There are different types of successful dropshipping stores. When you want to start dropshipping, you have to build an online store to sell your products but the type of dropshipping store you choose to build can determine if your store will succeed or fail.
Although people have been successful in each of these stores, your success in them is determined by different factors.
So, we will discuss the 3 different types of successful dropshipping stores, pros and cons of each in order to decide which is best for you.
So let’s begin
1) One-Product Dropshipping Store
One-product store, as the name connotes, is a dropshipping store that focuses on selling only 1 product. For example, you might be going through Oberlo, looking for a winning product, and decide to sell only yoga mats. You then build an online store with Shopify and optimize it to sell only those yoga mats, this is called a one-product store. This type of store has various pros and cons, so let’s discuss them
A) It’s time effective; if you have ever built any type of store, 1 product store or not, you will understand why this is such a big advantage. With only 1 product to import, you don’t have to write numerous descriptions, do SEO on them and even import numerous images for 100,200,300 products, you only have to do that for just 1 product.
B)Increases conversion rate; A one-product store is more like a sales funnel for that product, this has proven to increase the conversion rate of stores. It has been psychologically proven that the presence of multiple choices leads to a low conversion rate but when you just have one product with no other “distractions”, the possibility of successfully making that sale is higher.
A)It requires a high level of expertise to succeed; This type of store is best for Pro-dropshippers and not beginners because running a successful one-product store is difficult as it involves a lot of expertise to make it work. You see all those Youtube videos where someone opens a one-product store and sells out, it’s possible but only because that Youtuber is most likely an expert, so if you are a beginner, this might not be the best choice for you.
B)It’s expensive; As a general rule for success in dropshipping, you have to do a lot of product testing. Since it’s just one product per store, you will have to make a number of one-product stores and fill each store with one product and test each of them. Now, that’s quite a lot of money.
2)General Dropshipping Store
This is the extreme version of a one-product store where different categories of products are sold, from home decor to beauty, to pet products, and more. Let’s look at the pros and cons of this store to guide you in your decision
A)This type of store can enable you to reach a large number of different types of audiences, so, there is a probability that everyone that visits the store will be interested in at least one product.
B)This store enables you to test different products at the same time as opposed to a one-product store, where you have to make multiple stores in order to test multiple products, hence this makes it better for beginners.
C)This store is good for both experts and beginners.
A)Testing can be quite expensive because these different products have different audiences, so even if it’s good, it’s expensive on Facebook, Instagram, Snapchat, etc ads.
B)Now someone interested in beauty products is more likely to buy them from a beauty niche store than to buy them from a general store that also sells home decor, cooking appliances, etc.
A niche store is a store that focuses on selling products in one category, so for example, a beauty niche store can sell hair extensions, eyeshadows, lipstick e.t.c. A niche store, specifically a branded niche store in my opinion is the very best for you whether you are a beginner or not, let’s see the pros.
A)You can test different products at the same time without changing the audience or store. Remember that in a one-product store, you need to change the store and most times the audience (more expensive) and in a general store, you will need to change the audience (more expensive).
B)This store has the advantage of being able to effectively do upsells.
Upsell is when you suggest another product for someone already buying a product in order to increase the total average sale. It is a very powerful strategy to make a lot of sales because the customer is already ready to buy so adding an extra product is more probable.
Even though you can also do an upsell in a general store, it’s more effective in a niche store because the likelihood of someone buying a hair extension to also buy lipstick is very high, much higher than if you were trying to upsell a cooking pot to someone buying a yoga mat.
C)This store increase customer lifetime value and this is very important because it’s proven that it costs 5X more to get a new customer than to keep a customer coming back over and over to buy more things because if a customer has bought a hair extension from your store before, he/she is more likely to come back and buy more of that same product or any other beauty product.
D)A niche store especially a branded niche store, has the advantage of
- Being less expensive because, since it’s only one store with products in one category, if you are advertising using Facebook ads, the pixel focuses on just one audience which is cheaper than having multiple audiences.
- Having the email address of customers can be used for free advertising of your products.
E)With a niche store, you have the opportunity to brand your store and I don’t mean just making a logo, I mean humanizing your store by growing the influence and presence of your niche store on social media like Facebook, Instagram, youtube, etc.
F) At this point, once your niche store is branded, it has the potential of exploding in sales and having longevity, making sales for generations to come.
So we just discussed the 3 different types of successful dropshipping stores
1)One-product Dropshipping Store is one of the different types of successful dropshipping stores.
2)General Dropshipping Store is one of the different types of successful dropshipping stores.
3)Niche Dropshipping Store is one of the different types of successful dropshipping stores.
With their associated pros and cons in order to guide you in your decision of choice of store based on your level in the dropshipping business.
In my opinion,
1)One-product dropshipping store is good for experts but not for beginners
2)General dropshipping store is better than one-product store for beginners and also good for experts
3)Niche dropshipping stores, especially branded niche stores, are the very best for both beginners and experts.