dropshipping business ideas The Best Dropshipping Business Ideas to Make Money in 2022
Congratulations, you want to start a dropshipping business!
Maybe you’re stuck on a dropshipping business idea or don’t know where to start. Don’t worry; this article is for you.
Direct selling business concept
Everything you want to know about the best places to sell geographically, how to find your niche, the most profitable locations right now, and dropshipping research tools are here for you. let’s start.
How to choose a dropshipping business idea
It’s no secret that business ideas are in short supply, and choosing your own dropshipping business ideas is the hardest part of selling online. It’s easy to be overwhelmed by choice and worry that your product idea won’t sell or will stop being popular anytime soon.
So, how can you choose profitable dropshipping ideas? With some good research and accessible online tools, you can find dropshipping business ideas that can help you succeed in ecommerce.
Do market research
Before we dive into profitable dropshipping products and ideas and wrap up, let’s first discuss what goes into choosing a business idea and how digital marketing works.
Before deciding what your e-commerce store will sell, you need to conduct market research and choose where you will sell. Do you want to focus on consumers in your home country or go global? Both have pros and cons.
As with most dropshipping companies, it’s helpful to analyze the country in which you live as a location to start your online business. Benefits of dropshipping in your home country:
- You understand cultural trends
- You understand current product trends
- You understand consumer mentality and buying habits
- You can see which digital channels are the most popular
- It costs less to get the market knowledge you need
- low risk business model
- Having said that, there are some advantages to entering international markets. If you notice a gap in the market for these consumers, this demographic has higher disposable income, or you identify an exciting business opportunity, dropshipping in another country might be a good idea. Here are some statistics.
China
China is the world’s largest e-commerce market. GlobalData said total digital retail sales reached $2.1 trillion in 2021. By 2025, they estimate that China’s e-commerce market will be worth $3.3 trillion. This is due to the large number of digital consumers, the introduction of new e-commerce platforms, and alternative payment options such as Alipay and WeChat Pay.
Asia Pacific
The Asia-Pacific region, which includes Asia, Oceania and the Pacific Islands, is the largest market for the retail e-commerce industry in 2021, according to eMarketer. That year, online sales reached nearly $3 trillion. They predict that by 2022, retail e-commerce sales in Asia Pacific will be well ahead of Western countries. Sales in the region should be “three times that of North America and nearly five times that of Western Europe.”
Loan application online, high limit, fast disbursement!
India
India will become the fastest growing e-commerce market in 2022. Data from the India Brand Equity Foundation (IBEF), a trust established by the Ministry of Commerce of India, shows that India’s retail e-commerce industry will reach US$111 billion by 2024, reaching US$200 billion in just two years. Years later. India’s e-commerce potential is huge, and investors are just taking notice. Experts predict rapid growth over the next five years as a result.
Top 10 countries for e-commerce
To further help you decide which country to start dropshipping in, you can check out some research from eMarketer. The chart below shows the top 10 countries for e-commerce in 2022. Since 2018, the top five countries – China, the United States, the United Kingdom, Japan and South Korea – have maintained their global leadership position.
Top 10 countries for e-commerce
If you’re struggling to choose a country first for your dropshipping business model, don’t worry. Part of the market research process for finding the best dropshipping business ideas will be finding profitable products and ideal consumer personas that you are targeting. During your research phase, you might find a great product to specialize in and then decide which countries will have the best sales opportunities.
What is a niche market?
Before we continue, let’s define the term “niche.” A niche is a specific group of buyers in a larger market. They have specific characteristics, buying habits, and characteristics that allow you to narrow down these segments. A niche will have distinct characteristics such as:
- Demographic data (age, gender, marital status)
- geographical location
- Budget (affordable luxury)
- Hobby
- values and interests
- Focusing on a smaller audience is beneficial in business for a number of reasons. Engaging with specific market segments allows you to better meet their specific needs. Buyers get better customer service and it’s easier to create a community for their brand. There is less overall competition with dropshipping suppliers and you can position yourself as an expert in the market.
The most profitable niches of 2022
Globally, the top three product categories by online sales in 2022 are electronics, fashion and furniture. Electronics is a booming market, ranking as the number one dropshipping e-commerce business this year, according to Statista. Electronics digital sales are expected to total $1.043 billion.
Fashion ranked second in terms of digital sales volume. It follows electronics, where online shoppers are estimated to spend $1 billion this year. Furniture ranks third, with total sales expected to reach nearly $5 billion.
Top Global Online Store Categories 2022
Looking at more research from Statista, we can see the product categories with the most cross-border sales in 2021. In the survey of 2,035 respondents from the United States, Germany, Australia and the United Kingdom, 56% of buyers purchased clothing and footwear from another country.
This raises the business idea of selling in multiple countries, both in the early stages of your own online store and in the future once you’ve seen steady growth. You can also get dropshipping ideas from this list of successful stores.
Unnamed 2
Tools for finding your dropshipping niche
From our market research reports, we discovered a few dropshipping niches that might be worth looking into. However, since trends change so frequently, it’s a good idea to do market research to see where you can tap into the best markets.
Fortunately, there is a wealth of information available online for free without the need to purchase expensive market reports.
Google Trends is the best friend of any dropshipping vendor. Google Trends is Google’s free tool that lets you see what people have been searching for on the Internet recently. Search by country, year range and category to filter your search. This is a powerful way to see if the products you are considering for dropshipping are of interest to online consumers.
In this example, we enter the term “bracelet” into Google Trends. This graph shows us seasonal trends in the global popularity of this search term over a 12-month period.
Google Trends Bracelet
Christmas is the peak season for bracelets, with interest increasing over the summer. To improve this direct sales search, adding a comparative keyword such as “leather bracelets” or “silver bracelets” will give us more information about the buying habits of the bracelet niche.
google keywords
Google’s Keyword Planner Tool is a must-have for dropshipping. It gives you keyword ideas while showing you keyword search volume, how competitive those keywords are, and the cost of using that keyword in paid Google ads.
Google keyword parasol
You can see how Google keywords display search terms and provide valuable data. It suggests similar and more descriptive keywords that may interest you. In this case, Google Keywords suggested “garden umbrellas,” “cantilever umbrellas,” and “garden umbrellas” as alternatives to the original search term “parasols.”
Amazon bestseller
Amazon updates it hourly with a list of the top-selling products in each category. This helps provide insight into what customers are buying and how that compares to research from Google Trends and Keyword Planner. A report by Statista states that there are 200 million Amazon Prime members worldwide.
Amazon bestseller
Select a department on Amazon in the left menu to see the top products in that category. Take the baby department, for example, where shoppers on Amazon are buying diapers (diapers) and baby wipes in bulk.
From this, we can understand the pain points and needs of new parents:
New parents don’t have a lot of time, especially if one parent is still working and they have other young children. It’s best to buy in bulk to save trips to the supermarket.
People want products to be the gentlest on their children’s skin, so choosing products labeled hypoallergenic and fragrance-free is popular.
As consumers become more aware of toxins and skin irritants, water-based products for babies are increasingly in demand. For example, drinking alcohol is generally avoided.
While new parents are in need of practical and convenient products like disposable baby wipes, they are also environmentally conscious. The third best-selling baby product is biodegradable.
We can then use this information to narrow down our target niche:
- Under 35 years old
- Find baby products to make their lives easier
- They want products that are good for their baby’s skin
- They have a legitimate interest in purchasing items that are good for the planet
- Both parents hold a bachelor’s degree
- Mid budget but they like to take advantage of deals
