Dropshipping: How to Find a Niche – Pexfly

Dropshipping: How to Find a Niche

Over 30% of the e-commerce industry use dropshipping as their primary retail model and it’s something that you can adopt too.

Here are some great tips on finding your dropshipping niche for 2018;
Think about how much profit you need to make per sale
The reason you are starting a dropshipping business is to primarily make money, so you need to make sure you choose a niche with products that have healthy profit margins.
Take a close look at the competition
Once you’ve decided on some potential niches, it’s vital that you research the competition. Current trending niche products include everything from beard oil to wooden glasses, so don’t just presume that you’ve hit on previously untapped niche: make absolutely sure of it. Do a search online — if the niche has more than four or five strong dropshipping competitors, move on to something else.
Do some research on future trends
So, you’ve found a product that offers good profit margins and low competition – so far, so good. What you need to figure out next is whether your inventory will continue to sell into the future, enabling you to build a solid and sustainable business.

Consider the importance of seasonality
Be brutally honest with yourself about whether your product has the potential to sell throughout the year and, if it doesn’t, whether you could make enough profit during your peak window to make it through the rest of the year on low sales.

Will your customers make repeat purchases?
If you can find a product that you can sell over and over again to the same customer, you’ve got it made.
Take subscription boxes: visits to subscription company websites have grown by over 800% since 2014, giving them an enormous amount of repeat customers. For an e-commerce business, a high CLV (customer lifetime value) is a great profit-making strategy.

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