It is frequently asked question by beginner dropshippers, “Which is better to open, a niche store or a general store?” I understand why there is a lot of confusion on this question because there are a lot of different opinions on the subject.
I’m going to give a quick spoiler, there’re neither method is better than the other. The truth is both methods have pros and cons. So let’s jump straight into this article to see which method is right for you.
There are two reasons to open a general store:
- They make the most money.
- They are less work in the long run.
General stores can easily make the most money. Because of the you’ve got more potential customers for your store. A good example of a potential general store that you could make is one about pets instead of building a site around a specific type of pet like a dog, or a cat or even a store that’s more specific in niche like focusing on a specific type of breed of dogs such as a poodle or a labrador retriever. You decide to make your store about a more general topic -pets. Now, you can sell to people that have dogs, you can sell to people that have cats, you can sell to people that have birds, you can sell to people that have fishes because you have accessed here so many more customers. You obviously can make more money from the single store.
But, there is another reason why general store cheerleaders like them so much, and that’s you’ve got access to a whole lot more products. This is more important than you might think. Because paid ads like Facebook ads is that over time they tend to become saturated. When this happens, the ad will start to fall off. Perhaps in four months your ad has been super hot, the product has been selling like crazy and you’ll be making a thousand dollars a day from a single item. But eventually the ad audience becomes saturated. The ad cools off, the engagement cools off, and so do the sales.
Now, this doesn’t mean that the ad is dead forever. A really good practice is to shelve the ad for a few months and then to restart the game with the fresh audience. But what it does mean is that you have now lost your winning item. You’ve gone from making a thousand dollars a day to making zero dollars a day.
There is actually an easy way to avoid going from a thousand dollars a day to zero dollars a day and that is to not be lazy and to keep testing products. The successful six figures dropshippers do this. When they find a $1000 a day winning product, they don’t just sit back and stop there. They keep testing more products and they keep finding more winning items. They don’t just do this, so they can keep earning more money. They do this so that they have other winning items when one becomes saturated.
Once you’ve got a successful store that targets one niche, you could then go and create another store that targets a different nation. But the truth is building up new niche stores from scratch rather than just adding in new products to an existing store to test is definitely going to be more work. All of this means with a general store, you can make more money in the long term with just a single store because of the fact that you have access to far more customers. And in long term, it’s going to require less work to be testing and finding new winning items.
So at this point, you’re probably thinking, ”Then, why are you recommending niche stores in your articles?”
Well, here are the reasons:
- They make money faster for beginners.
- They are easier for beginners to convert sales.
Niche stores are much easier for beginners to initially make money in sales from. This is for two reasons:
1- You can brand your store around the niche:
When a customer comes into a store after seeing item that’s related to their favorite pet, and they see your logo is about it too, they know this store is for them.
When they go to your perfectly created About Us page, and see that you are passionately talking about pets, they love it. It creates much stronger branding, and it gives your site of personality.
General stores struggle with branding in the early stages for this reason. And branding does two important things —it builds a connection between you and your prospective customer, plus it builds trust as well.
The more cost feel connected and the more but the customers trust you, your conversion rate will be higher. In other words, making sales will be easier.
2- It’s much easier to make upsells and cross-sells:
When a cat owner comes to a site about pets, they’re gonna see a lot of items that are not relevant to them at all. They don’t have a fish, they don’t care about those items, they don’t have a dog, they don’t want to buy dog related items, so when they click onto your homepage and see these categories, they’re not gonna be very interested.
On the other hand, if they were to click onto your homepage and see that the other items and the categories listed on there, they would be far more interested. It makes it much easier for you to do follow-up marketing with email newsletters and social media. Because, whatever the item is that you’re promoting, it’s going to be relevant to all of your customers so you will get a much higher conversion not only from people purchasing your initial items, but from follow-up campaigns as well. They will be more likely to pay attention to your follow-up campaigns in the future because they know that the last one sent to them was relevant to the interests.
What this all means is that beginners tend to have success in find winning items faster when they open niche stores. Honestly, I recommend niche tools. Because I know for many of you out there that are just beginning, and you don’t know if all of those actually works or not, and that is okay.
Right now it sort of seems like a pipe dream that you could have the store where if you spend money on ads that makes more money back, then you spent that is super cool, but also kind of super strange. You’re used to having to exchange your time for money, you’re used to making money from a job, that’s how you make money right?
There is a fog, fuzziness until you make your first dollar online. It’s a dream that you’re not really sure if it’s real or not. But when you do make your first dollar online, everything just clicks because now you see that it works and your motivation levels skyrocket because now you believe in it.
So ultimately, it comes down to this scaling your business from five figures a month to over six figures a month for dropshipping is going to be a lot easier with a general store.
But scaling your business from zero dollars a month to five figures a month is going to be a lot easier in a nice store. Each has their own pros and cons, and you need to pick the one that is right for you.
Muammer is a Marketing Analytics Manager at Turkcell. His mission is to empower entrepreneurs and to help them achieve their goals. He also has a passion for illustration.