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Features of Good & Bad Niches for Dropshipping

Features of Good & Bad Niches for Dropshipping
CJJan. 21, 2020 06:38:512527

Among our clients, there are some super successful dropshippers who make tens of thousands of bulk sales per day. You guys must be shocked as I was when hear this. How they made such a success in dropshipping?


Were they just throwing together an online store and start making money with luck? Definitely NOT! Actually, the truth is they spent A LOT of time prior to launching. In fact, it’s all about the preparations.


Before launching stores, they did a ton of market research in order to have the best chance of success once they were ready to launch. There was one reason that they made success in dropshipping. It was because they found a profitable niche to start with.


Selecting a niche can make or break your dropshipping business, so make it one part of the dropshipping process that you should spend time on. It's not hard but there are a few methods that you need to know in order to successfully select a profitable dropshipping niche.


View the whole video here: 



To start with, we should know what are good niches and what are bad niches. Let's me show you some features of a good niche for dropshipping:


1. Niche with a variety of products.


Take an example, if you are going to sell tableware, there are plates, bowls, wine glasses, cutlery for selection. And plates have types of china plates, metal plates, bamboo plates, plastic plates and so on.


Each type has thousands of variations, you can easily find tons of products to fill your store, and regular new arrivals updates help to attract new customers and retain old customers.


And if you are planning to set up your brand, various options, and regular updates are very important. And there comes another idea, if there can be combination sale in a niche, that would be great for customers to buy a low-value product with a high-value product to balance the shipping cost.


But it doesn't mean that niches with fewer product options are bad. If you can find a product that hit the pain point of the market and focus on one or several products, that can also work well. But if you can't, more options are better than less, right?





2. Products that customers can wait due to its uniqueness or much lower price.


As mentioned on the previous videos, it's not wise to sell a product that you can easily buy at a community store, because few people are willing to wait for days, sometimes a month to get the product. You'd better find something special or unique style for common items that hardly see in offline stores.


Or, if a product sells at a much lower price online than offline stores, people are also willing to wait for saving money. Electric and hand tools are typical niches of a much lower price online than offline stores.



3. The target consumers are wide.


It is easy to figure out if you are selling gardening tools, the target consumers are those who have a house with a garden or professional gardeners. But if you choose to sell kitchen items, your target consumers are every family, so the demand is much larger.


Not so many families have a garden as they have a kitchen, and not so many professional gardeners as those who will cook, right? So that’s why women fashion ranks top 1 on many e-commerce platforms because women are the group with the greatest purchasing power.




4. Products that have low shipping cost and risk.


This point has also be insisted on previous videos, too much shipping cost will limit your profit margin. Do remember avoiding bulky and heavy items.


And what features make a niche bad for dropshipping:


1.  Products that are too personalized.


Slim fit apparel is a typical example, such as slim fit shirts and dresses, you will face returns or exchanges if the apparel does not fit, and this situation continues to happen.


2.  Products that have brand loyalty.


Smartphone is a no doubt daily necessity for every adults and teen, the demand is huge, but it’s not a good niche for dropshipping, because the market has been dominated by several national brands, consumers are addicted to certain brands, will not pay for an unfamiliar one. Professional cameras are the same. Instead, you can choose to sell lighting, this niche has hundreds of style options, but no brand loyalty.



3. Products that have potential hazardous to health or personal safety.


Another niche you should not touch is protective equipment, like helmets. This niche seems not bad, but what if it does not work in an accident?


You guys will get into big trouble. If you are interested in bicycle accessories, it’s safer to sell bicycle covers or bells. Intake supplement is another niche that you’d better cautious with, in fact, I suggest you think twice before you set about with every intake product because you can’t make sure consumers will not suffer from food poisoning or diarrhea. That’s why you can’t find intake products on CJ's platform.


Now as we have gone over 4 features of good niches and 3 features of bad niches, next we would like to share 5 good niches in 2020 with you guys according to data from CJ App.


The first niche is automatic clamping car wireless charger. Smartphone holders are on the rise as well as wireless phone chargers, and this kind of product is newly emerging products combined with these two functions. There is a huge potential in 2020.




The second comes the electric hair removers, this kind of products are needed by every female who want smooth skin. It’s safer and more convenient than razor, and the sales will increase as it gets warmer.



The third one is body shaping apparel like shaping pants and slimming belts. People are chasing curve shape, so this niche is super hot, there is always a huge demand for these products throughout the year.




Lighting is the forth niche I would like to recommend. If you have watched our previous recommend videos, you will find out that there is always lighting in the lists.


We picked products according to real data from CJ and other leading the e-commercial platform, lighting is always popular for dropshipping, and there are thousands of variations, always be new designs to push.



The last niche I would like to recommend is POD products. With modern technology, retailers are no longer chained to the model of storing inventory.


One such advancement is Print on Demand (POD), CJ has a series of POD products which you can find on the top navigation bar of CJ app. The hottest sub-niche is bag & shoes, why not go and see if there is something interest you?