Dropshipping Niches hero
by AMZScout T.posted on 13.05.2025

The Best Dropshipping Niches in 2025

Starting a dropshipping business is easy thanks to its low entry barrier, but success largely depends on the products you choose to sell. With thousands of options available, finding the right ones can feel overwhelming, especially for beginners. The key is to focus on niches that boast good profit margins and strike a balance between demand and competition.

In this article, we’ll guide you through the process of finding profitable dropshipping niches and share 10 examples of the best ones.

How to Find Profitable Niches for Dropshipping

Finding a profitable niche for dropshipping starts with thorough market analysis. While the process may vary depending on your goals and experience, these universal steps will help guide you in the right direction:

Step 1: Gather Potential Niche Ideas

Start by deciding what kind of products you want to sell. Here are a few reliable sources to help you generate niche ideas:

  • Keyword tools: Use Google Trends to spot rising interest across the web. For platform-specific insights (like Amazon), you can utilize tools like the AMZScout Keyword Search to see what types of products shoppers are actively searching for.

    finding keywords for amazon ads with amzscout keyword search
    image
    close

  • Social media: Platforms like TikTok and Instagram are full of viral products—check hashtags, likes, and comments to spot what’s trending.

  • Bestseller lists: Browse top-selling items on sites like Amazon and Walmart to see what’s already in high demand.

  • Forums: Explore Reddit or Quora to see what people are recommending, complaining about, or looking for solutions to.

Make a list of the ideas that resonate with you. In the next step, we’ll review how you can evaluate and narrow down your choices.

Keyword Search Banner

Discover new keywords to improve your listing and get more customers with AMZScout Keyword Search

TRY FOR FREE

Discover new keywords to improve your listing with AMZScout Keyword Search

TRY FOR FREE

Step 2: Evaluate the Niche Suitability for Dropshipping

Now that you’ve made a list of potential niches, it’s time to filter out those that may lead to more problems than profit. A good dropshipping niche isn’t just one that’s popular—it must also include items that are practical to sell without the need for inventory or hands-on handling. Use the following criteria to assess whether a product idea is a good fit:

  • Lightweight and compact: Smaller items are cheaper to ship and less prone to damage, which helps you keep costs low.

  • Durable and low-risk: Avoid fragile products (like glassware) that break easily or need special packaging—they lead to returns, refunds, and unhappy customers.

  • Low return rate: Products like clothing with sizing issues or items that can be disappointing in-person may be popular but can also eat into your profits due to high return volume.

  • No legal or safety complications: Stay away from niches that require certifications (like supplements) or face import restrictions. These products can trigger account suspensions or customs issues.

By filtering your niche ideas using these criteria, you'll be left with dropshipping-friendly options that are not only in demand but also easier to manage while you scale your profits.

Step 3: Evaluate the Competition

Dropshipping is a highly competitive field—not only will you be competing with other dropshippers, but also with sellers using wholesale, online arbitrage, or other models. That’s why it's crucial to assess how saturated a niche is and whether the competition is manageable.

To gauge the level of competition, focus on the following key indicators:

  • Total listings: If you’re selling on a marketplace like Amazon, take note of the total number of search results for a niche-specific term. If the number is below 1,000, that usually signals lower saturation and a greater chance to stand out.

  • The number of active stores in the niche: See how many online stores (Shopify, etc.) are actively selling within the niche. Just Google the product + "buy" and check how many unique stores show up on the first few pages. A high number of similar stores usually means tough competition.

  • Supplier popularity: When evaluating suppliers, ask how many other dropshippers for whom they supply products. If your niche products are being sold by hundreds of stores, it will be harder to differentiate your business (unless you bundle or customize your offer).

By analyzing the competition early, you’ll avoid entering oversaturated niches and increase your chances of success with a product that still has room to grow.

