Drop Shipping Niche Selection Criteria

AliExpress products quantity. We look at the number of items that can be found here upon the use of a particular keyword. We only include the items that have the free shipping option and the 4*+ rating.

• If we can find more than 2 000 items, the score we assign to this niche is 5*;
• For 500 – 1 999 items the score is 4,5*;
• For 100 – 499 items the score is 4*;
• For 1-99 items the score is 3*.

The niche popularity on AliExpress. We set the same parameters and sort the items by the number of orders. Then we take the first 10 items and calculate the arithmetic mean of the number of orders.

• If the arithmetic mean is more than 2 000 orders, the score we assign to this niche is 5*;
• For 500 – 1 999 orders the score is 4,5*;
• For 100 – 499 orders the score is 4*;
• For 1-99 orders the score is 3*.

Trusted supplier. We set the same parameters, take the first 10 stores, and evaluate them by the same parameters as AliExpress itself does:

− How long the store has been in operation;
− What its feedback score is;
− What the percentage of its positive feedback is;
− How much the items fit their descriptions;
− How good the communication is;
− How satisfactory the shipping speed is.

We consider all these parameters, but, in our opinion, the percentage of positive feedback is the most important. Customer satisfaction is the key factor to a store’s commercial success. This is why we calculate the arithmetic mean of the feedback score for these first 10 stores:

• If the arithmetic mean is more than 96%, the score we assign to this niche is 5*;
• For 95% – 95,9% the score is 4,5*;
• For 94% – 94,9% the score is 4*;
• For 93% – 93,9% the score is 3*.

Price setting aspects. We are surely most interested in the products and drop shipping niches where a considerable markup is possible.

It is exactly the case for the majority of simple basic goods offered on AliExpress because their prices are really low. It means there’s no problem with setting a higher price on our drop shipping website – it will anyway be lower than the price of competitors’ goods, so our customers will be satisfied with the purchase, and we will be happy with the profit.

To estimate the margin potential, we take the price of the most popular item in the niche and look this item up in 10 other online stores. We calculate the arithmetic mean of these 10 different prices (i.e. the average market price) and compare it to the price set by AliExpress seller.

•If the difference is more than 250%, the score we assign to this niche is 5*;
•For 100% – 249% the score is 4,5*;
•For 50% – 99% the score is 4*;
•For 1% – 49% the score is 3*.

Google Trends is a wonderful instrument that gives you the necessary insight into general public interest towards particular products. This service is designed to analyse search trends, so it’s perfect for your business because it shows:

• How the search volume changes over time;
• Where the people searching for this term live;
• What the most popular search term are;
• Whether the interest towars this search query is seasonal.

• If the trend is ascending, the score we assign to this niche is 5*;
• For a flat trend the score is 4*;
• For a descending trend the score is 3*.

To evaluate how promising this drop shipping niche is, we use the following criteria:

• If there are more than 10 accounts with more than 30 000 followers, the score we assign to this niche is 5*;
• For 5-9 accounts the score is 4,5*;
• For 1-4 accounts the score is 4*;
• For 0 accounts with this amount of followers the score is 3*.

• If there are more than 10 groups with more than 30 000 members, the score we assign to this niche is 5*;
• For 5-9 groups the score is 4,5*;
• For 1-4 groups the score is 4*;
• For 0 groups with this amount of subscribers the score is 3*.

• If there are 5K-50K searches, the score we assign to this drop shipping niche is 5* since it’s perfect in terms of competition;
• For 50K-100K the score is 4* – the competition is great, but there still might be a place for you;
• For ≤ 5K searches the score is 3* – the niche is all yours, but there’s no profit in it;
• For ≥ 100K the score is 2* – the competition is too high, no chances to win.

• If there are 10K-100K pages, the score we assign to this niche is 5* since it’s perfect in terms of competition;
• For 3K-10K pages the score is 4* – you’ll have to work hard to win the competition but it will be worth it;
• For ≤ 3K pages the score is 3* – the competition is pretty low but profits are not high;
• For ≥ 100K the score is 2* – the competition is too high, no chances to win.

• If “Difficulty” reaches the mark of 0-40, the score we assign to this niche is 5*;
• For 41-60 the score is 4*;
• For 61-80 pages the score is 3*;
• For 81-100 the score is 2*.

• If the 1st page is mainly taken by giants but there are up to 4 places taken by Easy Target results, the score we assign to this niche is 5* – this is the most preferable result where you can get a good spot in the competition and enjoy good profits;
• If the 1st page is fully taken by giants, the score is 4* – the competition is extremely high and your chances are rather slim;
• If the majority of the results on the 1st page are Easy Target, the score is 3* – you can win the competition but profits won’t be worth it;
• If the 1st and 2nd pages are taken by giants, the score is 2* – your chances for a commercially successful venture are insignificantly low.