When you start an online business, you must focus on a specific niche. It gives you more opportunities to explore the territory and emerge as the master. Dropshipping is no exception.
When you launch your own dropshipping business, learn to choose the right niche and stick to it. Of course, you can expand as you scale up. In this article, we will find out how you can choose the best niche for your dropshipping business in few simple and easy steps.
How To Find A Winning Niche For Dropshipping
In this article, we are going to discuss:
- Analyze established marketplaces
- Using specialized tools
- Exploring Dropshipping Service
- Spying on a competitor
- Keyword Planners and Analytics Tools
- Wrapping Up
In case you are not aware, dropshipping is one of the most lucrative and profitable business strategies at present. In our earlier articles on dropshipping, we talked a lot about the technical aspects of how to start a dropshipping business.
We have discussed the best dropshipping services and platforms. We had also shared an in-depth tutorial on how to build a dropshipping store from scratch.
In this article, we are going to discuss finding the right niche for your dropshipping business.
The niche is a key ingredient to your success.
In simple words, a niche is the category of products that you are going to sell primarily. Of course, you can expand your catalog as you scale up. But when you start your business, start small.
Again, while theoretically there is a customer for almost every niche – some niches sell more and are less competitive. If you can tap into one of these niches, you can be sure of running a profitable dropshipping business.
Let us now dive deep into how you can find the best niche for your dropshipping business.
- What is a dropshipping business and how to start your own?
- Dropshipping with Shopify
- What is the minimum cost to start a dropshipping business?
1. Analyze Established Marketplaces
The first step in finding popular niches and bestselling products is browsing established marketplaces like Amazon. If you plan to sell indie or handmade products, you can even look into the Etsy catalog.
If you browse these marketplaces, you can find the best-selling products, average customer reviews, selling price, and even sell volume of individual products.
Study and analyze the figures carefully. You can mint treasure from these analytics. After you identify a product and the niche to start your dropshipping business, you need to choose the right supplier to sell the items from your store.
2. Use Specialized Tools like Find Niche
Find Niche is a smart tool that can help you find a winning niche for your dropshipping business. It is an intelligent analytics tool that analyzes commodities for dropshipping using Shopify and AliExpress databases.
Currently covering over 40 countries, it updates its database on an hourly basis. With a Find Niche subscription, you can find winning products on AliExpress and learn several key information about the products.
Find Niche searches and captures the eCommerce stores of Shopify and AliExpress by advanced algorithms and provides detailed information of more than 30 million products in popular niches for dropshipping.
You can check the number of orders, competition, the geographies where the products perform well, and even the Facebook advertising information of the product.
With multi-platform eCommerce advertising, you can quickly find ad creatives that match users’ preferences and verify the sellability of a product using analytics data.
In addition, Find Niche has multi-platform eCommerce ads for Instagram, Youtube, and Facebook. The Ad Spy tool also helps you to judge the competitiveness of your own creatives.
You must note that Find Niche has no free tier. In other words, you need to have an active paid subscription to use the service.
The pricing starts from $9 per month in the Basic Plan and can range higher in the more upgraded plans. I encourage you to visit the Find Niche website to check the latest pricing plans. Although it has no perpetual free tier, you can create and start using the platform for a free trial.
The unavailability of a free plan may discourage the starting entrepreneur. But the impressive database covering more than two million AliExpress products across 11,000 niches is something worthy of the premium pricing tiers of Find Niche.
3. Explore Your Dropshipping Service
When you plan to run a dropshipping business, it is necessary to partner with a reliable dropshipping platform. A quality dropshipping service can remove all hassles from your daily tasks and make your life easier.
Spocket is one of these dropshipping platforms which is reliable, pocket-friendly, and has an impressive catalog of quality products to dropship across niches.
You can read our review of Spocket to gain more insight into the platform.
Now, dropshipping platforms like Spocket often have impressive and functional tools to identify a profitable niche for dropshipping.
In this section, I will show you how to identify a profitable niche for dropshipping using Spocket.
After you create an account with Spocket (even a free account is enough for this activity), log in to your dashboard using credentials.
You will land up on a screen like below. The search page lists all trending niches for you to drill down. You can click on the More Categories option to choose other categories as well.
Mind that these are broad niches, which you can explore to find out your sub-niche.
Select any of these broad categories that appeal to you. For example, I am narrowing it down to the Pets Niche. You will now find a list of different products relevant to the Pets category.
Once you are there, click on the Filter option on top. Scroll down the options until you find the option to select Best Sellers or the top-performing products in Spocket. Select the option and refine the results.
Feel free to browse through this list. These are the products that are really in high demand. These products can effectively point you to a best-selling niche for dropshipping.
Market these correctly and be assured of a successful dropshipping business.
4. Spying On A Competitor
It is necessary to have an insight into the bestselling products of your prospective competitor. Needless to mention that you must have some unique selling points to trump over an existing competitor. But, spying is a good place to start.
Some tools and services can help you to spy more effectively. For example, our good old Find Niche platform has interesting features to browse shops from its database.
It can help you to browse stores as well selling products easily. You can do this with the help of only a few clicks. Not only does it provide you basic details of the product including revenue generated over a time period, it also algoritmically calculates the competition.
You can use these data to determine right niche for your dropshipping business easily.
5. Keyword Planners And Analytics Tool
Feel free to use tools like Google Keyword Planner and Facebook Audience Insights to gather actionable intelligence on the audience behavior.
Facebook Audience Insights is a free tool that aggregates information about Facebook users. It can help you to find the potential of any niche and the interests relevant to that niche. You can gather insights into details of audience demographics, likings, location, and activities.
You can easily drill down into these details to find out a top niche for you.
A similar tool worthy of exploring is Google Keyword Planner. With this tool, you can easily measure the demand of anything using the database of a search engine like Google.
The tool can easily tell you the monthly search volume of any niche, product, or idea. You can filter these statistics further based on location and keyword variants.
Somewhat similar to Keyword Planner is another free tool – Google Trends. Using Google Trends you can find interest over an idea, niche, or product line over a time. You can also easily find out the rise or fall in interest level for any search term.
If you are seriously considering a niche, it is necessary to spend some time to understand its demand and trend.
In this article, we have covered five proven techniques to find a winning niche for a dropshipping business. These techniques are mostly free and need only an investment of time.
We also introduced several free and paid services which you can use to improve the odds of your success in a dropshipping business.
You must understand the importance of choosing a right niche for your dropshipping business. Start right. Use the best platforms and services to run your business. Do it right because this is the best time to launch your dropshipping business.