Dropshipping is a popular business model for people looking to start or scale their ecommerce operations. While more competitive than ever before, dropshipping can still be a lucrative venture when done right.
While success in dropshipping involves multiple factors, the most impactful factor is the product itself. We’re going to cover all things dropshipping and give you ideas for winning products this year.
What is Dropshipping and How Does it Work?
Dropshipping is an ecommerce business model in which a seller (the “dropshipper”) markets an existing wholesale product at a strong markup via paid ads. Rather than managing the inventory and fulfillment themselves, the dropshipper sources the product from a supplier that manages the delivery to the end customer.
In short, it’s selling a product that you never touch.
A dropshipper first creates a brand and a website (typically using an ecommerce platform), then runs ads for their product, and finally, takes the customer through the whole checkout process. Behind the scenes, the supplier of the product automatically receives the order and ships it to the end customer.
The customer pays the dropshipper and the dropshipper pays the supplier. For more info on the model, check out our guide on dropshipping.
Why Should I Start Dropshipping?
There are several reasons why dropshipping is a great business to start.
There are no inventory headaches
Because you don’t physically handle the product you’re marketing, you don’t have to deal with the issues that typically arise in physical goods businesses. Warehousing, shipping, and handling all create large labor and resource expenses and dropshipping removes these from the dropshipper’s responsibility.
All the tools are easily available and affordable
Because dropshipping has matured as an industry, the tools are widely available. Shopify lets you make beautiful websites quickly, Oberlo connects your site with plenty of suppliers including AliExpress, and Google Analytics helps you easily track data. You don’t need to build anything from scratch.
On-demand ordering and negative cash conversion cycles
Cash is king, especially when selling physical products. Inventory and cash-flow management is one of the biggest hurdles to scaling an ecommerce business because manufacturers may require payment before you actually have the money available.
With dropshipping, you only send money out the door when you get a sale (i.e. you receive money). This is called a negative cash conversion cycle — essentially, your supplier is financing your business operations, which helps you reach larger scale.
Drawbacks of Dropshipping
It’s not all sunshine and rainbows, a few aspects make dropshipping difficult.
Highly competitive
Because the barrier to entry is so low, many people are starting dropshipping businesses. This means that competition is high and multiple people could be selling one product from the same supplier.
Trendy products
With dropshipping, you’re typically not aiming to create an actual brand with a long-lasting product range, but rather profit off of products that are currently in high demand. This means that once a product stops going viral on social media, the demand for your product could come to a halt. It’s also hard to find consistent winning marketing angles if you don’t have a lot of history and data surrounding your product.
Slow shipping & lower customer satisfaction
With most suppliers being based in China and overseas, shipping times can often be several weeks or more. Amazon Prime’s two-day shipping has trained consumers to expect everything fast. You need to clearly inform your customers of the expected delivery date so that they’re not disappointed when it doesn’t show up the day after they placed their order.
How to Find a Winning Product
As mentioned previously, success in dropshipping mostly comes down to your product. Have a great product but no one needs it? You won’t get many sales. Launch a winning ad campaign but have low margins? Your business won’t make enough money.
Product research is part science and part creativity. While there are many different tools, methods, and tricks to finding the best product to market, it’s best to keep it simple starting out.
The Amazon Best Sellers list will tell you what products are currently selling the most on Amazon. Google Trends can help you find what people are searching for and if demand is increasing or decreasing over time. And TikTok is a great place to look for current trends.
The next thing you’ll want to keep in mind is the economics of the product. Make sure that you’re able to sell a supplier’s product with a high markup. Remember that the cost of goods isn’t your only expense — running ads, branding, tech subscriptions, and more reduce your overall profit.
Finally, keep categories in mind. While not impossible, it’s difficult to sell more complex products like electronics and devices as they’re more likely to get damaged in shipping or stop working. Lean towards simple items in low-regulation categories such as apparel or home goods.
The 23 Best Products to Dropship in 2024
These ideas for winning products are great to start with.
1. Unique Swimwear
Summer is coming up which means that demand for swim clothes will skyrocket. Eye-catching patterns and fun designs will give people a reason to buy from your store versus well-known brands. Because many established brands are currently charging upwards of $100, there’s also the potential for high profit margins that will help you invest in branding and ads.
2. Stainless Steel Water Bottles
Brands like Stanley and Owala have seen viral — and consistent — success in the past few years. Selling a unique water bottle with interesting features or different colorways could be a way to stand out from the competition and capitalize on a product that has proven to have high demand.
3. Designer Sunglasses
People will always need sunglasses and brands like Ray-Ban and Oakley have paved the way for others to charge several $100s for a pair. Because of their light weight (lower shipping cost) and minimal use of materials (low product cost), sunglasses can be a great product to sell.
4. Phone Cases
Phone cases have become a fashion statement and because there are always new models and bigger sizes, dropshipping phone cases can be a great place to start. People also use different cases on different days, so a consumer is willing to buy more than one. The competition is high, but so is the market, especially if your case is unique.
5. Ceramic Cookware
Non-toxic cookware brands like Caraway have grown quickly over the last five years due to fear around non-stick cookware, which has potentially harmful chemicals. Ceramic cookware is a great product because the current brands can be much more expensive than standard cookware. Just be sure to have enough margin to offset the shipping costs, as cookware is a heavier item.
