How to Pick a Good Niche 1-2

Features of Good & Bad Niches for Dropshipping/How to Pick a Good Niche 1-2

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Hi guys, how are you doing? Today we are going to share features of good & bad niches for dropshipping. 

Among our frequent clients, there are some super successful dropshippers who make tens of thousands of bucks of sales per day. Tens of thousands bucks! OMG, you guys must be shocked as I was when to hear this. How they made such a success in dropshipping? Do they just throw together an online store and start making money through luck? Definitely NO! The truth is, they spent A LOT of time prior to launching. In fact, it's all about preparation.

Before launch stores, they did a ton of market research in order to have the best chance of success once they were ready to launch. There was one reason that they made success in dropshipping. It was because they found a profitable niche to start with.

Selecting a niche can make or break your dropshipping business, so make it one part of the dropshipping process that you should spend time on, it's so important that you should not rush the preparation. It's not hard but there are a few methods that you need to know in order to successfully select a profitable dropshipping niche. 

To start with, we should know what good niches are and what bad niches are. Let's see some features of a good niche for dropshipping:

1. The niche that have a variety of products.

For example: if you are going to sell tableware, there are plates, bowls, wine glasses, cutlery for selection. And plates have types of china plates, metal plates, bamboo plates, plastic plates and so on. Each type has thousands of variations. You can easily find tons of products to fill your store, and regular new arrivals updates can help to attract new customers and retain old customers. And if you are planning to set up your brand, to attract repeat customers by varies options and regular updates are very important. And there comes another idea. If there can be combination sale in a niche, that's great. Customers can buy a low-value product with a high-value product to balance the shipping cost. But it doesn't mean that niches with fewer product options are bad if you can find a product that hits the pain point of market, and focus on one or several products, that also works. But if don't, more options are better than less, right?

2. Products that customers can wait due to its uniqueness or much lower price

It's not wise to sell a product that you can easily buy at a community store, because few people are willing to wait for days, sometimes a month to get the product. You'd better find something special or unique style for common items that hardly see in offline stores. Or, if a product sells at a much lower price online than offline stores, people are also willing to wait for saving money. Electric and hand tools are typical niches of a much lower price online than offline stores.

3. The target consumers are wide

It is easy to figure out if you are selling gardening tools, the target consumers are those who have a house with a garden, or professional gardeners. But if you choose to sell kitchen items, your target consumers are every family, so the demand is much larger. Not so many families have a garden as they have a kitchen; And not so many professional gardeners as those who will cook, right? So that's why women fashion ranks top 1 on many e-commercial platforms because women are the group with the greatest purchasing power.

4. Products that have low shipping cost and risk 

Too much shipping cost will limit your profit margin. Do remember to avoid bulky and heavy items. 

And what features make a niche bad for dropshipping:

1. Products that are too personalized

Slim fit apparel is a typical example, such as slim fit shirts and dresses, you will face returns or exchanges if the apparel does not fit, and this situation continues to happen.

2. Products that have brand loyalty

The smartphone is a no doubt daily necessity for every adults and teen, the demand is huge, but it's not a good niche for dropshipping, because the market has been dominated by several national brands. Consumers are addicted to certain brands, will not pay for an unfamiliar one. Professional cameras are the same. Instead, you can choose to sell lighting, this niche has hundreds of style options, but no brand loyalty.

3. Products that have potential hazardous to health or personal safety

Personal care is a hot niche for dropshipping. It has many sub-niches, such as skincare, beauty tools, and hair care and so on. Most of them are small, easy delivery and highly profitable. But I suggest you stay away from-the facial cream. If it causes skin allergy to someone, you are facing nerve-wracking customer service issues. Another niche you should not touch is-protective equipment, like the helmet. This niche seems not bad, but what if it does not work in an accident? You guys will get into big trouble. If you are interested in bicycle accessories, it's safer to sell bicycle covers or bells. Intake supplement is another niche that you'd better cautious with. In fact, I suggest you think twice before you set about with every intake products because you can't make sure consumers will not suffer from food poisoning or diarrhea. That's why you can't find intake products in the CJ platform.
Now as we have gone over 4 features of good niches and 3 features of bad niches, next I would like to share 5 good niches in 2020 with you guys according to data from CJ App.

The first niche is an automatic clamping car wireless charger. Smartphone holders are on the rise as well as wireless phone chargers, and this kind of product is newly emerging products combined with these two functions, there is huge potential in 2020.

The second comes the electric hair removers, this kind of products are needed by every female who wants smooth skin. It's safer and more convenient than a razor, and the sales will increase as it gets warmer.

The third one is body shaping apparel like shaping pants and slimming belts. People are chasing curve shape, so this niche is super hot; there is always huge demand for these products throughout the year.

Lighting is the forth niche I would like to recommend. There is always lighting in the lists. We picked products according to real data from CJ and other leading e-commercial platform. Lighting is always popular for dropshipping, and there is thousands of variations, always be new designs to push.

The last niche I would like to recommend is POD products. With modern technology, retailers are no longer chained to the model of storing inventory. One such advancement is Print on Demand (POD), CJ has a series of POD products which you can find on the top navigation bar of CJ app. The hottest sub-niche is bag & shoes. Why don’t go and see if there is something that you are interested in?

Okay, guys, that's all for today. Leave a comment to let us know your opinions so we can make it better.

Thanks so much for watching...