Handpicked by Anton Kraly, 2020's top 10 dropshipping niches are here!
In this video, Anton shares the 10 best products to dropship in 2020. Watch to learn why we’re focusing on custom product niches and how you can compete with Amazon.
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Hey, what's up everybody? Anton Kraly here from eCommerce Lifestyle and welcome back to the podcast. In today's episode, we're going to be covering a topic that is definitely a fan favorite, and that is the top 10 niches for the new year, specifically the top 10 niches for drop shipping, going into 2020.
Now, before we get into these niches, I should let you know that if you get value from it, if you like this type of content, I definitely recommend you check the description and look for the link that's going to take you to DropShipLifestyle.com/Top10Niches.
Because on that page on my blog, I share the top 10 niches going all the way back since 2015, so you'll actually get 16 niches total that are all amazing for drop shipping using the Drop Ship Lifestyle business model.
Now before we dive into these top 10, I also want to make a note and let you know that while all of these are great and you definitely could choose all of them, the real reason that I share these lists, the top 10 lists, are to get you thinking in the right direction.
So, again, while you could just choose one of these, what I want you to do is really think about why I choose each of them. And then see if there's anything that this sparks in your own minds that might make a great niche, maybe something you already had on a list, maybe something that just pops up because it fits into my thought process here.
And maybe that's going to be the niche that you use to have an amazing year in 2020 and beyond, and build a real business off of. So, with that being said, guys, let's get into today's episode of eCommerce Lifestyle.
So in 2020, we're focusing on what I call custom product niches. And what this means is products that when the customer buys from you, they're likely going to have to make some decisions. So, let's talk about why custom products, because you might be thinking like, "Well, shouldn't we just make it as easy as possible on the customer?"
And typically that's true, but if you've been following anything I've been talking about recently and the future of eCommerce and the future of drop shipping, remember what we're focused on here now in our business is taking the people, the human element of the business, and putting that towards relationships. Whereas everything else operational that can be repeated is going towards automation.
Now, if you don't know about that yet, you want to learn more, definitely go to DropShipWebinar.com and you can learn more about the future of eCommerce and drop shipping. Again, that's DropShipWebinar.com. But for now, let me just give you a quick intro to why we would do these custom products now with the benefits and how it's going to help us actually have more success as we move into the future.
So, why custom products? First off, there's going to be less competition. And there's no doubt about it, people, when they're starting online businesses, they want to do things as easy as possible.
So, if the average person stumbles upon these niches that I'm about to share with you, they might think, "You know what? There's extra work involved to set up how the customer's going to order from us.
There are some more steps here. Eh, I'm going to go to something that doesn't require all this because it's easier." And because people think that way, there's less people selling the things that I'm about to show you and there's more opportunity, because if you're willing to do what other people won't, you can step in to this industry or any of these industries and start well from day one.
Another reason we're focused on custom products now is because in this business, with custom products, relationships matter. Again, what we're focused on in the future of drop shipping is automating everything operationally that could be automated and putting humans towards relationships.
So we have the time, we have the resources. And so do you, and this is another way that you could step into one of these and do what other people aren't.
So, another obvious one here is high price points. And when I say high price points, I mean higher than we even usually go for. Right now, our average order values are around a thousand dollars. With these niches, the average price points are typically much, much higher, some even $10,000-plus.
The fourth point here, why custom products, is because there's also high profits. So yes, there might be a little bit more legwork involved when you're setting up your store. But once you do it, you'll be able to profit more from every single item you sell.
Now, let's talk about this whole relationship thing a little bit too, and the whole competition thing. Because when I did my last webinar, I surveyed everybody that attended or registered before they attended. And I said, what questions do you have for me? And a big thing that came up over and over and over again is, how can I compete with Amazon?
So, we really don't have to. And that's the beauty of this, because we're not trying to be the next Amazon. We're focused on marketing and products and everything a whole different way than they do it. But what I did to make this simple is put together a comparison chart. So if you're watching the video version of this podcast, you'll be able to see it. If you're listening, I'll just walk you through it.
So, what I did is make a chart that has three columns. The first column has reasons for why people buy from online stores. And then I have a column that shows Amazon and a column that shows Your Store.com. So we want to see what we can actually match that Amazon does.
