It’s 2023 and dropshipping doesn’t seem to be slowing down one bit, what with new profitable niches (and products) popping up left and right and with the global Ecommerce sales surpassing over $5 TRILLION– things are really just getting started!
Though beneficial, these new growth opportunities can make it easily overwhelming to decide where to start, what to do and how to manage things. And if you’re like most people these days (reasonable and considerate of your future, that is) then you’re probably looking to start an ecommerce dropshipping business.
While we’ve discussed what products to dropship, what media platforms to use and even how to start a shopify dropshipping business from scratch with no prior experience… we haven’t really tackled what “niches” you should focus on; which is exactly what we’re going to dive into today with this brand new article.
So whether you’re looking to start a side hustle along your 9-5, or replace it altogether with way more time, happiness, freedom and yes, even wealth — then you’ve landed in just the right place.
And to make things easier, we’ve discovered the best, most profitable dropshipping niches for you to start your brand new online business in, and start selling instantly without a sweat.
Let’s get started!
What Are Dropshipping Niches?
One of the most core decisions of a new dropshipping business is the type of niche(s) that your business will be focusing on. Without enough capital or experience, starting out in an already saturated industry or multiple competitive ones can make it rather difficult for your startup to grow and square up against established companies. While competitors are present in any niche, some can make it especially harder for you to stand out as a freshie (not impossible, just a lot harder).
But wait… What even is a ‘niche’ in the first place?
For the seller, niches are just “a specialized segment of the market for a particular kind of product or service” (Seller point of view).
For the customers, niche can refer to “products, services, or interests that appeal to a small, specialized section of the population” (Customer point of view).
But Why Choose A Niche At All… ?
A wise man once said: “The Riches Are In The Niches” (Apparently quoted by Pat Flynn).
Unfortunately, many new online store owners tend to overlook selecting a niche at all when setting up their online businesses.
They get too excited and set up a “jack of all stores”, only to realize this when it comes time to set up their marketing strategy, or worse, when the orders aren’t rolling in as expected and they need to take a step back to see what went wrong…
Having a dedicated niche or two helps prevent this common dropshipping mistake.
Niches are just a “specialized industry” of goods and services, after all, but not all of them are made equal. The concept of niches is nothing new either, and it has existed long before Ecommerce or the internet ever did. For example, a stock broker is niche-specific to picking, analyzing and investing in stocks. That’s their skill. Their defining service. A Niche is just that, your specialization, a focus on something that defines you, or your brand for that matter.
For some giants like Amazon, they have seemingly infinite niches among their wider niche of “Ecommerce services”. Amazon and its vendors sell everything from web services to entertainment as well as products of all kinds, digital or otherwise.
But remember that Amazon started in 1995, when the internet was still pretty much an infant. That’s why not everybody can be an Amazon, especially going into 2023. Not everyone can focus on everything and succeed in most spaces. Even Amazon started as a simple online bookstore. Now due to massive competition and acceptance of global e-commerce after COVID, it has become more vital than ever to pick an industry, a niche and specialize in specific products and services that cater to a specific group of people. This way you can keep selling to them over and over again, building long-lasting loyalty over time and building a business that actually lasts a lifetime or two.
Don’t get me wrong, you don’t have to be restricted to selling ONE kind of product or service your whole life. Once you dominate one niche, you can always expand your business to neighboring ones by finding another profitable and highly targeted niche or sub-niche, then proceeding to dominate that one too. Restaurants can be a good example of this strategy; they start with one location and perhaps one, two or less than ten dishes, and then keep expanding until they grow to become a recognized brand name in over 100 different countries serving a thousand dishes or more (some crazy stories out there… ).
Just remember to dream big, but start small. Keep in mind that all buildings start at ground 0 (their core foundation) before they reach floor 1,floor 2, floor 154 and on…
And when it comes to your store, everything you do from product choices to promos must be done with your niche audience in mind. Once you start thinking about their wishes and needs, you’ll have a better understanding of the direction you need to take.
So What Makes A Winning Niche?
Like we mentioned earlier, not all niches are made equal. So before you grab your pen to take notes on stats and technical tips to start building your successful dropshipping business, make a rough list of topics, themes, or styles that genuinely interest you.
- What am I interested in? (Products you have some know-how, some sort of interest in. Like video games for example)
- What products sell best? (Find out more about this right here)
- What’s my long term goal? (Sustainable and consistent profits only, perhaps a brand that you can count on, or even expanding into Ecommerce)
Although it’s not mandatory to select a dropshipping niche that you have an emotional or ‘passionate’ connection with, doing so could simplify your business life. You’ll love selling those products and talking to customers about them! Belonging to your niche will give you the strength of knowing your audience from within. What they want, what they like, what they’re looking for. This way, you’ll always be on page with every customer and understand their needs just as well as they do (or even better). At the same time, you’ll also feel more motivated to keep working at your dropshipping business even when things don’t go exactly as planned — more inspiration, more productivity, more success!
