​​​​Most Profitable Niches With Low Competition

We’ve sold in a variety of niches. By doing so, we know how to identify a profitable niche with low competition. 

We’ve also found that the actual product is more important than the niche.

In this article, we’ll look at 11 winning niches and why we’ve chosen them. We’ll also give you tips for dropshipping in that niche and product suggestions. 

Keep reading to find the right niche for you.

Let’s jump into it.

Key Takeaways

• The products within the niche are what will determine the profit rather than the niche itself.
• Niches with obstacles are usually less competitive. Some of these include supplements, coffee, and adult toys.
• The amount of competition is less important than the quality of the competition. Sometimes, there might be a high number of competitors, but you can beat them on price, product quality, or something else.
• Check out Dropship’s Competitor Research tool to find and analyze your competition.

Top 11 ​​​​Most Profitable Niches With Low Competition 

If you haven’t got time to read the whole article, here are the top 11 most profitable niches with low competition:

1. Wall Art - Best for Print-on-Demand
2. Pet - Best for Selling in the US
3. Supplements and Vitamins - Best for Experienced Sellers
4. Home Office - Best for New Sellers
5. Maternity and Pregnancy - Best for Selling on Amazon
6. Home Fitness and Sportswear
7. Sustainable, Eco-Friendly, and Vegan - Best for Selling in Europe
8. Adult Toys - Best for Sellers That Can Create a Brand
9. Coffee
10. Car Accessories
11. Jewelry - Best for Selling on Etsy

1. Wall Art - Best for Print-on-Demand

Wall art is the artwork used for decoration.

It can be graphics, drawings, paintings, quotes, or anything else that can be printed and put on the wall.

It’s an affordable and easy way to add personality, style, and expression to a space.

The global wall art market is expected to grow at a compound annual growth rate of 5.8% between 2024 and 2032 [1].

Print-on-demand companies make it easy to dropship wall art, making it a good option for beginners.

Product Recommendations

• Abstract shapes
• Quotes
• Collections of designs (so customers can purchase a set or trio of similar prints to display together)
• Drinks, food, and recipes

Tips for Dropshipping

• Look at current trends and styles for inspiration.
• You can work with freelancers to create unique designs for prints.
• Make sure you don’t infringe on anyone's intellectual property. This could be using logos, images, etc, that are owned by other companies, e.g., selling a Disney or Marvel poster.
• Print-on-demand companies allow you to upload your designs. They then print your wall art and fulfill your orders.

2. Pet - Best for Selling in the US

The US is a nation of pet lovers, with over 38% of households owning a dog and 25% owning a cat [2]. 

The market is also expected to grow at a compound annual growth rate of 5.1% between 2022 and 2030. 

Reports have suggested that this growth is due to people spending more to get the best care for their pets [3]. 

These factors suggest it could be a good niche with a huge number of potential customers that are willing to spend. 

Product Recommendations

• Small animal products, like beds, grooming tools, accessories, and toys for guinea pigs, rabbits, birds, etc.
• Puppy products, like whelping kits, reusable puppy pads, etc.
• Supplements for elderly pets
• Electronic cat toys 

Tips for Dropshipping

• The pet niche does have some competition. However, there are still plenty of sub-niches with less competition. Look for breed-specific products, age-related products, or pet products for small or unique pets.
• Checking the quality of products is essential. So, make sure to request samples from your suppliers.
• Create bundles of products that might be purchased together. This can help increase your cart value.
• Large and heavy products, like dog beds, crates, cat trees, pens, etc., are expensive to ship.

If you’re looking for a dropshipping supplier for your pet store, check out our article with all of the details.

3. Supplements and Vitamins - Best for Experienced Sellers

The increasing awareness and focus on health, preventive health care, and personalized nutrition are boosting the supplements and vitamins market. 

The market is expected to increase at a compound annual growth rate of 9% [4]. 

It can be a tricky niche to navigate due to the regulations you need to adhere to. This means many dropshippers avoid it. 

But this also means there is less competition, and the growth suggests it could be a good niche to sell in.

