Whenever you search about dropshipping and starting a dropshipping business, you’ll read about finding the right niche.
Why? Because selecting the niche is one of the most critical aspects of launching a dropshipping business.
Some people opt for popular niches while others prefer unique niches. This is crucial for anyone in the dropshipping business, whether you’re just starting out or looking to pivot your approach.
If you’re also confused between both and wondering, “Should I select popular niches for my dropshipping business or unique niches?” you’ll have all the answers by the end of this article. We’ve shared everything you need to know about both and how you can navigate your way to success in either one.
Popular Niches
Popular niches are often a no-brainer when it comes to dropshipping. These are your crowd favorites: electronics, fashion, home goods. They’re everywhere, and there’s a constant demand.
But what does that mean for you as a seller?
Selling products in popular niches can be ideal for some and not-so-suitable for others. Let’s break down all the elements that help you decide if popular niches are the best for you.
High Competition
Did you think that you’re the only one who thinks, “Popular niches are the best; at least I’m sure there are buyers”?
Absolutely not!
Most individuals stepping into the dropshipping business think the same, leading to high competition. When you’re not the only one selling these items, the market is saturated with competitors. This means you need to bring your A-game to stand out and capture the attention of consumers.
Lower Profit Margins
Dropshipping popular niche products do not only have high competition, but also lower profit margins. Everyone is trying to undercut each other on price, which might lead you into a race to the bottom. Eventually, customers prefer people with better pricing (given that they also offer high-quality products and better service) It’s tough, but not impossible, to maintain healthy margins here.
More Marketing Effort
In this world of online selling, digital marketing is inevitable. Today, you cannot run a successful dropshipping business if you do not put your best marketing skills to use (or hire a credible team). With so much competition and similar products on hundreds of stores, you’ll need to invest in ads, perhaps influencer collaborations, and unique promotions to really make your store pop.
Easy Management
We’re not scaring you with the downsides of popular niches, but giving you a clear picture for your ease. However, on the upside, these niches are relatively easier to manage. There’s a plethora of suppliers, and marketing tools are readily available. This can make the logistics of running your store smoother. You can easily find more suppliers for your products when your usual vendor runs out of stock, making it possible to fulfil your orders on time.
Now that you’ve understood the good and bad about popular niches, here’s a sneak peek into unique dropshipping niches. Though it’s a road less traveled, you might find it more suitable to your needs and preference.
Unique Niches
Unique niches refer to those categories that cater to very specific interests or needs. Thus, they are not as saturated. Some unique dropshipping niches include vintage clothing, high-tech gadgets, specialized kitchen tools for gourmet clothing, etc. While these products do not have that high of a demand, you can always find a specific audience.
Lower Competition
Due to low demand, these niches also have lower competition. You’re likely one of the few selling these products, which means it’s easier to become a big fish in a small pond. You wouldn’t also need to go low on the pricing much because there are not many people selling them and buyers may be willing to pay a higher price.
Higher Profit Margins
Due to lower competition and comparatively higher prices, you can enjoy higher profit margins. Customers in unique niches are usually ready to pay more for items that are hard to find elsewhere. So, if you prefer making more money by selling lesser products, unique niches could be the right choice for you.
Less Marketing Effort
When less people are selling some particular items, you know what’s another benefit? It’s less marketing effort. As your audience is already looking for these unique items, targeted, smaller-scale campaigns can be very effective. Just need to find the most effective marketing channel to reach your target customers and your ship will be sailing smoothly.
Tougher to Manage
We just mentioned how your ship will sail smoothly with less marketing effort because of low competition, but there’s also a demerit of unique dropshipping niches. Most people avoid choosing unique dropshipping niches because of the product supply. These products are more challenging to source and building a loyal customer base will require strategic marketing and on-point service. While there may not be many sellers, bad service also pushes customers to choose another seller.
Final Words
New dropshippers are often confused about select the right niche; the option to choose between popular and unique niches doesn’t make it any easier. It comes down to your business goals, resources, and how well you understand your potential customers. However, when you know the upsides and downsides of each, you can choose the one better suited to your interest and needs.
Popular niches are better for people who prefer selling products that are easy to source and manage, whereas individuals selling unique niche products might struggle with finding multiple suppliers or vendors for their products. At the same time, unique niches have a lower competition and higher profit margins compared to popular niches with higher competition. Though both businesses require digital marketing to reach the target audience, you might not need to put the same amount of effort and money into ads when dealing with unique products as the customers are already looking for sellers.
If you’ve selected the niche that matches your interest and preference, we at Wefulfil, can help you build a successful dropshipping business seamlessly. Get in touch with us for more details.