6. Essential Oils
Aromatherapy is now a well-established routine, so essential oils can be a great product for consumers looking for different scents. Additionally, it’s a small, compact product and margins are high.
7. Sandals
Whether worn around the house or to the beach, sandals are used by just about everyone. Crocs is one of Amazon’s best selling products and with summer right around the corner, there’s an opportunity to market different materials and styles. Like shoes, people also buy multiple pairs for different occasions, so there’s a big market for multiple brands.
8. Bluetooth Tracking Tag
Everyone hates losing their phone and solutions like Tile and Apple Tags can be quite expensive. Bluetooth tracking tags can work as a fashion keychain and are an incredibly useful product. Dropshipping this product would also make for easy problem-solution marketing campaigns.
9. Activity-Specific Headphones & Earphones
AirPods are expensive and aren’t great for working out with, but it seems like just about everyone still uses them. A product that is designed specifically for running or other physical activities is a great differentiated product. You could also offer vibrant colors and fun designs different from the basic white or black colors currently used the most.
10. Specialty Kitchen Storage
Because homes have so many spices, ingredients, and snacks, reusable storage containers help people find something different than traditional plastic Tupperware. Containers with intricate designs are typically found only in specialty stores, so making them available online is a smart opportunity.
11. Countertop Ice Makers
When the temperature increases, people are desperately looking for ways to cool off. Countertop ice makers are one of Amazon’s best selling products in the appliance category and let people have the same ice nuggets that they’d get at a restaurant — and it saves time from filling up ice trays.
12. Acne Products
Face and body acne is one of the biggest problems that younger generations face in growing up. Acne products are one of the bestselling products in Amazon’s personal care category and marketing them to those demographics on Instagram and TikTok would be providing a solution to a massive market.
13. Elevated Lotion
Skincare, and specifically lotion, is so widely used that there’s a large opportunity for different ingredients, body areas, and purposes. Most lotion bought from the drugstore or supermarket is cheap and ineffective. Marketing a luxury lotion could be a great way to stand out — and charge more.
14. Basic T-Shirts
Think Hanes or Fruit of the Loom own the t-shirt market? Think again. Multiple ecommerce brands like Fresh Clean Threads and True Classic have built massive businesses selling blank t-shirts. People will always need shirts, so selling more comfortable shirts with better materials (such as merino wool or performance fabric) is a great opportunity.
15. Gel Dust Remover
People spend so much time typing on their computer or driving in their car. Dust and small specks constantly build up and make everything dirty. Gel dust removers solve a massive problem with an easy solution — and it has an extremely low cost.
16. Bed Sheets
As homeowners upgrade their space and college students go back to school, bed sheets are a home product that frequently gets upgraded. Differentiators like high-quality cotton or antimicrobial properties allow for unique marketing and high margins.
17. Journals & Notebooks
Products that get used daily are one of the most important aspects of a good item for dropshipping. Whether for school or the office, journals and notebooks get used quickly. Scratch pads with graphic covers or unique materials are in high demand — especially at the start of the school year.
18. Writing Utensils
Similarly, pens and pencils are often lost or misplaced. Selling multi-packs or variety packs is a great opportunity — you could also create a bundle with both a notebook and writing utensils to increase your order value.
19. Instant-Print Kids’ Camera
Smartphones and professional cameras aren’t the only things people use to capture a special moment. This fun camera that kids can also use is an easy way to get physical photos immediately.
20. Dog Apparel
If someone has a dog, chances are that they’ll do anything for them. Dog apparel has been a rising trend and like human apparel, people are always looking for different outfits. This product is great because there’s always room for a unique spin.
21. Pet Toys
Pet toys are compact to ship and large companies like Chewy have already proven there’s a market for it. The amount of variations and characters is endless and owners love making their pets happy.
22. Crossbody Bags
One of the biggest trends in travel right now is crossbody slings. They’re smaller than a purse or backpack, but still hold essential items like keys and wallets. Another great characteristic of this product is that they’re gender neutral — both men and women use these, so the market is very big.
23. Passport Holder
People typically carry their passport without a case or in a basic leather protector. Passport holders are a differentiated product and offer users the ability to create their own unique style. The best part? They ship flat so shipping costs will be lower.
Launch Your Dropshipping Store in 2024
Even with the amount of shopping options like Amazon, eBay, and millions of online brands, dropshipping is here to stay. It allows anyone to sell products online without having to manage the inventory and fulfillment.
There is a wide range of software and tools already available that make it quick and easy to launch stores. Plus, the financial relationship between the dropshipper and the supplier allows for better cash flow and larger scale.
Use tools like Amazon’s best seller list and Google Trends to find a unique product with a large market and then launch ad campaigns! Remember, there’s a lot of competition, so don’t get frustrated if your first product doesn’t make you rich — it takes time.
If you really want to succeed at dropshipping then you need the knowledge and skills to do so. Whop has many communities dedicated to dropshipping, where you can find expert advice, tips and tricks from experienced dropshippers.
Starting any new business can be overwhelming - so don't go it alone. Check out Whop's dropshipping groups to give yourself the best chance at success!
