In the past few years, the dropshipping success graph has escalated drastically! It has become one of the most profitable eCommerce businesses, and it is expected to grow even more in 2021. However, these reasons are also putting into a tight competition business segment. When choosing your niche that you aspire to pursue while starting your dropshipping service business, proper market research and business estimates are recommended.

It is observed that most store owners, while starting a dropshipping business, commit the mistake of not exploring all dropshipping niches in detail.

So, you don't make the same mistake and mind the fact that not all dropshipping niches are the same that will make you rich overnight.

Essentially, some dropshipping niches seem good initially, but later on, they might become too competitive or complex to manage.

So, if you are starting your new dropshipping business, there are some niches that you should avoid over choosing the one in which someone else is succeeding.

Here are some niches that will help you escape the risks of failure.

Heavy and Bulky Products

Are you wondering why starting your business with heavy and bulky products is a bad idea? Well, there are a few good reasons. The bigger the product, the more the shipping costs.

Let's take furniture example.

Say, you are interested in selling office desks, kitchen drawers, etc. Well, in this case, you will be able to resell furniture by negotiating prices with the local manufacturers, but what about their shipping? Who will take care of the logistics?

So, until and unless you have your own warehouse or shipping service, it wouldn't be a great idea if you are starting small.

Electronics

This electronics niche isn't that bad only at one condition if you have tried and tested the device yourself. The logic is simple how would you sell a device until you haven't seen or touched it before—this way, neither you nor your customers will know what to expect. So, if there is any manufacturing error, it will lead to a high amount of refunds. In case you still want to try your hands on this niche, you would want to know your supplier's quality, whether it is trustworthy or not! So, read the reviews before you decide to sell their products.

Other factors that concern resellers are refunds and shipping. To find whether the store is profitable to you or not is by calculating shipping rates and delivery time, and refund policies.

Even though many American companies outsource production in Asia, China's products are highly unwanted in the USA market. So, take care of these pointers.

Seasonal Products

There's no denying that people earn big through dropshipping during a specific season and seasonal marketing is also profitable if you have multiple suppliers to sell event-specific products.

For example—you can associate with a swimsuit supplier, then months later, you will have to talk to another supplier for Halloween-themed toys and apparel. And, before you know, it's Thanksgiving, Black Friday, Christmas, and New Year is here. 

So, how will you switch between suppliers that soon between all replacements within such short notice? Above all, what about the profit margins and availability of shipping? So, a season-specific product niche is something to avoid in 2021. However, it can be seasonal products can be a great option for print-on-demand business model.

Health Care Products

If you don't know the actual effects of health products, healthcare products will be incredibly hard to sell. You need to keep in mind that customers who buy health products from you expect miraculous results right away.

So, unless you have 100 years of expertise and experience in the healthcare industry, you can't guarantee the outcomes. Not to forget in this digital age, you don't have to find people anywhere else for genuine reviews; customers will mention "fraudulent" on your Google page.

Simply put, you can't provide a 100% guarantee that the face cream you are reselling will magically erase wrinkles on their face. If you don't wish to expect thousands of refunds every month, it is better to associate with something reliable.

Highly Fragile Products

Items like toys; home décor comes as vases come under the category of fragile items. So, in case of anything beaks, you get to pay for it. Shipping companies have specific policies about these situations.

Fragile items or products that are prone to breakage can be packed with extra protection layers. Doing so won't change the fact that it will still cost you more to guarantee that every product will arrive at its destinations safely.

If you have a reliable shipping company with great reviews, you will have unhappy customers and a lot of refund requests.

Final Words:

Knowing about the most profitable dropshipping niches and the ones to avoid is crucial to your business. If you can't opt for the right one, it can convert your business idea into a failure. Hence, follow the tips we have mentioned above, and you will surely find the right niche.