Dropshipping is one of the fastest and easiest ways to start selling products online. Startup costs are incredibly low, you don’t need to have a warehouse, and you don’t even need to make any actual products!
But drop shipping also has its share of downsides. Dropshipping businesses are notorious for having razor-thin profit margins and can struggle to create brand awareness. That’s why picking the right drop shipping business ideas will be critical to your success.
In order to start a dropshipping business you will need a website, select a great product that people want to buy, find a supplier for the product you want to sell, and a way to market those products!
What Is Dropshipping?
Dropshipping is an eCommerce model where your products are both manufactured and fulfilled by your supplier. Here’s how it works. Let’s say, for example, you find a supplier who makes a particular coffee mug that you think would sell well on your eCommerce store.
With traditional eCommerce, you would need to buy those mugs in bulk, have them delivered to your home, and ship them out yourself to your customers. That takes a lot of time and work. And, depending on the size of the products you choose to sell, it could also require a lot of storage space.
But with dropshipping, you don’t need to worry about any of those things. You simply start offering the coffee mug on your site and marketing it via your social media channels, email list, or SEO traffic. And when you make a sale, it generates a purchase order with your supplier, who then begins the process of fulfillment.
From the customer’s perspective, they bought the product from “you.” But, on your end, all you’re really worried about is building an attractive online storefront and building successful marketing campaigns. Your supplier takes care of the rest!
Related: SEO For Small Business: 7 Smart Tips
How Do I Start A Dropshipping Business?
To start a dropshipping business, you’re going to need a website to sell your products. Thankfully, it’s a lot easier to build an eCommerce site today than it was even just a few years ago. There are now several fantastic eCommerce builders that offer beautiful templates to get your site up and running in hours instead of days or weeks–no coding required! Here are a few of the top eCommerce builders on the market today:
If cost is most important to you, Square and WooCommerce will be two of your most affordable options. With Square, you can build a hosted eCommerce site for FREE. They only charge transaction fees when you actually make a sale. WooCommerce is a free Wordpress plugin as well. However, to use it, you’ll need to find and pay for your own web hosting.
Shopify and BigCommerce are probably the most feature-packed eCommerce platforms available today. But, with both of them, you’ll need to pay a monthly fee for their tools and services. Currently, they both offer three pricing tiers ranging from $29.99 to $299.99 per month.
How Profitable Is Dropshipping?
With dropshipping, a large percentage of every sale you make will need to go to your supplier. So your profit margin will, naturally, be lower than if you were creating and fulfilling your products yourself. Plus, you’ll still have expenses like marketing and the cost of maintaining your website. From what I’ve read and seen, dropshipping profit margins tend to range from 5% to 30%.
But the good news is that you can increase your profitability by selling products with high-profit margins and choosing an affordable supplier. Also, you can boost your profits by picking trending items that are in high demand. I know some dropshipping business owners who say they’ve been able to push their profit margins beyond 50% by choosing the right dropshipping products.
Also, one other quick note. If you DO have your own products and are just looking for help on the storage and shipping side of your eCommerce business, you should consider applying to be an Amazon FBA seller. As an FBA seller, Amazon will store and ship all your products for you. But Amazon does NOT allow sellers to purchase products from another online retailer and have that retailer ship directly to customers (translation: traditional dropshipping is not allowed on Amazon).
What Are the Best Suppliers Of Products For Dropshipping?
When you’re looking for a dropshipping supplier, you’ll want to find a supplier that has a large catalog of products in a variety of niches. Also, you’ll want to watch out for scam sites that charge huge startup and/or monthly fees for the “privilege” of buying their products.
Know that a legitimate dropshipping supplier will only sell B2B. If a supplier is also selling its products to retail customers, don’t use them. This is a conflict of interest and the serious players in the dropshipping industry have no interest in doing this. They recognize that you, the business owner, are their customer and won’t try to compete with you by running a retail arm of their business on the side.
Here are a few of the most popular suppliers for dropshipping businesses:
Many of the names listed above are actually dropshipping platforms that connect buyers with multiple suppliers. By joining these platforms, you’re actually gaining access to several suppliers, not just one. Finally, it should be noted that there’s no law that says you can only use one dropshipping supplier. Many dropshipping businesses work with multiple suppliers so that they can offer a wider variety of products on their sites.
20 Of The Best Dropshipping Products For 2020
There are various tools that can help you discover great dropshipping business ideas. If you use SaleHoo as one of your suppliers, their Market Research Lab is a fantastic tool to help you find products that are in high demand and have decent profit margins.
