When opening a dropshipping store, you have a lot of decisions ahead of you. You’ll need to decide what software you’re going to use, web hosting, marketing channels, and a thousand other small decisions, but none of them are as important as this.
What are you going to sell?
There are two main routes that most dropshipping stores take. One example is already familiar to you: Amazon! Amazon is a general dropshipping store that offers everything you can possibly imagine. Most general dropshipping stores nowadays don’t start with as wide a range of products as Amazon, but starting with a general range of products is a viable option.
The second option is to create a dropshipping store around a niche. That’s the kind of store built around a single type of product, and a lot of people are finding success with that option, too.
The question is: which one of these options is more effective?
Let’s take a look at these two groups in terms of competition.
In a general dropshipping store, your competition will be overwhelming. Because you’re promoting a huge number of products, you’ll then have multiple competitors for each one, making squeezing out a place for you in a market extremely difficult. Standing out in the crowd will be hard, because you’ll either be forced to lower your prices to the point of bankruptcy, or compete with retail giants who offer much more selection than you do.
With a niche store, you will have less of a selection, but you’ll also have less competition.If, for – example, your niche is small-batch coffee, you’ll only have to worry about other stores selling small-batch coffee, and have less worry about being drowned out by big retail chains.
The workload in a general merchandise dropshipping store is massive. You’ll have numerous products to select, market, and sell. You’ll be responsible for a different kind of customer service for each, and spend more time than you’ll have as a new business owner editing the default product descriptions from AliExpress to something original in order to avoid bad SEO.
Meanwhile, with a niche store, you’ll be responsible for a small, focused number of products, and with a smaller product range, you’ll have more opportunity to provide a range of products you’re interested in and knowledgeable on, which creates better descriptions and stronger SEO.
Focus is the key to marketing.
Unfortunately, with a general merchandise dropshipping store, focus is almost impossible. Who is your audience? Everyone? That is bad news for marketing campaigns because you cannot focus on a specific demographic. It’s awful for SEO, because not having a focus for your products makes it nearly impossible to rank for keywords, which can kill your business right out of the gate.
With a niche store, however, you can focus on your keywords, make sure that your ad campaigns reach a specific demographic, and make sure that you provide valuable knowledge to your customers who are looking for the answer to a specific problem.
General dropshipping stores can sound tempting a first, but we’ve found that niche stores, in the end, tend to be more effective. Narrowing your customer base can seem like a bad move at first, but look at it deeper, and you’ll find that niche stores come with less competition, better SEO, and more effective ad campaigns, making for a more effective overall dropshipping store experience.