The global drop shipping market hit the $128 billion mark in 2020 and is bound to have a CAGR( compound annual growth rate) of around 32% between 2020 to 2026. It’s pretty clear that drop shipping isn’t slowing down any time soon. This is majorly due to the convenience associated with the business model- operating a store without inventory. With such growth trends in mind, you must know the most profitable dropshipping niches to maximize your fortunes.
There are a plethora of profitable niches for drop shipping for those with a keen eye. Luckily, you don’t have to break a sweat since we’ve got your back on this one.
Why Niche it Down?
A niche simply means narrowing down your product offering to a single product, its sub-category, or concentrating on a specific area based on customers’ interests. One can either deal with one-product drop shipping or a band of products that are closely intertwined or belong together.
The reason behind niching it down is to increase conversion. Compared to a general online store where potential online customers only browse through, a single product store narrows down to the right people. You will target fewer customers and increase your chances of conversion.
To be more precise, niching it down comes with a list of benefits;
- Easier marketing
- Higher chances of conversion
- Clearly defined customers/audience
- Reduced competition, and
- A focused reach.
Still interested? 2022 is just a few days away. We bring you a few profitable niche ideas that still hold the massive potential to carry you into next year. Indulge.
7 most profitable dropshipping niches in 2022
Lately, there’s been so much heat centered on climate, sustainability, and eco-friendly matters. The same steam seems to be gathering fast in the e-commerce sphere. Potential clients are warming up to such ideas by proof of their online purchases. They prefer eco-friendly products in the quest to promote green lifestyles
Furthermore, brands are increasingly committing to sustainability and environmental protection. Slide in and blend with this trend into the next year since there’s massive and untapped potential in this niche. It gets even better if you are a climate and eco-friendly enthusiast.
This should probably be at the top of our list. Sales in the beauty industry hit $511 billion in 2021 and are projected to hit $785 billion by 2027 according to Common Thread Collective.
Though there’s stiff competition, beauty remains to be one of the most profitable niche ideas. However, profitability can only be achieved through competitive prices and quality inventory. Beauty remains a niche where people are always willing to splash their cash on products they necessarily don’t need.
So, to cash in on such a niche, head to Amazon to get acquainted with the latest beauty products. It will be worth your while.
Practically, every modern home has that additional family member. Shockingly, the pet niche is still evergreen and highly profitable. Dog jackets, cat beds, and pet toys among many others can be highly profitable if pet owners figure it’s advantageous to their pets. Further, there’s a high likelihood you’d benefit from impulse orders boosting your sales.
Moreover, pet supplies and accessories are simple to sell since they aren’t overly complicated.
You’ll have to agree that the global pandemic has affected us in ways that we never perceived possible. That said, there’s been an increase in kitchen and home appliances in a bid to cut down on boredom. However, though world economies have opened up again, things won’t easily go back to normal, at least for a year. The evolving of different strains further makes it harder to attain normalcy.
What better way to spend your time than polishing your culinary skills? People are warming up to the idea partly due to restricted access to services such as restaurants and saving up on that extra dollar.
Kitchen products are among the profitable niche ideas to embrace as cooking/meal preparation remains to be an essential part of any of us.
Health and Fitness
Whether pre or post-pandemic, fitness has always been essential and continues to be an integral part of any human being. There’s an increased fitness awareness among people everywhere since people care more about their health. Whether it’s releasing stress or simply just wanting to be fit, whatever the reason may be, Google shows an uptake or interest in matters fitness. Why not jump in and rack up some cash? The field is quite huge, ranging from yoga, exercise equipment, sports electronics to sporting apparel. The list is endless.
Halloo! Want to knock the wind out of them with first impressions? Jewelry can do exactly that for your potential customers. However, it’s quite tricky if you can’t distinguish an original from a fake. However, it’s important to note that many players have been leaving the jewelry space. This means that there’s massive potential for growth, only if you understand what your prospective clients want.
This is among the most profitable dropshipping niches out there. The success of the niche might be attributed to cross-selling- selling complementary products that add on to your main product.
Currently, some of the most sought after niches include;
- Smartphone cases and screen protectors
- Drones and their accessories
- Portable speakers
- Phone lenses
- Wireless headphones, and
- Smart devices
People are always on the lookout for gadgets that simplify their lives. With technological strides being experienced, you’ll be spoilt for choice on what to stock. However, exercise caution, not to virtually stock low-quality items. If possible liaise with your supplier and where possible verify the quality and authenticity of the products.
The Tech industry evolves quickly. Old products keep getting swapped with new and superior ones. Therefore, try to keep abreast with the latest technological trends since such a niche tends to get overly saturated.
Wrapping it up…
�As the drop shipping industry continues to grow, we cannot authoritatively say that one niche is more profitable than the other. Clothing and jewelry may stand out but remember, a popular niche creates stiff competition.
As we roll into 2022, narrow down your niche that has less competition and decent search volume and watch the magic happen.