Dropshipping offers entrepreneurs an affordable and efficient way to open a new online business. With a profitable niche, a dropshipping business can make money while operating from practically any location. As a result, the market for dropshipping businesses has exploded. The global market value was $225.99 billion in 2022 and is projected to grow to over $1.2 billion by 2030.
Choosing between all of the possible dropshipping niches can be tricky, especially if you're opening a business for the first time. To help narrow down your options, we've collected a list of the best dropshipping niches in 2023. When paired with a solid marketing strategy, these profitable dropshipping niches can help you build a successful online business destined to grow.
When opening a dropshipping business, it's essential to find the right niche idea.
Choosing the best dropshipping niche involves conducting market research and gauging search interest.
The top dropshipping niches include clothing, sustainable items, baby and kids products, and office supplies.
A print on demand partner makes it easy to customize your dropshipping products.
Dropshipping is a business model that allows entrepreneurs without much upfront capital to set up online stores. Rather than keeping a massive inventory of stock on hand, drop shippers work with third parties like manufacturers or wholesalers. When a customer places an order, the third party ships the product directly to the buyer.
Most dropshipping businesses focus on specific sales categories to remain profitable. This practice, known as selecting your dropshipping niche, allows them to develop the right business strategy and select high-demand products to sell online.
Choosing a niche is one of the first and most critical steps to take when establishing a new dropshipping store. Your niche—the types of products you sell—determines how you design your website, what types of marketing you use, and what kinds of customers you pursue. The earlier you identify your niche, the sooner you can begin to build a strong marketing and engagement plan.
Finding the right niche for your business requires some careful thought and consideration. The most successful dropshipping business owners have a thorough understanding of the industry and the products they sell, so choosing a niche that aligns with your existing skills and interests is ideal. It's equally important to select a niche with proven appeal and demand. Follow these steps to identify the best niches for your dropshipping business.
Even the most impressive products will fail to sell without public interest. Before choosing a product category, do some market research to identify what items are drawing the most attention. Many search engines and social media platforms have free tools to examine the potential profitability of a dropshipping niche. Make use of the valuable insights offered by services like:
Google Keyword Planner: Weed out niches and products with lower volume search queries by researching the number of times people use certain keywords on Google.
Google Trends: See the search volume for keywords related to your niche and track the level of interest in products over time.
Amazon Best Sellers: Products that sell well on Amazon are likely to be among the best niches, so looking through the bestseller lists and identifying popular categories is extremely useful.
Facebook Audience Insights: Get a better understanding of your potential customer base by examining demographics, page likes, and location.
No matter what tools you use, evaluating the individual products is the most important part of comparing different niche ideas. Look for items that have strong profit margins so that you can earn more on each sale. Likewise, offering products that are in high demand or lack competition from other sellers will help you reach more customers.
You'll need to look closely at your business analytics once your business is up and running, but you can learn a lot from your competitors in the meantime. Find other businesses within your niche and analyze their overall approach to sales, including:
The goal isn't to copy from your competitors, but rather to gain insights from their successes and failures. If an item is selling particularly well, determine what sets it apart from the rest. On the other hand, if a product or company has low customer reviews, work on understanding why. This knowledge empowers you to avoid making the same business strategy errors when selecting your niche and establishing your online dropshipping store.
Some best-selling products are popular year-round, while others experience sales surges at certain times of the year. When choosing between different niche ideas, consider whether a product will yield regular sales or if it only has seasonal appeal.
Products that are specific to certain holidays or seasons can equate to big sales numbers, but focusing exclusively on seasonal niche markets might ultimately limit your profits. If you want to build a successful online business that operates all year, you may need to consider additional dropshipping niches to incorporate into your online store.
Once you've found a dropshipping niche that you truly love, it's wise to do a test run before fully committing. Even if you have a solid grasp on ecommerce trends and your research suggests that a product will be a big seller, that won't necessarily translate to actual customers. Begin by selling a few products within your specific niche to determine whether there's adequate demand and profitability. If those items sell well, expand to additional dropshipping products within your niche. When you have an established customer base, you're more likely to find success with new product categories.
While your dropshipping niche depends on your personal interests and what you learn from market research, there are some product categories that are more reliably profitable than others. These are some of the best dropshipping niches to consider when building your online store.
Apparel is one of the most consistently profitable dropshipping niches. Buying clothes online has become increasingly popular, with fashion ecommerce accounting for approximately 23% of all online retail sales in the United States. Possible clothing items to dropship include:
Selecting clothing as your dropshipping niche is only the beginning. Because clothing is such a broad category, you'll need to hone in on a particular area so that your online store has a focus. While you want to offer customers a wide variety of items, they should have a unifying feature, such as material, style, or occasion. In addition, make sure that you:
Write clear and engaging product descriptions, so customers know exactly what they're getting
Choose keywords for search engine optimization to increase sales
Identify your target audience, such as older or younger customers, and select items that would most appeal to them
Product quality and accuracy are also essential. If customers discover that your items are subpar, they're unlikely to return to your store anytime soon. Verify the quality of the items you sell and quickly remove any unsatisfactory products from your storefront.