Product Recommendations

• All-in-one supplements
• Daily vitamins
• Hair and skin supplement mix
• Accessories like pill holders, protein shakers, etc
• Protein supplements
• Kids gummy vitamins

Tips for Dropshipping

• The supplement and vitamin market has lots of rules and regulations, so we wouldn’t recommend it for those new to selling online.
• Make sure your supplier is reliable, and the products you sell meet all the necessary requirements.
• You will need to check the advertising terms and conditions. Facebook has strict rules about health claims.
• If you’re selling health products, consider reaching out to health influencers for help promoting your products.

4. Home Office - Best for New Sellers

The pandemic reshaped the way we work. 

More people either work full-time from home or are able to work between home and the office.

The market is expected to grow annually at a 4.8% compound annual growth rate between 2023 and 2028 [5].

This increase in product sales and lifestyle changes suggest that home office products could be great for dropshipping.

Product Recommendations

• Desk organizer
• Keyboard and mouse sets in different colors and styles
• Wire organizer
• Stationary sets

Tips for Dropshipping

• Furniture can be prone to breaking in transit, which can be expensive to replace or refund. It’s also expensive to ship due to its size and weight. For these reasons, we would avoid large office products.
• For product inspiration, think about which products workers will use at home rather than in the office—for example, a laptop stand.
• Look for products with a dual purpose, as it could give you a larger market to sell to. For example, a stationery set is a home office product, but students might also buy it.
• We don't recommend selling tech as it often requires a warranty and to adhere to regulations. There is also high competition in the tech niche.

5. Maternity and Pregnancy Products - Best for Selling on Amazon

Pregnancy care product sales are expected to rise from 27.84 billion in 2021 to 43.05 billion by 2029 [6].

Studies show that there has been a shift towards at-home pregnancy solutions.

There is also more knowledge and awareness of safer pregnancy products. 

This market change and expected growth could help you create a profitable dropshipping store.

If you’re interested in selling pregnancy and baby products, we have an article on Dropshipping Baby Products. It includes tips and tricks to help you create a profitable dropshipping 

Product Recommendations

• Natural, organic, and home remedy-style products
• Stretch mark and firming cream
• Pregnancy pillow cases
• Maternity clothes
• Labour comb
• Maternity pads

Tips for Dropshipping

• Look at the advice and recommendations provided to expectant mothers in the location you sell. Different areas will provide different advice, influencing the products customers buy.
• Ensure you source your products from reliable suppliers and that all of the products you sell are pregnancy-safe.
• If you’re new to dropshipping, avoid selling any consumable products (like creams, etc) as they can be subject to regulations.
• There are tons of family influencers who you might be able to collaborate with to advertise your products.

6. Home Fitness and Sportswear

While we were all stuck at home, most of our favorite fitness classes moved online, and fitness YouTubers and influencers rose in popularity.

Even four years on, there is still a lot of demand for at-home workouts [7].

As well as working out at home, there is a growing trend of wearing fitness and sportswear day-to-day. 

The continued interest in home workouts and workout apparel could make this a high-demand and profitable niche.

Product Recommendations

• Running vests
• Yoga bands and mats
• Leggings, including flared 
• Workout shorts
• Exercise steps
• Under desk bike exerciser

Tips for Dropshipping

• Avoid large fitness equipment, like benches and treadmills, as they require a warranty and are expensive to ship.
• Look at products that aren’t seasonal. Many fitness products peak in January, with sales dropping off by March.
• Check Facebook ad guidelines, as there are rules against creating ads with certain health claims and promoting an ideal body type.

7. Sustainable, Vegan, and Eco-Friendly Products - Best for Selling in Europe

Although these three terms, sustainable, vegan, and eco-friendly, are all different, we’ve grouped them together as products often fall into multiple categories.

Sustainable products are created by considering the environment and society. Eco-friendly products are products that are not harmful to the environment, and vegan products are those that have caused no harm to animals in the making.

Data shows that consumers are considering the sustainability of a product before buying it [8].

Studies also showed that people in EU countries considered protecting the environment important to them [9].  

The awareness around sustainability and environmental impact could suggest it’s a good time to look at dropshipping in this niche.

Product Recommendations

• Beeswax wraps
• Reusable makeup remover pads
• Reusable water bottles and straws
• Reusable zip-loc bags

Tips for Dropshipping

• Look at whether the products you’re selling are really sustainable, eco-friendly, and vegan before advertising them as so. This could include the miles traveled, materials used, worker conditions, production method, etc.
• To label your products as ‘eco-friendly,’ ‘sustainable,’ and ‘vegan,’ you may need to meet specific requirements or acquire certifications. 

