It has become extremely evident that ecommerce is the future of business. And this pandemic has not but sealed the deal on this one. But when one is trying to pick out the niche they want to start their business career with, they look for the below major attributes.
- Easy to start
- Flexible location
- Least overhead expenditure
- Less capital investment
- Easy to test and scale etc
Keeping the above pointers in mind, you will have to make an informed decision on what to sell online and what kind of business you want to get into.
However for any kind of business you need a robust business model. But, there are a few major challenges that people come across while setting up their multi vendor marketplace platform-
- Development of products
- Tracking orders and deliveries
- Setting up warehouse
- Inventory management
- Managing shipping
and the list goes on.
There are many models that can be adopted to run your business efficiently.
Some of them are-
- Wholesaling and Warehousing
- Private Manufacturing and
Considering all the above challenges the dropshipping model would be the best choice for anyone who is willing to take their baby steps into the world of ecommerce. The global dropshipping market size is expected to register a CAGR of 28.8% from 2019 to 2025.
So, basically what do you mean by dropshipping?
It is a model that provides goods directly to the buyer by a manufacturer or a supplier via an online platform that connects the buyers to the owner of the platform who is directly connected to the manufacturers/suppliers.
This will help you run a virtual store without having physical office space or warehouse or any inventories. It is the most chosen business model for an online-marketplace business. All you need is a computer system and internet access and nothing else.
Steps to start your own online dropshipping business
- Finding a niche
- Finding the right supplier
- Building your website
- Market and promote your virtual platform
In this article we are going to discuss the first pointer in detail.
Finding the right niche is one of the most important steps that can make or break your business.
The points to think over in your mind while selecting a niche
- Customer’s point of view: What would you like to buy? Research on what’s selling online the most. Start by planning and selling for a smaller group of customers. This will help you analyze and drastically reduce your margin for losses.
- Observe your competitors: Start with the big wigs of the field like amazon, eBay and many others and observe their technology, business plan, their responses to other nuances such as- refund, exchange, returns and many others.
Once you have an idea, you can observe competitors in your niche to get a better plan, and an idea on what to do and what not to do.
- Evaluating your profit margins: Given the initial investment is low, you have to plan your strategies in such a way that your niche will actually earn good profits.
Top 15 dropshipping niches that are going to help you make some big bucks
- Clothing: This is the top most selling niche in the whole industry. There are many categories that you can target like – sleepwear, athleisure, casual clothes, formal clothing, lingerie, designer wears, maternity clothes, etc. If you’re looking to products to dropship you can check Cjdropshipping website.
Unisex clothes are in vogue now too. Ranging from sweaters to lounge wear, it has a year-long demand and hence is also one of the safest choices for a new startup.
- Jewellery: Next in line would be the accessories. With the expectation of the jewellery market to be $480 billion by 2025 you can also get your hands glittered in this market. Personalised jewellery will never seize to go out of market. Be it beaded bracelets, layered chains, chic earnings, nore pins and many more, there are never enough choices for the ladies to indulge in.
- Sports: The one niche that will never go out of the wall of fame. Though it might have taken a hit in the recent past due to Covid, it is predicted to make a bigger entrance into the ecommerce world.
- Entertainment: Video games to movie streaming pretty much everything is in vogue now. Especially after the onset of the pandemic even more so.
- Beauty products: With the gaining popularity of chemical free, cruelty free, natural cosmetic products, this niche is one among the most trending in the current market statistics. You might want to consider this strong competitor.
- Gadgets: In a world filled with gadgets and new editions of them getting released every minute, this has become one among the most lucrative businesses to be in at the moment.
- Gadget accessories: With growing gadget needs, raises the need to accessorize them too. People prefer their names being embedded on them, or certain slogans or phrases etc. as part of being a memorabilia.
- Food and beverages: One of the most popular and successful niches in the world of ecommerce. With people wanting more convenience and comfort, you can have a tie up with the local eateries and kick your own online food service to a great start.
- Hobby store: With the work from home environment, people are inclining towards their innate desire to pursue their interests to keep themselves occupied. Some of them have even turned their hobbies into the mainstream income route. So, by tapping into this you will be able to see some good profits too.
- Pet store: This is one of the most diverse niches in this industry. There is room to improvise and give that edge over others by personalizing the pet accessories. There are a range of items from food to beds and bathing tubs for the pets.
- Stationery: With more and more people pursuing their hobbies and schools going online and also keeping the covid situation in mind it will be a wise choice to enter this field as well. To attract more customers, you can always add the midas touch of personalizing the stationeries according to the customer’s wishes.
- Exercise gears: The current lifestyle is moving towards being more fit and healthy and hence people have started incorporating yoga, home workouts, zumba etc into their daily schedule. Hence there is an increased demand for all the related accessories like yoga mats, dumbbells, exercise bands, barbells, kettlebells etc.
- Furnitures: Furnitures are those that make your home or even office space feel more welcome. There is an unbelievable amount of designer furniture, antiques and much more that people are interested in and don’t mind shelling their money for. From computer tables to dining tables and cots, everything can be purchased here.
- Kitchen accessories: There will always be a need for something or the other in the kitchen. Be it new knives, utensils, mugs, oven mittens, containers, crockeries to name the least. Personalizing mugs and cutleries are a way to attract customers too.
- Security camera: Never out of market security cameras and other related products are always a good investment for the consumers. It has moved from being just an office accessory to households in order to monitor the ongoings.
This list is never ending. You can find as many as niches to conduct business with. Consider all the pros and cons very extensively and then make a wise decision. There is no turning back from here on. You will need to find the right and suitable supplier for your niche.
Then comes another tedious step- building your multi vendor marketplace platform. You can either build it from scratch or hire a tech team to do it exclusively for you.
Else the most popular choices at the current times have been purchasing a turnkey solution or renting a SaaS platform. Discussing about these will all together make a whole new article. These subjects are that vast.
So, once you have chosen your niche and need help with the other steps, do feel free to reach out to us anytime. We are here to help and guide you in the right direction.
Jessica Bruce is an eCommerce business expert, Influencer, and business advisor. I have also written several posts related to the eCommerce niche which has attracted many readers. She is also a marketing Consultant at https://shopygen.com/
Find her on Twitter https://twitter.com/Jessicabruc