If you want to try your luck at starting a dropshipping business, you need to know which dropshipping niches are the most crowded and which ones are good to go.
People often think that the dropshipping business is already full, but this couldn’t be further from the truth. Dropshipping is just a way to fill orders, so we can never say that it’s already full. The Internet has room for millions of new stores.
We can, however, talk about dropshipping markets and products that are already full. Let’s jump right in and find out everything we can!
What Does Saturated Mean in Dropshipping?
When a market, niche, or product is saturated in dropshipping, it usually means that too many dropshippers or online stores sell the same or similar products.
In this way, there is more supply than demand, and it’s hard for new people to get into the market.
Even though the market size and number of searches for some products may be big, there will be even more competition for them. So, it’s often best to choose a niche that is more narrowly focused and has less search volume but better intent.
Most Saturated Dropshipping Niches to Avoid
Based on how well dropshipping went around the world in 2022 and our research on the topic, we’ve come up with a list of the 13 most competitive dropshipping niches you should avoid.
Please note that these are not products, but niches. As a result, it’s important to remember that you can be a successful dropshipper in a niche that’s already very popular as long as you find a product that’s not already very popular in that niche.
General clothing
When dropshipping general clothing, there are two important things to keep in mind. First, there are way too many people in the niche. And second, the rate of return will be very high.
It’s hard to sell clothes because of the different materials, colors, sizes, and fits. Also, as a dropshipper, you won’t see the product in person very often (unless you order a sample, which we strongly recommend you do). So you won’t know if it fits or is good.
Be extra careful if you sell clothes that fit close to the body, like sports bras, yoga pants, jeans, etc.
Women’s clothing
Even though the clothing market as a whole is oversaturated, women’s clothing is the sub-niche that is the most oversaturated.
If you can’t decide what kind of clothes to dropship, we suggest men’s clothes, clothes for babies, or even clothes for pets. These are a couple of markets where new dropshippers still have some room to move.
Dropshipping niches for general clothing are full.
Or, if you want to sell women’s clothes, you can narrow your niche even more by choosing a sub-niche. For example, you might do better if you sold clothes for people who are bigger than average.
General electronics
Another crowded dropshipping niche is electronics and gadgets for laptops and cell phones. On top of that, a lot of electronics are sent back because they don’t work.
So, general electronics are definitely a dropshipping niche you should stay away from.
Dropshipping small items like headsets, wireless earphones, cheap fitness trackers, and other small gadgets should be done with extra care.
General electronics
If you still want to dropship electronic gadgets, we suggest you order a sample first so you can check the quality and make sure it works.
Or, choose a sub-niche in electronics, work with one reliable supplier, and put your own name on the product. Having a brand name can give you an edge and help you stand out in a market that is already full.
Watches
One of the most popular but hard-to-get-into niches is watches. You might ask, “Why is that?”
Check out the prices of watches on AliExpress. You can get some for as little as $5 that look simple or even expensive.
So, when a new dropshipper sees that, they immediately think about how much they could sell the watch for and make a lot of money.
But what they often don’t think about is whether or not they can bring people who would buy the watch in the first place.
Watches
Because of this, thousands of dropshipping stores sell watches, both private label and brand names. So, selling watches can be hard unless you have a great idea and find one that doesn’t exist yet.
Fragile items
Fragile things can fit into many different categories, so we can’t really talk about whether or not their niche is full. But there’s a good reason why they’re on this list of products to avoid when dropshipping.
When you dropship a fragile item, there is a chance that it will get broken during shipping and delivery and end up at your customer’s house broken.
Put yourself in your customer’s shoes for a moment. Imagine waiting three weeks for a glass vase, only to receive it broken. Not much fun, huh?
Fragile items
You can probably guess that dropshipping a fragile item will lead to unhappy customers, a high rate of returns, and lower profit margins.
Bulky or heavy items
Selling indoor furniture might sound like a great high-ticket drop shipping idea, but dropshipping bulky or heavy items is often more complicated than it sounds.
How things are stored and shipped often depends on how big or heavy they are (heavy). But dropshippers often forget to figure in the extra costs of storing or shipping these items.
Items that are big or heavy
Since they didn’t tell their customers about the extra costs ahead of time, they now have lower dropshipping profit margins.
In that case, you have no choice but to pay for the costs out of your own pocket, which will significantly cut into your profits.
Copyrighted products
Selling copies of well-known brands can cause problems for both you as the dropshipper and the people who buy the products from you.
For example, if you know anything about DHgate dropshipping, you know that most of the brands there are copies. Even though this might seem like a good way to run a business, it is likely to cause problems with customs clearance.