8. Adult Toys - Best for Sellers That Can Create a Brand

The sex toy market is expected to grow from 40.6 billion in 2023 to 80.7 billion in 2030. And studies have shown that around 82% of females in the US own a sex toy [10]. 

This could be due to the increased awareness of sexual well-being and body positivity [11]. 

The market is still considered taboo in many cultures. And there are barriers to dropshipping sex toys, such as advertising restrictions. 

The extra restrictions mean there is less competition. 

Low competition and a growing market suggest it could be a winning niche.

Product Recommendations

• Sex toys
• Lingerie
• Novelty and fantasy products

Tips for Dropshipping

• Adult toys can’t be advertised on Facebook. This can make it hard to get your brand in front of your customers. So, you may need to contact influencers and promote your products in other ways.
• There are suppliers, like DreamLove, that facilitate dropshipping. This makes the logistics of dropshipping adult toys easy.
• Ensuring customer privacy and safety is essential for the sex toy industry. The toys need to meet safety standards, and you might want to offer a generic branded box option for customers.

9. Coffee

Coffee is one of the most consumed beverages worldwide, and there is a growing demand for specialty coffees.

The market is expected to grow at a compound annual growth rate of 4.61% between 2023 and 2028 [12]. 

There is competition from big brands. But we think there is still an opportunity in the niche with specialty coffee blends and sustainable pod fillers.

Coffee can be intimidating to new sellers as there are more risks in selling consumables. 

The potential risks mean there is less competition from dropshippers. This and the growing demand suggest it could be a winning dropshipping niche.

Product Recommendations

• Specialty coffee
• Cold brew blends
• Matcha kits
• Decaf coffee
• Pods for popular machines
• Mugs, travel cups, coffee scoops, and other accessories

Tips for Dropshipping

• Tons of suppliers specialize in dropshipping coffee, such as Dripshpper.io, Aroma Ridge, and Supliful. These make it easy to source and fulfill your orders.
• If it’s coffee pods you’re selling, look at which machines are popular in the country you’re selling. For example, in the US, Keurig is incredibly popular. But if you’re expanding to Europe, the Keurig isn’t as popular (they’ve only recently started distributing to the UK). Instead, Nespresso and Tassimo are more popular.
• Consider creating a brand that sets your store apart from the big brands. This could be creating a specialty blend or selling unique products, like matcha, cold brew, etc.

10. Car Accessories

The car products market is expected to grow at a compound annual growth rate of 6.3% between 2026 and 2030 [13]. 

The car accessories niche includes all types of car-related products. These include products to improve comfort, safety, appearance, or convenience.  

These accessories are usually gadgets or trendy products that advertise well. 

The variety of products, increasing market, and effective advertising suggest it could be a winning niche.

Product Recommendations

• Car LED lights
• Cleaning putty
• Non-slip drinks inserts
• Car bin
• Car document holder
• Trunk organizer

Tips for Dropshipping

• We’ve seen trends of influencers cleaning, detailing, and accessorizing their cars with gadgets and other accessories. You could contact these influencers to see if they would be interested in promoting your products.
• If you’re selling car safety products, ensure they are thoroughly tested and have all the necessary certifications.
• Choose car products that are small and light as they are cheaper to ship.
• We recommend selling products that are universal to all cars rather than a specific make and model.

11. Jewelry - Best for Selling on Etsy

The jewelry market is expected to increase at a compound annual growth rate of 3.68% between 2023 and 2026. And 88% of sales in the jewelry niche are non-luxury [14].

There is a huge variety of products in the non-luxury jewelry market. This allows you to find products with less competition.

The increase in popularity and product variety suggests that the jewelry niche has a high potential for profit.

If you’re interested in selling jewelry, we have an article on Dropshipping Jewelry. It includes tips and tricks to help you create a profitable dropshipping business.

Product Recommendations

• Zodiac jewelry
• Stacking ring set
• Anxiety relief jewelry
• Jewelry making sets

Tips for Dropshipping

• Try to source quality dropshipping products, as poor-quality jewelry will often break, discolor, or turn your skin green. This can lead to poor reviews and a high return rate.
• Sell jewelry that doesn’t have specific sizes, like rings. Instead, choose products that are adjustable, like necklaces and bracelets.
• Find jewelry products that aren’t seasonal or holiday-focused, like Valentine's Day necklaces, as they can cause peaks and dips in your sales.