And then we want to see what we can do differently or better that Amazon doesn't do or can't do. So, the first reason that people would buy from Amazon, kind of without even thinking about it, is because they offer fast shipping.
But with the Drop Ship Lifestyle model, with the suppliers you work with, and that includes for all of these niches I'm about to show you, you can also offer free shipping and fast shipping because you're working with domestic suppliers that get items out as soon as possible and get them in the customer's hands as soon as possible.
Now, another reason that people would buy from Amazon is because they typically have the best price. But because you're using the Drop Ship Lifestyle business model here, and you're working with suppliers that you're authorized to sell for, you get to sell for the same prices as Amazon or anybody else, because you're selling at MAP, minimum advertised price.
Another reason people buy from Amazon is the trust factor because they've been around. People know Amazon. And with what I show you in the drop ship blueprint, you can't have the same amount of trust as Amazon from day one, but there's definitely things you can do on your website to show credibility. Again, this is a big part of where relationships come in, but that can build trust with customers and have them comfortable taking out their credit card and spending $10,000-plus with you.
Another reason people might buy from Amazon is because they do have a generous return policy, but their return policy is probably what yours is going to be, because every supplier you get approved to sell with is going to give you the same terms that they give everybody else they work with. So if it's a 30-day return policy for them, it's likely going to be for you as well.
But this is where things get interesting, right? This is where people also make decisions to buy online and different decisions that drive them to buy from certain sources. And this is where we can start to pull away from sites like Amazon.
So, a big one is expertise, product expertise, and when you're selling these super expensive custom items, guess what? Again, customers have to make decisions and if you're there either via content or live chat or the phone to help them make those decisions and come at it through a lens of being the product expert, Amazon's not going to do that, so you can win there.
Another thing is customer service. And while Amazon can be said to have good customer service when it comes to returns, they have terrible customer service when it comes to calling them to try to get help with anything. I've had to deal with this before because my account, it was temporarily locked because I had an employee login.
So I had to call them and it sounded like I was speaking to a person in the middle of a football stadium surrounded by 100,000 other people on the phone with other customers, and it was just a mess. So, with our stores, we can offer much better service than that.
Another big thing that we can do with these niches I'm about to show you that Amazon doesn't is offer special offers. So because these products are customizable, we can do different things like product bundling, different things like free bonus gifts, things that actually take some thought process to create. But things like generic run-of-the-mill stores that just list everything like Amazon will not do.
Another big thing that we can do is content marketing. Because we're selling very specific types of products within niches, we can create some very unique content that appeals to the ideal buyer for what it is we're selling. And that will get people to find us and get people to trust us more.
The last one is relationship. So people buy from Amazon, not because of the relationship they have with Amazon and because how they feel about Amazon as a company, but because they can go there and just click a couple buttons and get basic products pretty fast.
But with what we're doing, we're going to sell a very specific type of product to a very specific customer. And through our content, our offers, our expertise, we're going to be able to really build relationships with these customers.
So they'll spend a lot of money on our websites, they'll refer people in their trade or in their business, and they will keep coming back for more. So, with that being said, guys, let's get into the niches.
So the first niche is workbenches. And you might be thinking like that sounds like a pretty basic product, right? It's basically a big table that somebody would put into a shop. And while that's true, people don't stop there. Remember, this is about custom products. And when people buy something like that base-level bench, they add onto it because they have to build it into what they want.
This is where you come in, to guide them through this process, either via content, via phone, via live chat, via product options on your website. But you allow them to turn that workbench into what they want. So this can include something like shelving that goes behind it. This can include something like a power strip that's attached on top, or pre-drilled holes so they can use specific types of tools with it. This could be the shelving that goes underneath it. This could be things like different lockboxes, so they can keep their tools secure. This can be trays so they can keep all their screws or mechanical parts or whatever it is they use with everything else.
So the way these things work, just to give you a clear example, with the first one, you start with that base product, but then you allow the customer to have that experience, to build it into what they want. So when I say custom products, I don't just mean start with nothing and have a form where somebody fills it out saying, "I think I want a table that's four feet big." No, you don't do that. You show them the base products available from your suppliers, but then you take them through the process of allowing them to build it out into whatever it may become.
