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Dropshipping Business 101: Niche vs. General Store, Which One is Better?

dropshipping business 101

Most people struggle when it comes to deciding the business plan for their eCommerce store. Choosing between niche and the general store might look confusing at the start, but the answer becomes obvious once you start to dig deeper.

Dropshipping has been a popular business model for quite a while, and the majority of people are wondering is dropshipping is still profitable. The answer is YES!

If fact, dropshipping is at its highest peak if we look at Google trends. Plus, the latest situation with the coronavirus change people’s buying behavior by increasing online shopping.

So, if you are ready to start your dropshipping business but still don’t know whether to with niche or general store, we are here to clear things up.

Niche Store

Niche dropshipping store is a model that targets specific niche products in sub-categories. This means that if you choose to go with a niche store, you should put sell products on your store that are related to that niche.

The whole point for creating a niche store is to improve targeting. Nowadays, people spend tons of money on ads, and the only way to improve conversions is if you target people that are interested in those products. For example, you can go with NBA products as your dropshipping model.

However, even the NBA has a broad selection of products, and you should narrow your target audience even more by going for sub-category like jerseys from the best sports teams.

In order to choose which one is better, we will go through the advantages and disadvantages that each model will bring to you.

Pros of Niche Store

  • Gets more focused traffic

The best thing about niche dropshipping store is the focused traffic. The only people that will come to your store will be people who are interested in that particular niche. At the end of the day, it is much better to have ten visitors with five purchases rather than 100 visitors with one purchase on your store.

  • Easier to Rank

Since you will be competing against other stores in a particular niche, it is much easier to rank higher on search engines rather than creating a general store where you have to go through all eCommerce websites.

  • Better Conversions

If you have a niche store, it will be much easier to transform visitors to your customers since they are already interested in such products. Improving conversion will also lower the cost of your advertising, which is a huge deal in dropshipping.

Cons of Niche Store

  • Requires a lot of Testing

Targeting a specific niche might look very straightforward process, but trust me, it is not. It actually requires a lot of testing through trial and error until you find the niche that performs best.

  • Hard for Beginners

If you are just starting with dropshipping, a general store will be a much easier option for you since you don’t have to go through the process of selection of niche products.

General Store

On the other hand, the general store is where you showcase products from various categories. This is a flexible dropshipping store that easily is converted into something else if the products are not selling well enough. If you decide to go with a general store you can sell products from different industries like a garden, smartphones, clothing and etc.

Pros of General store

  • Easier for Beginners

A general store is much easier for beginners who still don’t have that dropshipping sense for winning products. If something is not working, you can easily find an alternative.

  • Broader Audience

Obviously, since you will have products from different categories, you will have a bigger target audience.

Cons of General store

  • Lower Conversion Rates

Since your general store doesn’t attract people with the same interest, the conversion rates are much lower. This means that people who are visiting your store might not be interested in purchasing such products.

  • Large Irrelevant Traffic

Gathering traffic might sound good, but it is pointless if they don’t make a purchase. Plus, as a general store, you will waste a lot of money on advertising that will bring irrelevant traffic to your website.

  • Higher Competition

There are thousands of general stores worldwide, and each and every one of them will be your competition. This means that it will be much harder to rank on top pages on search engines.

Final Words

Obviously, the winner is a niche store. Even though the idea behind a niche store might be more difficult, you can still learn the process faster than a horse in the Kentucky Derby odds and create a successful niche store. There are many benefits that come by choosing a niche store, and it is the only way to succeed in the competitive dropshipping world.

About the author

Tirupati Gumpula

Hi, I'm a Tech Enthusiastic and founder of Popular technology blogsWay to Hunt. & Elite Tricks. Want to promote your brand? Email: [email protected]

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