Easy Ways On How To Find A Profitable Niche Product

“If you fail to plan, you are planning to fail”- Benjamin Franklin

By now I presume that you have taken action on the steps involved in Building a dropshipping business. If not I would encourage you to do so.

Moving forward we will do research analysis and validate on how to find a profitable niche product for your dropshipping business.

Today I will show you how to research and find a profitable niche product and validate them step by step.

Step 1 – How to Choose a Niche product

To start with you need to understand that you need to provide what the customer wants not what you like.

To do that first

    • list out the products which you have recently purchased.
    • Ask your friends and relatives what they have recently purchased.
    • Browse through Amazon categories.
    • Search for a list of hobbies in google and you will get a ton of results.

Amazon categories will give you bunch of product ideas for you to choose If you are not sure what niche you want to get into, hover over to Wikipedia and search for a list of hobbies.


Also check Amazon best sellers, product reviews, and complaint which will give you an idea on how you can provide value to your customers.


Brainstorm a minimum ten different product ideas and document that in a spreadsheet,  As you document go ahead and validate with these ten important niche filter checklist if seven passed you have a winning product.

  • Are you passion and do you enjoy selling the product in your niche market.

Being passionate motivates you to learn more about the product you are selling, if you are passionate about something you will create amazing product contents.

  • Does the product provide up-sells?

If the product you are choosing has a up-sell your profits would eventually go up, covering your ad costs and shipping.


  • Will the customer be a repeat customer?

Is your customer is likely a repeat buyer of the product?

  • Can you Bundle up when selling those products

It’s best when a customer adds an item to the cart where you can bundle up product and give a discount, so be sure to check if your product can be bundled with additional products.

  • The average order value is $200 and above.

Your order value should be $200 and above to make profits as you might give free shipping and spend on ad cost, you can download the spreadsheet below to forecast how much profits you are making.

  • Low weight and not fragile

It is highly advisable that the product you are selling is low weight and not fragile as heavyweight and fragile items will eat your profits.

  • Can you make at least $50 in profit?

You will need to pay your supplier cost, shipping and ads to get traffic so I recommend you to sell a product with a minimum of $50 in profit.

  • Is your supplier available locally in the US

One of the main and important reasons to consider, as if you are retailing products to the US from outside the US shipping time would be way long higher and your buyer would not intend to wait for not for too long, Indeed if your supplier is within the US you can expedite fast delivery.

  • Products on Google shopping

Google shopping would help you evaluate if the product is already sold by your competitors.  

  • Is the product Saturated

Competition is good but If the product you are choosing is sold by too many retailers then it is most likely a saturated niche product you are getting into.

  • Bonus step which I discovered recently, Subscription service, If your customers are subscribing to a paid magazine subscription service then there is a probability they are likely your target audience for your niche product.


Step 2 – Identify Direct competitors

You might be wondering who is a direct competitor and Why do you want to identify direct competitors.

A direct competitor is someone who is dropshipping the same product which you want to, finding the direct competitor will help you to cut short your research process. Direct competitors are someone who doesn’t stock the products and doesn’t have a physical store.

Identifying direct competitors is very important-when they can sell the product you want to get in then you can also do the same.

How to identify a direct competitor


I would recommend you to search for the product in Google Shopping.

Let me show you how to identify a director competitor, by now you might have brainstormed product ideas and made a list of a minimum of 10 products, head over to Google Shopping and key in the product name.

Let’s say for example you want to get into camping niche and want to sell hammocks

I would key in the product name or either type Hammocks.


As I told you before while searching for the product apply these two filters.

  • Your product should be $200 and above- If the product is less than $200 you will end up with low margin and will not make much profit.
  • Next thing is that your product should not be sold in more than 20+ stores- When your product you want to sell is sold in more than 20+ stores its highly saturated and the cost for acquiring a lead would be high.


Now go over and open up all the links and visit their websites, check out the About us page and see if there are any signs that they have a warehouse or stocking products.


What I would do is I would find out the contact details and would call them and ask if they stock products, If they do then they are not your direct competitors. if they do not then go ahead and add up to your spreadsheet.

Another way is to go over google maps and input their location and see if I can take a closer look of their office, if the location seems to be a warehouse or a store then I would skip and move on to the next website.

Alexa Traffic Rank

Alexa is an Amazon company which have most of the customer data, I would highly recommend you to check out the free tool available in chrome store.


This tools will give you an insight into how long your competitors are in business, If your competitor is more than six months in business then it’s obvious that they are making money out of it. Also check the ranking is not more than 2M.


Documenting the data

If you follow along with all the above steps you are doing a great job but wait what if you don’t document anything. You can use a google spreadsheet and document all your product ideas and direct competitors. 

Documenting so will help you do a forecast on how much you can make dropshipping. It also gives you to test various products and land on a profitable niche product before you really want to get into it.

You can download the dropship suite which gives you a list of data you need to collect.

Extract the Brands

Most of your direct competitors will display the brands they are carrying, take those brand name and add up to your spreadsheet.

What I would do is head over to google and search for the brand and documents their website on the spreadsheet which I would recommend you to do the same.

A final word

“Rome was not built in a day”

You can follow these simple process step by step and validate and test data before building a dropshipping business online.

I have tested numerous ways to find a niche product ideas and I found this method worked well for me and I encourage you to do the same, doing 80% of research and 20% to build and market the product is the ideal way to launch a successful business.

In our next post will show you how to find dropshipping suppliers in any niche, so stay tuned.

I am curious to know what could be added to the process, I would love to hear from you.

Leave a Reply

3 Comment threads
1 Thread replies
Most reacted comment
Hottest comment thread
2 Comment authors
ShykhNoorHow to find an Ecommerce Dropship supplier - LearnecomonlineHow to Start a dropshipping business Guide - Learnecomonline Recent comment authors
newest oldest most voted
Notify of

[…] you can read more about on how to find a profitable niche. […]


[…] and search a product if you don’t know what I am talking about then go ahead and read on How to find a Niche Product where I have explained on how to document your direct competitors and […]


Thank you for your valuable information. Keep it up.


Glad that you like it.


How To Create A Custom Email Address Quick And Easy

Email is used widely as an effective way of communication. It is considered as one of the leading marketing tools…

3 Simple Easy Ways On How To Find A Dropship Suppliers

Are you finding hard on how and where to find a trusted wholesaler supplier for your drop shipping business? This…

How to start a [Dropshipping Business] in 2018.

Are you struggling to build an e-commerce Business and trying to make an extra income online? That's okay, You are…