Dropshipping is one of the most accessible e-commerce business models, used by 30% of online businesses. Unfortunately, because it has few entry barriers, it is a highly competitive landscape, with millions of sellers struggling to get a share.

Such conditions make choosing the right products the most important decision when starting a dropshipping business – You stand to lose a lot if you choose the wrong niche.

This article explores some of the most profitable dropshipping niches in 2020 and offers helpful advice to help you make the best choice.

Why you should choose a niche.

Whereas targeting a broad audience carries its advantages, best practices recommend selecting a small range of products. Here is why.

A niche builds trust and credibility.

When you focus on specific products, you position yourself as more knowledgeable, making users more likely to buy from you.

Increases conversion rate

Currently, consumers are more specific in their searches. Therefore, focused product offerings attract more targeted traffic. It becomes likely that they will buy from you since you have what they are looking for.

Has lower competition

Selling niche products reduces the number of competitors in your field. It then becomes easier to attract customers without much concern for price wars. The result is market dominance and higher profits than sellers in highly competitive spaces.

Reduces marketing costs

Marketing for niche products costs significantly less. You have fewer customers to reach, so you’ll need fewer channels and less content. You can also efficiently utilize influencers for your products.

Increases customer loyalty

Targeting niche products will help you create a loyal following because such products are highly appealing to the relevant people. Customer loyalty will encourage repeat purchases, thus creating a steady stream of income.

Criteria for choosing a profitable niche

You can employ the following factors to help you pick the right products and position you to earn big with dropshipping.

  1. The level of competition

How many other sellers are dealing with the same products as you? You want to stay away from products sold by several competitors. They make it harder to attract customers and get yourself noticed, especially as a newcomer.

  1. Professional experience

How much do you know about the product you are selling? While it is possible to sell online with limited knowledge about the goods, having adequate product knowledge enables you to create in-depth and helpful content for potential customers and position yourself as an expert. Once you’ve established trust, customers are more likely to buy your products.

  1. Size of items

How big or small are the items you want to sell? Smaller products are generally easy and cheaper to ship compared to larger or heavier ones. Shipping costs eat into your profits, so you want to consider this when selecting a product/ niche.

  1. Marketability

Is it easy or hard to spread the word and convince people to buy your product? You want to venture into product niches where advertising is easy and straightforward to reduce marketing costs.

  1. Profitability

How much will you gain from the products? Generally, high end and rare products yield higher profits mainly because you can charge high prices. So you should consider selling such items.

Following the right criteria and conducting adequate research should give you a good idea of where you are most likely to gain higher profits. Note that trends differ across different years. Categories always worth considering are:

  1. Cheap products. Buyers like a good bargain. It is one of the main reasons they shop online. So, sellers who offer value for money are likely to enjoy massive profits.
  2. Rare products. Often, consumers flock to online stores to look for rare items they cannot find in physical stores. Therefore, these products are a great niche to consider for dropshipping.
  3. Trendy products: Buyers go online for trending items at reasonable prices. If you can identify and capitalize on trends as they gain momentum, success will be yours.
  4. Repeat purchase products; These are items that require regular repurchase. Since customers buy often, it is an excellent avenue for high profits.
  5. Upsell products; These are products that create the need to purchase other supplementary items. For example, an iPhone buyer would probably need a phone case as well.

Here are some of the top profitable niches and products for drop shipping in 2020.

Fitness products

Growing concern for health and fitness, coupled with stay-at-home orders, has created the demand for home exercise equipment.

Exercise bands

Exercise bands have generated search volumes of over 700,000 per month throughout 2020. It is a promising niche-product; there is an opportunity to yield high sales and profits.

Yoga mats

Yoga mats have remarkably high search popularity, generating over 230,000 searches on Amazon in the US alone. This suggests that they are viable dropshipping products.

Water bottles

Healthier lifestyles and increasing concerns for the environment have driven the water bottle’s popularity, especially reusable ones. Since it is a relatively low-value product, sellers who provide some differentiation level earn big from this trend, such as offering customizable options.

Fitness clothing

From stylish yoga pants to cellphone-pocket gym shorts, the low-cost fitness niche is a lucrative area you will want to explore. People are now looking for cool workout clothes they can take great pictures in. They also appreciate clothes that create room for their phones as they work out. Fitness clothing generates over 27,000 search queries monthly.

