The difference between a successful dropshipping venture and a complete failure may come down to the niche you choose. Dropshipping niches are profitable when they have low competition from other e-commerce businesses but a high number of searches from consumers.
Although trends are always changing, certain niches are particularly likely to do well in 2020.
Tips to Find the Best Dropshipping Niches in 2020
First of all, what do we mean by niche? A niche is a subcategory of products, popular with just a segment of consumers. There is already a huge number of niches, and more come into existence all the time as manufacturers develop new products that lead to spinoff products.
All this choice means it’s important to know how to go about narrowing down your options to profitable dropshipping niches.
Consider Your Own Interests
If the goal of your venture is purely to make money, you’re unlikely to succeed. You need to have a passion for your business. The best way to find a passion for dropshipping is to choose a niche that matches your interests. Your enthusiasm will be helpful in selecting products, since you’ll know what to look for in terms of quality and what’s appealing to users.
Take Advantage of Your Expertise
You should also think about where your strengths lie. What kinds of products do you know best? This could be what you utilize at work, for your studies, or in your personal life. Use your knowledge to market and sell these products to customers.
Think About Consumers’ Struggles
You should also think about where your strengths lie. What bugs you? What would make your life easier? The likelihood is other consumers feel the same way. Search for niches that resolve these problems.
Look at Current Trends
Anticipate the next trend by considering what consumers currently love. What could be the logical next step? What are some related products that are yet to take off? Also use research to search for the latest advances in consumer technology.
Top Dropshipping Niches in 2020
Although the best dropshipping niches are always changing, they tend to be based around the same criteria: they are made up of affordable products that people can impulse buy.
An attractive ad or marketing campaign grabs the attention of a user. Then, if the price is reasonable, the consumer will decide to make a purchase. You can apply this formula to sell a wide range of products, but it’s always the most effective for products that are trending at the moment.
With this in mind, these are some great dropshipping niches to explore in 2020.
1. Magnetic Jewelry
The entire category of jewelry has some great opportunities, but magnetic jewelry in particular is a top dropshipping niche. In fact, it has a five-star popularity rating from retail service AliExpress. Unlike most other types of jewelry, magnetic jewelry is more popular with men than with women.
2. Women’s Lingerie
In both 2017 and 2018, women’s clothing was the highest-performing category on dropshipping platform Oberlo. The top niche within this category was intimates. Although lingerie is most associated with Valentine’s Day, it’s equally suitable as a gift for birthdays, anniversaries, and other special occasions. As a dropshipping niche, it’s a good starting point for expanding into something related, like perfume.
3. Purses, Bags, and Wallets
A second profitable dropshipping niche in the women’s fashion category is purses, bags, and wallets. These are in demand year round and are particularly suited for promoting on Instagram. Although the products are all for women, almost one-third of the buyers are men.
4. Wi-Fi 6 Devices
Wi-Fi 6 increases download speeds by up to three times as much as Wi-Fi 5 and reduces the need for power. It does this by improving communication between network access points and devices. Although Wi-Fi 6 technology was released in September 2019, there are plenty of people who are not taking advantage of faster internet speeds. Many may even be unaware of this tech.
5. Wearable Tech
There’s been hype around wearable tech, especially for fitness purposes, for several years. Only now, though, is technology meeting expectations. Health trackers have become more accurate and comfortable, but, more importantly, they’re now affordable. Thanks, in part, for wearable tech becoming accessible to consumers in emerging markets, this niche is forecast to become worth $24.640 billion by 2022.
6. Home Decor
People are spending far more time at home this year — and it could be a while before they’re able to venture back out into the world again. Home decor makes any space more welcoming and inviting. It’s especially useful for brightening up a home office. You have a wide range of options for dropshipping, ranging from curtains and cushion covers to wall stickers and clocks.
7. Kitchen Equipment
Spending more time at home has also changed consumer behavior, such as in the kitchen. Some people have discovered a love of cooking and want to experiment with new recipes. For others, preparing home-cooked meals is more of a necessity — they’re already busy enough with work and childcare. In both cases, these consumers are looking for equipment that can help them out. Items like rice cookers, vegetable slicers, and dehydrators are perfect for targeting these consumers.
8. Gaming Accessories
One industry that’s constantly growing is gaming. To improve their gaming experience, people are willing to purchase a range of accessories, including headsets, glasses, and mobile controllers. To find success in this niche, you’ll need to partner with suppliers who are producing high-quality products and are bringing something new to gaming.
9. Wireless Tech
Another type of tech well-suited to dropshipping is the wireless kind. Wireless audio is a particularly good option, as it’s predicted to reach $31.80 billion by 2023. Options for dropshipping include speakers, headphones, and earphones for audio as well as chargers and bluetooth devices.
10. Sleep Aids
Everyone strives to get a good night’s sleep, but around one-third of people struggle. Consumers are happy to part with a considerable amount of cash if it means they’ll gain their full eight hours. Whereas the biggest names in the industry are selling mattresses and pricey weighted blankets, there are plenty of more affordable sleep aids for your dropshipping niche — like specialized pillows and anti-snoring devices.
11. Solar Power Banks
There’s still time to make solar power banks your dropshipping niche — demand tends to peak over the summer. These cell phone chargers allow consumers to maintain their battery level when they lack access to an electrical outlet. They also offer protection against power outages. Bear in mind this tech is more popular in some Asian countries (including the Philippines, Indonesia, and Singapore) than North America and Europe.
12. Social Media Creator Accessories
Internet users of all ages want to be a TikTok star or Instagram sensation. However, it’s impossible to reach such heights without professional equipment. Gadgets like selfie lights, a tripod, and a microphone can make a huge difference. This dropshipping niche is perfect for targeting anyone who wants to be the next big thing on social media.
13. Craft Supplies
Other people prefer to stay out of the limelight, but they still enjoy getting creative. Arts and craft supplies are popular all year round and are excellent for promoting on Facebook. The dropshipping niche with the best potential of all is jewelry making.
14. Health Care
Few things are more driven by trends than health. Whereas you’ll want to steer clear of consumable products with medical claims, devices that improve posture, help with circulation, or remove ear wax safely are all good options. Before writing product descriptions, it’s important to know what exactly the product claims to do. Then you can highlight just a few of the main benefits — promising too much risks disappointing customers.
One of the best ways to take advantage of the holiday shopping season is to dropship watches. A niche with even more potential than watches themselves is watch straps and bands, such as replacement straps. In fact, this trend is currently on the upswing. Another option is wooden watches, which gains traction slightly earlier in the year (around November) and lasts through December.
16. Anything with Llamas
Remember last year when unicorns (and, to a lesser extent, dinosaurs) were all the rage? It’s llamas this year, although you can do quite well with alpacas, too. If you want to opt for this dropshipping niche, you have a few options: you could sell llama stuffed toys, llama gifts, or another specific type of product. Alternatively, you could create a store with a variety of items, all featuring llamas.
Any of the above look to be great choices for dropshipping niches in 2020. Considering current trends is a good starting point, but to figure out what exactly you should sell, it’s also necessary to do your own dropshipping niche research. Combine the tips for picking dropshipping niches with trending product types to arrive at the right choice for your business. What you pick at the start of your venture will influence your success and shape your business going forward.