And the beauty of this is, most of the stores that are doing things like this currently, they don't allow people to easily build what they want from that base level product. What they do is have a button on their website that says something like Request A Quote, where you have to actually reach out and go back and forth.
But with what we do with Drop Ship Lifestyle and what I teach in the drop ship blueprint, you can easily take a product like this, deconstruct it from the biggest, most built-out version down to that base product, and then build an experience, again through content and product options, where the person on your website will be informed for what they might need, what they might not need, and they can easily build that custom product, buy it from you, because you did that extra work that other people weren't willing to, because you had a beautiful product builder on your website when your competitors had a Request A Quote button. That is how you can win with niches like this.
So let's get into the second one. And by the way, these are in no particular order, so any of them will work. But the second one that I have listed here are stone pavers. Now the reason this was top of mind, and the reason I was researching this, is because I recently bought a new house and we want to do pavers in the front of the house, right? But here's the thing.
You go online, you search for them, you can find all different types of bricks, you could find all different types of sizes, all different colors, all different material, all is well there. But how do you know what you actually need? How do you know how many pieces of different sizes? How do you know how you should measure and how to order and all the stuff that goes in, right? Besides just seeing a brick.
And I'll tell you, I haven't found any great websites that have simple to use tools on their product pages, that would give me a way to calculate what I would actually need to order and what would even look good with the home that I purchased. So this is a huge opportunity, if anybody wants to get into this. And I can already tell, I can hear you through the other end of the screen right here.
People being like, "That sounds like a lot of work. What am I going to ship? A thousand bricks across the country?" And the answer is, yeah, you probably will. And they'll probably ship on huge pallets and it'll probably be expensive to ship, but you know what? Your average order value is probably going to be $5,000 for big luxury houses.
So these things are worth doing. Again, you're taking a simple base product and you're building an experience so that the customer can custom order it to get what they want. And your job isn't just to say, "Hey, I have 10 types of bricks, order as many as you want." Your job is to say, "Hey, I have 10 types of bricks. Here's how you measure your home, here's what works best in different climates.
Here's how many square pieces you would need and round pieces" and whatever it may be, right? Your job is to build that experience, and then to be there with that expert level support once customers start coming in. So if they have questions, you can guide them and be the person and be the company that helps them make that decision because then you'll be the one they trust. You will be the one that they spend the real money with.
So moving right along. The next niche is CNC machines and tables. Again, I'm moving into a new warehouse. We actually move in in a few days. And one of the things I wanted to buy, kind of just to honestly have some fun with, is a CNC machine and a table, so we can do some custom printed metal signs for the office and some cool stuff for our customers as well, and maybe even another business.
But I've been looking at these things online. And I'll tell you, the experience that I had is websites that have a bunch of photos and not much text and not much helpful information. They basically say, "Hey, click here and request a quote." And you know what? I really don't want to do that. I want to be able to go to a website, I want to be able to look around to learn what I need to learn, build what I want to build, and order it and get it delivered.
So, this is something that I definitely see opportunity in. And what you'd be doing here is taking something, again, like a base-level product, like a CNC table, and then maybe the product, the custom product you're allowing the customer to build out on your site, is adding on different options or swapping out different parts.
Maybe they want a water table, if they're doing plasma cutting. And maybe you're selling them the actual plasma cutter, and you're giving them a few different options at different vaults because you could tell them, "Hey, if you're going to cut this type of metal, you should get this one with it. If you're going to cut this thickness of metal, you might want this one." So you're guiding them through that experience, allowing them to customize it.
And even another option I saw is a laptop arm so people could have the software running and just have their computer docked up on it. But the point is, what I've been looking at online if I wanted to do this, it's not a simple process.
So, you could be the one that makes this a simple process that allows customers to get the information they need on your store, that allows them to then build out this order, place the order with you. Again, spend 10, $15,000, maybe even more, because you're the one that gave them the option, that gave them the information. You're the one that they will trust. You're the one that they will have the relationship with.
Okay, next niche, home theater seating. You might think that sounds super basic, super saturated. Well, here's the good thing about it, right? I'm not just talking about getting some recliners and saying, "Hey everybody, here's our recliners."
I'm talking about letting people customize things like nobody else. Because with this niche, I've seen some of the supplier CSV files before. They give you so many different possible options that you can offer to your customers. And because people have to make their product pages and figure out a way to have all these options listed, a lot of people don't offer everything they could.
