There are a few secrets to achieving success in a dropshipping or an e-commerce business. One of which is finding a niche with low competition. This process should not be ignored as it can be a determining factor in how much profit you'd be making. A niche selection can be overwhelming for beginners. It involves a series of steps that if not carefully taken, may lead to errors. This article explains how to find a niche and also highlights the low competition niches for online sellers in 2021.
If you are wondering why you need to find profitable niches with low competition, here are a few reasons. Successful sellers love niche products because they drive sales faster. Low competition niches are convenient as it caters to a small segment of buyers. Finding a profitable niche with low competition is a must for both beginners and experienced dropshipping business owners. By implementing this strategy, you can easily land sales without investing much money and effort. You get more productivity in marketing efforts and increased sales.
10 Examples of Profitable Niches with Low Competition
Whether you are considering starting a dropshipping business or you already own an e-commerce business, you can learn a thing or two from this article. The best low competition niches we will share with you are evergreen and productive. Instead of spending time and energy in making research, you can get started on your journey to becoming a successful seller with the following low competition niche markets.
1. Solar energy products
2. Eco-friendly products
3. Baby clothes
5. Pet products
7. Minimalist watches
8. LED
9. Bluetooth gadgets
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How to Find a Profitable Niche with Low Competition?
Part 1: FIND A PROFITABLE NICHE ON AMAZON
The first way to find a profitable niche on Amazon is to avoid highly-competitive niches. Remember, there is no product without some competition. However, the goal here is to look for low competition niches on Amazon. As such, you need to choose a niche that has a few search results. For example, if you choose to sell Adidas sneakers and PS4, chances are you will get hundreds of results on Amazon's search page. Investing in these niches will be difficult as you will focus more on warding off competition and reaching the first pages of Amazon search results other than making sales. Conduct a search on Amazon to know the kind of competition you can expect for your product.
2. Profitable niches on Amazon rarely have videos
Videos are essential marketing tools for dropshipping. Low competition niche markets don't usually have much descriptive video about the product. If you search on YouTube and find a few videos about the product, then, it is a niche with low competition. You can leverage this opportunity and create a YouTube channel to demonstrate "how-to" videos about the product. This will give you a competitive advantage that you will stand to benefit. Whenever people type the keywords related to your video, you will have the potential to rank higher on YouTube and search engines. You can even generate traffic to your listings by embedding a link to your product in the description.
3. An Amazon niche product is not season-dependent
Seasonal products are a no-no unless you want to make money at a particular time of the year. Low competition niches for affiliate marketing will guarantee a stable turnover throughout the year. As an instance, the demand for Halloween costumes is unlikely to be even through the year. Investing in this niche only guarantees you a steady sale volume during Halloween. You want to avoid such a product. You can use Google Keyword Planner or Amazon Keyword Planner to understand the products that sell all year round. If you find one with little or no fluctuations, then it is a sure bet!
4. Use FBA calculator to estimate a product for a good profit margin
Making money on Amazon is the main reason you hit the sign up button. If you are not making a profit, then what is the point of doing business on Amazon? That stated, it is important that you dropship products that have good profit margins. Fortunately, an FBA calculator by Amazon can do the trick. You can use this amazing tool to reach out to potential manufacturers or suppliers on Amazon and get a quotation from them. Experts recommend anything above 15 – 30% as a good profit margin to work. That is, if you buy a sticker at $1.15 and sell it for $4.55, your margin is excellent. Remember, when using Amazon, you will be charged for using Amazon, shipping, advertising, etc. So, you want to research the margin before getting started.
Part 2: IDENTIFY LOW COMPETITION PRODUCTS
If you are not sure on what low competition products to sell on Amazon but want to take a little risk in identifying them, then consider the following:
a. Figure out how many reviews you will get on a product. If you want to launch a product, be honest about the reviews;
b. Find proof with data on the number of reviews you can get. Look up into other sellers with a similar amount of review that are making a high amount of sales;
c. Find our proof again. Compare statistics from multiple sellers in the same niche;
d. Identify specific traits about a product, including size, price, and sales:
Size: Small and light;
Price: Low to moderate competition; selling price $15 - $50 allows you to earn 10 dollars per sale;
Sales: Daily orders of 10 units.
e. Explore online forums and Amazon communities so you can get interesting low competition niche market ideas.
Call to Action
We hope this guide will be useful for you and your business! No matter your experience in the dropshipping business, niche selection is a challenging task. By building on this guidance, you can start selling products in profitable niches with low competition and at low risk. If done right, your business journey will run smoothly and easier.
