The right niche
Have you ever wondered why so many dropshipping businesses are unsuccessful?
Sometimes it can seem like retailers are dropping like flies, and it can be discouraging at first. But there are common mistakes that tons of dropshippers make.
One of those mistakes is choosing the wrong dropshipping niche. That’s right – one of the most common reason dropshipping retailers fail is because they chose the wrong niche.
To understand why this happens, let’s consider some common dropshipping niches:
- Phone accessories (especially cases)
- Beauty/cosmetics products
- Books ǳ Entertainment (e.g., movies, music, etc.)
You’ve probably seen a thousand different dropshipping businesses that offer at least one of these types of items.
The problem? These niches are all extremely high competition.
Think about dropshipping retailers that sell phone cases. If you want to buy phone cases online, you can choose from thousands and thousands of businesses. From Etsy to eBay and everywhere in between, there are too many phone case stores to count.
If you want to sell phone cases, you’ll have to go up against dropshipping stores who have been doing this for years. You’ll have to cut through the noise, advertise like crazy, and hope people find you (and choose to buy from you)
More importantly, it’s hard to add real value to a niche like that. When you dropship, you’re often choosing from the same products your competitors buy. That means you have to take an entirely different approach to adding value.
The dropshipping niche you choose is a huge determining factor for value. If you choose a less popular niche, there’s a good possibility you can step in and fill a need in that niche. But if you choose a niche that’s super crowded, it’s going to be almost impossible to differentiate yourself from your competitors (who have been around longer and are more popular).
Of course, choosing the right niche is a crucial decision for any business, but many dropshipping businesses seem to completely overlook it. Most dropshippers assume that they can just choose a hot trend and jump on the bandwagon.
When you’re choosing a niche, there’s a lot to consider. That’s why I’ve dedicated Chapter 3 to helping you settle on a dropshipping niche.