As a rule of thumb, winning niches have at least 2 of these 3 major qualities within them:
- Decent Demand (Practicality): It’s fairly simple, but easy to overlook. Nobody wants to buy candles all the time, or waste money on socks every month. So it’s probably not a good idea to create a store centered around these types of products as your main. Instead, take some time out to explore Google trends and see what people are interested in these days. Enter a search term or two like “jewelry” or “tech” and see how the interest fluctuates in them over time. Remember that your products need to have practicality. They should be useful, some kind of solution to people’s daily struggles, their boredom, etc. Like this wireless charger for example:
- Passionate Customers (Fan base): This one’s hard to nail, but it can be built overtime thanks to great customer experience and product satisfaction. Remember that if people have a good experience with your brand once or twice, they’re going to come back to you rather than go to a competitor. Why? Because they know the kind of service and quality they’ll be getting with you. They’re contempt that you won’t let them down. Their initial positive experiences encourage future purchases, it’s that simple. Little victories add up to a big milestone achievement, so never underestimate a happy customer!
- Uniqueness (Local Unavailability): Selling dropshipping products that aren’t available locally is a massive edge on your online business. Certain handy products fit this category well like wireless chargers and magnetic cables for example, or even quirky tools like phone holders and pet trackers. If your product is useful and one that can’t be found locally, then your customer will definitely think about buying it. And if you offer them a sweet discount or deal, they’ll sincerely consider checking it out (and oh boy, if they receive fast shipping, good customer service and great product… then they’re VERY much going to come straight back to you!).
If you can nail at least 2/3 of the above, then you can succeed. Sometimes a product will be unique and have good demand, but can’t be something people become “fans” of exactly. Are you a diehard fan of wireless chargers just because you buy one or two thanks to their convenience…?
Anyways, with that out the way, let’s talk about a few niches (and their products) that sell the best. These industries can have their highs and lows like any other, but they’re generally things people tend to shop for often, so you can expect some level of consistency to say the least.
Before we start the list of our top dropshipping niches, please know that you don’t have to pick all of these niches! (don’t do that, seriously). Ideally, choose one to start from and then expand to 1-2 more complementary niches. You’ll already have enough products to sell in one niche for satisfying a particular audience, and way more in three to target a diversified audience; so start out your online business with a singular focus.
Now let’s start!
1. Women's Clothing
First one on our list is one of the most popular dropshipping niches, and one with very low-cost products too; clothing and accessories. While clothing is a generally good dropshipping niche, it gets even better if you target women in particular.
Women’s clothing, in general, costs more than men’s clothing (surprise surprise). You probably already knew this, but you may not have known that you can have higher profits and sales on them too!
You can choose to sell anything from t-shirts, crop tops, dresses, jackets, hats, bands, caps and even swimwear. This niche is flexible and expandable to women’s fashion, beauty, accessories, jewelry and even care products. Not to mention, the women’s apparel industry is expected to grow annually by 7.2% from 2021 to 2025, according to Statista. What’s more, according to IBISWorld, the market size of the online women’s clothing sales industry in 2022 is over $56.6 billion.
Though from a starting point, the key is to narrow down your product offerings to a particular theme that will help you to set yourself apart and define your brand. If you choose a good brand name, you can even expand to men’s clothing later on.
But let’s be honest, while women shop a lot and have a dozen different dresses… men don’t mind wearing the two same shirts every other week (making them last for a decade or two). If you really want to sell to men, try formal men’s clothing instead.
2. Pet Products
According to a recent survey, 7 out of 10 households in the US own a pet. I mean, you’re probably petting your dog, tickling your cat or scritching your “birb” while reading this, aren’t you?
People take their pets seriously and spend a lot on them. In the previous year alone, a whopping $123.6B was spent on pet products and services. If that’s not enough of to convince you that this is one of the best dropshipping niches out these, just take it from Google Trends:
Here are some popular product ideas in this niche:
- Pet Beds
- Dog clothes
- Dog travel bags
- Pet grooming (scissors, brushes)
- Pet fashion (ties, sweater)
- Cat litter mats
- Cat scratch toys
- Treat dispensers
Never underestimate the importance of product quality in any niche.
3. Smart Home Improvement
This is a relatively new high-ticket niche that popped up within the last few years. People have started to realize that home health goes a long way, and it’s complemented by home safety and convenience. According to Statista, the revenue in the Smart Home market is projected to reach US$115.70bn in 2022! Not to mention, sometimes you can hit a goldmine product that has a $100 profit margin for its seller, like the memory foam pillow pictured above!