Products with copy rights
Replicas of shoes, designer bags, fake brand clothes, and other similar things are examples of copyrighted items that you shouldn’t sell.
Selling fake products can lead to problems at the border when shipping, a suspended ad account, and problems with social media rules and regulations.
Shoes
If you’re selling random shoes, you’re not likely to do well unless you’re selling customized shoes or have your own shoe brand.
The idea that “women always buy shoes” has made dropshipping shoes, especially cheap women’s shoes, a crowded niche. That’s wrong!
If you want to sell brand-name shoes, there are many high-ticket dropshipping programs that let you do so.
Shoes: The high rate of returns is another reason why we don’t recommend dropshipping shoes.
Like clothes, shoes come in different sizes and shapes. So, you should be prepared for returns because the wrong size or fit.
Seasonal products
You might wonder why we put seasonal goods on a list of niches that are already full. Well, because they’re already full. In addition, seasonal products are only a short-term fix. Let’s talk about this.
For example, you could only sell Halloween items, winter hats, or bikinis in your shop.
Seasonal items
Of course, somewhere in the world, it’s always summer. But unless you’re selling to Australia when the rest of us are buried in snow, bikinis won’t sell the same all year long.
The same thing happens with products for Christmas, New Year’s, St. Patrick’s Day, Easter, the Fourth of July, and other holidays.
Beauty and health
When it comes to the beauty and health niche, being full is only one of the problems.
The other part is that you might run into legal problems if you dropship these products, especially if they are in the health category.
It is safe to dropship jade massage rollers, but it is not safe to sell supplements with a questionable list of ingredients. First, you should know that each country has its own rules about what ingredients can be used. Selling supplements also means making health claims, which could lead to lawsuits.
Looks and good health
For example, if a brand says that a supplement can fight cancer or help you lose 10 pounds in one week, this is not true. These kinds of claims can also lead to advertising restrictions or even the account being shut down.
Fitness products
The next dropshipping niche that has a lot of competition is fitness products and gym equipment. Since the early 2000s, dropshippers have been selling these products, so unless you’re selling something new and revolutionary, your chances of doing well in the fitness niche are low.
What kinds of products, though, are saturated? Most fitness products, like resistance bands, yoga mats, weights, dumbbells, fitness clothing, workout gloves, and similar things, are already available in too many places.
Products for fitness
You could probably still be successful in the fitness market if you had a well-structured private-label plan, a new way of thinking, and good branding. But don’t sell the same products that everyone else is selling.
Safety equipment
Dropshipping safety equipment might seem like a good idea since it’s a profitable niche that isn’t too crowded yet. But this niche can also go wrong in other ways.
Some examples of safety gear are knee pads, helmets, mouth guards, etc. Of course, these things keep you from getting hurt. What happens, though, if the products aren’t very good?
Safety equipment
As you might expect, people can get seriously hurt, and you could end up facing a lot of lawsuits. So, safety equipment is one of the dropshipping niches to stay away from unless you know for sure that the products are safe and of good quality.
Basic needs products
For obvious reasons, you shouldn’t sell popular products that are sold everywhere and meet our basic needs.
Generic versions of toilet paper, bandages, white/black socks, bottled water, one-colored T-shirts, cotton balls, and similar things would be some examples.
All of those things are everywhere and can be bought in any store. People usually need these things right away and can’t wait two weeks for them to arrive. So, why would someone buy that kind of thing from your store?
Things that everyone needs
Adding a twist to a standard product is a good way to stand out from the crowd and make it your own. Sell cotton balls and sponges that are good for the environment. Or, you could sell T-shirts with funny quotes on them.
If you want to sell things that people need, you have to be creative.
Lifestyle products
What are general products for living? To put it simply, these are things that can be found almost everywhere, just like basic needs items.
Lifestyle products
Lifestyle products are different because people don’t really need them. Some simple examples of lifestyle products that don’t have anything special to offer are:
Kitchen spoons
Knife sharpeners
Bracelets for cheap
USB-sticks
Earphones
FAQs on The Most Saturated Dropshipping Niches
Do you still want to know more about dropshipping niches that are already full? We’ve tried to answer all of your questions.
Can You Dropship Saturated Products?
In theory, we have to say that dropshipping saturated products is not a good idea. But some dropshippers can get into a market that is already full and still make money.
Dropshippers who sell products that are already popular usually have to find a new way to look at the product to make it stand out in the eyes of their customers.
Or, they sell a private-label product in a market that is already full and start drop shipping for other brands.
When that happens, you can definitely dropship products that are already selling well and make money.
But don’t just import a bunch of lifestyle items from AliExpress that everyone sells and hope that people will buy them. Either get more specific and narrow down your product choices, or make your products stand out by giving them a unique twist.
