A drop shipping business is one where the retailer doesn’t keep any of the products in stock.
Orders are, instead, transferred directly from the manufacturer or wholesaler to the customer.
One of the key factors that determine the success of a drop shipping business is the niche you choose.
Here’s everything you need to know about the best Amazon e-commerce drop shipping niches.
What Is a Drop Shipping Niche?
A drop shipping niche is, essentially, a product category focused on a specific type of interest or audience.
For instance, if your store niche is dog products, you’re targeting pet owners and dog lovers.
There are two categories of drop shipping niches:
- A steady or evergreen niche is one that has demand across the whole year. For instance, there’d always be a demand for dog food because people own dogs for the entire year.
- Trendy or seasonal niches are those that are more in demand during particular times of the year. An example would be Christmas ornaments that people typically only buy during the holiday season.
Choosing the right niche category depends on several factors. The crucial thing to remember is to choose a niche that is not only personally interesting for you, but also profitable.
If you’re unsure about which niche to get into, check out Google trends and Amazon ecom review sites that offer insights into the latest and most profitable trends.
Best Drop Shipping Niches
Here are some of the best dropshipping niches for this year.
1. Beauty
Beauty niches are composed of products that you would generally find in your bathroom.
A lot of products in the beauty niche are very cheap, allowing stores to benefit from large order volumes, although the revenue may not be as massive as you would expect.
Some examples of products that are in demand right now in the beauty niche are the following: LED mirrors, castor oil, tea tree oil, and makeup.
2. Women’s accessories
Women’s jewelry and accessories are almost always at the top of the order list of consumers.
This means that consumers like buying this product category and that there will always be a demand for it.
However, products under this niche usually don’t cost a lot of money, so revenue for individual merchants may not be as high compared to other niches.
3. Electronics
This niche can be further segmented into other categories, such as medical technology, industrial, lighting, and security.
The demand for each sub-category can vary depending on the region and individual product pricing.
Some examples of electronic products that are in-demand right now are home security cameras, sports cameras, headphones, Bluetooth car transmitters, mobile phones and gamepad controllers.
4. Home Gym Equipment
Health and fitness are trendy buzzwords these days. Because of this, it’s easy to build a brand around drop shipping home gym equipment such as weights, bars, kettlebells, and stationary bikes.
In addition to drop shipping, home gym equipment merchants also find additional revenue from promoting instructional workout videos, providing in-home personal training, and meal prep advice.
5. Luggage
The travel niche is one that’s considered as steady or evergreen because people are constantly finding ways to travel.
A profitable trend these days is to sell luggage that fits individual lifestyle choices.
For instance, you can sell anti-theft bags to the tech-savvy traveler. For consumers who are all about sustainability and conscious consumption, minimalist luggage is a popular choice.
Drop Shipping Niches to Avoid
There are some niches that beginners in the Amazon e-commerce drop shipping industry should avoid for a number of reasons.
These may include over-saturation, regulatory barriers, and other factors. Here are some examples of niches that you should avoid:
- Watches: This niche is oversaturated. Beginners who fail to do extensive research tend to pick this niche and find that they can’t compete with bigger, more established brands.
- Clothing: People return clothes all the time because of sizing issues. If you want to avoid the complicated returns process, this is definitely not the niche for you.
- Health: Do your research first before getting into this niche. Many states have laws in place about what health products you’re legally allowed to sell.
Conclusion on Amazon Ecommerce Drop Shipping Niches
As much as possible, choose a niche that has low competition and high search volume.
Alternatively, you can also go for trendy niches and offer products that sell like hotcakes for a specific period.
No matter what niche you select, remember that it will determine whether or not you will succeed in your dropshipping venture.
