after being in dropshipping for quite some time, I have realized that there's no such thing as an oversaturated product… If anything, winning products = oversaturated products.
Oversaturated means there's a massive demand for Your product, and that people are buying the product already. This is literally the definition of a winning product.
Having many competitors is proof that it's an easy niche to sell in because there already exists a large market for Your product and that other competitors have already succeeded in the niche. You also have competitors from whom You can learn about branding, marketing etc. Having competitors means there's always something You can do better than Your competitors.
Trying to find the perfect product is impossible and many new dropshippers get stuck in this cycle of analysis paralysis. Just look for a niche that many other stores are in already.
Everyone knows it's easier to sell to a popular product to an existing audience rather than trying to push some product no-one knows about to an audience that does not exist.
I used to think that oversaturated products are bad as well but I recently bought a turnkey dropshipping store in a niche that some would consider oversaturated, but much to my surprise my products are selling very well, my conversion rate is soaring and I get a lot of traffic with low CPC ads.
I have tried 3 times to start my own dropshipping store with some weird products that noone else was selling yet. Now I am selling an "oversaturated" product and I have already gotten over 15 sales within 5 days with nice profit margins.
TL:DR: Oversaturated products don't exist. Oversaturated products = winning products. Don't be discouraged to sell an oversaturated product.