Choosing a Drop Shipping Niche
Now that you’ve chosen a platform for your shop, it’s time to choose a niche. You may already have a niche in mind, and that’s great. But before you get started, it’s critical to make sure that niche is likely to be profitable before you get started.
While starting an e-commerce shop with drop shipping requires minimal financial investment upfront, it still does require some investment, as well as plenty of time.
We’ve all heard the saying “time is money”, and that’s very true. The last thing you want to do is invest your hard-earned money and lots of time only to discover the niche isn’t as profitable as you hoped!
In order for a niche to be profitable, it must:
• Have a large number of interested people.
• Have a large number of people who are either passionate or desperate.
• Have a large number of people who can afford the product.
• Have products available at a price where you can make a profit.
What about the competition?
Don’t worry too much about competition. Having competition is a good thing. It means the niche is more likely to be profitable.
Having too much competition isn’t necessarily a deal breaker. You can overcome the competition in a number of different ways. But if there’s an extreme amount of competition, you may find it difficult to gain traction.
If you really think a niche will be profitable, and you’ve done research that supports it, I wouldn’t worry about the competition.
Given how inexpensive it is to get started with drop shipping, it’s not a huge risk if you later discover the niche isn’t as profitable as you thought, and you can always sell the site later if you don’t see the kind of success you hope for.