What Are the Most Saturated Dropshipping Niches?
We’ve already told you about the 13 dropshipping niches that are the most crowded and could be hard to get into. For example, clothes (especially for women), shoes, accessories for cell phones and laptops, fitness products, beauty and health products, lifestyle products, watches, etc.
What Are the Most Saturated Dropshipping Products?
If we’re talking about popular dropshipping products instead of niches, there are a lot of them to talk about. But, based on our research, here are some of the most crowded markets:
Yoga pants
Cut-off tops
Clothes for women
Dresses \sSneakers \sWatches
All products for living and basic needs
Sunglasses
Yoga mats and jewelry on sale
Bands of resistance
Jade rollers
Earphones
How Do You Check If a Product Is Saturated?
You can check how popular a dropshipping product is in several ways:
Analyze your competition
Look on Facebook for product videos and ads to find out how many other dropshippers are trying to sell the same thing.
Next, look at big marketplaces like AliExpress, Amazon, and Wish to see if other stores are selling the same product.
And finally, don’t forget to google your product and see if or how many dropshipping stores come up.
Do keyword research
Use Google Trends, Answer the Public, or the Google Keyword Planner to find out what people are searching for and how competitive your keywords are.
Researching products is an important part of dropshipping that no one should skip. Your best bet is a product that is searched for a lot but doesn’t have many stores that sell it.
Check for weaknesses
Do a SWOT analysis of your competitors’ business models and compare them to your own. This should help you find holes and weak spots in the strategies of your competitors.
So, you’ll be able to turn their weaknesses into your strengths. This will help you give your customers a much better deal and make you stand out.
But keep in mind that if you have a lot of competition and there are already a lot of established players on the market who have the majority of the audience, it might be time to think of a different product to sell.
Is Dropshipping Saturated
Not even close! We can say that a niche or a certain product is saturated, but we can’t say that dropshipping as a whole is saturated.
Just think about being able to sell almost anything in the world. And almost 4.7 billion people around the world use the Internet. So dropshipping won’t change.
Dropshipping is just a way to get a product without touching it. But you are just one of thousands of online shops that are out there. So, the buyer won’t notice much difference between dropshipping and retailing.
What Niche Is Best for Dropshipping?
We can’t pick just one profitable niche that does the best because a lot of products, both old and new, do well.
But if we had to pick just one, it would be products that are good for the environment. Why? Well, because we saw how much people wanted these kinds of things and how few there were to go around.
Also, caring about the environment is here to stay, so this trend can only go up.
And finally, every product that is saturated has a green and eco-friendly alternative that is not saturated. So, it’s like finding new markets for everything!
Why Is a Saturated Market Bad?
It can be much harder to get into a market that is already full, and here’s why:
Lots of competition
When a market is saturated, not only are all of the major roles filled, but so are all of the minor ones. This is the kind of industry where dozens of websites sell the same thing and ship them to customers.
Because of this, getting in can be challenging. Many businesses in a highly competitive market have been open for many years and control the vast majority of customers. The remainder is dispersed among thousands of well-known mom-and-pop stores.
Higher advertising costs
Advertisement prices will always be higher in highly competitive niches. When competing with other advertisers for the same demographic, “bidding wars” for advertising space are par for the course.
You could also use a keyword with its own cost-per-click to make a bid (cost per click). In competitive markets, where many advertisers will be bidding on the same keyword, you may need to increase your spending to keep up.
Difficulties selling products
The inability to sell products or even attract customers follows logically from the previous two steps.
Also, hundreds of AliExpress listings are to be expected in highly competitive niches like those mentioned earlier. Customers may be hesitant to buy from you if they can get the same products you do from AliExpress at a fraction of the cost.
Price reduction
Finally, if you’re not making any sales, you’ll probably try to undercut the competition by a wide margin.
In an effort to boost sales, many dropshippers cut prices without giving much thought to how this will affect their profit margins. So they wind up losing money on the job.
Is a Market Ever Too Saturated?
The answers to this question are not unanimous; some professionals hold the view that a market can never be saturated, and instead argue that you simply haven’t discovered your sub-niche yet.
To the contrary, dropshippers understand the value of being early adopters.
You can reach a conclusion without either, but we think you need to combine them.
Naturally, it will be harder to break into a crowded market. On the other hand, it’s impossible to ignore the fact that every market is, to some extent, oversaturated.
You should pay more attention to the product itself than to concerns about whether or not the market is saturated.
People’s purchasing decisions are influenced by a number of factors, including product quality, novelty, and character. So, don’t discount low-opportunity markets.
How Do You Survive a Saturated Market?
