5 Strategies to pick the right niche when starting your dropshipping business

how to pick a niche for dropshipping

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“I sort of got lucky in that I was able to carve a niche for myself.” Juliette Lewis 

One of the first steps when figuring out how to set up a dropshipping business is picking the right niche. 


Carving out a niche saves you advertising costs and helps you find dropshipping products. Then once you have a broad idea, you can niche down further. 

But before delving into the meat, let’s introduce you to the terms. 

What is a dropshipping niche?

According to Merriam Webster, a niche is a specialized market. To give you a better idea, here is a list of some of the best trending dropshipping products:

But this is only the beginning. Finding a niche market for your dropshipping business takes patience and determination. Not only are there limitless possibilities, but you want to pick a dropshipping niche that sells. This task requires research, time, and discovering a viable target market.

Maybe you’re seeking US based dropshipping suppliers, if this is the case, dropshipping eCommerce platforms, like Shop1, will narrow down your search.

Shop1 collaborates only with American based suppliers and eliminates all the complications of searching, finding, signing up with, and importing American supplier catalogs.

Therefore, you can view trending products and suppliers on their site, then pick a niche from there.

Want to find out more? We’re here to help and have broken down strategies on how to pick the right niche when starting your dropshipping business.

How to Pick a Niche for Dropshipping

  1. Research current dropshipping markets and trends
  2. Create a Mind map
  3. Find a dropshipping eCommerce platform with reliable suppliers
  4. Evaluate your competition
  5. Questions to guide you

Dropshipping Market

1. Research current dropshipping markets and trends

We recommend starting with research. Type “popular dropshipping markets and trends,” in your search engine to see pages of information that will turn those wheels.

Write down the niches that stick out, and most importantly, the ones you feel connected to. After all, it’s easier to sell and advocate for products you love.

Maybe you’re a dog lover, great news! Dog accessories are a solid dropshipping pick because consumers will always spoil Scruffy.

Here are a few more examples of popular niches you may want to consider:

  • Home and gardening products
  • Wedding planning products
  • Organic food products
  • Yoga products
  • Pet products
  • Electronics
  • Jewelry products
  • Clothing (for men, women, baby, kid)
  • Hiking and camping

We’re only getting started, but you get the idea. From here, you can break down your broad niche ideas into subcategories. 

Which leads us to our next suggestion:

Mind Map

2. Create a mind map

Einstein once said, “If at first, the idea is not absurd, then there is no hope for it.” He was on to something.

Before finalizing your dropshipping niche, you need to brainstorm. Some of those ideas will be like Einstein says, absurd, but you need to get them out and sift through them. 

There’s no better way to organize your dropshipping niche thoughts than with a mind map.

Mind maps allow you to record major ideas and then break them down further into categories. The final result resembles a spider web.

In mindmaps, your big picture idea goes in the center (dropshipping niches), then you branch off with subcategories that come to mind. For example, electronics, fashion, pets, etc.

Create your mindmaps with a pencil and paper or use an online tool.

Going the tech route? Here are our top online mindmaps sites:

Find Dropshipping

3. Find a dropshipping eCommerce platform with reliable suppliers

Finding a dropship supplier is a big part of setting up your dropshipping business, and this task relates to your niche too.

Perhaps you’re interested in US based dropship suppliers. If so, a dropshipping eCommerce platform like Shop1.com provides you with a website and access to their American based dropshipping suppliers. – all in one place.

So, you can narrow down your niche based on the dropshipping products they sell. 

Intrigued? Get a free dropshipping online store today to spark your mind and fill that mind map.

 Evaluate competition

4. Evaluate your competition

To put a spin on the adage “love your enemies,” dropshippers should love their competition, too.

After all, running a successful business is to know and understand your competition AND their products,

Take this step after you have a broad idea of a dropshipping niche. Let’s say you’re interested in dropshipping home and electronics because you’re a tech wiz.


However, that’s a huge niche that you need to narrow down. But how?

Look up your competitors then research which specific health and beauty products do well for your competitors.

For example, users on Shop1 have been successful with activewear.

See how easy it is to narrow down your niche?

Picking a dropshipping niche isn't too hard

5.Picking a dropshipping niche isn't too hard. Let these questions be your guide.

  • >What products am I passionate about?
  • Have I brainstormed and organized my thoughts with a system such as a mind map?
  • What are trending dropshipping products out there now?
  • What are the sub-niche products doing well for my competitors?
Whether you choose pet, beauty, or gardening dropshipping products, we want you to succeed, and by using these strategies to pick the right niche, you’ll be setting up a dropshipping business in no time. Shop1 If you haven’t yet, go on and open your dropshipping store at Shop1.com and once you have your store up and running, visit the Entire Catalogue section of your dashboard to find inspiration and the best dropshipping products for your business.
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Laurel Price
Laurel Price