In these 3 popular home improvement categories (Health, Security and Convenience), you can sell a vast multitude of products, such as…
- Wifi Cameras
- Air Purifiers
- Air Humidifiers
- Air Fryer
- Robot Vacuum
- Electric Kettle
- Electric Rice Cooker
- Floor Fans
- Aroma Fragrance Diffuser
- Bluetooth Speakers
- Night Lamps
- Flameless Candles
- Neck Pillows
Remember that this niche can be combined with kitchenware as well as gadgets to give your customers more choices regarding complementary products. Offering deals, bundles and discounts to your customers in this niche can be a great idea as well!
4. Beauty & Cosmetics
Who says you have to get plastic surgery just to look good? People always care about how they look, but not everyone is a Kardashian to afford (or want) big surgeries.
Despite that, People are still spending way more than ever on health and beauty products. Experts predict that this niche will reach $758.4 BILLION by 2025. Additionally, the combined health and beauty market revenue has surpassed $564B, and the personal beauty care market remains popular for dropshipping products.
We recommend going for eco-friendly, chemical-less products and brands, as consumers prefer them. Additionally, try focusing on younger customers since the average amount spent on beauty products by teens is over $45B per year (hey, teens care more about acne than grown-ups, don’t they?)
Some profitable dropshipping products in the beauty industry include:
- Hair care
- Oral hygiene
- Personal hygiene
While the beauty and cosmetics niche is profitable, it can quickly become risky if your products are bad or don’t have explicit allergy warnings. Remember that these are products people apply directly on their faces, their skin, so it requires special care and vigilance in terms of quality assurance. Opt for green, eco-friendly and chemical-free products.
The gaming industry has evolved tremendously over the past few years, from 8-bit arcades to today’s 4K UHD livestreams; Video games and online gaming have grown exponentially in popularity and become a top niche for dropshipping products. Needless to say, gamers are a great target audience for one crucial reason: their passion (Hey we talked about this before, remember? :D).
When you pick a niche that has passionate customers, you essentially have a gold mine on your hands. Passion drives interest and action, and ultimately, generates sales.
Just think for a second what this global community of 3.07B+ gamers can do.
With that huge of a following, it’s no wonder that revenue for the video game segment is expected to reach $197B this year. Think there’s not much room for expansion? think again! The market volume is projected to reach $239.7B by 2026, with the largest sub-niche being Mobile games, rocking a current market size of $124.9B.
It’s wild out there, and with major influencers on social media like Pewdiepie, Markiplier and many more; the gaming industry won’t perish anytime soon.
So check out some of these profitable dropshipping products in the gaming niche:
- Video game merch (mugs, shirts)
- PC gear
- RGB lights
- PC accessories and tools
- Gamer chairs
- Gamer headsets
- Gaming mouse pads
- Gaming screens
- Gaming controllers
Try catching people’s emails, so you can update them on discounted deals, coupons, etc. And sell them even more great stuff. One clever way to build an email list is by offering a certain %off. Give it a try!
6. Gadgets, Tools & Accessories
How would we get by if we didn’t have our handy little tools with us all the time? Everyone uses them 24/7. The phone you’re holding in your hand classifies as a tool too (you can use it to do a whole bunch of things). Same goes for your earpods, speakers, laptops and other devices…
This trending and profitable dropshipping niche includes any kind of tool or accessories you can think of, whether traditional or electronic. Digital gadgets, of course, beat the more old fashioned nail and hammer for the most part — but often times you’ll find a product or two that’s beneficial despite not having any wires or screens, like a simple conventional stand, or laptop bag, couch console, or perhaps even an all-in-one screwdriver.
This niche has over 100,000 search results on Amazon! Infact, the revenue in the consumer electronics market alone is projected to reach $716 billion in 2022. Under this niche, you can sell anything from handy day-to-day gadgets and tools. For example, you can sell phone accessories, wireless chargers, toolkits or phone accessories in this niche (gadgets, tech and accessories can be bundled together).
Some of the best top-selling products to dropship in this niche on AliExpress include electric screwdriver sets, plastic welders, electrician scissors, desk organizers, notepads, laptop stands, showpieces, and more that you can explore.
In addition to this, home, office or car accessories can be a useful sub-niche market in this wider category as well. Most Americans own at least one car per person. This shows that car accessories never run out of fashion.
For cars, you can sell accessories like decal stickers, custom bumper stickers, cell phone mounts, or even auxiliary cables.
While this niche is a rather “jack of all”, you can choose to specialize in it further, like tools only, or car accessories only.
7. Kitchenware & Cooking Supplies
Hungry, anyone? Another great niche on this list is Kitchenware and cooking supplies!
There’s just something about home-cooked food and family love that restaurants can’t quite capture. Everyone has a kitchen, and every now and then everyone needs a few handy little things to make their kitchen life easier. More and more people are also getting into cooking, which has expanded the possibilities of the kitchenware market.