What Is a Profitable and Low Competition Niche?

A profitable and low-competition niche is exactly what it says. It’s a niche with products that generate profit without too much competition.

There are tons of niches and products with no competition. 

And there are tons of niches and products that are profitable.

However, finding a niche with both is the winning combination.

Analyzing a Niche - How Much Profit and Competition Should a Niche Have?

• Profit - We look for products that make at least 15% profit. But ideally, between 20% and 25%.

• Competition - Competition is a bit harder to analyze. Ideally, we want a niche or product with low competition. However, some competition is usually necessary. 

The competition proves that there is demand for the product. We can also learn from our competition by looking at the product reviews, sales, site, ads, and listing.

There are two things that we strictly avoid. 

1. Saturated Markets - Niches with tons of sellers selling the same product is a big no-no for us. For example, Fidget Spinners. They were hugely successful; tons of sellers started selling them, and now Amazon alone has over 2000 sellers that sell the same product. For a product like this, it would be difficult to make ourselves stand out or create a superior product at a lower cost.

2. Established Companies - We can’t compete with some of the big corporations, like Nike or Apple. The consumer trusts these brands, making it hard for us to start selling competing products. 

‍Each seller will have their own idea of how much profit a product needs to make and how much competition it should have. 

Your launching budget, experience, and long-term goals might also affect this.

For example, if you have a high budget, you might be able to sell products in a more competitive niche as you can afford to pay for more ads. 

Your long-term goal might also be to establish yourself as an authority in the niche. So, you might be happy to make a smaller profit as you’re spending more on things that will help you in the long run, like branding, packaging, site design, etc. 

How Do You Find Out How Much Competition and How Much Profit a Niche Makes?

Before we start searching for profitable niches with low competition, we need to know what we’re looking for.

Profit

Profit is the aim of the game. Each product we sell needs to generate profit. 

We need to estimate how much profit we’ll make per piece to ensure that the product is worth selling. 

As we said, we always look for products with at least a 15% profit margin. 

That means if we sell a product for $10, we get a $1.50 profit per sale. 

To find out how much profit we’ll likely make, follow these steps:

1. Work out how much you can list your product for. You can do this in a variety of ways, but the quickest way is to find the average price of those selling the same product. If you want tips on how to price your products, check out this article with all the details.

2. Open AliExpress and search for the product.

3. Contact suppliers of the product and ask for the cost of goods, any fees, and expected shipping costs.

4. Deduct the cost of goods, fees, and shipping from the product cost. 

This should tell you the expected profit per piece.

Let’s look at an easy example:

• Average selling price - $10
• Costs of goods - $6
• Expected fees - $1
• Shipping costs - $1.5
• Total product cost - $8.5

$10 minus $8.5 is $1.5

This gives you a 15% profit margin.

We have a numbers breakdown calculator that makes it super easy to calculate the profit margin for your products. 

Enter your selling price, expected order volume, cost of goods, shipping, fees, and cost per acquisition costs. The calculator will then show your profit margin, potential profit, and many other metrics.

Competition

Unlike profit, which is an easy equation, defining low competition is harder.

We’ve already looked at what to avoid - saturated markets and competing with big brands. 

But what should we be looking for? These are a few places we search to identify our competition. 

• Competitor Research Tool - Dropship has a Competitor Research tool that allows you to identify other stores that sell the same product. Simply enter your keyword into the search bar, and it will show all of the Shopify stores selling products using that keyword.

• Keywords and Advertising - You can look at the cost of keywords and see how competitive they are. Generally, the higher the cost per click, the more competitive a keyword is.

• Search Marketplaces - Look on sites like Amazon or eBay and find how many others are selling the same product.

• Use Google - Search the niche or product names and see how many results appear and how much competition there is.

Now we’ve found our competition, we need to work out if the competition is low enough.

But sometimes it isn’t the amount of competition, but the quality of the competition. 

This means that despite there being competition, you can beat it. This could be done in a few ways. 

• Selling Additional Products - Are there any products that could complement your main product? For example, a case, cleaning tool, informational guide, or anything else.

