The 5-Step Process You Can Use to Find Extremely Profitable Dropshipping Niches

5 Step Process To Finding Profitable Dropshipping Niches

Firstly, if you haven’t read my guide on dropshipping, go check it out before reading this article because this will go more in-depth rather than just cover the basics, so you should have a good understanding of how dropshipping works beforehand.

The most common mistake I see people make when starting a dropshipping store is picking an over-saturated niche.

In fact, “No Market Need” is the reason 42% start-ups fail. This is why researching the market before jumping into a new niche is critical to the success of your store.


20 Reasons Why Start Ups Fail

Picking a good niche is key to succeeding with dropshipping.

I’m going to go through a couple of important factors that you must consider when selecting your store’s niche. I can’t stress how important this part is: there’s no point in going forward if there’s no market need for your product.

Factor 1: Market Size

Without any demand for your product, you won’t be selling much.

The easiest way to go about learning more about the market for your product is using the Google Keyword Planner. What you want to look for is the amount of monthly searches your primary keyword gets – this gives us an idea of how many people are googling your product monthly.

The number of actual searches for your product will be higher than the number you get because of all the long tail keywords that people also use.

led flashlight

search volume

This keyword for example has a good amount of monthly searches. If you try to go for a keyword with thousands of monthly searches, odds are the competition will be nearly impossible to beat and you won’t make any sales.

Another way you can find out more about the market size is by looking at the subreddit for your niche. The subreddit for flashlights has 14000 readers – not bad! This tells us that there’s a community full of people that would be interested in our product.


Evaluating market size of the product you are thinking of promoting is critical. You want a market big enough that there’s actual customers for you to sell to, but small enough that you actually stand a chance against your competitors.

Factor 2: Trend

Another important factor when picking a niche is if the popularity of it is going up or down. You want to invest in a business that is increasing in popularity and not going down.

The best way to go about this is using Google Trends and type in your main niche keyword and look at the trend.

led flashlights

Using the same niche as before as an example, this would be a red flag. The trend is steadily going down and therefore it isn’t a business that you want to get yourself into.

tea tox

However, this niche would be a better example for what a good trend graph could look like. These trendy weight loss tea products are a blooming business, which is exactly what you’re looking for when looking for a niche. A niche that is constantly flat could also work well if everything else checks out.

Factor 3: Competition

When choosing a niche, people often get scared of competition. Competition isn’t always necessarily a bad thing – if there’s competition, it means that there is money to be made.

A simple google search usually reveals most of your competition, both in the ads and search results. If their ads are up and running, it means that they are making money with the niche which is a good sign. For example, a quick search on google for LED flashlights revealed all these competitors and more.



Once you know your competitors, you can analyze their websites and see what kind of competition you’re up against. Looking at these results, I can tell that there’s many established flashlights stores, and that it would be hard to rank against them. This would be another red flag for the flashlights niche.

Another case would be that you have a lot of competitors, but have websites that look like they haven’t been updated in years with any new products or design. You want to make sure that your site will be able to stand out from competition, or you will need to invest a lot of money to compete with the established websites.

Factor 4: Seasonality

You must also consider the seasonality of your niche. For example, you wouldn’t want to start a dropshipping business for Halloween costumes during Christmas. Niches can be broken down into 3 different categories of seasonality.

Year Round:
This is the best category for your product to be in when looking for a niche. Something that has a constant demand that doesn’t spike or drop throughout the year.

This includes all the products that do good for about half the year, but drop for the other half. For example, outdoor stuff such as pool equipment or sporting goods peak during the spring and summer but drop during the colder seasons. This isn’t ideal, but can still be considered as you can still make good sales during the peaking seasons.

100% Seasonal:
This includes anything that spikes for a couple of weeks but drops for the rest of the year. For example, any Halloween or Christmas decorations would make a lot of money during the peak, but completely drop afterwards, and therefore isn’t a good business to get into for passive income.

Factor 5: Local Availability

You have to remember that people like you and me are the potential customers. That is why as internet marketers, we have to adopt the point of view of these potential customers. If your product is something that is available at the local convenience store or at Wal-Mart, most people would go to those places before your website.

However, if you’re offering something very niche-specific that wouldn’t really be found anywhere locally, you have more potential customers coming to the internet looking for those products.

For examples, electronics and video games are found everywhere locally, but items related to specific hobbies or niches aren’t which is why more people are ready to buy those products online.


Picking the right niche is critical to the success of your store.

The majority of dropshipping start-ups fail because people jump into niches that are over-saturated or simply have no demand at all.

You want to find a very specific niche that has a well-targeted audience, and a lot of demand online.

Have you been having success drop shipping in 2016?

Beginner’s Guide: 3 Essential Steps To Launching a Profitable Dropshipping Business

Beginners Guide To Launching A Dropshipping Business

The eCommerce market is huge, being worth more than $220 billion dollar market in the U.S. alone and is growing by 17% a year.