Technology products

Reports from market research tools like Google trends and even Amazon indicate that over 50% of all top product searches online are technology-based. These range from electronic gadgets to portable devices, phones, and car accessories. You cannot go wrong with technology provided you sell high quality, offer excellent customer service, and ace your marketing plan.

iPhone accessories

For unclear reasons, the demand for iPhone accessories is at an all-time high. Buyers typically seek to buy phone cases, wireless chargers, air pods, etc., driving an increase in revenue for these products.

Wireless technology

Wireless gadgets generate close to 1.2million searches monthly. Customers look for wireless headphones, Bluetooth speakers, charging ports, among others. Some products like the earphones have shorter lifespans, which drive repeat purchases and guarantee continuous revenue flow.

Power banks

The power bank niche is popular, generating over 673,000 search queries per month, especially during the summer. They attract higher prices depending on the quality, capacity, and design, thus allowing higher profits.

Smartwatches and wristbands

The demand for smartwatches and bands has steadily risen over the past months. Collectively they generate 1.2M search queries per month on Google trends. With these products, you can generate high profits.

Print-On-demand items

Due to increased activism activities, campaigns, etc., there is an increasing demand for print items—these range from t-shirts to caps and mugs. Sellers can also charge higher mark-ups for quality and creative designs, so it is worth considering.

Regular home items and appliances

For most of 2020, people have spent most of their time at home. This trend has increased demand for essential everyday items and devices such as,


Remote work has created the need for people to make their homes more work-friendly. Items like coffee pods, tea have registered increased demand.

Air fryer

This is one of the many popular home appliances whose demand has increased due to the need to stay home and cook meals. These appliances attract higher prices, which makes them profitable.

Portable blender

People are increasingly conscious of their health. They also like tech-savvy products they can use in their daily lives. This trend could be why item like a portable blender has been popular in the past months. The blenders have generated 22,200 searches on Google trends.

Home office supplies

Demand for office items spiked due to the remote work policies. Items like desks, laptop holders, folders, etc. have experienced an increase in demand, which will continue for a while. They also attract higher prices, so this can be a profitable niche to consider


Video games and consoles.

More time spent at home could explain the high demand for video games and related items.

Gaming consoles

Amazon search reports indicate a surge in demand to over 1 million searches per month for gaming consoles like ps4 and Nintendo switch. This also presents opportunities for accompanying products like video games, controllers, headsets, etc., all of which you can sell at profitable prices.

Due to high technology competition, differentiators like quality content and excellent customer service are essential for success.

Beauty products

The demand and popularity of beauty products online are at an all-time high. Studies predict the industry will grow to over $43b by the end of 2020. Buyers continuously flock to online stores in search of more minute DIY beauty products. Here are a few examples,

Magnetic eyelashes

Fake eyelashes are now an everyday makeup accessory. The magnetic type is easier to use than traditional glue lashes, making them even more popular among casual users. Aggressive social media and influencer marketing will yield the best results for you with this product.

Nail polish

Google trends indicate that search for nail polish has steadily increased from 2019. This trend is primarily driven by designer nail’s fame and popularity, with young consumers eager to experiment.


There has been a steady growth in the number of wigs bought online over the past year. They provide more protective alternatives to extensions and are also used for patients with hair loss. However, it is very competitive, and established sellers have a higher level of loyalty.

For beauty products, uniqueness is a significant differentiator. Consumers also rely on reviews from other users to guarantee the quality of the products they seek to buy.

Tips for Product research and selection

Thorough research is essential when choosing a profitable niche. It provides insights like product search volume, purchase rates, among others.

As a rule of thumb, a lucrative niche/ product would be either.

  • A niche with high search volume and low price
  • A product with low search volumes but high prices.

Product research is a lot more convenient with a few essential tools such as;

Google trends

Google trends let you view how people search for different products. The platform also provides consumer and competitor trends that may show you what is important to them.


Studies indicate that over 63% of product search starts on Amazon. In the Marketplace section on the platform, you can search for your preferred product, view its popularity, and see who the competitors are. You can then judge whether your offering will compete effectively in that niche.

Social media channels

Social media research provides valuable insights into which products people are looking for at a point in time. This channel works best for trendy products. Social media discourse will also set the tone for product promotion.

Keywords everywhere

The tool shows data about specific keywords associated with products. You get an idea of what products people are searching for, which also helps with search engine optimization.

These insights should help you decide what products you should adopt for your dropshipping business.

Once you have made up your mind, set up an account on Wholesale2b, and launch your brand.


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