• High-Quality Products - Are your competitors getting poor reviews about the quality or functionality of the product? Look to sell a higher-quality version that meets your customer's expectations. 

• Creating a Better Listing - If a seller is getting sales with a poor listing, the likelihood is if you can create a better listing, you will generate more sales. Create clearer images, write better copy, and add more information to the title.

• Low Price - Everyone is looking for the best deal. If you can list your product for less than your competition, potential customers will choose to buy from you.

• Brand Identity - Building yourself as a recognized brand can help you gain loyal customers. Loyal customers will choose to buy from you rather than from your competition.

• Ads - If you have a large budget or uncover highly profitable keywords, you can get your brand in front of the right customers and generate more sales than your competition. 

How to Find Profitable Niches and Products with Low-Competition

If you want to find your own winning niche or product, these are a few of our favorite methods. 

Product Research Tool

A little bit of self-promotion here - We’re going to talk about Dropship’s Product Database tool.

The Product Database tool allows you to spy on Shopify stores. You can search for products and use the filters to narrow your search results and find winning products.

It will show the estimated sales and revenue, as well as ads, themes, product release dates, and much more.

Seeing real store information can help you make informed and data-driven decisions for your own store.

As well as Dropship, there are other research tools. Other tools will show different information and analyze different platforms. Some of our favorite alternative product research tools include:

• Koala Inspector - Like Dropship, Koala Inspector analyzes Shopify stores. You can spy on stores as you browse.
• Helium 10 - If you want to sell on Amazon, use Helium 10 to spy on Amazon seller’s stores. You can also use Helium 10 to help grow and manage your Amazon store.
• Dropship Spy - Instead of spying on other sellers, Dropship Spy releases a list of products they think have potential. You can search through the product list to find those that meet your criteria. 

Social Media

Instagram, TikTok, and Facebook are all great places to find product inspiration.

These are where your customers are. You can see what they’re interested in, sharing, and engaging with. This can help you identify profitable products. 

Our favorite ways to use social media to find profitable niches are the following:

• Hashtags - Search TikTok and Instagram for hashtags like AmazonFinds. TikTok and Instagram users create videos about products they buy on Amazon in the hopes of influencing others to buy them. These AmazonFinds are usually small and light gadget-type products, which are perfect for dropshipping. 

You can look through these products and find ones with high profit and low competition. 

• Facebook Groups - Look at groups on Facebook that are related to the niches you’re interested in. These groups can give you product ideas, and you can also ask the group members for feedback on your product ideas.

• Location Search - Sites like Instagram allow you to tag photos with the location they’re taken. You can look at areas where you want to sell your products. See which posts are gaining high engagement and get inspiration for profitable niches.

• Local Influencers - Search for influencers in the areas you want to sell and see which products they’re promoting on their pages. This can give you ideas for profitable products.

Marketplace Research

Use Amazon, Etsy, eBay, and AliExpress to find what people are buying. 

There are a few methods we use on these marketplaces. Some of the best ways are the following:

• Auto-Complete Search Bar - Enter a few letters in the search bar and look at the recommendations provided. You can analyze these suggestions to find profitable niches with low competition.

• Best-Selling Product List - Many marketplaces have lists of their best-selling products. We know these products already have demand, so you can look through the products to find ones with low competition.

We have an entire article on How to Do Product Research. It has tons of tips and tricks to help you find and identify winning products.

Frequently Asked Questions 

What Is the Most Profitable Product Niche? 

It’s more about the product than the niche. But some of our most profitable products have been in the fitness and pet niches.

What Is a High Demand and Low Competition Dropshipping Niche?

We’ve found that pet, home fitness, and adult toys are in high demand. However, the competition varies between products within the niche. There are plenty of products within the niches that have lower competition. 

We’ve found it’s usually products with the demand rather than niches. 

For example, we’ve launched two products in the same niche; one has been extremely profitable, and the other has flopped. 

Final Thoughts

Adult toys, coffee, and jewelry are profitable niches we’ve found with low competition. 

You can use these niche suggestions, as well as the other information in the article, to help you find winning products for your own store. 

If you want to find out who you’re competing with, make sure to check out Dropship’s Competitor Research tool. It’s free to use with the 7-day trial.