When competing in a crowded market, you can take one of three approaches:
Find a sub-niche
The market for hair accessories is highly competitive, but the market for “silk scrunchies that don’t damage the hair” is not. The market for pet supplies is competitive, but “non-toxic pet toys” may have a bit more room to grow.
Therefore, if you want to enter a competitive market and succeed, you should consider segmenting your niche into even smaller sub-niches.
Give a better offer
The market for hair accessories is highly competitive, but the market for “silk scrunchies that don’t damage the hair” is not. The market for pet supplies is competitive, but “non-toxic pet toys” may have a bit more room to grow.
Therefore, if you want to enter a competitive market and succeed, you should consider segmenting your niche into even smaller sub-niches.
Build a brand
The final option for making it in a crowded market is to give your products some character by developing a unique brand.
It’s not required to produce your own goods just because you have a brand. As an alternative, you can white-label your products by including a blank box, packing slip, invoice, or thank-you card with your brand’s name on it.
Rather than selling the same wireless headphones as everyone else on AliExpress, differentiate your product by including a branded packaging and engaging copy.
What Are Some Evergreen Niches for Dropshipping?
Products that are considered “evergreen” are those that are consistently in demand and never go out of style.
Evergreen dropshipping niches include technology, environmental products, wellness, artisan and handmade goods, personalized or customized health and beauty products, and so on.
Although these are perennial interest areas, that doesn’t mean they aren’t already fully serviced. These niches are saturated again because many dropshippers target them due to their perennial interest.
We therefore contend that picking a perennial market is insufficient. Absolutely, but afterward, your next step should be to zero in on a dropshipping product that isn’t already all over the place in that particular market.
How Can I Differentiate Myself in Dropshipping?
Create a brand and you will be able to set yourself apart from the competition. Although branded dropshipping may require more up-front work in terms of strategy, planning, and product sourcing, the benefits far outweigh the costs.
You may want to consider white labeling or private labeling a product if your market segment is already quite competitive.
Private label products can be more difficult to produce than white-labeled ones because they require bulk purchases and more oversight at every stage of the manufacturing process.
Working with a Chinese dropshipping agent that provides private labeling and stock storage could be the answer.
Branded drop shipping can be difficult to implement for some dropshippers, especially those just getting started, but it can have a huge impact on your business.
Consider the case of searching for a one-of-a-kind timepiece as a present. Yet everywhere you look, there are only generic stores selling $5 AliExpress watches. But you suddenly realized (brand recall) that you had been following a great Instagram store for watches.
You return to the watch section of the website and look at the options that are more expensive than the AliExpress one but still within your price range. They are also more aesthetically pleasing, and the brand seems to have some loyal customers.
Consider this: what would you do? You probably want your pal or significant other to enjoy the present you give them, so it makes sense to shop at the hip new establishment.
What Are Some Untapped Dropshipping Niches?
The market has no more unfilled niches, at least not in the broad sense. That’s a fact, if you give it some consideration. Therefore, we need to narrow in on particular products that are not yet oversold in order to locate unoccupied markets. Take a look at these illustrations for some pointers:
Home punching bags; a portable language translator with support for multiple languages;
The use of chimes or crystal singing bowls for relaxation and stress relief is an example of “sound bathing” products.
Toys for infants and children made of sustainable, non-toxic wood;
Tools for a private photography studio;
Planting kits for Kombucha;
You get the idea? The goal of exploring unfilled markets is to identify successful offerings in advance of when those markets become oversaturated due to the widespread adoption of the prevailing trend.
Find emerging trends with the help of services like Exploding Topics, Answer the Public, Google Trends, Amazon Suggest, and others.
How To Make Money in a Saturated Niche?
Here are some strategies you can employ if you’re determined to dropship in a highly competitive market:
Sell high-ticket items
If you’re trying to make a profit in a highly competitive market, one strategy is to sell expensive dropshipped items, like name-brand clothing. Spending more money may seem risky, but the payoff is greater with higher-end products.
To make $2,000 per month, you would need to sell 1,000 of a small gadget with a $2 profit. However, if you sell name-brand shoes at a profit of $40 per pair, you’ll only need to move 50 pairs before you hit the $2,000 mark.
Build a brand
Creating a name for yourself and becoming known as a leader in your field are two proven strategies for setting yourself apart from the competition and increasing your bottom line.
Communicate with a dropshipping agent who can assist you with white labeling or private labeling if you are unsure of how to get started.
Final Thoughts
We sincerely hope that you find value and insight from our compiled list of the most competitive dropshipping niches to avoid, which we’ve researched in order to help you succeed in the field. Please feel free to offer any insights you may have on the matter.
