Why do you need a niche?
The answer is simple: You can't expect to become a successful drop shipping entrepreneur by competing with eCommerce giants like Amazon or Alibaba. Your best chance for success is to focus on selling deep niche products.
But among millions of different products available, how do you choose which ones to sell?
There are 2 ways to start brainstorming and researching. Let's think about:
What are the top selling products on big marketplaces?
You can easily find out the answer after 5 minutes of surfing big retailers' website like Etsy, Amazon or Trending on eBay .
What are some unique products that are starting to go viral?
Popular trending pages on Facebook like Insider, Viral Thread or even 9GAG are the best places to help you keep up with the global trend.
Do you know where the squishy phone cases trend comes from?
It's 9GAG.
The next thing to consider is the price range of those products.
If the price is too low (less than $10), it will be impossible to reach the positive Return On Investment (ROI). Because you still need to cover some kind of expenses such as supplier fees or marketing fees, which we're going to talk about later on this blog post.
If the price is too high ($1,000+), it's hard for customers to buy without consideration, there is a chance that they will want to speak with someone over the phone or through website live chat prior to purchasing. This customer support requires your time to take care of or additional cost for hiring at least one staff to do the job for you.
So what is the good price range?
The ideal sweet pot is from $20 to $200 - It's not only big enough to create the decent per-order profit, but also small enough that most customers won't need to personally speak with someone before the sale.
You read it right.
You've undoubtedly heard the mantra: "Just follow your passion". But it's an awful advice when it comes to choosing the best products to sell online.
The mistake that new drop shipping store owners often make is focusing their passion on the products they sell instead of making their businesses profitable.
It doesn't matter if you sell a product you have passion with or not, the thing is, if that product brings money in, you'll soon become passionate about it.
Also read: How to choose the best products to sell online
Our advice:
Don't spend too much time on brainstorming and finding the PERFECT products to sell.
In fact, you'll end up wasting your time on common goods that are way too saturated or brilliant ideas that have zero demand.
You still have a lot to do then. So stop thinking and let's move to the next important part.