source locally, you also need to ensure there’s ample demand for the product. This can be a fine line to walk.

5. Aim for niches with low product turnover

If your product line is constantly changing year to year, you’ll end up spending valuable time on resources that will soon be outdated. Selling a product line with limited turnover ensures you can invest in an information-rich website that will be viable for years.

6. Consider selling consumable or disposable products

Repeat customers are essential to any business, and it’s significantly easier to sell to existing customers who trust you than to new prospects. If your product needs to be re-ordered on a regular basis—and you’re able to keep your customers happy—you’ll be on your way to building a profitable business with recurring revenue.

The most profitable dropshipping niches

​​If you want to start an ecommerce business with the best chance of success, you can’t go wrong by entering a profitable dropshipping niche that’s already proven to be popular.

Research on the best dropshipping products identifies some of the best niches for 2024:

• Car accessories
• Sustainability
• Kitchen and dining
• Home and bedroom
• Child and baby
• Home office and office products
• Phone accessories

Car accessories

The global car accessories market was worth more than $500 billion in 2023 and is expected to grow annually by 5.8% through 2032. Search interest also has been climbing steadily for years.

Buyers of auto accessories want reassurance that your product works. Adding customer reviews to your product pages can assure potential buyers of the quality of your product and help you boost sales.

Check out these dropshipping products to sell under car accessories:

• Air fresheners
• Bluetooth car adapters
• Car chargers
• Car trash cans
• Cleaning gels
• Dash cams and backup cams
• Device holders and mounts
• Exterior underglow LED kits
• First aid kits for cars
• Floor mats
• Interior LED light strips
• Leather conditioner
• License plate frames
• Microfiber cleaning cloths
• Portable vacuum cleaners
• Roadside emergency kits
• Seat covers and organizers
• Steering wheel covers
• Window shades and sun shades
• Wiper blades

Sustainability

Sustainability is becoming an increasingly important issue among consumers, and they expect brands to jump on board. According to one 2023 report, 40% of shoppers don’t feel comfortable buying from companies that don’t actively track their progress on sustainability goals.

And shoppers are not afraid to use their money to prove a point. As many as 74% of consumers are more likely to purchase from transparent companies, and 58% will even spend more money to buy sustainable or environmentally friendly products. Another 71% planed to make more mindful purchases in 2024, at least in regards to the environmental impact.

To tap into sustainability as a dropshipping niche, consider the following products:

• Beeswax and similar food wraps
• Chemical-free cleaning products
• Compostable plates, cups, and bowls
• High-quality water bottles
• Products made from organic fabric like cotton, hemp, or bamboo (bedding, apparel, etc.)
• Reusable coffee cups
• Solar-powered lighting and small electronics
• Solid shampoo and conditioner bars
• Stainless steel or bamboo straws
• Sustainable activewear
• Tote bags
• Travel silverware and cutlery
• Vegan consumer-packaged goods

Kitchen and dining

Searches for kitchen and dining products have seen a steady increase in recent years. The home appliance industry alone is worth $670 billion, and is forecast to surpass $800 billion by 2028.

Products in this category, like portable blenders and electric kettles, have proven perennially successful.

Top dropshipping products to sell in kitchen and dining include:

• Air fryers
• Coffee pods
• Compostable paper plates
• Electric kettles
• Electric kitchen scales
• Insulated mugs
• Kitchen organizers and storage
• Latte mixers
• Leak-proof bento-style kids’ lunch boxes
• Peppermint tea
• Portable blenders
• Shaker bottles for protein shakes
• Silicone utensils
• Stainless steel tumblers
• Water filters

Home and bedroom

The home décor market was worth $126 billion in 2023 and is expected to grow annually by 4.77% through 2028. Search interest for “home and bedroom” has also been steady through the years, typically peaking mildly in January and June/July.

Small online retailers have an advantage in selling home interiors because they’re high-commodity products. This means nearly everyone needs items like pillowcases—they’re widely available but no individual buyers want the same one, making them perfect for niche marketing.

Check out the following product ideas if you want to tap into home interiors as a dropshipping niche:

• Blackout curtains
• Ceramic vases
• Essential oil diffusers
• Fairy or string lights
• Frames
• Handheld clothes steamers
• Holiday décor
• Laundry baskets
• Linen or bamboo bed sheets
• Microfiber bedsheets
• Non-slip hangers
• Pillows and poufs
• Ready-to-assemble furniture
• Rugs
• Satin pillowcases
• Shower curtain liners
• Weighted blankets

Child and baby

The child and baby niche covers a lot of ground. The global baby care products market is expected to be worth $88 billion by 2026, growing at a yearly rate of 6.4%. Kids’ toys alone make up a substantial portion of that market.