Step 4: Check Customer Reviews

Customer reviews are a goldmine for determining whether a niche is truly profitable and where the best opportunities lie. Repeated complaints across multiple listings can signal unmet needs or product flaws, giving you a chance to offer better alternatives.

On the flip side, positive reviews highlight the features customers love, which you can emphasize in your marketing to increase conversions. Analyzing both strengths and weaknesses helps you position your product more effectively and make smarter sourcing decisions.

While a niche might seem profitable overall, you still need to evaluate each product individually to decide whether it’s worth importing to your store or better to avoid. This helps you focus your advertising budget on the right items so you can make smart investments and avoid wasting time and effort on products that won’t deliver results.

How to Identify the Best Products for Dropshipping

Even within a profitable niche, not every product will sell well. That’s why it’s important to assess key metrics such as demand, competition, profit margin, and sales potential.

Since most platforms don’t publicly share detailed product data, Amazon is often used as the basis for research due to its status as an ecommerce leader and the availability of specialized tools (like the AMZScout Dropshipping, Arbitrage, and Wholesale Extension).

Here’s step-by-step guide to use this tool to validate products:

1. Install the extension. Sign up with your email address to activate the free trial.

Install Amazon Dropshipping, Arbitrage and Wholesale
image
close

2. Search for a product. Enter a product name into Amazon’s search bar and open the product page to begin your analysis.

3. Check for any selling restrictions. Marketplaces like Amazon often place specific restrictions on certain types of products. To avoid complications later, scroll down to the lower section of the extension window and review the following potential limitations—these will be clearly marked in red:

  • Gated category: Some product categories (especially brand-name goods) require Amazon’s approval to sell.

  • Private label: These are products that cannot be resold by non-brand owners.

  • HAZMAT status: Products like electronics with lithium batteries may require special certifications.

  • Brand restrictions: Look for the ™ symbol to verify if brand permission is needed.

    AMZScout dropshipping and online arbitrage extension
    image
    close

4. Assess the competition. At the top of the extension, review:

  • Number of sellers: More than 10 other sellers can indicate strong competition.

  • Amazon as a seller: If Amazon also sells the product, it’s usually best to avoid it.

5. Analyze Sales History. Use the Rank, Price, and Buy Box History feature to explore pricing and sales trends over time. This helps you spot seasonal shifts or identify the right pricing strategy.

AMZScout Dropshipping and Online Arbitrage extension price history
image
close

Note: The extension also provides the product’s estimated monthly sales. This information helps you gauge the demand to make informed decisions about which products to sell.

6. Estimate your potential profit. Use the built-in profit calculator in the FBM (Fulfilled by Merchant) tab:

  • Enter the cost of your product, shipping, platform fees, and any other expenses.

  • Aim for a profit margin of at least 20% to make the product worthwhile.

    OA calculator
    image
    close

By following these steps, you’ll be able to make informed decisions about which dropshipping products have the best chance of success. While Amazon data is used as the foundation for these insights, the same approach applies when evaluating products for other ecommerce platforms as well.

oa banner

Get 10-in-1 Amazon Toolbox for Dropshipping, Arbitrage, and Wholesale Sellers

TRY FOR FREE

Get 10-in-1 Amazon Toolbox for Dropshipping, Arbitrage, and Wholesale Sellers

TRY FOR FREE

The 10 Best Dropshipping Niches

While trends come and go, some product categories consistently perform well in the world of dropshipping. Below are 10 of these niches to inspire ideas for your online business:

1. Bags & Accessories

This is a consistently popular category, especially when it comes to fashion-focused dropshipping. These products are usually lightweight and easy to ship, helping reduce delivery costs. They also offer higher margins thanks to strong branding potential. Plus, they’re ideal for bundling, which can increase average order value and boost your overall sales.

Examples:

  • Crossbody bags

  • Wallets

  • Winter gloves

  • Belts

  • Key holders

According to AMZScout PRO AI, key holders generate nearly $31,000 in monthly revenue on Amazon, with over 2,800 sales/month.

