5 Best Niche Dropshipping Products with High Profit Margin
I think you’d agree with me when I say -
Dropshipping products with high profit margins is better than dropshipping cheap trending products.
Or is it?
With AI on the rise a lot of people are shifting towards AliExpress dropshipping, and it's more important than ever to create a side hustle for you.
Whether you are thinking of launching a dropshipping store as a full-timer, or want to start it as a side-hustle, we’ve got it both covered. In this article I have covered -
- My favorite dropshipping niche for high profit
- Personal product recommendations (music instruments, infrared saunas, recliner chairs)
- Strategies I learnt from dropshipping course
But before I get started, I’d like to mention a few quick things.
Quick things to consider when selecting high profit products
Yeah I won’t bore you with those generic advice like fast shipping, trust ratings, but here’s my NTP rule for high profit products -
- Not less than $50 - It is difficult to run ads, offer free shipping, and make the store profitable under this amount because of dropshipping saturation.
- Trending or high profit - Choose trending or high-profit, but if you’ve to choose one go with the latter.
- Profit calculation - You can use a profit calculator to know the profit in hands after cut-down expenses, be precise with numbers.
Best High Profit Dropshipping Niche and Products
1. Beauty & Cosmetics
The Beauty and Cosmetics niche is currently the second most trending dropshipping niche, products like skin care serums are always popular on TikTok.
NOTE - Trend is just one indicator, there are many other things like winning products, competition rate,.. That decides the overall picture.
Beauty products not only have high repeated orders & retention but also low production cost. It is then sold at a 3x-5x markup price. Products like Hydronic serums are a good example of this. It will cost you $1 to $3 production cost and you can sell it for $20-$30.
“The best” way to dropship beauty and wellness products is to select a product, offer really-high quality raw materials, showcase certifications and purity proof on your store, and build a brand. Sell trending products like magnetic eyelashes that cost $5 and can be sold for $40 but use high quality material, work for the bigger picture.
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High profit because - High-profit margins, repeat customers, and viral social media potential. Best sellers - LED Face masks, hair growth laser caps, My favourite - Private label cosmetics Best conversions with - TikTok Influencers & Organic Instagram reviews |
2. Health and wellness
Health and wellness is not only one of the most popular but also offers the most high profit dropshipping products.
You can either easily find some good wellness products from marketplaces like Etsy or Amazon.
Manifest Wellness, for example, sells small batches with organic and pure ingredients. You can start with something trendy like Magnesium body butter from Etsy.
But if you are willing to put in some work, I would recommend you to go with high ticket dropshipping. Start with something as expensive as $1000-$1500 so you can have higher profit margin and lesser competition.
One good example of this is the infrared sauna. There are suppliers like JNH Lifestyle or Enlighten sauna that offer high quality, USA manufacturing dropship services.
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High profit because - Growing interest in health and evergreen/evolving trends Best sellers - Massage guns, infrared blanket, portable ice bath tubs My favourite - Infrared Sauna Best conversions with - SEO, YouTube reviews, Google shopping |
3. Coffee & Speciality drinks
This is one of the hidden niche with less competition because -
- Higher profit margin - Wholesale or dropship coffee bags (12oz) costs around $10-$15 and are sold at $20 to $35 based on the brand value. The average profit margin is 40% to 60%.
- High AOV - Average order value is high as people buy either multiple bags or subscribe for a monthly basis.
- Growing market - In 2025 the coffee market amounts to 96.45 Billion as per Statista report.
Now you can go with trending blends (Mushroom coffee) or popular brands from Oberlo. But what I would do is to go with private label coffee dropshipping. This will help you build a brand and create a recurring revenue business model.
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High profit because - Niche coffee culture Best sellers - Fresh coffee blends, smart coffee mug warmers My favourite - white labeled or branded coffee Best conversions with - Instagram Reels |
4. Jewelry & Accessories
2024 was the best time for dropshipping personalized jewelry with etsy, currently it is a bit saturated. But don’t worry because jewelry is still the high profit product to sell online in 2025.
Print on demand jewelry and dropshipping jewelry suppliers offer products for $30 - $50 on average and you can sell it at 3x-4x price and easily generate 50% to 80% profit margin.
It is also light-weight so less shipping cost and you can easily upsell for higher AOV. There are high margin dropshipping products like astrology jewelry, minimalist silver jewelry, eco-friendly jewelry.
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High profit because - Higher perceived value Best sellers - Astrology stones rings, touch vibration bracelets, healing pendants My favourite - Personalized/POD jewelry on Etsy Best conversions with - TikTok, Instagram Reels, Facebook ads |
5. CBD & Relaxation
Last product category for high profit dropshipping is CBD. It is the only niche that I haven’t tried out myself but built a few CBD stores for my clients and students, and the results are enormous.
I can guarantee you that it is one of the least competitive, high profit, fast growing models that you can work on. I personally saw 200% to 700% markup price. Similar to coffee it is a subscription based business. The profit on average is $20 to $30 per product (higher than a new coffee store).
There are, however, regulations for selling it online. You can start with Shopify eCommerce platform but look for payment gateway for CBD before getting started.
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High profit because - Demand for stress relief Best sellers - CBD gummies, CBD massage oils, pet treats My favourite - Private label CBD products Best conversions with - SEO, Influencer marketing |
Low profit dropshipping products I avoid
There are some products that you should avoid. There is no hard-fast rule, you can make any business profitable but this is my personal experience -
- Fast fashion - Higher return rate and included in to feel-good category
- Cheap tech - Trending cheap tech affects brandability.
- Home decor - Highly competitive and hard to build brand
- Wholesale dropshipping - Higher investment rate
How to find dropshipping products with high profit
If you find a product that is good profit-wise but can’t find a supplier, you can use any of the below strategies -
Use product sourcing & dropshipping platforms
There are product sourcing platforms like Oberlo that list trending products with supplier details from AliExpress. And there are dropshipping platforms like Spocket that list pre-verified suppliers and products. You have to manually sign up on each one for free and look for the product as they are not open to generic Google search.
Reverse engineering method
Search for the product you want to sell. For example, “luxury home appliances”. Next click on the Google ads and analyze the top options with apps like Semrush. If there is a seller with multiple products, they are likely dropshipping. Simply reach out to the brands listed on the store.
AliExpress Dropshipping center
This is a less popular place for product sourcing. AliExpress list the most selling, popular products on this platform. You can easily find good, high profit dropshipping products here.
Work with dropshipping agent
A dropshipping agent is the one with info on top trends and best suppliers, you can hire a dropshipping agent for finding your product supplier.
Look for high ticket affiliate program
Lastly check out high ticket affiliate program, most of them are likely to work with you an online retailer or dropshipper.
Still can't find, check out my collection for dropshippers or Print on Demand, or reach out to me with contact page