During 2020, roughly 50% of respondents in the US said they were interested in learning more about cooking. Moreover, 54% said they were cooking more and 36% said they now cook at home on a daily basis (well, restaurants were closed at that time, so…). But it doesn’t change the fact that people have adopted home cooked food more than before. So it’s clear that kitchen and cooking products are a solid dropshipping niche to consider.
Here are some fine items in this niche to add to your dropshipping store:
- Pressure cookers
- Folding Knives
- Air fryer (ooh, these are HOT to sell right now!)
- Wall art
- Baking kits in funny shapes and sizes
- Kitchen organizers
- Blankets and pillows
8. Baby Products
Diapers, clothes, car seats, strollers… You don’t need to be a parent to know that babies bring a whole lot of expenses (even before they’re born).
If you look on Amazon, baby products are among the best sellers, more than any other product category (including books). Keep in mind that customers are always careful about what they’re purchasing online. When it comes to products for their little ones, they get even more careful about quality and satisfaction.
Here are some top selling product to dropship for the baby niche:
- Custom bodysuits
- Personalized baby blankets
- Baby bottles
Think of ways to motivate customers to leave reviews. Maybe offer them an extra 10% off after they leave a review, or give them a deal on their next purchase in exchange for one.
9. Sports & Fitness Goods
There’s a growing demand for sports-related goods, which makes it difficult to find just the right item to sell without spending too much time browsing through Amazon listings, especially items with high competition like soccer balls and basketballs.
By launching an e-commerce store targeted at this demographic, you’ll tap into a reliable business model with strong potential for success and ROI. Like gaming, this niche is sustainable and scalable in the long run. Popular sports to think about are golf, soccer (football), tennis, basketball, MMA, weight training and fitness.
Some profitable dropshipping products to consider in this niche are golf balls, tracksuits, compression shirts, gym bags, hoodies, golf bags, gym bottles, etc.
A more sub-niche in this category is Leggings. Leggings are a must in any sportswear collection. They’re comfortable, convenient and can be worn anywhere, making it a great micro niche worth selling in
10. Jewelry & Fashion
The final niche we have on our list is yet another one that caters mostly towards women. The jewelry and fashion industry has lots of potential, what with dozens of different materials, styles, and types to choose from. You can sell rings, pendants, custom lockets, bracelets, whatever you like!
Of course, while women will be your primary target audience, there’s nothing stopping you from selling masculine jewelry to the men out there. Chains, rings and pendants are what men usually prefer.
The products in this niche tend to be quite convenient, as they’re small, customizable, affordable and come in lightweight packaging. Despite being small, jewelry items are not necessarily fragile, which is another selling point! (Did I mention they make great gifts as well?).
Jewelry is mostly a sentimental buy, either for oneself or a loved one, showing a spike in purchases around holidays and special occasions such as Christmas and Valentine’s day. But this doesn’t mean it’s a seasonal niche, as millions of birthdays and anniversaries are always around the corner! So create a marketing strategy around these special occasions, complement them with promotions and special offers and you’ll definitely hit the jackpot. Make sure you know your audience and give some time to making your products look as appealing as possible.
A few popular products to dropship in this niche are…
- Custom engraved necklaces
- Custom jewelry box holders and organizers
- Hoop earrings
- Earring sets
And there you have it! These were our top 10 picks for the most profitable dropshipping niches to choose from in 2023, to help you get on track and gear up towards higher success and scalability with your online business. While there are dozens of niches and microniches out there, we recommend starting your first store in one of the top 10 listed above. Remember that you can always expand to more industries and even create different dropshipping brands. The sky’s the limit!
Before you go, here’s one of the biggest takeaways to keep in mind: The more you give, the more you get. If you make it about the customers, the customers will make it about you in return. Caring about customers will fuel your business like wild. Always remember that creativity and flexibility are things that you’ll need to exercise yourself. Those are soft skills that you develop only by doing, so don’t stress out if a thing or two doesn’t go as well as planned. Learn from each failure, pivot and optimize accordingly.
And now that you know how to choose the best niche for your new dropshipping store in 2023, here’s a special little surprise to help you get a jump-start on your journey ahead; by giving you all the time in the world to enjoy the with friends, family and everything you love to do.
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Summary: Top 10 Best Profitable Dropshipping Niches To Select In 2023
Niche #1: Women’s Clothing
Niche #2: Pet Products
Niche #3: Smart Home Improvement
Niche #4: Beauty & Cosmetics
Niche #5: Gaming
Niche #6: Gadgets, Tools & Accessories
Niche #7: Kitchenware & Cooking Supplies
Niche #8: Baby Products
Niche #9: Sports & Fitness Goods
Niche #10: Jewelry