Wall art has become increasingly popular as a dropshipping niche due to low production costs and high profit margins. In 2021, the global wall art market was valued at $48.50 billion and was projected to grow to $72.61 billion by 2028. Possible wall art products to dropship include:
As you can see, wall art products are versatile and allow dropshippers to cater to an endless range of styles and tastes for commercial and non-commercial purposes:
Commercial wall art: Commercial wall art is typically used in businesses and commercial spaces like offices, hotels, staging homes, and restaurants. Wall art is in high demand for businesses that have realized the positive effect of a well-designed space on their brand identity, customer experience, employee experience, and competitive differentiation.
Non-commercial wall art: Non-commercial wall art typically refers to art purchased for personal or residential use. One of the major driving forces of demand for wall art is the shift to people spending more time within their homes, leading to a desire to create functional and personalized work and living spaces.
Whether you choose to specialize in commercial or non-commercial wall art, it's important to remember that personalization creates perceived value. Customers are willing to pay more money for wall art that resonates with them emotionally. Study your target audience well to understand their tastes and preferences and sell products successfully within the wall art niche.
Many modern customers want to buy sustainable products that don't negatively affect the environment, making them some of the most profitable dropshipping products. The market share for sustainable products has grown steadily over the past several years. In 2021, products that were marketed as sustainable grew 2.7 times faster than those that were not.
Customers looking for sustainable products are often willing to pay more for planet-friendly items like:
Operating a dropshipping business focused on sustainable products requires a unique approach to marketing, customer service, and sales. For example, your product descriptions should emphasize the eco-friendly nature of your items. Use colors and props in your product photos that reinforce those ideas.
Product bundles are also a good approach to increasing online shopping sales. Offer some of your top-selling products as groups in addition to individual items and sell them at a slightly reduced price. If customers love the product, they'll soon be back to order more.
Kids and baby products are one of the most popular dropshipping niches because demand is constant. As children grow, their parents buy new products to keep them comfortable and safe. Dropshipping businesses have a prime opportunity to become a part of the baby product market, which was valued at $215.1 billion in 2021 and is projected to reach $325.57 billion by 2028.
Parents, grandparents, extended family members, and friends all use online stores to buy baby and kids items like:
When deciding whether this is the right dropshipping niche for you, remember that safety is a top priority for parents. Keeping up with safety recalls, advisories, and reviews are essential when running a kid-centered dropshipping store.
It's also important to offer products that are functional and visually appealing. When selecting the items you'll sell, look for bright colors and fun patterns that keep kids engaged and entertained while they're eating, playing, or traveling.
Office supplies make for a successful dropshipping business because they appeal to such a broad pool of customers, including remote workers, private companies, and schools. Many organizations also buy office supplies in bulk, which increases your profit margin. Recurring sales are a common feature of this niche, with customers often buying supplies on a set schedule and making emergency purchases in between. This kind of steady sales stream is perfect for building a strong dropshipping store.
This profitable dropshipping niche includes products like:
Identifying your target customers is critical to build an office supply dropshipping business. Your marketing efforts should include not only major companies but also small and medium-sized businesses, teachers, and freelancers.
Additionally, while customers in this niche are more likely to buy multiple products, be careful not to underprice them. Your prices should be fair and competitive, but you'll fail to build a profitable business if you consistently undercharge for your products.
Print on demand businesses add artwork, logos, and graphics to items that you sell through your online store. They offer customization services for a variety of products, including:
Print on demand is a great fit for a dropshipping venture that wants to offer personalized merchandise without creating extra work or expense. Customers can buy products with your original artwork at the click of a button, and you don't have to find storage space for inventory, which reduces your start-up expenses. Customization also offers other benefits, such as expanding branding and creating customer loyalty for your dropshipping stores.
Print on demand services make it incredibly easy to offer customized products. You simply connect the products in your ecommerce store to a partner like Gelato. When a customer makes a purchase, the print on demand business produces the product and ships it directly to them, with no additional steps necessary on your part.
Clothing, sustainable products, items for babies and kids, and office supplies are some of the most profitable dropshipping niches to grow your business in 2023 but don't be afraid to pursue other niche ideas that are better suited to your passions. Choosing a great niche is a matter of studying emerging markets, conducting product research, and understanding your target customer.
After you've found the best dropshipping niche for your business, it's time to sell products with customization options. Browse our product catalog to see why thousands of creators and ecommerce sellers choose to scale their business with Gelato. By localizing production in 32 countries, we’ve built the largest network for production on demand. With Gelato, you can reach your customers faster while reducing waste, costs, and carbon emissions. Sign up for free today!