Updated: 2022-08-23 13:54:42
In general, how much money you can make through dropshipping largely depends on the dropshipping niche and product you choose. However, Choosing the wrong niche is one of the common problems in dropshipping. Simply following and copying the successful niches of others is a mistake that dropshipping beginners can make.
Choosing the right dropshipping niche is challenging for dropshipping beginners. You should not only combine market trends, but also measure whether it is right for you, such as whether it matches your interests, experience, and expertise. Sometimes a niche that is lucrative for others may not be right for you.
So you should first choose dropshipping niches that you are familiar with, or that you have expertise or experience with. Because what you are good at or interested in will become the foundation of your business and marketing.
Next, the most important thing is to judge whether the niches and dropshipping products you have chosen are suitable for dropshipping and whether they are profitable or not based on market trends.
We can't tell what niche is the best for you, but no matter what niche you choose, you should avoid selling the following four kinds of products:
The most popular and well-known products on the market are usually with low margins because the markets for such products are usually saturated and it will no longer be competitive to sell them.
Since so many merchants are selling these products, the competition is so intense that people can buy these products in almost any store they are familiar with. There is no reason for consumers to give up buying in cheap grocery stores to buy in your new store unless you have a very attractive price or brand feature.
To enter these product markets, you will have to sell at extremely low-profit margins. After removing the costs of dropshipping including packaging, shipping, advertising, marketing, tax, and even brand customization, you are definitely unprofitable.
It's hard to be the first person to eat the cake, but you can be the second, the third. When the popularity of a product emerges, you can enter this market as early as possible to seize the opportunity. Never be the last one to eat cake.
In addition to customs contraband that you can not sell, you should also avoid products with strict selling restrictions in certain countries or during special periods and products that are prohibited in advertising.
For example, products related to COVID-19 have high demand and high-profit margins during the pandemic, however, some of them are contraband, such as COVID-19 vaccines.
For other anti-COVID-19 products that are allowed to be sold, such as masks, COVID-19 test kits, disinfectant wipes, etc., you must obtain relevant sales licenses to deal with the customs declaration.
There are also other high requirements and restrictions when advertising these products. You can refer to the Facebook advertising policies related to COVID-19. Your store and ad account will get banned if you are not careful enough.
So, when choosing a niche, dropshipping beginners should avoid restricted products and high-risk products that are usually related to sensitive topics. If you are not sure whether the product you choose is prohibited from selling, you can learn about the advertising policy and the relevant policies of the destination country in advance.
Products that have large volumes, Fragile materials, or odd shapes, often incur additional packaging and shipping costs, making them virtually unprofitable for you. If you understand how shipping costs are calculated, then you will understand that small-size, low-weight, non-fragile products are the best dropshipping options.
You are recommended to avoid selling products that are protected by copyright or contain registered trademarks. For example, for products with elements of movie characters, you are not allowed to sell without authorization from the copyright owner. And you also cannot sell any fake and imitation products. Besides, if you copy and use product images and advertising videos from other brand websites, you may receive infringement warnings.
Success doesn't happen overnight, but choosing the right niche can get you more with less. If you can't simply tell what's your best niche, then start with a general store, selling popular products and seasonal trending products. You'll find the niche that works best for you via testing. The back-to-school season is just around the corner and we don't think you will miss this opportunity to test new products and increase sales.