Current trends show consumer hesitation around baby products like food, cosmetics, or safety items. If you’re planning to dropship baby products, make sure you build a credible brand that customers trust.

Top dropshipping products to sell in the child and baby niche include:

• Baby bottles
• Baby healing ointment
• Booster seats
• Breast milk storage bags
• Chew toys for infants
• Diapers
• Hydration multipliers
• Hypoallergenic baby diaper wipes
• No-touch forehead thermometers
• Organic baby clothing
• Sponge bottle brushes
• Stroller fans
• Teething toys
• Water-based wipes
• White noise machines

Home office and office products

About a third of workers who can work from home take advantage of this perk full time. Everyone needs to stock their workspace. There are lots of opportunities for profitable dropshipping in this niche.

The worldwide home office market is worth $18 billion, and many products are readily available through different dropshipping suppliers. You can also tap into the seasonal back-to-school shopping frenzy: bundling cases with packs of pens, pencils, markers, crayons, erasers, and other supplies could be a great way to increase sales. Some of these great products, like mechanical pencils, use refills—meaning there’s a good opportunity for getting repeat purchases and building brand loyalty.

If you want to start dropshipping in this niche, consider the following products:

• Corkboards
• Desk lights
• Desk pads
• Dry erase markers
• Ergonomic desk and accessories (mouse, chair, keyboard, monitor stands and risers, etc.)
• File folders, organizers, and storage bins
• Heavy-duty packaging tape
• High-quality notebooks and journals
• Mechanical pencils
• Notepads
• Office décor
• Pens and holders
• Staplers
• USB hubs and adapters
• Webcams and microphone sets
• Wireless charging pads

Phone accessories

Phone accessories have shown a steady five-year trend, peaking in the winter months and then maintaining demand throughout the rest of the year. Products like screen protectors and phone cases are always in demand—the market for protective coverings alone was worth $21.89 billion in 2022 and is forecast to grow 8.3% annually through 2028.

And as smartphone cameras continue to improve and rival digital cameras themselves, there are plenty of accessory opportunities for phone photography alone. Plus, using a print-on-demand app to create your own designs is a great way to stand out or offer customization.

If you want to get started in the phone accessories niche, consider the following product opportunities:

• Bluetooth speakers, earbuds, or headphones
• Car chargers
• Cleaning kits
• Custom cases
• Phone cooling accessories
• Phone grips
• Phone mounts and stands
• Portable chargers and power banks
• Ring lights
• Screen protectors
• Selfie sticks
• Smartphone wallets and cardholders
• Tripods
• USB-C power adapters
• Waterproof cases
• Wireless charging stations

How to measure competition in your dropshipping niche

Conducting acompetitive analysis on a potential market can be tricky. Too much competition, and you’ll have difficulty building traffic and competing with established players. Too little competition can indicate a tiny market that will drastically limit how big you’ll be able to grow.

One of the best ways to measure the overall competition in a market is to examine the organically listed (i.e., not advertised) sites on the first page of Google for a specific term. To generate a decent level of traffic, you’ll need to successfully compete with, or outrank, the sites on Google’s first page.

Number of linking domains

Google’s ranking algorithm relies heavily on links. Generally, the more links a site receives, the higher it ranks in search results. Knowing how many links are pointing to a site gives you an idea of how much work you’ll need to do (in terms of earning and building links to your own site) to outrank your competitor

There are dozens of SEO metrics to use, but pay attention to “linking root domains.” Also called “unique linking domains,” this metric represents the number of unique domains (i.e., independent sources) that link to a site and ignores duplicate links from the same domain.

A domain name can link to a site repeatedly, but it’s just one “unique” recommendation, and this is where common SEO metrics like “total number of links” can paint an inaccurate picture when measuring a site’s strength. Instead, the number of unique linking domains will give you a much better idea of how difficult it may be to compete with a site.

When examining Google’s search results, you’ll want to look most carefully at the link metrics for the top few sites (#1 and #2 on Google) as well as the link metrics for the last site on the front page (#10 on Google). This will give you a rough idea of how much work is needed not only to rank #1 but also simply to make it onto the first page of search results. The vast majority of searchers end up clicking on one of the top 10 results on Google, so it’s both difficult and critical to get your site ranked there.