2. Beauty Products

Sales of at-home skincare items are booming, and clean beauty is one of the top dropshipping niches today. For instance, Korean cosmetics and eco-friendly solutions attract trend-savvy customers who value quality and innovation. These items are also perfect for repeat purchases, helping you build a loyal customer base over time.

Examples:

  • Reusable makeup pads

  • Snail mucin creams

  • Eco face masks

  • Jade rollers

Jade rollers are currently in high demand on Amazon—AMZScout PRO AI estimates over 1,500 monthly sales and more than $17,000 in revenue.

  • Natural lip tints

3. Smart Pet Products

Pet owners are always looking for the best items for their furry companions—from food to clothing and tech gadgets. Dropshippers can benefit by offering niche products tailored to specific breeds or needs, helping to reduce competition. Pet supplies also carry high emotional value, which makes customers more willing to pay a premium for quality and convenience.

Examples:

  • GPS trackers

  • Automatic feeders

  • Pet cameras

  • Interactive toys

  • Anti-barking collars

Anti-barking collars generate over $160,000 in monthly revenue on Amazon and have a niche score of 7 according to AMZScout PRO AI, indicating high profitability, strong demand, and manageable competition.

4. Holiday Decorations

This niche is seasonal but extremely profitable, and sees sharp spikes in demand. Unique and themed decorations often go viral, making them great dropshipping products for short-term wins. You don’t need to worry about managing any inventory—your supplier handles that—but it’s also important to time your ads correctly to drive sales when demand is highest.

Examples:

  • Halloween lights

  • Christmas inflatables

  • Easter wreaths

  • Valentine’s garlands

  • Themed tableware

Themed tableware is in demand on Amazon—AMZScout PRO AI reports over 1,000 monthly sales and around $20,000 in profit. The niche offers high margins, medium competition, and is relatively new, making it a promising opportunity.

5. Baby Essentials

Parents are typically willing to invest in practical, time-saving items, making this category ideal for both everyday use and gifting. One of the most popular trends in this niche is on-demand personalization, which only a few dropshipping suppliers offer, giving you a chance to stand out with lower competition. Focus on high-quality products to encourage positive reviews and repeat customers.

Examples:

  • Silicone teethers

  • Portable bottle warmers

  • Baby-proofing kits

  • Diaper bags

  • Soft bibs

Soft bibs are among the best-selling kids’ products on Amazon—according to AMZScout, they see nearly 2,500 sales per month with a revenue of $34,500.

6. Space-Saving Home Products

Minimalistic apartment style and decor are currently trending, making space-saving home products essential for modern living. These products not only cater to growing demand but can often be sourced at competitive prices, allowing you to benefit from a healthy markup while offering high value to customers.

Examples:

  • Wall-mounted shelves

  • Under-bed organizers

According to AMZScout PRO AI data, under-bed organizers generate nearly $130,000 in monthly revenue with around 4,500 sales.

  • Foldable chairs

  • Modular storage bins

  • Compact laundry racks

7. Kitchen Utensils

Modern consumers love smart kitchen gadgets that make cooking faster and more efficient. Since these products are used daily, they ensure consistent sales throughout the year. Additionally, this niche experiences one of the lowest return rates, making it a good choice.

Examples:

  • Multi-use slicers

  • Collapsible colanders

  • Magnetic spice jars

Magnetic spice jars generate over $35,000 in monthly revenue on Amazon, with around 1,500 sales, according to AMZScout PRO AI estimates.

  • Non-stick baking mats

  • Reusable food wraps

8. Travel Essentials

As travel continues to rise in popularity, compact and multifunctional products that simplify packing and enhance comfort are in high demand. With many suppliers offering these types of items, you can easily find cost-effective subscription options to stock your store with popular, practical products.

Examples:

  • Packing cubes

Among travel essentials, packing cubes sell exceptionally well on Amazon—AMZScout PRO AI data shows over $140,000 in monthly revenue with more than 5,000 sales/month.