There’s no denying that the industry is huge, and with all the available online, it’s now easier than ever to start an online store.

In this guide, you will be learning exactly how to start an online drop shipping business from scratch.

If you aren’t familiar with drop shipping, the concept is very simple and easy to work with.

You work with wholesale supplier that has an inventory of products for you to sell and that ships the product under your name when you get a sale.


We will go further in depth about how to find the right supplier, and the all the different platforms on which you can sell your products.

1. Finding a Supplier

The first step when getting started with dropshipping is finding a good supplier to work with. This part can be harder than you might think…

In fact, 84% of online sellers find establishing a relationship with a drop shipper is the biggest roadblock when starting an online store.

There’s many factors that come into play when choosing a supplier, such as their selection of products, how fast they deliver products and how the quality of the products is controlled.

I personally use SaleHoo as my supplier and would recommend it to everyone, especially those who are just starting out with affiliate marketing. Signing up with them is quick and hassle-free, and I find that they have the best profit margins by far and just a great catalog of profitable products to sell.

Here is a list of more trustworthy suppliers :
– Worldwide Brands
– Doba
– Wholesale Central

Sometimes, these mainstream, big suppliers don’t have some of the niche-specific products that people want to sell on their website.

In that case, you must research to find the right supplier for your business.

There’s a significant amount of untrustworthy companies and therefore knowing how to verify the legitimacy of a wholesaler is important.

Make sure you do some research on any wholesaler you are considering working with.

2. Selecting Products to Sell

When selecting which products to sell, there’s a lot of decisions to be made.

The more expensive the product you are selling is, the greater the profit margins can be. On the other side, if you stick to selling cheaper things, the profit margins will be much smaller but generating sales is much more easier.

What I find works best is right in the middle – products that are worth somewhere around $50 leave room for decent profit margins while still being cheap enough for people to actually buy it.

The key to picking the right item to sell is making sure that people are actually buying it online.

A good, foul-proof method to to this is going through completed listings for a certain keyword on eBay by clicking ‘advanced search’ and checking the ‘completed listings’ box. A quick search for a product “Bose Soundlink Mini” pulls up some great insight about how well it’s selling.

bose soundlink sales


In this case, 6 of them sold and 1 of them didn’t sell. That would give us an 86% sell-through rate.

By doing this, you can see if your product is actually selling or not. If the product is selling at least 60% of the time, you can be pretty certain that you will be able to sell it with ease.

You can also utilize market research tools that give you information about the market for a certain product, such as the average selling price and the sell-through rate. There’s many tools like this available but most of them are quite costly.

I personally use the SaleHoo Market Research Lab which is free after signing-up.

statsmarket research

I found the Market Research Lab to be actually very useful when it comes to finding the best products to sell. Not only do they give you a very accurate price check on items, but they also find the hottest things to sell. Tools like this aren’t necessary, but do make product research a much easier task.

3. Choosing a Selling Platform

Once we have a supplier and have chosen the products we want to sell, now we need to decide where to sell these products.

A popular choice among dropshippers is eBay because their authority and constant traffic make it very easy to sell.

There was 162 million active buyers on eBay in 2015, and this figure is only going up.

eBay active buyers

Getting started on eBay is a great way to get comfortable with dropshipping and test what works for you.

Other similar platforms include Amazon, Bonanza and thousands of other emerging marketplaces that you can experiment on without any risk or investment.

The other, more fun way to go about this is to create your own online store and list your products for sale there.

While this option requires more work and a bit of an initial investment, it’s the next big step to making more money with drop shipping by creating niche-specific online stores that generate a steady income from natural visitors coming to your website.

A good way to understand how these e-Commerce websites work is to see for yourself. Here’s some examples of successful drop shipping stores running today :

Northern Parrots

Cookbook Village

House of Rave

Besides all running with the drop shipping business model, what do all these websites have in common?

They are very niche specific. This is key when starting an online store – you need to pick a market that is very unsaturated and has little competition.

Northern Parrots sells everything one needs to take care of a parrot. Now, while you might think that this is an unprofitable business, you’d be surprised at how many people go to the web looking for parrot supplies online.

By picking something specific, you have very little competition and therefore get more buyers on your site.

We covered picking a niche for dropshipping in a separate post because it’s a very crucial step, and should not be overlooked.


The eCommerce market is predicted to increase 17% next year, opening multiple new opportunities for marketers to tap into drop shipping.

It is estimated that 44% of worldwide internet users have bought products online, and this figure is only rising.

Digital buyer penetration

In this post, we’ve covered the crucial steps to launch your dropshipping business, and some tips to make it easier along the way.

With all the tools and content available, it’s far from impossible for a brand new online store to be up and running within 1 day.

Do you prefer selling on your own store or on a platform like eBay? Why?