Here’s a quick cheat sheet for interpreting the number of unique linking domains. These are only rough guidelines but should help you make sense of the numbers:

• 0 to 50 linking root domains. Likely on the low end for most worthwhile markets. Most sites with quality content and some focused marketing and SEO effort should be able to get 50 linking domains within a year.
• 50 to 250 linking root domains. This is a more realistic range for top-ranked sites in decently sized niche markets. It may take a multiyear approach to build a backlink profile in this range, but it’s feasible. A competitive landscape with this profile often offers the best work-to-reward ratio, especially for individual dropshipping entrepreneurs or very small teams.
• 250 or more linking root domains. Unless you’re a talented marketer or SEO ninja, building up more than 250 unique links will take some serious time and commitment. It doesn’t mean you shouldn’t go for it—just make sure you’re ready to face some entrenched competition.

Authority of competing sites

When determining a site’s rank, Google also considers the quality of links. In other words, a link from a random blog with five readers won’t count anywhere near as much as a link from The New York Times.

Google uses PageRank to measure a page’s authority. This is a quick way to get an idea of how important Google thinks a page is, so you can get a sense for how competitive a market is by looking at the PageRank for the homepages of top-ranked sites.

One way to check PageRank is to look at sites manually using Check PageRank.

Here’s a quick way to interpret PageRank readings for a site’s homepage:

• PageRank 1 to 2. A relatively small amount of authority. PageRank in this range for the top homepages likely indicates a relatively small market.
• PageRank 3 to 4. A much more common range for highly ranked sites in competitive niche markets. It’s not necessarily easy to reach this level of authority⁠—but not impossible, either. Markets in this range usually offer the best work-to-reward range for individual dropshippers.
• PageRank 4 to 5. A fairly high level of authority. To reach this level, you’ll need to get numerous links from respected, authoritative sites, in addition to a fair number of other links.
• PageRank 6+. You’ve got a full-time marketing and SEO department, right? Because you’ll need them to compete in a market with sites ranked this high.

Qualitative metrics to consider when doing research for your dropshipping store

It’s also very important to look at a few qualitative factors before opening a dropshipping store:

Site quality and usefulness

Visit the top-ranked sites for a market and put yourself in the shoes of a customer. Do they appear inviting and welcoming or old and outdated? Are the sites well-organized and easy to navigate, or is it a struggle to even find the search box? Do they provide high-quality information and detailed product listings, or do you have to squint to make out the grainy product images?

In short, how likely would you be to purchase from those sites? If you’re blown away by the top sites in a market, it will be difficult to differentiate yourself and you may want to consider a different market. But if there’s a lot of room for improvement or opportunity to add value, that’s a great sign.

Site reputation and customer loyalty

An online business might have a solid reputation based on years of treating customers well, despite a drab design and outdated site. Alternatively, the most beautifully designed site might have a widespread reputation for awful customer service. It can be difficult to judge a book by its cover.

Check with the Better Business Bureau to see if a company has a history of customer complaints. You’ll also want to do a web search to see what people are saying on social media and in online forums and communities. If the top competitors are slacking in the service and satisfaction department, there might be an opening for a store with superior service.

An important note on search results

When you perform a search, Google personalizes the results you see based on your geographic location, your browsing history, and other factors unique to you. When analyzing a market, you need to see unbiased results to be able to understand the real competitive landscape.

There are two ways to get around these issues:

1. Incognito search. Browse the web “incognito,” so that any personalized settings or browsing history will be discarded and you get an unbiased idea of how sites actually rank. Start an incognito browsing session in Chrome by going to File > New Incognito Window or by clicking on the icon in the upper right hand corner of your browser and selecting New Incognito Window. Other web browsers have similar hidden search modes that will clear your browsing history.
2. Forcing region-specific results. If you’d like to see results that appear for a region other than your own, you can add a small amount of text to the end of the URL on a Google results page to get country-specific results. For example, if you’re in the UK but want to see the search results being returned for searches in the US, you’d add “&gl=us” to the end of the URL on the search results page and press Enter.

How to be successful with your niche dropshipping business

Of course, selecting an in-demand, low-competition dropshipping product is just one part of the equation. To build a successful dropship business, consider doing the following:

Understand your ideal customers

If you’re having trouble coming up with the right idea for a niche business, think about it this way: Sometimes you need to find a customer first, not a product.

Once you’ve figured out who you want to sell to (and their pain points), narrowing down what you want to sell to them and how you want to sell it will come naturally.

To determine who you should sell to and your unique selling proposition, create buyer personas for your audience to narrow down who should be considered an “ideal customer.” The more specific and detailed your buyer personas are, the better you’ll be able to understand and target your audience.

