How to Start a Dropshipping Hair Business

Dropshipping has emerged as a prevalent business model within the ecommerce landscape. In this approach, you market and vend products without the obligation to maintain inventory or handle shipping processes personally. 

You establish a partnership with a supplier responsible for managing inventory, packaging, and the transportation of products to your customer base. You only pay for the products you sell and keep the difference between your selling price and the supplier’s price.

Dropshipping hair products can be a lucrative niche for aspiring entrepreneurs who want to tap into the growing demand for hair extensions, wigs, and accessories. As per data from Grand View Research, the worldwide market dimensions for hair wigs and extensions reached a valuation of USD 6.01 billion in 2018. Projections indicate a foreseen expansion with a compounded annual growth rate (CAGR) of 8.7% between 2019 and 2025.

But how do you start a dropshipping hair business from scratch? What steps are involved, and what challenges might you face? In this guide, we’ll answer some of the most frequently asked questions about dropshipping hair products and share some tips and best practices to help you succeed.

What is Dropshipping, and how does it work?

Dropshipping constitutes a business framework in which you market items without personally maintaining inventory or orchestrating shipping procedures. This model involves collaborating with a supplier who undertakes responsibilities such as managing inventory, packaging, and conveying the products to your clientele.

The distinguishing aspect is that you solely incur expenses for the products you successfully vend, thereby retaining the disparity between your retail price and the supplier’s cost.

For example, you want to sell human hair extensions on your online store. You find a supplier who offers high-quality hair extensions at wholesale prices. You list their products in your store and set your prices. When a customer orders in your store, you forward the order details and payment to your supplier.

Subsequently, the supplier directly ships the product to your customer, bypassing any inclusion of their branding or invoice. This setup alleviates your concerns regarding product storage, packaging, and shipping, as these tasks are entirely managed by the supplier, allowing you to focus on other aspects of your business.

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Is Dropshipping hair profitable?

Dropshipping hair and wigs can be a profitable business idea, depending on your target market, product quality, and marketing strategy. Dropshipping is an online sales strategy that enables you to offer products without the need to store or ship them personally. Instead, you collaborate with a supplier who takes charge of inventory management, packaging, and shipping the products to your clientele.

This approach allows you to concentrate on marketing and customer support, leading to time and cost savings in logistics management.

 hair dropshipping business

Dropshipping hair products, such as extensions, wigs, and accessories, can be a lucrative niche for online sellers. Based on findings from a Grand View Research report, the global market size for hair wigs and extensions was assessed at USD 6.0 billion in 2019.

Anticipated trends project a compound annual growth rate (CAGR) of 13.4% from 2020 to 2027 for this market segment. Various factors, such as fashion trends, celebrity influence, personal grooming, health issues, and cultural or religious practices, drive the demand for hair products.

Benefits of Dropshipping Business

Some of the benefits of dropshipping are:

  • Low startup costs: You don’t need to invest in inventory, warehousing, or shipping equipment. Commencing with a modest budget allows for gradual expansion as your business progresses.
  • Low risk: You don’t have to deal with unsold inventory, overstocking, or product obsolescence. You only buy what you sell, so you don’t lose money on products that don’t sell.
  • High flexibility: You can sell a wide range of products without being limited by space or capital. You can also test different products and niches without committing to them.
  • High scalability: You can leverage the power of your suppliers to fulfill orders as you grow. You don’t have to worry about hiring staff, managing inventory, or expanding your operations.

How to choose a niche for your Dropshipping hair business?

Selecting a niche constitutes a pivotal phase in launching a dropshipping hair business, as it facilitates targeted market focus and differentiation in a competitive landscape. Several key factors to contemplate when determining your niche include:

  • Your passion and interest: You should choose a niche that you are passionate about and have some knowledge of. It will make it easier for you to create content, engage with customers, and build trust and loyalty.
  • The demand and profitability: You should choose a niche with high demand and profitability potential. To explore the dimensions of your chosen niche, trends, and relevant keywords, you can leverage tools such as Google Trends, Keyword Planner, and Sell The Trend.
  • The competition and differentiation: You should choose a niche with low to medium competition but not too saturated. Moreover, it’s crucial to establish a means of distinguishing yourself from competitors by presenting exclusive products, value propositions, or branding elements.

Some examples of niches for dropshipping hair products are:

  • Natural hair extensions: This niche serves customers seeking to enhance their natural hair texture and length by utilizing extensions crafted from human or synthetic hair that align seamlessly with their curl pattern.
  • Lace front wigs: This niche caters to customers who want to achieve a realistic look with wigs that have a lace front that blends with their hairline and scalp.
  • Hair accessories: This niche caters to customers who want to accessorize their hair with clips, pins, bands, combs, or other items that add style and flair to their hair.

How to Start a Dropshipping hair business

To start a dropshipping hair business, adopt and implement the following guide.

Choose a niche and target market.

You should decide what hair products you want to sell, such as human hair, synthetic hair, wigs, extensions, accessories, etc. You should also research your target audience, their preferences, needs, pain points, and buying behavior. Tools such as Google Trends, Keyword Planner, and Facebook Audience Insights can be employed to uncover the queries and areas of interest people are actively searching for.

Find a reliable supplier.

You should look for a reputable and trustworthy supplier that can provide high-quality hair products at competitive prices and fast shipping times. Then you should also check their reviews, ratings, policies, and customer service. You can use platforms like AliExpress, Spocket, Oberlo, etc., to find and connect with potential suppliers.

Build your online store.

Developing a professional website that effectively presents your products and conveys your brand identity is advisable. You should also optimize your site for SEO, mobile-friendliness, speed, security, and user experience. You can use platforms like Shopify, WooCommerce, BigCommerce, etc., to build and host your online store quickly and affordably.

Market your store

By employing a range of channels and strategies, ensure you effectively market your store and products to your intended audience. You should also create engaging and valuable content that educates, entertains, and persuades your potential customers. To channel traffic and facilitate conversions to your store, strategies like social media marketing, email marketing, influencer marketing, content marketing, and paid advertising can be harnessed effectively.

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Challenges of Dropshipping Business

The challenges of dropshipping are:

  • High competition: Given the widespread popularity and accessibility of dropshipping for commencing an online business, it’s essential to recognize that numerous other sellers are also marketing similar products. To thrive in this environment, you must devise tactics that set you apart from competitors and captivate the attention of potential customers.
  • Low margins: Dropshipping is a low-margin business model, meaning you must sell many products to make a profit. You must also factor in marketing, hosting, payment processing, and customer service costs.
  • Low control: Dropshipping relies on third-party suppliers who may only sometimes meet your expectations or standards. You need more control over the product quality, availability, delivery time, or customer experience. You must also deal with refunds, returns, disputes, and complaints.


With your enhanced understanding of hair dropshipping, take a moment to reevaluate if this business aligns perfectly with your goals. If you decide to seize this opportunity, keep in mind the five tips to fortify your online store.

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