Setting a Criteria to Determine the Right Niche for Dropshipping
The dropshipping platform is a surefire way to boom your online selling business. However, with virtually unlimited possibilities, these options may blow your mind. Every newcomer in the industry have experienced this scenario and all of them have managed to deal with this dilemma somehow. What they did, you ask? Of course, they have trimmed down their picks until they have come up with a cohesive, right niche for dropshipping.
In this post, we’ll be laying down tips on how to find the perfect roster for your online selling business. Do you have to consider passion as a sole determining factor in choosing your products? Or do you need to select the ones which yield more income? Do you need to stick to trends, or create your own? We’ll answer these questions as you read along.
For Passion or For Profit?
This question has always been controversial when choosing the right niche for dropshipping. On one hand, following your heart seems to be the logical and sensible choice. However, there will always be “what ifs” to bug you along the way.
People have unique tastes and preferences and this applies to business decisions as well. But at the end of the day, it boils down to how flexible you are in the products you can cover. Sometimes, working on products you’re interested in works best, but up to what extent? Are your items too specific enough that you can’t branch out eventually? How often do you think people (in general) would want them?
Meanwhile, selecting items based on profitability could do well too, but are you willing to venture out into unfamiliar terrain? Are you ready to go against more specialized and conventional brands?
There are many questions to consider, but then again, flexibility is key. Having the right balance between passion and profit would help you find out the right niche for dropshipping. In fact, you could combine the two instead of contrasting them. The next section will cover what you need to do to achieve this harmony.
Conducting Research on Prevalent Dropshipping Trends
Trends come and go; it’s a fluctuating indicator on which products are in and out for current customers. Dropshipping trends vary from product to product but for the most part, they are simply the same in terms of highlighting what’s relevant at the moment.
Now that we’ve established this, it’s time to seek out those trends. How exactly? There are two things: online retail sites and Google Trends.
Many retail sites can give you a clear representation of what’s hot nowadays. If you check out let’s say, Amazon or eBay’s website, you’ll find out an analytics page which displays different categories and niches.
Assuming you’re already eyeing on potential niches. you can trim down the list by looking on products that sell the most. You can set your average pricing first and base your search from that. For instance, if you’re looking for gadgets, set a selling price that you think would be more feasible to start with, then compare it to those retail sites. If the former is higher than the latter, you may lower your expectation, then vice-versa.
Another option is Google Trends. Compared to retail stores, this one is more precise and practical to use. There are two reasons for this. First, you’ll find a more realistic outcome upon your search. Most of these trends come from the most recent events, news, and updates from any field or niche – food, technology, politics, sports, you name it! Also, it’s Google we’re talking about here, which is where you want to rank high anyway. You can do this if you post relevant stuff, follow SEO standards, and make your content unique.
Products to Watch Out For
Depending on the items you’re selling and your proximity to your supplier, there could be additional or overhead costs which you’ll shoulder for various reasons. If you’ve projected these already and you’re still willing to push through, then you’re fine. But for those who are still struggling on choosing the right niche for dropshipping, you must take a look at these items first. You might want to reconsider your choice or make adjustments before making a full roster.
For one, large products like appliances and fragile items like antiques might create shipping issues. Expect the delivery cost of these items to be excruciatingly high due to the amount of effort and care required.
Food products may also be an issue due to potential damage and spoilage. Then there’s the convenience problem where people could just buy them nearby. As always, you can go creative with food – offer a menu that is very unique and appealing. Additionally, ensure that your supplier is able to keep the food as fresh as possible (e.g. adding ice packets and insulation sheets on the package).
Lastly, you’ll be having a hard time shipping items that are usually under the authorities’ watch. These include knives, guns, and other dangerous weapons. If you’ve chosen a niche that’s quite hazardous yet adventurous, then you must know this already. There are requirements you need to satisfy before legally shipping these products, and they vary from country to country. Sometimes, a country’s customs department just outright prohibits them from entry. If you’re still adamant about picking this niche, then there’s a good chance that you’ll be blocking off some nations from purchasing those items.
Have You Chosen the Right Niche for Dropshipping?
Before setting out and contacting your manufacturer, you must consider a bunch of factors that go along with dropshipping. By now, you might have chosen a niche, but it isn’t as easy as that, really.
Regardless, it’s still enjoyable exploring different opportunities. There will always be limitations and tradeoffs to each niche. However, the bottom line is that as long as you’re happy with what you’re selling, profits will just follow through. You may need to research extensively or experiment a bit, but the Internet is very approachable to provide you with every information that you need.
Have fun with your dropshipping business and as always, we are here to guide you.