Manufacture your own product

In this case, you control distribution and are the sole source for the item—this limits competition and allows you to charge a premium price. If you intend to dropship products, however, you’ll be selling existing products manufactured by someone else, so this isn’t an option.

Have access to exclusive pricing or distribution

If you can arrange an exclusive agreement to carry a product⁠—or if you have access to exclusive pricing from a manufacturer⁠ or dropshipping supplier—you can profitably sell online without creating your own product. These arrangements can be difficult to arrange, however, and hundreds of other dropship merchants will have access to similar goods and wholesale prices.

Sell at the lowest price

If you can offer the lowest price, you’ll likely steal business from a large chunk of the market. The only problem? It’s a business model doomed to failure. If a low price is the only thing you can offer, you’ll be caught in a pricing war that will strip virtually all your profits. Trying to compete against Amazon and other established online giants on price is generally a poor strategy.

Add value in non-pricing terms

Offering valuable information that complements your products is the best way to differentiate yourself and charge a premium price. Entrepreneurs set out to solve people’s problems, and that’s no different in the world of ecommerce and dropshipping. Offering expert advice and guidance within your niche is the best way to start a dropshipping business.

Add value in ecommerce

Some products and niches lend themselves to this strategy more than others. You should look for a few key characteristics that make adding value with educational content much easier.

Lots of components

The more components a product needs to function properly, the more likely customers are to turn to the internet for answers. Which purchase is more confusing: buying a new pet product or buying a home security camera system that requires multiple cameras, complex wiring, and a recorder? The more components a product needs⁠—and the more variety among those components⁠—the greater your opportunity to add value by advising customers on which products are compatible.

Customizable or confusing

Along the same vein, confusing and customizable products are perfect for adding value through content. Would you inherently know how to select the best hot water solar panel configuration for your climate or which type of wireless dog collar system is right for your yard? Being able to offer specific guidance on what types of products are best suited for specific environments and customers is a great way to add value.

Requires technical setup or installation

It’s easy to offer expert guidance for new products that are difficult to set up, install, or assemble. Take the security camera system from before: Let’s say the camera site had a detailed 50-page installation guide that also covered the most common mistakes people make installing their own systems. If you thought the guide could save you time and hassle, there’s a good chance you’d buy it from that website, even if it was available for a few dollars less elsewhere. For store owners, guides add tremendous value for customers and don’t cost anything to provide once they’re created.

You can add value to complex and confusing niches in a number of ways, including:

• Creating comprehensive buyers’ guides
• Investing in detailed product descriptions and listings
• Creating installation and setup guides (as discussed above)
• Creating in-depth videos showing how the product works
• Establishing an easy-to-follow system for understanding component compatibility

Work with good dropshipping companies

When running a dropshipping ecommerce store, be on the lookout for good dropshipping suppliers or wholesalers. They can help you figure out shipping costs, decide markup for your products, and automate dropshipping fulfillment, and can even help with product research.

For example, AliExpress, the leading business-to-business buying portal for online retailers, is home to millions of top-selling products you can sift through to find the perfect items for your store. You can order directly from AliExpress or use a dropshipping product research tool like Oberlo to find, upload, manage, and sell products in your Shopify store. Amazon dropshipping is another option worth checking out.

Dropshipping niches to avoid

While there’s plenty of opportunity in the world of dropshipping, not all dropshipping products are created equal. Some niches are so competitive that it’s almost impossible to make a sustainable profit. Others come with additional challenges you should be aware of, such as high return rates.

Demand changes frequently, but here are some categories you should consider avoiding for your online store:

• Watches. Despite some potentially high profit margins, the watch dropshipping niche is incredibly saturated. Furthermore, for those who aren’t super knowledgeable about watches, it can be very easy to invest in low-quality watches that won’t sell.
• Clothing. While the clothing dropshipping niche does have many products to choose from, the clothing niche is also particularly competitive, making it harder to stand out and make your first sale.
• Health products. Although health products are in demand, there are a lot of risks and challenges with selling health products. Low-quality health products in particular can be difficult to sell, and there are some potential legal repercussions for false or misleading claims that you’ll need to remember.

Build your dropshipping store today with Shopify

You’ve probably heard the mantra “Just follow your passion.” But that’s dangerous advice that can lead new entrepreneurs astray.

This is especially true when it comes to choosing in-demand or winning products to sell. Your life-long love of Star Wars figurines doesn’t mean it’s a great niche for building your new ecommerce store. If a thriving startup is your goal, you should follow a methodical approach and pick a niche with attributes conducive to online success.