So if you want to be the company that offers everything, you have an opportunity here. Make it easy on the customers to find what they want when they're on Google. Make it easy for them to customize it on your website.
Some possible options you could have could be different logos for sports teams. So, they have a partnership. One of these companies with the NFL, if I wanted to order, you know I'm a Jets fan, we just won three in a row but we still stink. So, probably hear about that in the comments. But if I wanted to order custom theater seats with Jets logos on them, I should be able to do that.
If I wanted to swap out the leather to a green dyed leather, I should be able to do that. If I wanted to make sure they have cup holders, I should be able to do that. And the suppliers that you'd work with, if you were in this niche, give you all of those options. But as the business owner, it's your job to make that buying experience smooth. And that is where the custom, the product options come into play with this niche. Again, if you're willing to do the work, make it easy on the customer and educate them as to what's available to them, you can win. You can do very well with this niche in 2020.
Moving right along, the next one is outdoor kitchens. Something else that's top of mind because we're building an outdoor kitchen. And one of the first things I started looking into was the thing that goes under the grill. I don't even know what it's called.
The thing that you put the grill top on and that you could put plates underneath, you could store things underneath, but that main unit, right? So, I was looking around for those. And then what I noticed is, well, if I get that, I should probably build out a whole section around it, right? I should probably get a sink and a refrigerator and I should probably get some kind of light that attaches to it and all these things.
But what I found online again is that most sites have the individual parts that make up a whole outdoor kitchen. But there wasn't an easy way for me to see like, okay, if I want to add a fridge, a light pole, a sink. If I wanted to build that out, can I just do it on a product page? How big is it? What type of connections do I need to make sure I can easily get it set up in my yard?
And those are the types of things that you would do as the business owner. Make it easy on the buyer so that they'll choose you. And instead of just buying something to put their grill top on, they'll end up spending thousands and thousands of dollars more to buy a complete system for their outdoor kitchen.
Now the next niche is crown molding. So obviously I just, again, I'm in a home, we're putting different moldings in, or we're at least considering it. I don't know, I'm still not sure how much work we're going to do. But looking at it, right? And this, just like with the paver example I gave you earlier, companies list these online, but they sell them like, "Do you want a six-foot piece? Do you want a three-foot piece?"
They have different styles and patterns, but the way that you would want to do this if you were to sell different types of molding for homes, is make it extremely simple. You can get some type of calculator built on your product pages that you could pay somebody on Upwork not much money at all, and have it so that a future customer can go to your website, they can enter the dimensions of their room, and then you'd be able to say off of that, "Hey, we recommend a hundred feet of this molding. We also recommend you get this one for the doorframe and this one along the perimeter of the floor."
So, there's other ways you can take a product that's super basic and build it into something that when the customer orders it, they're not just going to go to your website and think, "Okay, how many six-foot pieces of molding do I need?"
Instead, they're going to easily be able to use your website to know exactly how much they need and to see what else you recommend that would go along with it, to build out their entire room. Again, allow content to do the selling for you. That's the ideal way to do this, but put in that work so you can help customers customize products, and really get what they want.
Next niche, this is something that I'm thinking about right now because like I mentioned, we're about to move in to a new office. Our new office is a flex space, so we have half of it as a warehouse. And there's not any shelving in there.
So I need shelving for the warehouse. At first, I was going online and I was looking at heavy duty racks and whatnot, and that's good, again, but I really don't know how many racks I need. I don't know how many I should order. I don't know what works together. I don't know the recommended heights, I don't know if they all connect, or if I should buy things individually and try to piece it together. So, I'm trying to find it.
I still haven't found, maybe you can build one, a website that shows people how to take maybe a diagram or the dimensions of the space they have in their warehouse and turn that into product suggestions for what type of shelving they should buy, how much, what works best together, and allow people to customize it.
Again, instead of having me as the customer have to measure and think, "Okay, I'm going to buy four of these racks." Instead, I can just get the website to recommend to me, "Okay, for this space, you actually want six of whatever this product is called from this supplier and this is how they snap on together and they all work in one continuous system." Whatever that may be. It varies niche to niche obviously, but your job as the retailer is to figure out those questions that potential buyers like me have, create the answers, put it on your website.