  • Travel slippers

  • Portable neck pillows

  • Travel toiletry kits

  • Collapsible water bottles

9. Fitness Apparel & Accessories

By combining fashion and function, fitness gear continues to dominate the list of most high ticket dropshipping niches. With the growing trend toward health and wellness, people are more willing to invest in products that enhance their well-being. This niche also offers the opportunity to bundle products, which increases your average order value while meeting a variety of customer needs.

Examples:

  • Resistance bands

  • Seamless leggings

  • Foam rollers

Foam rollers generate nearly $100,000 in monthly revenue on Amazon, with around 4,000 sales per month, according to AMZScout PRO AI.

  • Yoga mats

  • Sweatproof headbands

10. Electronics & Gadgets

Tech gadgets are constantly evolving, and consumers are always on the lookout for innovative solutions to improve their daily routines. However, it's also important to check for platform-specific restrictions, especially for products containing batteries, as many marketplaces have strict rules about selling and shipping these kinds of items.

Examples:

  • Mini projectors

Mini projectors show stable demand throughout the year on Amazon, averaging nearly 112 sales per day and generating over $90,000 in monthly revenue according to the AMZScout PRO AI.

  • Wireless chargers

  • Bluetooth earbuds

  • LED desk lamps

  • Phone camera lenses

When choosing a niche of products to dropship, make sure it aligns with your interests and skills—this will help you stay motivated, understand your audience better, and build a stronger store.

banner PRO AI

Find profitable products with the AMZScout PRO AI Extension

TRY FOR FREE

Find profitable products with the AMZScout PRO AI Extension

TRY FOR FREE

FAQs

How do I find a niche for dropshipping?

Finding the right niche starts with market research to spot products with high demand, low competition, and good profit potential. It helps to focus on something you’re familiar with, as your understanding of the market can give you an edge in terms of product selection and customer engagement. Alternatively, you can get ideas by exploring social media trends or using tools like AMZScout.

What niche is best for dropshipping?

There’s no one-size-fits-all answer, but niches like beauty, fashion, pet products, and kids’ items tend to perform well. To identify high-ticket opportunities, you can use tools like AMZScout to analyze the market and spot profitable products. It’s also important to check that specific items within the niche are in demand and that your supplier offers them in good quality, and with enough variety in sizes or quantities.

Can I make $10,000/month dropshipping?

Yes, many dropshippers start earning around $1,000 within their first couple of months, and some scale up to $10,000 over time. However, it takes time to build a customer base and gain momentum. Success depends on working with reliable suppliers, choosing in-demand products, and running ads effectively to drive consistent sales.

Is $500 enough to start dropshipping?

Yes, you can start dropshipping with $500 by choosing Amazon, where fees start at just $0.99/sale, meaning you don’t need to invest in technical setup. Many suppliers charge a subscription fee between $50 and $150, which helps you manage costs. You can also take advantage of a free trial of tools from AMZScout to research profitable products for your store and carefully plan your ad budget.

Conclusion

While dropshipping may seem easy to start out with, it’s also crucial to utilize the right strategy, beginning with product selection. Consider using the AMZScout toolkit to help you identify the best dropshipping niches and validate your product ideas. This allows you to minimize risks and increase your chances of success and growth.

AMZScout Amazon Seller's Bundle

Get All Tools You Need to Start Selling on Amazon with a Step-by-Step Course

TRY FOR FREE

Find your first product with a free AMZScout Trial!

Get AMZScout Now

Recommended for you

Post Preview Image

How to Find Winning Products for Dropshipping

Post Preview Image

How to Start Dropshipping on Amazon Step-by-Step

Post Preview Image

10 Best Dropshipping Products & Guide for How to Find Them

Post Preview Image

Best Items to Dropship on Amazon: 40 Dropshipping Products Ideas