More often than not, many people around the world begin to look for alternative sources of income or different e-commerce business models.
With the proliferation of income-generating ventures on the Internet, it has since become a rallying point for people from different walks of life.
Now, people around the world can “effortlessly” generate income through the internet, and dropshipping is one of the ventures that remain a goldmine to this day.
If you’ve ever wanted to start a profitable e-commerce business and you want to do it starting with dropshipping, we recommend you pay close attention enough so as to avoid these worst dropshipping niches.
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You will regret dropshipping items in these niches because they are not only off the trends, but they are also oversaturated. But before we dig deep, let’s look at the meaning of dropshipping.
What is Dropshipping and How Does It Work?
Some people might not be conversant with the term or concept “Dropshipping,” so here’s a clue to what it is.
Dropshipping is an e-commerce business model whereby the buyer and the seller get to facilitate transactions based on the recommendations of an intermediary or third party.
It implies that you as a dropshipper would search for potential buyers of a product in a particular niche, and once you get them, you proceed to direct the supplier to the seller to dispatch the products to the buyers while you take your percentage or cut from the deal.
As booming as the e-commerce industry is, there are many challenges and loopholes that might literally “bury” your sojourn in the world of dropshipping if you are not properly guided.
One of such costly mistakes dropshippers make is to dwell on a niche or category of products that either might have low sales or may not be favorable to venture into at a particular timeframe.
If you make any of the above dropshipping mistakes when trying to set up your e-commerce business you will definitely regret it. Dropshipping statistics has it that 90% of dropshippers fail in the beginning. Meaning, only one out of every ten succeed in dropshipping.
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On that note, you may want to read further to discover the worst dropshipping niches to avoid in 2020 and why you should avoid them like a plague at all costs. Currently, Shopify has more than 500,000 online stores across 174 countries.
Oversaturated Dropshipping Niches to Avoid Like a Plague
The following saturated dropshipping niches no longer trend and as such should be avoided, especially if you are a new startup.
1. General Clothing
There’s no denying that clothes are one of the essentialities of life.
We all need to look good at all times, and wearing eye-catching clothes is one of the ways to do that.
You may be led to believe that venturing into dropshipping general clothing would be profitable, but there’s a shocking.
You may either end up “buying” the clothes or have to make refunds when buyers begin to lay complaints.
The truth is that the general clothing niche is one of such dropshipping niches that should be treated as an egg.
The avoidance is not unconnected to the fact that some of the clothes in this category can be locally sourced. So, why should a buyer patronize you when the same clothing can be gotten at the local store and at a cheaper rate too?
So, it’s obvious that the supposed “hot product” may just be a smokescreen to lure many dropshippers to waste their time and efforts to make sales.
2. General Lifestyle Products
Here’s yet another worst dropshipping niche to avoid in 2020.
General lifestyle products may not be the perfect idea of items to dropship, and we will tell you why.
First, you need to understand that the items in this niche are mostly for household use.
Some of them are cleaning products and kitchen items like spoons and pots. Second, you must understand that the proximity of such products to the potential buyers is closer than dropshipping them from your location to theirs.
For instance, a homeowner may prefer buying his kitchen items at the local store or market than paying higher to get the same from e-commerce sites.
More so, such items are not the ones you could classify as “hot products” because they can be found everywhere.
Above all, the purchase of general lifestyle products is primarily driven by impulse and not by the need.
Therefore, the few buyers you would get purchased because they felt like doing so, and not because they actually need the products.
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3. Fragile Items
Dwelling on fragile items is one of the biggest mistakes dropshippers make, and which reduces their chances of generating return sales.
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We discourage people from dropshipping fragile items because you as the seller hardly get to have a physical insight into the products you are dropshipping.
Hence, you may not have an idea about the weight or durability of such items.
Against that backdrop, fragile items are highly susceptible to damage in the course of the last-mile delivery.
In addition to that, along the shipment process, chances are high that fragile items could receive many impacts.
That informs the reason why venturing into the fragile items niche comprising products like ceramics and glass could be a bad idea.
4. Heavy Items
Dropshipping is all about making more money online and doing fewer jobs.
On the other hand, it’s essential to factor in the financial implications of the buyers.
Therefore, heavy items have come under scrutiny because they are regarded as one of the worst dropshipping niches to avoid in 2020. Imagine shipping furniture from China to the United States and you are asked to pay 10x or even more for the cost of shipping.
They are deemed so because it’s now impossible spot the best order fulfillment or shipping company that charges cheaply. They all charge more for items that weigh more. That, in turn, implies that your buyers would have to part with more money before getting the products delivered to them.
Nobody wants to spend more. What if it damages on the way?
According to e-commerce statistics made available by Statista in 2017, an average of 40% of U.S. online shoppers canceled their orders because of too high shipping costs.
Everybody wants to spend less and gain more. So, the financial undertones to the heavy items make them one of the dropshipping niches you must avoid in 2020 like a plague.
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Stay Away from Not Good Dropshipping Niches
You’ve now had some ideas about the dropshipping niches that might have seemed profitable but are not worth your investments.
So, stay far away from them and channel your energy to profitable dropshipping niches and make the most out of your e-commerce success journey in 2020.