People will choose you because you're making their lives easier. Again, the customers are going to have to make decisions, and the more you can guide them through those decisions, the more they will choose you.
So let's get into the next niche here. And that is closet organization systems. So, back to top of mind, right? In this new house, my wife didn't like the closet, so we said, "Okay, let's redo the closet." And you can go online, you can look at all these different systems. But what a lot of websites do is take the different parts that you can get and they have them all on different product pages.
So, if I wanted something that has four shelves and some hangers, I could see that. But then what if I wanted a shoe rack as well that matched it, right? The way that I've seen it traditionally is I have to go to a different product page. I have to look for other products from the supplier. I have to see if it matches the height. I have to see if the color is exactly the same, I have to add it to the cart. And it's just not smooth.
So, what you should do if you want to sell closet organization systems is make the experience one thing where the customer goes into the product page because they searched for brands name, product numbers, closet organizer. And then once they're on that product page on your website, allow them to build out exactly what they want. Bring that average order value from maybe a thousand dollars to $5,000, and get that sale because you made their life easier.
So, matching that, we're going to go to the next one, which is garage organization systems. So, I've never had a home before. This is my first garage. And I'm like, okay, I don't want this thing to become a mess in a month.
So let's get some things that we can store all of our garage items in. So I went online, I was looking at things like different lockers that we can get. And then what I found were some of these complete kits where you can get a whole wall of storage, which is great, but again, do I need a whole wall of storage? How much fits in my space?
What's recommended? How can I maybe take off some of the top shelves if I don't need them? So, what I saw is I could either buy this whole thing, or I can find the individual products on the website and try to add them to the cart one by one. That's not an ideal experience.
So if you wanted to take a niche like this, allow your customers to go to one product page, and build out whatever system it is for whatever supplier it is. That is the way to sell in these custom product niches. You're going to have people find your website being the easiest to use, which means more than less will order from you. Your competition will get less sales because customers want ease of use.
Now, the final niche for this year is billiard tables. Something that, again, could be super basic. You want a pool table? Okay, here's your pool table. But people that buy these extremely high-end ones, $7,000, $8,000-plus, they want these things to match their game rooms, their media rooms, their entertainment rooms, or parts of their homes.
So take a product that would just be a pool table, work with your suppliers to see what other finishes that could be offered in, offer different color felt, offer different patterns, offer different types of wood finishes, offer different types of steels.
See if your suppliers can do custom prints on the actual felts and do things like have sports teams logos there, or even family names or family crests printed there. Yeah, it'll take the customer a little bit longer to get it, but they're going to be much more happy because they can get exactly what they want, which is the reason they would rather buy it from you than spend $7,000 on another website.
So, custom products, guys, that's the name of the game. Remember, I'm not talking about starting from scratch. I should also mention, I'm not saying that if some of the suppliers in your niche don't offer all this customization, that you should not work with them.
I still think you should work with every supplier in your future niche. But I think a big focus that you should put your time into is seeing what can be customized, and then taking the time. Time is key here. Take the time to know what customers want. Build your website and your user experience to make it as easy as possible for that customer, so when they do find you, they have no reason to even consider buying somewhere else.
So I really hope you found that useful. I hope you have some great ideas of your own. If you do and you're a member of Drop Ship Lifestyle, what I want you to do is go to the members area and go into the drop ship blueprint. When you're in there, under the sidebar, you're going to see a button that says, "Get your niche verified."
I want you to come in there and click that button and submit your niche idea. When you do that, it's going to come through to the team. Then we can validate it for you and make sure that it fits all the criteria from the program as well, make sure you have a winner to build out with your new store.
Now, if you're listening to this and you're not part of Drop Ship Lifestyle yet, be sure to go to DropShipWebinar.com.
When you go there, you can register for a free training that's three hours long, where I get deep into how we're building businesses for the future, things that are future-proofed, that aren't going to just be around for 2020, but that are going to be around and be growing for the next 5, 10 years. That is the goal. That is what I work towards every single day.
So if you want to learn more about that, go to DropShipWebinar.com. I'll also as a bonus, give you a free list of 237 niches over there. So, thanks again, everybody. Hope you got value. If you did, definitely let me know by leaving a review. And I will talk to you on the next episode of the podcast. See ya.