If you’re not a SaleHoo member, Google Trends is another incredibly useful tool. And it’s free! Simply type in a product name into the Google Trends search bar and it will show you how search interest for that item has fared over time. Look for products that have been consistently attracting more search interest each year or that have recently begun to “pop.” Looking at the “most popular” lists on marketplaces like Amazon and eBay can also help you discover solid dropshipping business ideas.
Market search is important, but it can also take a lot of time. To give you a head start, we’ve compiled a list of 20 of the best dropshipping business ideas for 2020. Each of these items are trending products and can be purchased from many of the top dropshipping suppliers listed above.
1. Head Scarves
From hats to bandanas, to headbands, we humans love to decorate our heads with accessories. But you may be surprised to learn that one of the fastest-growing items over the past decade is the headscarf. When you search for “headscarf” on Google Trends, you’ll find that search traffic for the term has doubled since 2013 and quadrupled since 2008. Who knew? Headscarves are also easy to manufacture in bulk and can be purchased from virtually every major supplier.
2. Pour-Over Coffee Makers
As a connoisseur of all things coffee, I’ve been a huge fan of pour-over coffee for years. It just makes the coffee tastes so much smoother! And I must not be the only one who thinks so. The search term “pour-over coffee maker” has blown up over the past few years. It would be a really smart item to include on any dropshipping stores in coffee or kitchen accessories niches.
3. Fitness Trackers
Health and wellness is one of the most popular and profitable niches for dropshipping businesses. If you decide to start your own site in this niche, you’ll definitely want to offer some sort of fitness tracker. These items burst onto the scene in a major way just a few years ago. And, in 2019, over 305 million wearable devices like fitness trackers were sold, generating over $26 billion in revenue.
4. Wireless Chargers
Up until a few years ago, only a select number of Android phones offered wireless charging. But with the launch of the iPhone 8, Apple joined the party. And, as a result, there are now tens of millions of phone owners who, for the first time, have phones that can charge wirelessly. But, in order to take advantage of this technology, consumers need to purchase wireless chargers. This makes them one of the best dropshipping ideas in the tech nice for the foreseeable future.
5. Bluetooth Headphones
Once again, a decision made by Apple a few years has a lot to do with why bluetooth headphones are one of the best dropshipping business ideas in 2020. With the launch of iPhone 7, Apple announced that it would not have a headphone jack. So bluetooth headphones would be the only way to listen to music or other audio on your Apple device.
At the time, Apple got a lot of flack for their decision. But, since then, many other Android manufacturers have also chosen to remove the headphone jack. Soon virtually every phone owner is going to need a pair of bluetooth headphones if they want to listen to their phone audio in their ears while they exercise or do chores around the house. And that presents a huge dropshipping business opportunity!
6. Bluetooth Speakers
Sticking with the Bluetooth theme, Bluetooth speakers have also continued to grow in popularity over time. Nobody uses stereos or boom boxes anymore. Now everyone wants to be able to hear the audio from their phones playing around the house. And buying a Bluetooth speaker is one of the easiest ways to make that possible. Thankfully, Bluetooth technology also happens to be very simple. Hence, Bluetooth speakers are one of the easiest items to source in bulk and at affordable prices with suppliers.
7. Phone Cases
Most people buy a new phone every two to three years. And along with new phones comes the need for a new phone case. This makes phone cases one of the enduring dropshipping ideas because it’s not a passing fad. Until someone comes out with an indestructible phone (good luck with that), people are going to need phone cases to protect one of the most expensive and essential items in their life. And, from the seller’s perspective, phone cases are incredibly cheap and easy to source.
8. Phone Mounts
We all know that looking down at our phones while driving is a danger to not only ourselves but for everyone else on the road. That’s why car mounts have been rising in popularity over the past few years. And, from magnetic mounts to AC vent mounts, to mounts that offer wireless charging, these products come in a lot of different varieties. That’s a good thing because it means you have more options to separate yourself from the competition by focusing on a certain sub-category of mounts.
Shapewear is a garment worn under the clothes that alters the body’s shape to make it look more attractive. Recently, shapewear has exploded in popularity as you can see from the Google Trends graph below. Public support from celebrities like Kim Kardashian probably has had a lot to do with that. Shapewear is a smart item to offer on any sites in the clothing niche but could be a good fit for fitness sites as well.
10. Scalp Massagers
Who doesn’t love a good scalp massage, right? And with the advent of actual handheld scalp massagers, you can now get an even better massage than by just using your fingers. Some dermatologists and trichologists have even come on record as saying that using a scalp massager could help to stimulate hair growth. As is evident from the Google Trends data, these products are getting hotter by the day. And, best of all, you can buy them for less than $1 on AliExpress.
