So you’re thinking about starting a dropshipping online business? That’s great! Dropshipping is a great way to get started in eCommerce with relatively low risk and investment. However, choosing the right profitable niche is critical to your success.
In this blog post, we’ll run through 11 of the worst dropshipping niches to avoid in 2022 as a beginner if you want to succeed in the industry. Trust us – you don’t want to get stuck selling any of these!
DISCLOSURE: Some of the links that I share in this article ARE my affiliate links. This means I may earn a commission, at no extra cost to you. In fact, sometimes you'll get a discount or free credits just FOR using my link. 🙂
What is a niche in dropshipping?
A niche is a segment of the market that you focus on. When dropshipping, you will need to choose product niches that fit within a certain target market segment so that you can build a brand and an audience around it.
For example, you might decide to focus on selling eco-friendly home goods or pet supplies.
Why is choosing the right niche important for product selection?
There are two main reasons why choosing the right niche is important for dropshippers. First, it’s important to choose a niche that you’re passionate about. This will make it much easier to stick with it when things get tough (and they will at some point).
Second, you need to choose a niche with low competition and high search volume. This will give you a better chance of ranking in Google and other search engines, and it will make it easier to build an audience from scratch.
Your niche will also affect what kinds of niche products you’re going to be selling in your online store. If you want to focus on eco-friendly home goods, then you might sell items like bamboo toothbrushes or sustainable cleaning products.
On the other hand, if you want to focus on pet supplies, then you might sell items like dog beds or cat toys.
Now that we’ve covered the basics, let’s get into the worst dropshipping niches to avoid in 2022.
What are the 11 worst dropshipping niches to avoid in 2022?
Replica or counterfeit items
This is one of the worst dropshipping niches to get into for several reasons. First, it’s illegal to sell replicas or counterfeit items of branded products in many countries. This means that you could be at risk of legal action if you’re caught selling these products.
Second, even if it’s legal to sell replicas in your country, there’s a good chance that the products will be seized by customs when they’re shipped to other countries. This could lead to angry customers and bad reviews for your business.
Additionally, there's always the risk that the dropshipping products you're selling are of poor product quality, which will reflect poorly on your business.
The most common way that people find out about counterfeit items is when they experience problems with their purchases. For example, they might notice that the packaging doesn't match what they expected, or that it looks different from the picture shown on the dropshipping store's website.
If they decide to return the item, they'll probably be told that there is no refund available because the item is fake.
If you're selling counterfeit products, you won't make much money. You'll lose potential sales and customers will become frustrated with your site. Selling replicas or counterfeit items can damage your reputation and make it difficult to build a successful brand.
Copyrighted products or items with trademark infringement
If you are selling something online, make sure that what you are offering isn't covered under copyright laws or trademarks. You could find yourself facing legal action if someone believes that you've infringed upon their intellectual property rights.
Don't advertise them on Facebook. Your ads might get blocked. You might even get your account shut down if you're caught selling these types of products.
It's just not worth the risk to sell copyrighted products or items with trademark infringement. There are plenty of other niches to choose from that don't come with these risks.
If you want to sell a product, don't copy other brands' designs. Find your own unique angle.
Clothing and fashion
Clothing is a broad category which makes it hard to succeed for dropshippers. You need to understand what you sell and how it fits into the market. If you don't know what you're selling, you won't know what customers want.
This is also a highly competitive niche with low margins. this is one of the most competitive industries out there, with new brands popping up all the time. It's also a low-margin business, which means that you'll need to sell a lot of products to make any significant profit.
Additionally, clothing is a seasonal business, which means that your sales will fluctuate throughout the year. You'll need to be prepared for slow periods and have enough capital to tide you over until things pick back up.
Finally, returns are common in the clothing industry, which can be costly and time-consuming to deal with. For all these reasons, we recommend avoiding this niche if you're just getting started with dropshipping.
Shoes are another difficult niche to dropship due to the high competition and low margins. You'll need to be able to stand out from other shoe retailers to succeed.
Secondly, the shipping costs for shoes are relatively high. This is because they’re bulky and often have to be shipped internationally. This further eats into your profits.
Finally, returns are common in the shoe industry, which can be costly and time-consuming to deal with.
Health-related products such as health supplements
There are plenty of things that can go wrong when it comes to health niche. If you're selling supplements, you could sell something that causes harm if you are unsure of the ingredients.
Additionally, there are strict regulations in place for health-related products. Many health niche products need approval from regulatory bodies before they can be sold.
This means that you'll need to do your research to make sure that you're complying with all the rules and regulations. This approval process can be lengthy and expensive, which makes it difficult for new brands to get started in this niche.
Furthermore, people are skeptical of these products and this makes it hard to build trust with potential customers. Advertising on Facebook is restricted to pharmaceutical companies or medical professionals, so your advertising avenue is limited.
Cosmetics and skincare
Cosmetics is one of the most lucrative dropshipping niches online. There are countless beauty products you can sell, ranging from lipsticks to eye shadows to nail polish.