11. Teeth Whitening Kits
Teeth whitening isn’t necessarily a new thing. But they’ve really only recently started to blow up as a trending search item. Many people are choosing to try out these DIY kits before scheduling a visit to the dentist. Search interest for teeth whitening kits has quadrupled over the past 5 years. And SaleHoo’s Market Research Lab expects the teeth whitening kit market to be worth $7.4 billion by 2024.
12. Impact Wrenches
DIY power tools will never go out of style. And consumers are increasingly looking to buy these items online. Look, for example, at the Google Trends data for the search term “impact wrench.” Search traffic has been on a slow and steady rise for over 10 years. And this is just one type of power tool that you could sell on your site. Cordless drills and saws are great dropshipping business ideas as well.
13. Water Filtering Products
Consumers today are more concerned than ever before about the purity of their water. We all want to make sure that the water we come in contact with isn’t contaminated with chlorine, heavy metals, chemicals, or bacteria. The great news is that there are all kinds of water filtering products that you could sell on your site from filters for sinks, to showers, to pitchers that filter drinking water.
14. Nail Extensions
Gel nail extensions are all the rage right now on social media and the personal care blogosphere. They’re like a combination of a nail press-on and a gel manicure, giving you the best of both worlds. Gel nail extensions are strong and last a long time but aren’t as harsh as acrylics. Search traffic for gel extensions is growing at an amazing clip right now and hasn’t shown any real signs of slowing down. You can buy kits on Ali Express right now for as low as $0.54 apiece.
15. Makeup Brush Cleaners
As someone who’s married to a wife who loves watching makeup tutorials on YouTube and Instagram, I can personally attest to the huge popularity of these items. If makeup brushes aren’t cleaned regularly, they can become a breeding ground for bacteria buildup (my wife has taught me this). So using a dirty makeup brush can cause clogged pores and breakouts. That’s why makeup brush cleaners have become an essential item in my wife’s and many other women’s makeup kit. And you could be the one they buy from by selling makeup brush cleaners on your dropshipping site!
16. Artificial Flowers
Why have artificial flowers continued to grow in popularity, despite the fact that it’s easier than ever to buy real flowers online with sites like 1-800 Flowers? Obviously, cost is a major factor. In many cases, shoppers can buy an artificial flower that looks just as good as the real thing but costs 50% to 75% less. Artificial flowers are also great decorative items in homes and businesses since they last forever. You can buy artificial flowers in bulk from every major dropshipping supplier, starting at $0.51 per bouquet.
17. Sweeping Machines
Despite the fact that power vacuums have been around for years, push-powered sweeping machines have seen a resurgence in popularity over the past few years. Maybe people like the simplicity of not having to deal with cords and batteries when they want to do a quick cleanup. Whatever the reason, the term “sweeping machine” has been steadily rising in search volume since bottoming out around 2010. For sellers, this is an encouraging trend because manual sweeping machines are easy to source on the cheap from a variety of suppliers.
18. Waterproof Shoes
Waterproof items, in general, have been steadily growing in popularity over the past 5 to 10 years. And waterproof shoes have been one of the key items leading the charge. No one likes walking around with water-logged shoes all day. People who live in rainy climates especially love them because. And the best part? Waterproof shoes are one of the most inexpensive items to source from this list. As of this writing, you can buy them on AliExpress for as low as $1.44 a pair.
19. Vacuum Insulated Water Bottles
Vacuum insulated water bottles are great for two reasons. First, they’re the best products on the market for keeping your beverages at your desired temperature. And, second, they’re reusable which makes them better for the environment. As seen in the graph below, vacuum insulated water bottles really started to pick up search steam around 2016. They’re still wildly popular today and are one of the strongest dropshipping business ideas for fitness or kitchen accessory niches.
20. Yoga Mats
Over the past few years, more and more people have decided to give home workouts a shot as a way to save money and time. And the coronavirus pandemic has forced even more people to exercise from home. This is all great for the yoga mat industry. Yoga mats are a staple of home workout routines and tend to be one of the first pieces of home equipment that people buy. Currently, they can be purchased for as little as $2.40 on Ali Express.
Wrapping It Up
Dropshipping can be a great way to make money online. But you’ll need to choose your products carefully. Hopefully, one of the 20 products listed above resonated with you or got you thinking about your own idea dropshipping business ideas. Now get to work building your eCommerce business and start making money online!