The beauty industry is highly competitive, though. Many people make a living just by selling makeup online. This includes both independent sellers and large companies such as Sephora, Ulta Beauty, and Amazon.
However, it's difficult to compete against those big brands because they have established customer bases and high-quality standards. You'll need to be able to stand out from other brands to succeed.
Additionally, this is a niche where people are very particular about what they use. They're often loyal to specific brands and it can be hard to convince them to try something new.
Since these products need to be applied to the skin, there may be some quality concerns on possible allergic reactions. This means that you'll need to have high-quality products and be able to provide customer service in case there are any issues.
Finally, returns are common in this industry, which can be costly and time-consuming to deal with.
Cheap jewelry is usually made out of plastic or glass material. When you look at the photos on the suppliers' online stores, they usually look great. But when the products arrive, they look and feel cheap and are often very fragile. This is because they are made out of low-quality materials.
Furthermore, they maybe made of materials that would cause allergy or discoloration on the skin. So not only are you getting low-quality products, but you're also risking your customers' health.
Customers won't be happy if they buy something like that so your return rate will be high and product reviews will be terrible.
Bulky and Heavy items such as Furniture that are too difficult to ship
Heavy or bulky items are not suitable for dropshipping. This is because the shipping costs are too high and it's not practical to ship these items internationally. You might lose money selling these items because of the high shipping cost.
Furniture is a great example of a heavy product that's difficult to ship. It's often bulky and heavy, which means that shipping costs are high. Additionally, furniture is easily damaged in transit, so there's a higher chance that your customers will receive damaged goods.
Another problem with furniture is that it's hard to return. If a customer is unhappy with their purchase, they'll have to go through the hassle of returning it, which is often difficult, time-consuming, and costly. Therefore, you risk getting negative reviews.
Dropshippers who want to be successful must focus on profit margins. Choose lightweight products for dropshipping.
Highly fragile and delicate items such as glassware that are easily broken or damaged
Fragile items are those that break easily or require extra care during shipment. They are often expensive, irreplaceable, and difficult to transport.
Shipping companies charge an insurance premium for shipping fragile goods because they are prone to damage. This is why you see “fragile” stickers on packages.
Glassware is an example of a category of product that's fragile and easily damaged. If it's not packaged properly, it could easily break in transit. This means that you'll need to invest in good packaging and shipping materials to ensure that the glassware arrives intact.
Additionally, glassware is often expensive to ship because of its weight. This can eat into your profits, making it difficult to make a profit on this type of product.
Finally, glassware is often returned due to breakage. This can be costly and time-consuming to deal with.
Electronics is one of the very competitive and saturated dropshipping niches where people want the latest gadgets. There are many big brands such as Samsung, LG, Sony, and Apple that dominate the market.
It's difficult to compete against these brands because they have established customer bases and high-quality standards. Therefore, you should avoid dropshipping general electronics.
Electronics products are tricky to sell. You must always test your products before selling them online. If you don't do enough research, you could end up buying something that doesn't work well or breaks down quickly.
Additionally, electronics are often returned due to defects. This can be costly and time-consuming to deal with. Thus, it's important to have a good returns policy in place.
In short, unless you're an expert in the electronics industry, it's best to avoid dropshipping this type of product.
Watches is another highly competitive and saturated dropshipping niche that should be avoided. You may be attracted by the many beautiful-looking cheap watches on Chinese dropshipping platforms like Aliexpress.
However, like electronics, they are not durable. They are thus often returned due to defects and breakage.
It's important to note that there are many counterfeit watches on the market. If you're not an expert in watches, it's easy to mistakenly sell a fake watch. This could damage your reputation and cost you money in the long run.
Why are these niches bad for business?
The worst dropshipping niches are those with products that are difficult to ship, have high shipping costs, are easily damaged, or are counterfeit. These dropshipping products are often returned due to defects or breakage, which can be costly and time-consuming to deal with.
Additionally, these saturated niches may not be profitable because they are rife with competition or lack demand. Be particularly careful with niches that have high returns but low margins. Therefore, it's best to avoid these niches if you want to be successful in dropshipping.
What other factors should be considered when choosing a niche for dropshipping?
When choosing a niche for dropshipping, it's important to consider the following factors:
– The popularity of the niche
– The profitability of the niche
– The margins and profitability of the products in the niche
– The demand for the niche
– The competition in the niche
– Your ability to source high-quality products
– Your understanding of the industry and trends
– Your own expertise and interest in the niche
By taking all these factors into account, you can choose profitable dropshipping niches that is less likely to be oversaturated, has high margins, and is of interest to you. This will give you a better chance of success in dropshipping.
Avoid these worst dropshipping niches if you want to be successful in 2022! These niches are either in saturated market, have low margins, or are difficult to ship. Choose a niche that is less competitive and more profitable to increase your chances of success.
Want to learn more about dropshipping? Check out my earlier post: How to Make Money from Dropshipping in 2022: A Comprehensive Guide
Do you have any questions about choosing a niche for dropshipping? Let us know in the comments below! Happy dropshipping! 🙂